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38 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 5 First gold production for Guyana Goldfields aurora Project t he presence of gold and other minerals in Guyana, South America, has been well documented; however, the coun- try has been mostly overlooked by larger mining companies. As gold prices surged higher at the turn of this century, geolo- gists started to take a more serious look at the under-explored interior of Guyana. The Guyana Shield has similar favorable geol- ogy with the prolific gold-bearing Birimian Greenstone Belt of West Africa. While many smaller gold mines have been in operation in Guyana at one time or another, an approach to reconsider the potential for larger deposits using modern geophysical surveying technology, has opened an new chapter in exploration. Guyana Goldfields Inc. [GUY-TSX] has been rewarded for a systematic long term commitment to outline a major new gold deposit in the country. Several years ago the company secured ownership of its flagship Aurora Project, a historic gold producer in the heart of the gold belt. Historic mine workings on the property boundary hinted at a much larger deposit area. Although the former mines were small producers targeting narrow, high-grade gold veins, geological interpretation suggested that a much wider area of dis- seminated lower grade gold alteration could be awaiting discovery. After several years of drilling programs, that explora- tion model led to the successful definition of a large tonnage gold deposit. Current gold resources for Aurora amount to 6.54 million ounces in the measured and indicated categories, plus another 1.82 million ounces inferred. A 2013 feasibility study highlighted low pro- duction costs, long mine life, and a short payback of just 3.4 years. These favorable circumstances enabled management to approve development and secure funding to move forward with the project even during the mining sector downturn. Guyana Goldfields has now emerged into the ranks of the gold producers. The company reported its first gold pour in August, as part of the planned com- missioning process for the recovery circuit currently under construction. Corporate guidance targets production of 30,000-50,000 ounces of gold during the remainder of this year. The near surface layer of the Aurora deposit is hosted within a heavily oxidized saprolite rock unit. Lower grade coarse gold is easy to recover from this softer rock using a conventional gravity circuit. The saprolite yields impressive recovery effi- ciency estimated at 97% of the contained gold. This enables the company to generate cash flow from operations as the lower grade halo is stripped and processed, concur- rently with the ongoing build-out of the hard rock recovery circuit. Meanwhile, development is progressing on schedule even though it is challenging for a junior to raise funds and advance through mine development to make the transition to a producing miner. Add in the difficulties associated with a nasty bear market for the precious metals sector, and then consider the additional hurdles to be overcome due to the remote location in Central Guyana with limited infrastruc- ture in place. The facility is roughly 170 km by road from Georgetown; managing logistical challenges was an important fac- tor in getting equipment and supplies to the project area. The overall construction phase is now about 95% completed. Part of this success- ful timeline is due to the strategy to work with proven contractors. Guyana Goldfields engaged Sedgman Limited, an Australian contractor specializing in mineral process- ing and infrastructure development, and Graña y Montero, a Peruvian engineering and construction contractor. Peter Watson, CEO, Managing Director, of Sedgman, said, "Sedgman was proud to be awarded the Engineering, Procurement, Construction (EPC) contract for the gold processing plant and power station for Guyana Goldfield's flagship Aurora Project. We delivered the project through a joint venture partnership with leading South American constructor Graña y Montero. Together, we applied proven technology, strong commercial management and local experience to deliver the Aurora Project on time, on budget and safely. The project was delivered under a fixed-price EPC contract. "Despite the logistical challenges of the project location, the project delivered first gold via the gravity circuit 14 months from contract signing. The project is an excel- lent example of how a fixed price EPC contract can deliver excellent performance in cost and time outcomes without any compromise on quality. This successful result has led to a strong relationship with the client and stakeholders." Formerly a British colony, Guyana is a stable democracy with English as its offi- cial language. The resource-based economy miNiNG The processing plant, built by Sedgman, for the Guyana Goldfields flagship Aurora Project in Guyana, South America. Photo courtesy Sedgman Limited and Guyana Goldfields Inc.