TORONTO, June 13, 2012 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (TSX: GUY) is pleased to announce that the Company is on schedule to deliver a
revised resource estimate for the Aurora Gold Project by the end of
June 2012 and has also made additions to the Aurora Bankable
Feasibility Study ("BFS") Project Team.
Revised Resource Estimate
Guyana Goldfields is on-track to publish by the end of this month an
updated resource estimate for the Aurora Gold Project which will
include an additional 171 drill holes totalling 56,336.52 metres completed from May 31, 2011 up to the end of April 30, 2012. The revised estimate
will update and improve the geological model, upgrade inferred ounces
to the measured & indicated categories, and provide guidance on depth
extensions from previously defined mineralized structures (see press
release dated September 9, 2011). The Aurora Gold Project currently has
5.71 million ounces in the measured & indicated categories (47.040
million tonnes at a grade of 3.83 g/t) and 1.17 million ounces in the
inferred category (9.97 million tonnes at a grade of 3.63 g/t).
Bankable Feasibility Study ("BFS")
The Company intends to issue a revised BFS by the end of this year. The
study is expected to take a staged development approach, with oxidized
ore being mined and processed over the first 2 years of operations,
followed by a hard rock open pit and underground mining scenario.
The revised BFS will eliminate the vertical shaft component of the
initial Feasibility Study issued earlier this year (see Technical
Report on SEDAR dated April 9, 2012) and will concentrate on mining the
deposit from surface to approximately 750m vertical depth utilizing a
ramp. The plant and processing operations are also expected to be
designed to fully optimize project economics specifically targeting
significant improvements to initial capital costs of the project as
well as ongoing operating costs. Management believes that the Aurora
production timeline can also be significantly shortened.
The Company has also engaged two experienced project managers for the
BFS, Mr. Deepak Malhotra and Mr. Donald Elkin, who have been working
closely with the Aurora Project Team over the last two months refining
an optimized approach to the development and construction of the Aurora
Gold Project with specific emphasis on reducing initial capital costs.
Mr. Malhotra possesses 40 years of project design and assessment
experience with various mining projects around the world in a variety
of jurisdictions. He is currently the President of Resource
Development Inc., and holds a Ph.D. in Mineral Economics and a M.S.,
Metallurgical Engineering from the Colorado School of Mines, Colorado
and a B.S. in Metallurgical Engineering from the Indian Institute of
Mr. Elkin encompasses 50 years of experience in optimizing mine plans
and ore resource calculations. He is the President and Principal
Geological Engineer of Mine Reserves Associates Inc, a consulting firm
in the areas of deposit modeling, resource and reserve estimation and
mine planning. Donald holds a B.S. of Engineering Mathematics and a
B.S. of Geological Engineering both from the University of Arizona.
The Aurora Project Team has engaged the following engineering firms to
assist in the preparation of the revised BFS:
Tetra Tech (Denver), a leading provider of consulting, engineering, and
technical services worldwide, will assist with the process design and
civil works, as well as be responsible for the overall compilation of
SRK Consulting (Toronto), will be overlooking the open pit and
underground mine design based on the blast-hole open stoping mining
SRK Consulting (Vancouver), will run a parallel study to their Toronto
based colleagues examining a possible alternative underground mining
method using Sub-Level Retreat ("SLR"). A scoping study on SLR has been
completed and initial results have indicated that this method may have
the potential to significantly decrease underground mining costs.
The Company intends to release the revised, fully optimized BFS by the
end of 2012. The Company continues to carry out off-site and on-site
civil and infrastructure works that are critical to mine development
Patrick Sheridan, Jr., CEO states, "We are pleased with the progress and
preliminary directions of the BFS and strive to remain on track to
delivering all milestones. We hope to make further announcements on the
progress of the staged development program for Aurora in due course.
Deepak and Don share an extensive amount of knowledge and experience
and we are excited to have them join our existing project team. Their
technical expertise coupled with a vast understanding of project
economics and practicalities are extremely valuable to both the BFS and
the future of the Aurora mine as a whole as we demonstrate the true
optimized value of Aurora."
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based company, primarily focused on
the exploration and development of gold deposits in Guyana, South
America where the Company has operated since 1996. The Aurora Gold
Project in Guyana has a current measured and indicated resource of 5.71
million ounces gold (47.040 million tonnes at a grade of 3.83 g/t) (see
press release dated September 9, 2011). The Company plans to issue a
revised Aurora resource estimate June 2012 and a new BFS by year-end.
For further details regarding the Aurora Gold Project, reference should
be made to the Technical Report for the Aurora Gold Project on SEDAR at
www.sedar.com and on the Company website at www.guygold.com.
The Company has ongoing exploration programs at both its Aurora and
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
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of GGI 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
final findings set forth in the Feasibility Study , 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 GGI 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 GGI 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. Accordingly, readers should
not place undue reliance on forward looking statements.
SOURCE Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935