GUYANA Goldfields Inc., on Thursday, announced a first quarter 2020 gold production of 28,100 ounces and 24,200 ounces of gold sold from open pit at a cash cost before royalty of $1,084 per ounce of gold sold. It said that cost of sales for the period was $1,376 per ounce.

According to the company in a press release, mining rates averaged 21,200 tonnes per day (tpd) during the first quarter, representing a 62 per cent decrease in mining rates compared to a mining rate of 56,000 tpd in the first quarter of 2019. According to the company, this decrease was due to mine sequencing, pit constraints imposed by smaller benches and the suspension of waste stripping at Rory’s Knoll pit in February to safely allow ore production from the bottom of the pit.

The company reported that net earnings for the quarter were $2.3M, as compared to a loss of $2.3M in the first quarter of 2019 “driven by higher margins from higher gold prices, partly offset by higher cost of sales per ounce due to higher fixed cost absorption from lower mined volumes.”

Guyana Goldfields Inc. also reported cash and cash equivalents of $15.5M as at March 31, 2020 was $6.6M lower than the $22.1M reported at December 31, 2019. “We generated a lower amount of cash from operations than in the first quarter of 2019 as a result of lower gold sales, an increase in metals inventory due to delays in gold sales as a result of air travel cargo delays resulting from COVID-19 related travel restrictions and a concerted effort to reduce payables,” said the company.

Alan Pangbourne, President and Chief Executive Officer stated, “I thank all our employees for their hard work and dedication during these challenging times. The cooperation and diligence of the employees in Guyana in adhering to the COVID-19 measures, have allowed us to continue operating as we prepare for the upcoming period of temporary care and maintenance.”

Mr. Pangbourne further commented: “I thank the Guyanese Government for their support that allowed us to develop the Aurora Gold Mine and their continued cooperation that will lead to the first significant modern underground mine in Guyana. What we have been able to achieve at a remote site in region.”

In providing an operational update, The company said they expect to be able to keep the mill operational up to mid-June, with production estimated to total approximately 45,000 to 50,000 ounces in the first half of 2020.

“This is higher than our previously estimated production for the first half of the year of 35,000 to 45,000 ounces. Thereafter, the mine will go into a period of care and maintenance for one to two quarters. Planning for the transition to care and maintenance is well advanced and as such we have already started the phased reduction in site activity.

The site is expected to be in full care and maintenance by the end of the second quarter and a full-time security presence will be maintained at site, along with adequate crews to maintain the site, including environmental monitoring and compliance. Infrastructure such as camp, water supply, power supply and other systems will remain operational at a reduced level,” the company said.