As Guyana Goldfields Inc. awaits approval from the Guyana Geology and Mines Commission (GGMC) to proceed with exploration works for underground mining at Aurora in Region Seven, Chief Executive Officer (CEO) Scott Caldwell yesterday said the data gathered so far indicate that the venture stands to be more profitable for the company.
This pronouncement was made yesterday after government officials, including GGMC Commissioner Newell Dennison, Guyana Gold Board (GGB) General Manager Eondrene Thompson and the Guyana Extractive Industries Transparency Initiative (GY-EITI) Deputy Director Diane Barker, visited the company’s operations yesterday.
The delegation, which also comprised Police Divisional Commander Kevin Adonis and Officer-in-Charge of the Tactical Services Unit (TSU) Guy Nurse and members of the media, visited an open pit – Rory’s Knoll – and other operations including the pit – Mad Kiss – where the first portal to the underground mine is to be constructed.
Speaking to the media, Caldwell, who indicated that so far the company has invested over US$300 million into the country, said he thinks the underground mining is going to be more profitable than the current open pit mining operations given the uniqueness of the deposit and the information they have gathered so far about the ore body under the open pits.
Senior Vice President and Chief Operations Officer Suresh Kalathil explained that the company decided to embark on the project given its plans for a sustainable future and also because underground mining usually follows open pit operations.
“It’s the case in the lifecycle of every mine, there’s a certain stage when the open pit comes down and you go underground,” he said, while noting that based on preliminary investigations, the company has found that some parts contain approximately 3.2 million and 1.8 million ounces of ore under the two open pits.
However, he noted that without actual exploration and development, it would not be able to ascertain the quantity of ore that it will be economically viable to extract.
While no timeframe has been set, the company has indicated that it will commence its exploration as soon as it receives the go ahead and within three years after that, once the needed approval is secured, the underground mine should start full production.
The company is proposing to develop an exploration mine decline to establish underground platforms to drill deep in Aleck Hill, Mad Kiss, East Walcott veins and other areas and to upgrade existing resources from inferred to indicated, and to potentially add new resources.
It plans to also intersect and drift on selected Aleck Hill veins and East Walcott veins, and Rory’s Knoll tonalite to validate geologic interpretations and modelled results to build, establish and demonstrate the underground mining capabilities of the company, while providing valuable geologic, geotechnical and hydrologic information for future underground mine design and services required to support safe and sustainable production.
The early works to secure the portal and drive the decline 200 meters will cost US$2 million, but Kalathil pointed out that when full production is ready to resume over US$125 million will be invested and the production will rise to approximately 240,000 to 250,000 ounces of gold per year, a steep increase when compared its production last year of 170,000 ounces.
Caldwell also pointed out that the project would employ approximately 300 more employees and will add to the company’s current workforce of 720 persons.
While the company has received the go-ahead from the Environmental Protection Agency to proceed with exploration works, it is still waiting on approval from the GGMC. According to Dennison, a review process is currently ongoing.
“…We have the documents and at this point in time, from what I am aware of… I am of the view that we are in a good way to be conducting the examination to determine whether we need anything more. I can’t say whether we will need anything more but that will be made clear when it is reviewed,” he said, while noting that although the agency will try to do it as quickly as possible the technical areas require a certain level of due diligence.
When questioned about the regulations for underground mining, Dennison noted that there are laws and guidelines. “It is not something we had not anticipated… Most of the mining that is being done on small and medium levels are alluvial and colluvium and those grounds are reworked. It’s not a case where we were unaware but becoming mature has a certain responsibility,” he added.
Kalathil also noted that since the underground mine will be new to Guyana, the company will be bringing in the requisite expatriates with experience to pass on their knowledge and skills to Guyanese.
He noted that the underground mining operations have a huge potential, including for the development of other sustainable underground mining operations as well as local expertise, which will also translate into sustained long-term employment for Guyanese and continued revenues to the government from royalties and taxes.
Kalathil said that so far their objective is to test, build and enhance underground mining technologies for a sustainable future for the company’s workforce as well as to impart underground mining skills to Guyanese.
The company also plans to develop an Underground Mine Technology Training Centre and to ensure health and safety standards meet globally-accepted levels.
Kalathil noted that the company has reviewed a variety of international underground mining regulations and identified a policy and enforcement framework utilising the World Bank Environment, Health and Safety Guidelines for Mining and Milling – Underground; the Ontario Mining Act; Guyana’s Mining Regulations and Occupational Health and Safety Act; Safe Work Australia – Code of Practice Ground Control for Underground Mines; the Saskatchewan Mines Regulations 2018; the Federal Mine Safety and Health Act; the International Finance Corporation’s Environmental, Health and Safety Guidelines for mining; and the Health, Safety and Reclamation Code for Mines in British Columbia.
In recent months, Guyana Goldfields has been challenged by a number of shareholders over a steep fall in its share price, financial management and a host of other matters. A shareholders meeting is set for later this year.
