Issue link: http://resourceworld.uberflip.com/i/581931
o c t o b e r / n o v e m b e r 2 0 1 5 www.resourceworld.com 39 IBK Capital Corp. This announcement appears as a matter of record only. $3,549,359 Units of Common Shares and Warrants The Undersigned Acted as Agent to Minera Alamos Inc. June – July 2015 Private Placement is supported by pro-mining government policy and this contributed to the devel- opment plan at Aurora. Guyana Goldfields was able to win concessions to enable easier customs clearance and tax exemp- tions for mining equipment and materials imported into the country. Aurora is slated to become a signifi- cant mining operation. Initially, the plan is to achieve throughput of 1.75 million tonnes per year (tpy). A secondary expan- sion phase will then be completed, funded through working capital to enable process- ing capacity to upwards of 3.5 million tpy. At full production, average yearly out- put approaching 200,000 ounces gold is expected, over a 17-year mine life. This one mine would then represent about a third of the current gold output for the entire country. At current gold prices, corporate taxes, plus a royalty of 8% on production will represent a significant contribution to the overall tax revenues for Guyana. The benefits to mine development are already in play for the local economy. At one point more than 1,000 people were employed as part of the mine development and plant construction work. A fleet of vehicles is already engaged in stripping and mining activity, even while construction work elsewhere is ongoing. When develop- ment is complete, the mine is expected to employ 500 full time workers, providing much needed, high paying jobs in a part of the country with limited opportunities. The final mill construction phase and a cyanide leaching recovery plant are expected to be completed by year end. One advantage of moving ahead with develop- ment during a bear phase in the market is that the company has not faced serious con- straints related to availability of contractors and equipment. Cost pressures have also moderated in recent years compared to the boom years of earlier in this cycle. Guyana Goldfields expects to achieve commercial production in 2016, once the plant commissioning and testing has been completed. The company has issued guid- ance for between 120,000 and 140,000 ounces of gold output for next year as production gradually ramps up. Despite the various challenges encountered along the way, the company has so far delivered impressive performance, as the devel- opment process is on schedule and on budget. In fact, a contingency fund of $52 million has been set aside for cost overruns on the corporate credit line, but remains undrawn upon. On the home stretch to completing this ambitious mine development, Guyana Goldfields has managed to position itself as an emerging mid-tier gold producer with the prospect of many years of low cost gold mining ahead. The company also has a second exploration candidate in Guyana awaiting its turn in the spotlight, the Aranka Project, with drill-ready tar- gets already outlined. The advantage of a large mine spinning off cash flow at Aurora will mean that the company has the luxury to move forward with another grass roots exploration program at Aranka to expand on its foothold in Guyana for the years ahead. n