TORONTO, May 27, 2015 /CNW/ - Guyana Goldfields Inc.
(TSX:GUY) (the "Company" or "GGI") is pleased to announce that the
mill commissioning process has commenced and the Aurora Gold
Project ("Aurora" or "the Project") remains on track for projected
initial gold production in mid-2015.
Overall, Project construction is approximately 85% complete with
the Company focusing on operational readiness training and
commissioning. GGI has commenced the commissioning of the
following areas:
- SAG Mill
- Power Plant Generators
- Water and Air Support Systems
The Company will continue the commissioning phase during the
second quarter of this year and is in the process of completing the
remaining piping, electrical and surface conveyor construction. GGI
is on track to start-up the gravity gold and saprolite production
circuits for mid-2015 which would allow for earlier gold production
(pre-commercial production) through the processing plant. The
commissioning and startup of the hard rock crushing circuit is
projected to be completed in the third calendar quarter of
2015.
The mining fleet is fully operational and all materials required
for construction are on site. All surface and on-site construction
and bulk earthworks are completed except for the river dike and
runway expansion. The Company is currently operating at peak
construction and manpower levels with over 1,000 personnel at site.
The operational readiness team has been hired and undergoing
initial training.
Initial open pit mining at Rory's Knoll has defined the pit
outline with excavation below river level with no in-flow of water,
as expected.
The Company expects to produce between 30,000 ounces to 50,000
ounces of gold in 2015 and approximately 120,000 ounces to 140,000
ounces of gold in 2016.
GGI has approximately US$44 million (as at March
31, 2015) of capital expenditures remaining to projected initial
production. The total initial development costs for all facilities
as well as mining equipment, owner's costs, indirect costs, etc.,
remains forecasted to be US$249
million. The Project is tracking on budget with US$52
million available as an overrun facility, if needed.
Scott A. Caldwell, President
& CEO, commented, "The commissioning of the mill circuit is a
major milestone which we've been able to deliver on schedule and
brings us one step closer to initial production. I am proud
of what our team has accomplished in just a little over a year. The
energy at site is vibrant and I would like to thank all our
employees and contractors for their dedication and excellent work.
At this stage in the game, we are so close to production that it
has eliminated a large portion of capital over-spending risk. Our
next focus is producing ounces at or above our target for 2015 gold
production and join the ranks of producers."
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based company, focused on
the exploration and development of gold deposits in Guyana, South
America. GGI is focused on the construction and development
of the Aurora Gold Project scheduled for first production in
mid-2015. The Aurora Gold Project has a total gold resource of 6.54
million ounces in the measured and indicated categories (62.83
million tonnes at 3.24 g/t Au) as well as an additional 1.82
million ounces in the inferred category (16.93 million tonnes at
3.34 g/t Au). For further details, please refer to the press
release dated December 9, 2013 and
the report entitled "NI 43-101 Technical Report, Updated
Feasibility Study – Aurora Gold Project" dated January 29, 2013 available on SEDAR at
www.sedar.com. GGI also holds a significant portfolio of
attractive exploration properties and holds cash and cash
equivalents of US$16 million as of
March 31, 2015.
Forwarding-Looking Information
This news release contains "forward-looking information"
which may include, but is not limited to, statements with respect
to the estimation of mineral resources. Often, but not always,
forward-looking statements can be identified by the use of words
and phrases such as "plans," "expects," "is expected," "budget,"
"scheduled," "estimates," "forecasts," "intends," "anticipates," or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may," "could," "would," "might" or "will" be taken, occur or be
achieved. Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
are based on various assumptions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, the receipt of applicable regulatory
approvals, the timing of the advance of the funds pursuant to the
project loan facility to fund the development and construction of
the Aurora Gold Project (the "Facility"), fulfilling all conditions
precedent to the advance of funds pursuant to the Facility, general
business, economic, competitive, political and social
uncertainties; the actual results of exploration activities;
changes in project parameters as plans continue to be refined;
accidents, labour disputes and other risks of the mining industry;
political instability; delays in obtaining governmental approvals
or financing or in the completion of development or construction
activities, as well as those factors discussed in the section
entitled "Risk Factors" in GGI's annual information form. Although
the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements
contained herein are made as of the date of this news release and
the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or results, except as may be required by applicable securities
laws. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such
statements.
SOURCE Guyana Goldfields Inc.