TORONTO, April 5, 2016 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) ("GGI" or the "Company") is pleased to announce that mining operations for first quarter 2016 gold production totaled 41,281 ounces at its Aurora Gold Mine ("Aurora") in Guyana, South America.
In the first quarter ended March 31, 2016, the Company produced 41,281 ounces of gold, of which, 40,568 ounces were sold at an average realized price of US$1,196 per ounce generating approximately US$48.5 million ("M") in pre-tax revenue.
The mill processed an average of 5,083 tonnes of ore per day, of which 77% of the ore processed was composed of hard rock, at an average head grade of 2.98 grams per tonne gold ("g/t Au") and gold recoveries averaged 90.4%.
Mining is going well with total material mined for the year exceeding plan by 38% or 566,066 tonnes.
Total overall gold production since September 2015 is 77,182 ounces. The Company has mined a total of 1,113,965 tonnes of ore grading 2.87 g/t Au and a total of 908,002 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 2,711,629 tonnes of waste has been mined.
At March 31, 2016, the Company made its second principal debt repayment of $6.8 M towards the Project Loan Facility of $160 million (see press release dated September 3, 2014) totaling its combined principal debt repayment to $11.1 M.
Scott Caldwell, President & CEO states, "We are extremely pleased with the overall performance of Aurora and the Company is well on its way to achieving its production guidance for 2016 of 130,000 to 150,000 ounces of gold. We continue to optimize gold recovery and are actively working on continuous improvement initiatives designed to improve operating efficiencies and reduce costs."
Q1 Financial Results and Conference Call
The Company plans to release its first quarter 2016 operating and financial results before market open on Tuesday, May 10, 2016. Further information including conference call details will be released closer to date.
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