THE Guyana Goldfields has announced that, effective July 31, 2019, Scott Caldwell will step down as the Company’s President, Chief Executive Officer (CEO) and as a director of the company.

Allen Palmiere will now assume leadership of the company as Interim CEO. “The company has faced some challenges over the last year, and I am confident that the future will demonstrate the value of this asset and it is my pleasure to help in some small way until we complete our search for a permanent CEO,” stated Allen Palmiere, Independent Director in a release from the company on Tuesday.

Palmiere brings over 35 years of operational and financial experience in the mining industry as well as extensive experience in senior executive and leadership roles.
According to the company, of particular importance is Allen’s experience with mine production activities, having formerly held the position of CEO and Chairman of the Board of Directors of HudBay Minerals Inc.

Meanwhile, Caldwell joined the company as a director in 2012 and has been President and CEO since 2013.
He was instrumental in building the company’s Aurora Mine on time and on budget. “I want to thank the entire Guyana Goldfields’ team and the Board of Directors for their support as we developed the Aurora Gold Mine over the last few years. I look forward to supporting the company as a shareholder and remain confident in the long-term future of the Aurora Mine,” he stated.

Also giving remarks was Non-Executive Chair of the Board of Directors, René Marion.
“Allen Palmiere is an experienced and strong leader, who will lead the Company while the independent committee completes its search for a permanent CEO,” he said, adding:
“Our focus remains on optimising the mine plan for the Aurora Gold Mine, maximising operational efficiencies, and continuing with the permitting and development of the underground mine at Aurora.”

FINANCIAL RESULTS
On Tuesday, the company also announced that it produced some 37,300 ounces of gold in the second quarter which brings the total production in the first half of 2019 to 74,000 ounces. The company stated that this is in line with the annual production guidance range of 145,000 to 160,000 ounces of gold. Additionally, the company noted that gold sales of 38,300 ounces at a total cash cost before royalty of US $746 per ounce of gold sold represented a 13 per cent reduction from the comparable quarter in 2018.

At the same time, cost of sales, including royalty and depreciation, were US $1,186 per ounce and all-in sustaining costs were US$1,323 per ounce.

There was a record quarterly mill performance of 7,800 tonnes per day and a 10 per cent increase from the second quarter of 2018. “Underground exploration decline construction was resumed and advanced 164 metres during the second quarter. Over 2 million-person hours accumulated without a lost time injury,” the company’s release stated.

Meanwhile, it has updated that exploration drilling at Mad Kiss hole MKD 187 drilled into the central mineralised zone returned an average of 6.11 grams per tonne gold over a core interval of 301.4 metres starting from 14.1 metres downhole.

The release stated, “On July 2, 2019, the company had experienced a work stoppage at its Aurora Mine as a result of a portion of the workforce blocking delivery of ore to the mill. The work stoppage lasted three days, with employees agreeing to return to work on July 5, 2019. As a result of the operational days lost, the company estimates that approximately 22,500 tonnes were not processed and will not affect the third quarter production guidance.”

Then, on April 30, 2019, the company elected to retire the principal balance outstanding of its US $35 million loan facility. The second quarter report shows that balance sheets stand at approximately US$38.9 million at June 30, 2019 and there was no outstanding debt.

Senior Vice-President and Chief Operating Officer, Suresh Kalathil stated, “For the second half of the year, further operational efficiency initiatives are in the pipeline, however, realising the full benefit of these initiatives will not be immediate. Our entire team is focused on operational optimisation efforts to further reduce costs and improve operating efficiencies.

Additionally, gold production in the second half is expected to be back-end weighted with the fourth quarter accounting for approximately 60 per cent of the forecast ounces as the plan calls for approximately half of the mill feed to be sourced from stockpiles in the third quarter due to sequencing of the pit phases at Rory’s Knoll.”