VANCOUVER (miningweekly.com) – Guyana-focused gold producer Guyana Goldfields has published the positive results of an updated feasibility study on its cornerstone Aurora mine.
The study outlined the expansion of the current processing facility from 5 600 t/d to 8 000 t/d and pushed reserves 15% higher, net of depletion of 15 months of operation.
Based on an assumed gold price of $1 200/oz, mineral reserves increased to 3.5-million ounces and the study calculated an after-tax net present value, at a 5% discount rate, of $850-million, up from the previous estimate of $568-million on a base-case price assumption of $1 000/oz.
The proposed expansion of the mill will be completed in two phases and will increase yearly output to more than 200 000 oz starting in 2018, for the 15-year life of the mine, with gold output expected to peak at 303 000 oz in 2021.
Under the proposed mine plan, openpit mining will continue from 2017 to 2024, after which underground operations will account for output until 2031. Of the total 3.3-million ounces to be recovered over the life of the mine, 1.7-million ounces will be sourced from the openpit operations and 1.6-million ounces from the underground operations.
The operation is expected to have life-of-mine all-in sustaining costs of $747/oz.
Aurora is forecast to produce 171 000 oz this year, growing to 254 000 oz in 2018.
Guyana Goldfield’s TSX-listed stock on Thursday gained more than 5% to C$6.74 apiece.