TORONTO, Jan. 30, 2013 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) (the "Company") is pleased to announce that it has filed a technical report ("Report") prepared in accordance with Canadian Securities Administrators' National Instrument 43-101. The Report may be found on the Company website or under the Company's profile at www.sedar.com.
The independent Report, dated January 29, 2013, entitled "NI 43-101 Technical Report, Updated Feasibility Study, Aurora Gold Project, Guyana, South America" was issued by Tetra Tech Inc., with contributions from SRK Consulting (Canada) Inc., and other key industry consultants. The Report provides detail to the disclosure contained in the Company's news release issued on January 11, 2013, announcing the key finding results of the Updated Feasibility Study for its 100% owned and fully permitted Aurora Gold Project. As previously announced, the Report indicates that the open pit and underground mining operations at Aurora are anticipated to be economically robust with substantial upside potential.
Highlights of the Report include:
- US$205 million estimated initial capital required to achieve commercial production
- US$800 million Net Present Value after tax and royalties (at a 5% discount rate and $1,300/oz gold price)
- 38% Internal Rate of Return after taxes and royalties (at a 5% discount rate and $1,300/oz gold price)
- US$527/oz Average Life of Mine Operating Cash Cost after tax and royalties
- 3.29 million ounces of gold produced over an initial 17 year mine life, beginning in 2015
- 194,000 oz Average annual gold production over LOM, with 231,000 oz produced on average in the first 10 years
- 349,000 oz Gold production peak in 2020 (year 6)
- Gold production is staged, with initial open pit production at Rory's Knoll supplying ore to the mill at a rate of 5,000 tonnes per day. In early 2018, underground mining at Rory's Knoll commences when the open pit mining in this zone is completed. Rory's Knoll will be mined utilizing the open benching and sublevel retreat mining methods via a decline access with truck haulage, while the satellite open pits are mined concurrently. During this phase mill capacity increases to 10,000 tonnes per day for five years. Thereafter, nine years of underground mining continues and the mill operates at 5,300 tonnes per day.
- The Company will explore the existing potential to incorporate into the mine plan previously defined resources contained below the pit shell at Aleck Hill and below the current Rory's Knoll underground mine design.
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 where the Company has operated since 1996. The Company is focused on bringing the Aurora Gold Project into production with infrastructure development currently underway. Active exploration continues at Aurora and at the Company's Aranka Group of Properties with the intention of further expanding these resources. Greenfields exploration by our experienced team of geologists is also ongoing in the broader Aranka group of properties.
As at the date hereof, the Company has approximately $32 million in cash and cash equivalent and no debt; there are approximately 95 million shares issued and outstanding.
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. 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 various assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GGI to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the final findings set forth in the NI 43-101 Technical Report, Updated Feasibility Study, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although GGI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and GGI disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
SOURCE Guyana Goldfields Inc.