GUYANA Goldfields/ Aurora Gold Mines (AGM) has announced that its gold production target this year stands at 170,000 ounces in comparison to just over 150,000 ounces last year, as plans are progressing to expand operations in the Cuyuni-Mazaruni region. Speaking at a brunch on Sunday at the Marriott Hotel, Georgetown, President and Chief Executive Officer (CEO), Scott Caldwell, told a gathering of journalists that so far this year, the company has been doing “very well.”
He said that last year’s production represented a record tonnage for the mill which moved approximately 5300 tonnes of ore daily.
“Things are going very, very well at the site. We have a strong January and are having a strong February. This year we think we will make about 170,000 ounces of gold if everything goes the way we think it is…things are looking pretty good.”
Caldwell also announced that the mining company is in the process of beginning exploration and will start working near the existing Aurora mine on targets.
He said too that the company has every confidence that its exploration activities will be successful, thereby leading to expansion.
“We bought another mill; we have imported most of the mill and are storing it at our Buck Hall facility… It can be set up very quickly. The mill, power plant, all of that has been purchased and starting to arrive, most of it is here….a few more pieces coming in over the next few months.”
The new mill costs US$6M and it will be installed some 50 kilometres away from the existing mine.
Additionally, the CEO said once the exploration is proven successful, the company will begin to go through the requisite processes to obtain approvals to mine.
He noted that the company is in the process of expanding the Aurora gold mine by adding tanks. Caldwell said the expansion process cost some US$70M and is aimed at increasing the company’s production on an annual basis from 150,000 ounces to approximately 210,000 ounces of gold.
The first exploration will be done close to the Aurora mine and in fact, will be adjacent to the mine. That process is expected to begin later this month, some 10 or 15 km from the mine. The CEO disclosed that the company is working on additional projects, but those projects will be followed up in 2018.
The company is also looking to expand the life of the mine, which currently stands at 15 years. With the purchase of a new mill and the expansion of the mine, it is estimated that about 80 persons will be involved in the construction process. The CEO said most of the contractors, wherever possible, will be local.
GROWTH OPPORTUNITIES
Caldwell explained that there are exciting growth opportunities and the company believes that Guyana is a good country to do business. Asked whether the company during the past 15 months of mining has discovered diamonds, silver or semi-precious stones, Caldwell responded in the negative.
“There is no diamonds… only gold. It is a very unique deposit… it is very microscopic, a bit unusual gold,” he stated.
The Guyana Goldfields/ AGM executive said in comparison to other South American mining companies, his company is not performing badly and noted that the company though producing less gold currently is more profitable than some.
The mining company employs the same mining process as was used when OMAI Inc. was operational, but stressed that it adheres to strict environmental practices and Caldwell noted that the company is currently examining the possibility of utilising renewable energy.
He said too that notwithstanding the price of gold on the world market, his company will continue to sell gold at US$800 an ounce once the cost of fuel remains stable.
Fuel, the CEO said, is the company’s largest cost. Gold is being sold on the world market at over US$1000 per ounce as of last week.
Guyana Goldfields/ AGM paid to the Government of Guyana eight per cent of its declared 150,000 ounces of gold as royalty.
Meanwhile, Michael Williams, the mining company’s health and safety officer, told reporters of the company’s success in that area. He said Guyana Goldfields/ AGM prides itself on the fact that they have had no accidents or injuries during the past 468 days.
“In our business at AGM, we pride ourselves with safety first– we pride ourselves with zero harm; zero harm for the environment, employees, contractors, visitors, students, company property with the sole aim of returning each employee to their individual families without injury or illness.”
He said a thorough look at the company’s key performance indicators will be done this year in two categories: leading and lagging indicators.
“We have an excellent safety record… 15 months in operation without a lost-time injury. Today we are 2.5M hours without lost-time injury. Zero malaria for the past two years plus…468 without any lost time. No company in Guyana can demonstrate or exhibit such a record,” said Williams.
Environmental Monitor Monique Williams disclosed that the company has embarked on a number of activities that are geared at keeping it compliant with local environmental regulations and their environmental permit.
She said of the activities, bio-diversity monitoring is “most exciting”, noting that the company has a strict no-hunting, no-fishing policy and staff are encouraged to report any siting of animals.
That information is documented, so that a comparative analysis can be done during the lifetime of the mine. Additionally, Williams disclosed that the company has implemented a bio-diversity monitoring plan which has resulted in the purchase of 30 infrared motion detecting cameras that have been installed around the mine perimeter.
To date, the company has hundreds of photographs of various animals on the work site.
“We debunk the theory that where there is mining there is loss of biodiversity …that is not the case. We plan on doing this study every year for the lifetime of the mine. We’d be able to see how our project’s activities are impacting biodiversity at our site.”
The environmental monitoring officer said too that water monitoring is also done while noting that quarterly reports are submitted to the Environmental Protection Agency (EPA).
Guyana Goldfields/ AGM employs approximately 625 employees, 28 of whom are expatriates and other specialists.
The Aurora Gold Mine reached commercial production on January 1, 2016 and is designed to produce 3.3 million ounces of gold, averaging 220,000 ounces per year, over an initial 15-year mine life.
Guyana Goldfields signed a Mineral Agreement with the Government of Guyana and received the mining licence in November 2011 to operate and build the Aurora Gold Project.