Guyana Goldfields

Last year, Endeavour Magazine spoke to Guyana Goldfields Inc. about the Aurora Gold project; a new mining initiative that promised to change the industry forever.

WRITTEN BY AMY TOCKNELL

GOLD RUSH

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GUYANA GOLDFIELDSWWW.GUYGOLD.COM

001 416 628 5936

GUYANA GOLDFIELDS

As we previously reported, though a fantastic site was discovered, with the potential for impressive yields, initial set up procedures proved to be anything but smooth sailing, as

Scott Caldwell, CEO at Guyana Gold, told us,“In the beginning, in order to gain access to its properties, the

company would have to make use of the waterways by boat and sometimes portage due to the interior being very remote and the lack of existing roads because of the dense jungle rainforest. Any infrastructure we currently use has been specifically put in place over the years and the company has made a substantial investment into this. We currently use a 160km all-weather access road, which leads to our site from our Buckhall wharf facility located along the Essequibo River. The wharf facility is where all of our goods and equipment is barged to and thereafter transported down the access road to our site by trucks.”

Fortunately, the company was and remains committed to not only enjoying the fruits of its labour, but also contributing positively to the surrounding communities, making infrastructure investment necessary and widely beneficial. With considerable costs implied in the development of a new mine, we reported that success was a necessity and now, thanks to the regularly updated newsfeed from

Guyana Goldfields Inc (GGI)., we can report that it is indeed on the cards. Back in December 2014, the company told us that;

“Gold production will be staged, with initial open pit production supplying ore to the mill at a rate of 5,000 tons per day, thereafter increasing to 10,000 tons per day with the onset of underground mining. The company also continues to explore its large land package within the Aurora and Aranka districts.”

We can now confirm that as of August 4th 2015, first gold production has been achieved and most impressively, it has come in on time and within budget;

“First gold production was attained through the gravity and saprolite production circuits, which allowed for earlier gold production (pre-commercial production) through the processing plant. Initial start-up gold was captured by processing the lowest grade ore available and GGI is now progressing towards full saprolite circuit operation and will gradually feed the mill with higher-grade material. The commissioning and startup of the hard rock crushing circuit is projected to be completed later in the third calendar quarter of 2015.”

So what does this mean for GGI? With this initial yield solidifying the belief that the Aurora gold mine will prove to be, well, worth it’s

GUYANA GOLDFIELDS

With the first pour having now been reported, we spoke again with the team to find out if things are progressing as they hoped.

GUYANA GOLDFIELDS

weight in gold, projections are ambitious for the next year; “The Company 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 approximately 120,000 ounces to 140,000 ounces of gold in 2016.”

Don’t be fooled onto thinking that these are just empty numbers and promises however, as there is solid research and development methodology supporting the aspirations of GGI;

“GGI expects to issue an updated National Instrument (NI) 43-101 Technical Report Feasibility Study in the first quarter of 2016 for the project, which will reflect an extended open pit mining scenario while deferring the underground production until later in the mine life, as well as current operating cost parameters and an updated ore reserve metal price.”

A project of such magnitude, which is now offering confirmation of long-anticipated success will be dependent on the staff that commit both their time and effort. Because of this, GGI has a very forward thinking approach to Human Resources;

“Guyana Goldfields has been dedicated to sourcing local personnel and achieving a workforce target rate of 90-95% Guyanese nationals.”

They went on to explain;“In the area of Human Resources Development, Guyana

Goldfields’ policy is that “CSR begins at home”. CSR begins with how we treat our employees and some of the activities that we have developed are insurance plans, HIV testing and counselling, well-being symposiums, formal training programmes, appreciation awards and social events, such as Sunday barbeques.”

With a large workforce and expensive operational costs to account for, GGI has been proactive and diligent in the procurement of funding and confirm that they have sufficient financial support to complete the construction of the Aurora mine. Determined to not exceed the initial development budget of US$277 million, the management team are progressing well, with the purse strings firmly tightened, so much so in fact that the overrun budget of US$52 million remains untouched.

It seems incredible that a project of such magnitude is making significant discoveries and progress within budget and on time, but this is how a world-class organisation operates. Talking about the exciting first pour, Caldwell commented;

“Our first gold pour is an extraordinary achievement in GGI’s transition from an exploration and development company to a

GUYANA GOLDFIELDS

high grade, low cost gold producer. We would like to celebrate this significant accomplishment for all that have contributed from the project’s inception and thank our shareholders and stakeholders in supporting the development of the project, including our Board of Directors, management team, employees and contractors as well as the lenders for the debt financing syndicate comprised of International Finance Corporation, Export Development Canada, ING Capital LLC, Caterpillar Financial Services Corporation, and The Bank of Nova Scotia. In addition, we wish to thank the Government of Guyana and local communities for their continued support through the development of the Project. The focus at the site now is to increase gold production to our target level of 50,000 ounces during the balance of this year.”

Modest even in the face of huge success, GGI remains keen to showcase the people that are making this ambition a reality, from shareholders down to ground staff. It’s a personable approach, such as this, that really sets GGI apart form competitors, as well as a determination and ability to stay on schedule at all times, in fact, it was back in May that GGI reported that it looked to be on schedule for the first pour and it did not disappoint.

Everything looks to be going to plan, but we asked for a reminder

as to the initial investments made into this ambitious mine project. Caldwell explained;

“Since the Company’s inception, approximately US$192 Million has been spent on historical exploration and development costs in order to bring the Aurora Gold Project to development stage. From this point, an additional US$249 Million will be spent on the Aurora Gold Project in order to achieve commercial gold production by mid-2015. The Aurora Gold Project will be Guyana’s largest foreign investment in the country’s history and is projected to provide total revenues to the Government of approximately US$960 Million through corporate taxes and royalty payments over the life of the project. In addition to its large capital investment and direct financial revenues to the Government, the company is committed to sourcing local services, goods and equipment purchases, in order to support local businesses and communities.”

While ambition is essential in business, it is a rare and market-leading organisation that cannot only realise it, but within a stringent budget and time frame. GGI has accomplished the ultimate business trifecta and we are eager to track their progress in the future.