Guyana Goldfields sales hit high-end of improved guidance

VANCOUVER (miningweekly.com) – TSX-listed Guyana Goldfields has celebrated the first year of commercial operations at the cornerstone Aurora gold mine, in Guyana, by hitting the top end of its upwards revised guidance for 2016.

For 2016, Guyana Goldfields sold 156 000 oz at Aurora, close to the top end of its guidance of between 140 000 oz and 160 000 oz in the mine’s first year of commercial production.

"With commissioning, ramp-up and over a year of operations successfully behind us, Aurora has proven to be a strong, high-grade asset with exceptional cash flow generation,” president and CEO Scott Caldwell stated on Monday.

The company had a record fourth quarter for tonnes mined and tonnes milled, resulting in 45 500 oz sold in the period. December was particularly strong with 22 800 oz sold, a record for the year.

Guyana Goldfields said it was well positioned financially to grow near-term production and to ramp up exploration, with an unaudited cash balance of about $70-million, compared with a total debt balance of $80-million.

The 2017 production guidance is higher at 160 000 oz to 180 000 oz gold, produced at all-in sustaining costs of $775/oz to $825/oz.

The company plans to publish an updated feasibility study for Aurora later this month, reflecting an expansion of the mill from 5 000 t/d to 8 000 t/d throughput.

It expects to ramp up exploration this year, with drilling to start at both near-mine targets and at the Sulphur Rose deposit, located about 20 km north-east of the Aurora mine, in the current quarter.