Venezuela’s recent objection to the operation of Canadian firm Guyana Goldfields Inc’s Aurora Gold Mine in the Cuyuni/Mazaruni region is unfounded, the company says.
“The Venezuela-Guy-ana border (controversy) was resolved and agreed upon by all parties under the 1899 Arbitration Agreement and any claims made outside of such agreement violate international law.
The matter is currently before the United Nations, however Venezuela’s border claim is widely viewed by the international community to be without merit,” the company said in a statement.
It confirmed that it recently received an “unfounded notification of a possible legal claim from Venezuela.”
On Thursday, President David Granger raised the matter in Parliament. He said Venezuela’s objection to the mine is part of Caracas’ continuing efforts to hinder the development of Essequibo.
“Venezuela’s claims are not only illegal, they are injurious to the economic development of Guyana. Venezuela, therefore, must desist from hindering our economic development in an obtrusive and obstructive manner that is tantamount to interference in our internal affairs. It must desist from threatening investors who have a legitimate right to pursue their activities in our territory,” Granger told parliament. He reiterated Guyana’s interest in a juridical settlement of the ongoing border controversy.
In addressing the continued tensions with Venezuela, Granger re-vealed that Venezuela, through its Ambassador to Ottawa, objected to Guyana Goldfields’ Aurora operation in the Cuyuni-Mazaruni region.
In a letter to the Chief Executive Officer of the Canadian-based mining company, the Ambassador warned the company about infringing on the territorial sovereignty of Venezuela and committing unlawful actions which could incur legal consequences. “As such, you are hereby fully given notice of the respective legal actions that could herein occur,” the Ambassador said in the letter, dated October 13th, and which was read by Granger.
Guyana Goldfields’ Aurora operation, which poured its first gold bar in August after almost two decades of development, is expected to produce between 30,000 ounces and 50,000 ounces of gold in 2015, and between 120,000 ounces and 140,000 ounces of gold in 2016.
It is projected to produce 3.29 million ounces of gold, averaging 194,000 ounces per year, over an initial 17-year mine life.
