Guyana’s huge mineral potential has been largely untapped, except for bauxite and gold, the other areas of the mining sector are still to be fully developed. However, the gold industry has been continuously growing with increased investments from both large and small and medium–scale entrepreneurs, as such the industry is making a significant contribution to the economy and is also creating direct and indirect employment for thousands of Guyanese. At the same time many commercial businesses benefit from the operations of the industry including hose that are in the machinery and spare parts business, fuel stations and grocery stores etc.
Recently, the Guyana Gold and Diamond Miners Association (GGDMA) correctly called on gold miners to take advantage of the current high prices of gold on the international market which saw prices reach US$1.300 per ounce.
Executive Director of the GGDMA, Mr. Edward Shields, says that he hopes that miners will take full advantage on the current high price of gold and capitalise on it by selling more of their gold and increasing their production. He noted that this is an opportune time for profit and it will also allow for Guyana to get more value for the production.
The Association says that it wants to see declarations increase; noting that for every 1,000 ounces sold the government of Guyana earns almost $17M from royalties and taxes. The high prices now mean that the Government of Guyana will collect even more benefits from the mineral resources of the country. The GGDMA is therefore urging all miners to work with this national interest in mind. The executive director explained that miners have to demonstrate to the Government of Guyana that they are willing to go the extra mile to ensure that Guyana can maximise its benefits from gold mining.
The global situation is very encouraging at the moment and the call by the GGDMA is timely, especially when one considers the fact that like all minerals gold is subjected to price fluctuations which are determined by production and demand and supply.
The global gold market grew by 18.4% in 2008 to reach a value of $67.2 billion. Market Value Forecast In 2013, the global gold market is forecast to have a value of $75.2 billion, an increase of 11.9% since 2008. Market Volume The global gold market shrank by 4% in 2008 to reach a volume of 2,434.6 metric tonnes. Market Volume Forecast In 2013, the global gold market is forecast to have a volume of 2,436.9 metric tonnes, an increase of 0.1% since 2008. Market Segmentation I Gold accounts for 100% of the global gold market’s value. Market Segmentation II The Asia-Pacific region is the world’s largest gold market and generates 31.2% of the global market’s revenues. Market Share Barrick gold accounts for 9.8% of the global gold market’s volume.
And very recently there has been more good news for the gold industry as Sandspring Resources Ltd, a Canadian mining company with rights in Toroparu, Upper Puruni in Region Seven (Cuyuni/Mazaruni), has announced that a new mineral resource estimate there indicates a concentration of gold at six million ounces, and copper at 477 million pounds.
It said this is 75% more than initially anticipated, and believes the Toroparu deposits are a new gold discovery with world-class potential.
Last week it reported mineral resources at Toroparu of 2.64 million ounces gold, 261 million pounds copper and 3.42 million ounces gold, 216 million pounds copper Inferred.
The company said the resource model is still open to depth and mineralisation extending along a strike in both directions, which means that apart from the exciting finds, the project shows considerable potential for additional resource growth.
Abraham Drost, President of Sandspring, said the new mineral resource update of last week adds about 2.5 million ounces of gold and 150 million pounds of copper to the initial estimates.
The new results add considerably to the scope of an internal Preliminary Economic Assessment (PEA) being prepared by the company at this time, he stated.