Sandspring Resources Limit-ed is holding to its projected 2015 deadline for production of an estimated 228,000 ounces of gold per annum from its Cuyuni-Mazaruni operations, a release from the Ministry of Natural Resources said yesterday.
Its projection comes amid the recent downturn in the international price for gold.
A statement from the Ministry of Natural Re-sources yesterday said that Chief Executive Officer (CEO) of Sandspring Resources Ltd; Richard A. Munson and a team of his senior managerial directors including Sir Shridath Ramphal yesterday presented the results of the updated pre-feasibility study for the Toroparu Gold Project to the Minister of Natural Re-sources and the Environment, Robert M. Persaud and his team of technical officers from the Ministry of Natural Resources and the Environ-ment and the Guyana Geology and Mines Commis-sion (GGMC).
The release said that the Toroparu Gold Project (TGP) Pre-Feasibility results reveal an initial mine development of 4.1 million ounces of gold mineral reserve with a good production profile and bright economic outlook.
The release said that the TGP has significant exploration upside potential from a pipeline of drill ready gold targets and regional exploration.
It added that the capital and operating cost estimates are US$501M for capital expenditure and US$954M over the 16-year life of the mine.
“It was highlighted that the average rate of (the) gold price has been revised to a more sustainable level for the life of the project given the high volatility of gold prices on the world market. The TGP is projected to produce an average of 228,000 ounces of gold per annum of the life of the project.
Moreover, Sandspring Resources Ltd. is holding to the timeline of starting production in 2015 and full operating of the mine site in 2016”, the release said.
The release noted that there are many factors impacting on the cost of developing the project, but with the establishment of a hydroelectric plant in the area, this can significantly lower costs in the long run. The proposed hydroelectric project will produce 60 megawatts at full capacity. The TGP will only need 30MW at peak periods and 25MW on average for operations at the site, the release said.
“As such, the Minister of Natural Resources and the Environment viewed the results of the pre-feasibility study as encouraging as there are benefits to all stakeholders of this project which includes the investors, the communities and the national economy”, the release said.
Persaud stated that the environmental aspects of a project of this size must be consistently monitored to ensure full compliance and sustainability to surrounding communities.
