Guyana Goldfields – Aurora, Guyana - Feb 2015
Neil Adshead visited Guyana Goldfield’s (GUY) multi-million ounce Aurora gold project in northern Guyana, South America, in late-February 2015. The estimated Measured & Indicated gold resource for Aurora is 6.5 million ounces in 62.8 Mt at 3.24 g/t gold (open pit and underground) plus an additional 1.82 million ounces in the Inferred resource category at a similar combined grade. The open pit reserve, arising from the late-2013 feasibility study, is 3.5 million ounce gold. The underground portion is currently not part of the development plan. The average annual gold production over the proposed seventeen year life from ore extracted from the multiple open pits is ~194,000 ounces per year.
The primary objective of the visit to Aurora at this juncture was to check on construction progress at the 100%-owned, fully permitted and fully financed development-stage gold mine. GUY forecasts first gold pour before mid-2015 and hopes to attain commercial production before the end of the year. All materials to complete construction of the mine/plant and to commence production are on site and the large multinational work force is performing admirably under tropical (wet and muddy) conditions in a remote location towards achieving the disclosed development schedule. The Aurora open pit gold mine, if it performs as designed, will generate 30,000-50,000 ounces in 2015. The first full year of production will be 2016 and the mine could yield gold for the next two decades with further exploration success on the large and prospective land package.
The foregoing discussions are a result of site visits and are not to be construed as a recommendation, an endorsement or as investment advice. Sprott Asset Management USA, entities that it controls, family, friends, employees, associates, and others may hold positions in these securities, may recommend them to clients, and may sell the same at any time.