Canadian miner, Guyana Goldfields Inc (GGI) yesterday announced that it has received environmental authorisation from the Environmental Protection Agency (EPA) to resume construction and development work on an underground exploration decline at its Aurora Gold Mine in Region Seven.
“The mine, which has been in commercial operation as an open pit since 2016, is anticipated to transition into an eventual combined open pit and underground operation and would become the first modern underground mine developed in Guyana,” the company said in a statement yesterday.
In November last year, the EPA had reprimanded the company about the unauthorised start to underground mining plans.
“In spite of notice given to not commence activities, you have blatantly disregarded the Agency’s directives, and [have] been in direct contravention of the Agency’s laws and regulations,” the EPA wrote in a letter to the company, which was seen by this newspaper.
GGI’s Chief Executive Officer Scott Caldwell subsequently said that the company had complied with the EPA and all works were ceased. He promised that the company “will follow the letter one hundred percent with the EPA and we would with any governmental…and regulatory agency.” Following the EPA’s reprimand, the company’s stock took a sharp drop which analysts believed was as a result of feuding among shareholders coupled with the EPA’s warning.
Last month, head of the EPA Dr Vincent Adams told Stabroek News that the agency was working with the company to meet the requirements needed for a permit for underground mining at Aurora.
The company yesterday said that the authorisation to resume operations follows the provision by the company to the EPA of additional information concerning the application of internationally accepted codes concerning the environment, health and safety practices being proposed.
“The EPA also conducted a routine compliance inspection of the Aurora mine and camp facilities in December 2018. The EPA requested the company modify some aspects of its current waste management plan, camp waste water treatment circuit and upgrade the waste oil containment facility.
The company has addressed all the matters raised by the EPA during its inspection which will be further assessed during the next site inspection. At the time of the December inspection the company was compliant on all other environmental conditions of the operating permit,” the statement said.
The company said that the recommencement of work on the underground decline will begin immediately. The underground decline is intended for exploration and definition drilling in support of planned underground production.
“Going forward, the contractor will complete and reinforce the collar and extend the decline 200 metres to fulfil the scope of the early works phase. The company expects this work will take approximately three months to complete once the contractor is fully mobilised. A budget of US$2.0 million has been approved for the early works phase,” the statement said.
It added that the company is finalising the review of bids received for the underground development contract with the target of final award in the second quarter of 2019.
“The plan is to advance the exploration decline approximately 2,500 metres and provide a platform for further underground exploration and definition drilling. The decline is intended to provide access to all principal underground mining areas, including some higher-grade zones in Mad Kiss and East Walcott which will allow us to further delineate exploration targets and potentially add mineral resources and help convert mineral resources to mineral reserves. In addition, the permit allows for test mining of up to 350,000 tonnes that could potentially provide supplemental mill feed during the development period and further unlock value at the Aurora Gold Mine,” the statement said.
Perry Holloway, Senior Vice President – Strategy and Corporate Affairs, said that the company appreciates the thorough oversight that the EPA is providing. “The company is committed to meeting the highest standards in its planning and execution of this important project and we look forward to continued co-operation with the EPA and the Government as we unlock the value of Aurora for Guyana and the company’s shareholders,” he was quoted as saying.
