Guyana Goldfields production passes 21,000 ounces

-achieves positive cash flow

Canadian firm Guyana Goldfields Inc (GGI) has produced over 21,000 ounces of gold over the last two months as it continues to ramp-up mining activities at its Aurora Gold Mine in Region Seven.

“From October 1, 2015 to November 30, 2015, the company produced 21,093 ounces of gold of which 14,091 ounces were sold at an average realized price of US$1,084 per ounce generating approximately US$15.3 million in pre-tax revenue and achieving positive cash flow,” the company said in a statement on Wednesday.

“With the start-up of hard rock processing, we are one step closer to demonstrating successful implementation of full operations.

November we saw significant momentum and we expect December to be another outstanding month.We do not anticipate the upcoming secondary rainy season to have any material effect on our operations as these brief bouts of inclement weather have been accounted for within the mine and mill production plan,” Scott Caldwell, the President of GGI was quoted as saying.

The statement said the company has processed approximately 11,500 tonnes of hard rock through the primary crushing circuit.

During November, the mill processed an average of 4,600 tonnes of ore per day, at an average head grade of 3.64 grammes per tonne of gold, with gold recoveries averaging 94%.

It was disclosed that as of November 30th, the company had mined a total of 539,355 tonnes of ore and a total of 334,828 tonnes of ore was fed to the mill, with the remainder being stored in the stockpile located near the mill. In addition, 1,335,989 tonnes of waste have been mined to date.

The company said it believes that it is still on track to achieve its production guidance for 2015 at approximately 30,000 ounces of gold.

Total production guidance for 2016 is between 130,000 and 150,000 ounces of gold.

The statement said GGI continues to have an untouched US$52 million overrun facility available, of which, US$25M is the Tranche 2 cost overrun facility under the Project Loan Facility and US$27M is comprised of GGI’s own restricted cash. “In the event of an unlikely circumstance, the company may draw on these accounts if needed,” the statement said.

It added that GGI plans to issue an updated NI 43-101 Technical Report Feasibility Study for the Aurora Gold Mine in the first quarter of next year, which will reflect an extended open pit mining scenario, while deferring the underground production until later in the mine life as well as updated cost parameters and reserves based on revised gold prices.

The Canadian firm celebrated its first gold pour in September.

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