Guyana Goldfields Inc. Produces 35,901 Ounces of Gold in 2015, Achieving Commercial Production Effective January 1, 2016
TORONTO, Jan. 5, 2016 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company" or "GGI") is pleased to announce that gold production for 2015 mining operations totalled 35,901 ounces at its Aurora Gold Mine ("Aurora") in Guyana, South America.
From October 1, 2015 to December 31, 2015, the Company produced 35,723 ounces of gold, of which, 28,850 ounces were sold at an average realized price of $1,079 per ounce generating approximately US$31.1 million ("M") in pre-tax revenue.
During the month of December, the mill processed an average of 4,758 tonnes of ore per day, of which in excess of 50% of the ore processed was composed of hard rock, at an average head grade of 3.24 grams per tonne gold ("g/t Au") (above average) and gold recoveries averaged 90.4%.
As a result of 2015 mine and mill production rates, the Company's Aurora Gold Mine has achieved commercial production effective January 1, 2016.
From October 1, 2015 to December 31, 2015, the Company mined a total of 483,135 tonnes of ore grading 3.01 g/t Au and a total of 392,953 tonnes of ore was fed to the mill and the remaining tonnes of ore were stored in the stockpile located near the mill. In addition, 1,004,335 tonnes of waste had been mined.
Scott A. Caldwell, President & CEO, states, "I would like to thank the entire team on our significant milestone of achieving production guidance for 2015. We have successfully ramped up Aurora and the hard rock is processing nicely through the primary crusher. We look forward to the next few quarters and demonstrating continued production success to reinforce our successful ramp-up to full production."
2016 Production Guidance
Total gold production guidance for 2016 is between 130,000 to 150,000 ounces of gold.
GGI has, on deposit with its lenders, an untouched US$27M overrun facility which is comprised of the Company's own restricted cash. The lender's supplied overrun facility of US$25M (see press release dated June 9, 2014) expired on November 30, 2015 due to un-withdrawn funds under the terms of the lending documents.
Updated National Instrument ("NI") 43-101 Technical Report
GGI plans to issue an updated NI 43-101 Technical Report Feasibility Study for the Aurora Gold Mine in January 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 a US$1,000 per ounce gold price.
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 an emerging gold producer with the onset of its 100% owned Aurora Gold Mine which achieved first production in mid-2015. The Aurora Gold Mine 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.
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.