GUYANA Goldfields Inc has announced that it has received environmental authorisation from the Environmental Protection Agency (EPA) to resume construction and development work on an underground exploration decline at its Aurora Gold Mine (Aurora) in the Cuyuni region.

In a release, the company said the mine, which has been in commercial operation as an open pit since 2016, is anticipated to transition into an eventual combined open-pit and underground operation and would become the first modern underground mine developed in Guyana.

“We appreciate the thorough oversight that the EPA is providing,” said Perry Holloway, senior vice- president, Strategy & Corporate Affairs. “The company is committed to meeting the highest standards in its planning and execution of this important project and we look forward to continued co-operation with the EPA and the government, as we unlock the value of Aurora for Guyana and the company’s shareholders.”

The underground decline is intended for exploration and definition drilling in support of planned underground production. The company temporarily suspended work on the underground decline in November 2018 at the EPA’s request. “Today’s authorisation to resume operations follows the provision by the Company to the EPA of additional information concerning the application of internationally accepted codes concerning the environment, health and safety practices being proposed,” the company said.

It added that the EPA also conducted a routine compliance inspection of the Aurora mine and camp facilities in December, 2018. The EPA requested that the company modify some aspects of its current waste-management plan, camp waste water treatment circuit and upgrade the waste-oil containment facility. The company has addressed all the matters raised by the EPA during its inspection, which will be further assessed during the next site inspection. At the time of the December inspection, the company was compliant on all other environmental conditions of the operating permit.

UNDERGROUND EXPLORATION DEVELOPMENT PLAN
The recommencement of work on the underground decline will begin immediately. Going forward, the contractor will complete and reinforce the collar and extend the decline 200 metres to fulfil the scope of the early-works phase. The company expects that this work will take approximately three months to complete once the contractor is fully mobilised. A budget of US$2.0 million has been approved for the early-works phase. The company is finalising the review of bids received for the underground development contract with the target of final award in the second quarter of 2019.

The plan is to advance the exploration decline approximately 2,500 metres, and provide a platform for further underground exploration and definition drilling. The decline is intended to provide access to all principal underground mining areas, including some higher-grade zones in Mad Kiss and East Walcott. This will allow further delineation of exploration targets, potentially add mineral resources and help convert mineral resources to mineral reserves. In addition, the permit allows for test mining of up to 350,000 tonnes that could potentially provide supplemental mill feed during the development period and further unlock value at the Aurora Gold Mine. Guyana Goldfields Inc. is a Canada-based, mid-tier gold producer, primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.