TORONTO, Oct. 17, 2013 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (TSX: GUY) is pleased to announce the progress regarding the development at the
Aurora Gold Project (the "Project") located in Guyana, South America
and has committed to securing long lead time equipment.
Earlier this year, the Board of Directors of the Company approved a
fiscal 2013 Budget of approximately US$ 43 Million with the majority of
the expenditures dedicated towards the development and construction of
the Aurora Gold Project.
The Company has entered into an agreement to purchase one 7.9x6.0 meters
(5.5 megawatts) semi-autogenous (SAG) mill as its primary grinding
solution for the initial milling facility. The purchase of this key
long lead time item is a significant milestone in the development of
the Project. The mill is designed for an initial throughput of 5,000
tonnes per day ("tpd") expanding to 10,000 tpd in the third year after
the commencement of underground production. A ball mill will be added
in order to facilitate the expansion and the additional throughput. The
purchase price of the SAG mill including motors and spares is
approximately US$ 6.3 Million (including freight) and the anticipated
delivery time to Guyana is approximately 46 weeks.
The Company has also purchased a fully-equipped and self-contained camp.
The camp will meet the Company's near term requirements for
construction. The camp was purchased for approximately US$ 3.0 Million
(including freight) and the anticipated delivery time to Guyana is
approximately 6 weeks. The Company is currently evaluating options for
remaining accommodations and recreational facilities required for full
construction and will source from local vendors. Additional equipment
and supplies will be required over the course of construction and
operation of the Project and the Company is dedicated to purchasing as
many items as possible from within Guyana.
The SAG mill and camp purchase prices and time lines are comparable with
estimates reported in the National Instrument ("NI") 43-101 Technical
Report, Updated Feasibility Study filed on January 29, 2013.
The bulk of the development and construction activities planned for the
remainder of the year will be focused on continuing to upgrade the
existing access road to the Project site, establishing the off-site
Buckhall Port facility, the construction of the first phase of the
living accommodations at the Project site, and communications systems
for both data and voice.
The Company is also pleased to announce that it expects to award the
full engineering, procurement, construction and management ("EPC/EPCM")
contract(s) for physical construction of the mill, power plant, river
levee, tailings and support facilities for the Project within the next
Scott A. Caldwell, President and CEO, states, "We are excited to be
moving the Aurora Gold Project forward and the ordering of these key
long lead time items is a significant milestone in the development of
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 focused on the construction and development of the
Aurora Gold Project scheduled for initial production in early 2015. The
Project is designed to produce 3.29 million ounces of gold, averaging
194,000 ounces per year, over an initial 17 year mine life. The Aurora
Gold Project has a total gold resource of 6.54 million ounces in the
measured and indicated categories (62.83 million tonnes at a grade of
3.24 g/t) as well as an additional 1.82 million ounces in the inferred
category (16.93 million tonnes at a grade of 3.34 g/t). The Company
also holds a significant portfolio of attractive exploration properties
and currently holds cash balances of US$112 Million as of September 12,
This news release contains "forward-looking information". 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
SOURCE: Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
President and CEO
VP, IR & Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935