TORONTO, Feb. 25, 2016 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company") is pleased to announce that gold production for the year to date mining operations in 2016 have totalled 21,855 ounces at its Aurora Gold Mine ("Aurora") in Guyana, South America.
Since reaching commercial production on January 1, 2016, the Company has produced 21,855 ounces of gold, and sold 22,551 ounces at an average realized price of $1,155 per ounce generating approximately US$26.1 million ("M") in pre-royalty, pre-tax revenue.
For the year to date, the mill processed an average of 5,083 tonnes of ore per day, of which 74% of the ore processed was composed of hard rock, at an average head grade of 2.83 grams per tonne gold ("g/t Au") and gold recoveries averaged 89%. All required mill maintenance, including a 36-hour planned maintenance interval, took place during this period.
Total overall gold production since September 2015 is 57,757 ounces. The Company has mined a total of 875,523 tonnes of ore grading 2.87 g/t Au and a total of 725,117 tonnes of ore has been fed to the mill and the remaining tonnes of ore were stored in the stockpile located near the mill. In addition, 2,207,929 tonnes of waste has been mined.
Mining is going well with total material mined for the year exceeding plan by 27% or 261,749 tonnes. Drilling and blasting of ore and waste is ongoing. Open pit mining at Rory's Knoll has reached approximately -25m below the river level elevation with minimal surface subsidence, as expected.
Scott A. Caldwell, President & CEO states, "With commercial production having been achieved and mining and milling throughputs performing above expectations, we will turn our focus to optimizing gold recovery, reducing reagent consumption rates, reducing freight and equipment rental costs, and other continuous improvement initiatives designed to further improve operating efficiencies and reduce costs."
The Company currently has approximately US$44M in cash, of which, US$27M consists of restricted cash.
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. The Company 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 report entitled "AGM Inc. Aurora Gold Project- Updated Feasibility Study" dated January 18, 2016 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.
For further information: Guyana Goldfields Inc., Scott A. Caldwell, President and Chief Executive Officer, Jacqueline Wagenaar, Vice President, Investor Relations & Corporate Communications, Tel: (416) 628-5936 Ext. 2295, Fax: (416) 628-5935, E-mail: email@example.com, Website: www.guygold.com