Guyana Goldfields Inc (GGI) yesterday announced its first sale of refined gold amounting to 1,400 ounces at an average price of US$1,179 per ounce from its Aurora Gold Mine in Region Seven.
This would have netted the company about US$1.6M. Stabroek News had reported on Sunday that gold production by the Canadian firm has narrowed the gap in gold declaration figures which was 317,036 ounces up to October 21 this year, slightly less than the 320, 133 ounces up to October last year. The Canadian firm celebrated its first gold pour last month and the company has said that it expects to produce between 30,000 ounces to 50,000 ounces of gold in 2015, depending on how quickly full ramp-up is achieved, and around 120,000 ounces to 140,000 ounces of gold in 2016.
“Plant ramp-up is progressing well and we expect to reach commercial production in the first quarter of 2016 and still hold an untouched US$52 million of overrun facility. The first gold sale for the company is a true testament to the quality of the construction team at site and I look forward to this new phase of revenue generation for the company as Aurora ramps up to becoming Guyana’s newest large-scale gold producer,” Scott Caldwell, the President & CEO of the company, was quoted as saying in a statement.
The statement said that GGI staff have taken over the full operational control of the entire plant including the primary crusher. The entire plant has now been commissioned with saprolite (soft) ore. Hard rock will not be available until later this year, the statement said.
“Grade control drilling and mining reconciliation to date have continued to demonstrate that the ore-body is extremely robust showing improved grades and tonnage as rock previously modelled as waste is returning as ore,” it added.
GGI said that commercial production will be declared once Aurora has the ability to mine and mill an average of 75% of the designed capacity without significant interruption, composed of both hard and soft rock with gold recoveries at or near expected production levels. “Initially, the tonnage requirement was fulfilled with only soft rock ore, however with the inclusion of the hard rock component and its unavailability until later in the fourth quarter, the company now believes it is expected to declare commercial production at Aurora during Q1 2016,” the statement said.
It added that all sales prior to commercial production will be credited against capitalized project costs, rather than recorded as revenue.
Meantime, GGI said it remains on target to issue an updated Technical Report Feasibility Study for the Aurora Gold Mine later this year which will reflect an expanded open pit mining scenario while deferring the underground production until later in the mine life. In addition, current operating cost parameters and reserves based on updated metal prices will also be incorporated.
The company said that it has a total of 18 million litres of diesel forward contracts at an average rate of US$0.44/litre, which will settle on a net basis. This commodity swap covers the period October 2015 through to August 2017, and represents approximately 60% of the company’s expected diesel consumption over the 23 month period, the statement said.
It added that it expects to report its interim consolidated financial statement results for the third quarter ended September 30, 2015 on or around Friday, November 13, 2015.
