Guyana Goldfields Inc. yesterday said that the Company has passed a major milestone towards initial production of gold with the commencement of the commissioning of its gold processing plant earlier this week.The Company disclosed that it has commenced the commissioning of its semi autonomous grinding (SAG) mill, its power plant generators and the water and air support systems and as a result the Aurora Gold Project remains on track for projected initial gold production in mid-2015.

“The commissioning of the mill circuit is a major milestone which we’ve been able to deliver on schedule and brings us one step closer to initial production,” Scott A. Caldwell, President & Chief Executive Officer disclosed.
“GGI is on track to start-up the gravity gold and saprolite production circuits for mid-2015 which would allow for earlier gold production (pre-commercial production) through the processing plant. At this stage in the game, we are so close to production that it has eliminated a large portion of capital over-spending risk. Our next focus is producing ounces at or above our target for 2015 gold production and join the ranks of producers.”
He added: “I am proud of what our team has accomplished in just a little over a year. The energy at site is vibrant and I would like to thank all our employees and contractors for their dedication and excellent work.”
Caldwell disclosed that the GGI will continue the commissioning phase during the second quarter of this year and is in the process of completing the remaining piping, electrical and surface conveyor construction.
Caldwell disclosed that the Company is currently operating at peak construction and manpower levels with over 1,000 personnel at site.
Overall, project construction is approximately 85% complete.
The mining fleet is fully operational and all materials required for construction are on site.
All surface and on-site construction and bulk earthworks are completed except for the river dike and runway expansion.
The operational readiness team has been hired and is undergoing initial training.
GGI, Caldwell disclosed, has approximately US$44 million (as at March 31, 2015) of capital expenditures remaining to projected initial production, while the total initial development costs for all facilities as well as mining equipment, owner’s costs, indirect costs, etc., remains forecasted to be US$249 million.
The commissioning and start-up of the hard rock crushing circuit is projected to be completed in the third calendar quarter of 2015.
Initial open pit mining at Rory’s Knoll has defined the pit outline with excavation below river level with no in-flow of water, as expected.
The Project is tracking on budget with US$52 million available as an overrun facility, if needed,
GGI expects to produce between 30,000 ounces to 50,000 ounces of gold in 2015 and approximately 120,000 ounces to 140,000 ounces of gold in 2016.

Clifford Stanley