…looking at producing 170,000 oz of gold per year from 2022 to 2026

GUYANA Goldfields Inc., on Friday, announced the results of an updated Mineral Resources and Mineral Reserves estimate and an updated life of mine plan (LOM Plan) on its 100 per cent-owned Aurora Gold Mine located in Guyana, South America.

According to a press release from Guyana Goldfields, the estimated total gold contained in proven and probable mineral reserves is 2.24 million ounces (Moz) and estimated total gold contained in measured and indicated mineral resources (inclusive of mineral reserves) is 3.82 Moz, representing a two per cent reduction in contained gold in year-over-year total mineral reserves. It said too that mineral reserves were estimated using a gold price of $1,200 per oz, and mineral resources using a gold price of $1,500 per oz, consistent with the prior year’s gold price assumptions.

The company said its life of mine plan estimates recovered gold production totalling 2.07 Moz at an average estimated head grade of 2.7 grams per tonne (g/t Au) over a 14-year mine life and includes a transition of the mine from open pit to underground operations by mid-2021.

“Gold production is estimated to average approximately 170,000 ounces per year for the first five full calendar years (2022-2026) of underground operation at average mine-site all-in sustaining costs (“AISC”) of $970 per oz,” the release said.

The company said that under the LOM Plan, the maximum depth of the pit would be reduced by 65 metres and the majority of the ore that was previously contemplated to be mined from the Rory’s Knoll open pit would be recovered from underground operations. “This approach to the orebody is now considered more practical than continued deepening of the pit due to extensive pit stripping requirements and timing issues related to continuous ore release, among other factors,” the company said.

The company said this update represents the result of a comprehensive mine, production and cost savings plan review announced by the company on October 30, 2019.
The LOM Plan, the release said, including the production schedule, capital cost estimates and mine economics, was developed before the onset of the COVID-19 pandemic, and does not take into account any potential delays, deferrals, reduced productivity or other constraints on operations or financing that may arise from the rapidly-changing world reaction to the virus.

“We believe that the new LOM Plan contemplates an attractive path forward, contingent on obtaining adequate funding to execute against it,” said Alan Pangbourne, CEO of the Company. “We look forward to negotiating a financing arrangement which will enable the company to deliver the next stage of its growth by executing on the LOM Plan contained in RPA’s report.”