TORONTO (miningweekly.com) – Canada-based Guyana Goldfields, which is focused on the exploration and development of gold deposits in the Guiana Shield of South America, on Wednesday filed a positive technical report with Canadian securities administrators for its Aurora gold project, in Guyana.

The report had found the project to hold an estimated after-tax-and-royalties net present value of $800-million at a 5% discount when using a gold price of $1 300/oz. The after tax and royalties internal rate of return is 38% when using the same parameters and the mine has an expected price tag of $205-million.

The report found the mine could produce gold at a rate of 194 000 oz/y over its first 17 years, starting in 2015. In the first ten years the mine is expected to produce 231 000 oz/y and production is expected to peak at a rate of 349 000 oz/y in 2020.

The company said gold production would be staged, with initial openpit production at Rory's Knoll supplying ore to the mill at a rate of 5 000 t/d. In early 2018, underground mining at Rory's Knoll would start when the openpit mining in this zone is completed.

Rory's Knoll would be mined using the open benching and sublevel-retreat mining methods through a decline access with truck haulage, while the satellite openpits would be mined concurrently. During this phase mill capacity would increase to 10 000 t/d for five years, after which underground mining would continue for nine years with the mill operating at 5 300 t/d.

Guyana Goldfields said it would explore the 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.

The Aurora project contains about 3.47-million ounces of gold in the proven and probable reserves category locked in 39.52-million tons of ore grading 2.74 g/t.

The company also on Thursday announced it had entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, as bookrunner, under which the underwriters have agreed to buy on a bought deal basis 29.42-million common shares at a price of C$3.40 a share for gross proceeds of about C$100-million.

The company had granted investors a 15% overallotment option, valid for 30 days after the offering closes on February 22.

The company said the funds would be used to develop the Aurora project and for general corporate purposes.

The company’s stock rose 2.08% on the TSX on Wednesday to C$3.68 apiece.