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 30 days.
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 the Project."
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, 2013.
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 various assumptions.
SOURCE Guyana Goldfields Inc.