Reunion eying five million ounces of gold

If it secures approval, Reunion Gold Inc, with the development of an open pit and underground gold mine, is hoping to produce approximately five million ounces of gold over 14 to 16 years from the processing of an estimated 65 to 70 million tonnes of ore.

According to a project summary, submitted by the Canadian-based company, to the Environmental Protection Agency, 280 to 350 million tonnes of waste rock and 65 to 70 million tonnes of tailings will be produced from its gold mining activity.

 The Canada-based gold exploration and development company, if given the green light by the EPA, would then need to clinch a deal with the government to conduct gold mining and processing at the confluence of the Oko and Kairuni rivers.

The company describes itself as a leading gold explorer in the Guiana Shield, South America.

According to the project summary, Mining will take place over 12 to 14 years, and processing over 14 to 16 years. Exploration of the Project area will continue during operations.

The summary highlighted that potential and additional deposits may be identified throughout the mine life, although the current study addresses only the currently known resource.

The construction and operation of the Project requires the development of supporting infrastructure.

In addition to the open pit and underground mines, Project facilities will include a processing plant, power plant, fuel storage, tailings storage facility (TSF), waste rock storage facility (WSF), water source, process water holding ponds, diversion channels, shop facility, administration building, camp, airstrip, haulage roads, and access roads to the Project area.

Mine site

The proposed mine site will comprise an open mine pit, underground ramp portal, ventilation raise openings, process water holding ponds, processing plant, WSF, TSF, fuel tank farm, explosives storage facilities, power generation plant, water treatment facilities, maintenance facilities, offices, and worker accommodations.

In 2021, the company made a gold discovery at its Oko West Project in Guyana where, after 22 months of drilling, it announced an initial Mineral Resource Estimate (MRE) containing 2.475 Moz (million ounces) of gold in indicated resources grading 1.84 g/t Au (grammes of gold per ton of overburden) and 1.762 Moz of gold in inferred resources grading 2.02 g/t Au.

The company in the document stated that “The Project has considered two alternatives for the importation of materials and equipment into Guyana from foreign ports: use of the existing port of entry in Georgetown, and development of a new port of entry outside of Georgetown. The preferred alternative is the development of a new port of entry outside of Georgetown”.

It noted that the proposed port of entry wharf and staging area will be developed on the Essequibo River. Reunion will develop the wharf and staging area facility and the Government of Guyana will establish port authority operations at the facility to facilitate importation approvals.

According to the project summary, hazardous waste will not be disposed of in the on-site landfill(s). Hazardous waste generated by the Project will be temporarily stored on-site pending off-site shipment for treatment and/or disposal at an approved facility by a licensed contractor.

Non-hazardous waste generated by the Project during construction is anticipated to be primarily associated with packing and surplus construction materials.

The primary material types expected are wood (pallets), scrap steel, and cardboard. Smaller volumes of other non-hazardous waste, such as paper and organic food waste, will also be generated. As much as possible, waste will be segregated to facilitate recycling.

A reputable, licensed contractor will be hired to handle the final disposal of recyclable and saleable waste.

The project currently employs 255 people to support exploration. Additional workers will be required during the development phases of the Project. It is estimated that at the peak of the pre-production phase, a total of 1,800 workers will be required. In the operations phase, medium- and long-term employment is foreseen to be provided to more than 800 workers (at peak) directly employed by the Project. In addition, indirect employment will be generated, notably by subcontractors dedicated to the Project’s activities.

Access/Transport Mode

According to the document, access to the Project area and transportation of materials and products is possible by three primary modes: overland, river, or air. Air transport could be the primary transportation mode for personnel to and from the mine, which would minimize the number of persons and vehicles/vessels travelling along the access road or on the river.

During construction and mine operations, equipment, materials, and supplies will be transported by barge and truck from Georgetown (or a designated port of entry) to a newly constructed port at Pine Tree and thence overland to the Project area.

 

Energy supply

 

There is no available grid electrical power in the region. The regional power system in the area currently runs on heavy diesel-fired thermal plants installed along the coast and at Linden and Bartica. There are also no power lines or substations in the Project vicinity.

The nearest power-generating project being considered is Amaila Falls on the Kuribrong River in central Guyana. This hydropower project envisages generating 165 megawatts and sending the electricity via a new power line to Linden, where it would be distributed.

The Guyana Government has been seeking the engagement of a foreign company on the project’s “build-own-operate-transfer” contract. If this hydropower plant goes ahead, the Project could procure power at Linden and build a power line to the mine site (about 135 kilometres along existing roads).

Given the uncertainty for the Amaila Falls project timeline, Reunion contracted Instream Energy Systems to conduct a feasibility study on the use of their hydrokinetic power generation system on the Cuyuni and/or Mazaruni rivers.

This technology could potentially generate the Project’s electrical power needs with predictable and clean energy and is included in this Project Summary as the proposed primary source of baseload power; however, to limit the risk of implementing this technology, an HFO-fired power plant will be installed at Pine Tree Wharf.

The installation at Pine Tree Wharf minimizes the truck traffic on Puruni Road and provides a reliable base power load close to Itabali.