Nineteen years after the first foray into the Cuyuni region in search for gold and US$249 million in capital costs, Guyana Goldfields Inc (GGI) is now set for production of 3.29 million ounces of the precious metal over 17 years which will see at least 500 jobs and projected corporate income tax to the economy of US$509 million.
With gold prices having slid dramatically from the high of over US$1,800, the US$1,123 price per ounce yesterday still gives the company’s Aurora Gold Mine a tidy margin. At Tuesday’s commissioning of the first gold pour in the Cuyuni/Mazaruni region, financials supplied by the company showed that it is projecting all-in costs of between US$749 to US$779 per ounce of gold recovered. Oil has also been factored into the financials at US$95 per barrel, way above the price at present following the collapse of the oil price.
In addition to the 500 permanent jobs created – 700 Guyanese were employed in the initial 1,200 during the construction phase – the company is also paying up to 8% royalty on the gold retrieved. The 8% prevails for gold priced over US$1,000 while 5% will be applied for gold under US$1,000.
