Canadian mining company Guyana Goldfields Inc (GGI) yesterday announced that it has produced over 17,000 ounces of gold so far this year and expects to produce approximately 30,000 ounces for 2015.
“We are seeing a significant upward trend in gold production each month as ramp-up continues with tonnes milled per day increasing to nameplate production capacity as planned. In addition, grade control drilling and mining reconciliation continue to demonstrate that the ore-body is extremely robust,” President and CEO of GGI Scott Caldwell was quoted as saying in a statement yesterday.
The company said that from October 1, 2015 to November 13, 2015, it produced 11,088 ounces of gold doré (unrefined gold) of which 3,913 ounces were sold at a realized price of US$1,122 per ounce generating approximately US$4 million in pre-tax revenue and achieving positive cash flow. The mill has recovered (poured and plant inventory) 17,142 ounces of gold for the year up to November 13, 2015 with an average gold recovery of approximately 88%, it added.
The company said that in October, the mill processed 107,482 tonnes of ore per day. Gold recovery averaged 91%. As ramp-up continued during November to date, the mill has increased tonnage production to 4,298 tonnes of ore per day with an average gold recovery of 91%.
According to the statement, as at November 13, 2015, the company has mined 336,163 tonnes of ore and a total of 211,529 tonnes of ore was fed to the mill and the remaining 124,634 tonnes of ore were stored in the Run of Mine stockpile located near the mill. In addition, 687,819 tonnes of waste have been mined to date.
All open pit mining has taken place at the Rory’s Knoll deposit. The company expects to process hard rock through the primary crushing circuit later this year once hard rock ore becomes available.
The statement said GGI believes it will achieve its production guidance for 2015 in the lower range of guidance at approximately 30,000 ounces of gold.
In addition, GGI has increased production guidance for 2016 to 130,000 to 150,000 ounces of gold. It was previously 120,000 to 140,000 ounces.
The company said it will issue an updated NI 43-101 Technical Report Feasibility Study for the Aurora Gold Mine early next year which will reflect an extended open pit mining scenario while deferring the underground production until later in the mine life, as well as, updated cost parameters and reserves based on revised gold prices.
GGI had 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.
The company also revealed that with the conclusion of construction activities at September 30, 2015, total construction costs incurred at September 30, 2015 were approximately US$280 million, or US$3 million above the company construction and development budget of US$277 million.
Stabroek News reported last month 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 in September.
