TORONTO, Jan. 11, 2012 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI" or the Company") is pleased to provide an update on the definitive Feasibility Study
("FS") work for the Aurora Gold Project.
The FS work led by GGI staff is aggressively continuing with costing
work advancing in all disciplines. Following is a list of key
Overall coordination of FS - GGI
Off-site and on-site infrastructure - GGI
Resource estimation, open pit and underground mine design and
engineering - SRK Consulting (Canada) Inc. (Toronto)
Underground mine shaft & infrastructure - DMC Mining Services "Dynatec"
Underground ventilation - Bluhm Burton Engineering (PTY) Ltd. "BBE"
Pastefill plant & system - Golder PasteTec (Sudbury)
Processing (crushing & milling) - Ausenco Limited (Montreal)
Tailings, water management and river dyke - AMEC Earth & Environmental
Environmental & social - Environ Corp. (Washington, DC)
Power generation - Martin Menard & Associates (Montreal)
The Feasibility Study work by the internal team and consultants is
scheduled to be completed in late January. Following this, an intense
and rigorous independent final peer review will be undertaken. This
review is expected to take approximately 4 weeks. In the last few
months, various peer reviews of specific disciplines have been
completed and some are ongoing.
The Senior Executives and the Board of Directors want to ensure that all
aspects presented in the FS are current, manageable and optimized. This
will allow the Board and Executives to perform a full evaluation of the
optimized results for the Aurora Project from a Net Present Value
(NPV), Internal Rate of Return (IRR), pay-back period and
financeability perspective to the maximum benefit of Guyana Goldfields
and its shareholders.
The Company expects to report the FS "key findings" after the completion
of this review by Friday, February 24, 2012 and the final National
Instrument 43-101 compliant technical report will be submitted within
the following 45-day required period from this date and made available
on SEDAR and the Company website.
As the final components of work are coming to a conclusion, the
Feasibility Study team can confirm some key parameters on the mine
framework for the Aurora Gold Project:
Combination of open pit and underground mining for a mine life of 22
years based on the current measured and indicated resource of 5.71
Initially, surface and open pit development is expected to commence in
Q2 2012 for 24 months; open pit production is expected to begin in Q2
2014 and carry on for 8 years
Open Pit Mining is expected to include 6 pits within a square mile, with
bottom depths varying from 70 to 315 metres
Underground development is scheduled to commence in 2015 (capex will be
fully funded from cash flow); commercial production is expected to
commence in 2019 and will carry on for 16 years
Milling will be through a SAG mill and Ball mill combination with design
throughput of 8,000 tonnes per day
Average annual gold production (Years 2 - 9) is expected to be ~250,000
Power will be provided from on-site Heavy Fuel Oil (HFO) Power
Construction of certain critical off-site infrastructure facilities such
as the access road and the Buckhall port and transfer facilities are
With a Mineral Agreement in place with the Guyanese Government and
having received the Aurora Gold Project Mining License (see Press
Release dated Nov.18, 2011), the Company is poised to officially start
development and construction of the Aurora Gold Project in Q2 2012.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based mineral exploration company,
primarily focused on the exploration and development of gold deposits
in Guyana, South America where the Company has operated since 1996.
The Company is currently undertaking drilling and studies to advance
and develop the Aurora Gold Project in Guyana with a current measured
and indicated resource of 5.71 million ounces gold (47.040 million
tonnes at a grade of 3.83 g/t). The completion of a Feasibility Study
is expected in Q1 2012 followed by a revised resource estimate by the
end of the first quarter in 2012.
At the Aranka Properties, the Company has discovered a gold deposit at
Sulphur Rose and other highly prospective targets have been identified
for drill testing. As at the date hereof, the Company has approximately
$36 million in cash and short-term bank guaranteed investment
certificates and no debt; there are approximately 83 million shares
issued and outstanding.
All scientific and technical disclosure contained in this press release
has been approved by Claude Lemasson, P.Eng., MBA, a "qualified person"
within the meaning of National Instrument 43-101.
SOURCE Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
President & COO
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935