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Guyana Goldfields Inc. Delivers Optimized Life of Mine Plan for the Aurora Gold Mine Showing Increased Mineral Reserves, Annual Gold Production, and Cash Flow Generation

TORONTOFeb. 20, 2018 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI" or "the Company") is pleased to report the results from its optimized life of mine plan on its 100% owned Aurora Gold Mine (hereto referred to as the "Optimized LOM Plan"). The Optimized LOM Plan shows increased mineral reserves of 12% after net depletion of 2017 operations and assumes accelerated selective underground mining of higher grade stopes concurrent with open pit operations while reflecting an expansion of the current processing facility to maintain throughput of 7,500 tonnes per day ("tpd") with hard rock ore. The Optimized LOM Plan utilized a gold price of US$1,200 per ounce and all amounts are expressed in US dollars. A conference call will be held tomorrow morning, February 21, 2018 at 10:00am EST to review the results of the Optimized LOM Plan.

Scott A. Caldwell, President & CEO states, "We are extremely encouraged by the results from the Optimized LOM Plan, which brings forward selective underground mining of higher grade stopes earlier in the mine life concurrent with open pit operations. This approach results in an attractive near-term growth profile and improves upon the production profile from the previous feasibility study with an additional 75,000 ounces expected to be produced over the next three years. Cash flow generation over the life of the mine is also expected to increase in conjunction with a reduced risk profile through a more balanced distribution of open pit and underground ore feed. An improved mine schedule has also resulted in the proposed underground mine at Rory's Knoll to move modestly deeper translating to an increase in overall reserves from 3.5 million ounces to 4.0 million ounces.  Accelerating underground development will also provide an ideal platform to potentially upgrade and expand the underground resource, especially at East Walcott where limited historical drilling has produced exceptional results.

With respect to processing, modifications to the originally proposed phase two mill expansion are expected to reap approximately US$20 million of capital savings on an accelerated schedule while still generating similar levels of throughput and recoveries. The Company is in a strong position financially to fund the underground development and mill expansion internally and looks forward to the immediate advancement of these initiatives in order to deliver the attractive growth profile that this Optimized LOM Plan envisages."   

Optimized LOM Plan Highlights

  • Mineral reserves increased to 4.0 million ounces ("Moz"), an increase of 12% from the previous mineral reserve estimate after net depletion from 2017 operations
  • Estimated average annual gold production of 270,000 ounces over the next five years at an average operating cash cost¹ of US$523 per ounce (including royalties)
  • Average head grade of 2.87 grams per tonne gold ("g/t Au") expected over the life of mine ("LOM ")
  • Post Tax NPV5% of US$898 million ("M")
  • Open pit mining ongoing through to 2030. Development of the underground operation is scheduled to commence in the fourth quarter of 2018 with first production expected in 2019.
  • Mill Expansion Phase 1 (Ongoing):
    • On-budget and on-track for expected completion by end of the first quarter of 2018 at a capital cost of US$21 M
    • Expected to increase throughput from 5,600 tpd to 6,600 tpd (hard rock) with a concurrent improvement in recoveries of ~1%
  • Mill Expansion Phase 2:
    • Expected to allow the processing of 7,500 tpd of hard rock with the addition of a previously purchased 1,000 tpd modular processing plant expected to result in increased recoveries of a further 1% to 2%
    • Expected completion by the end of the fourth quarter of 2018 at a capital cost of US$6 M, representing a capital savings of US$20 M when compared to the previous 2017 Feasibility Study and an expedited completion timeline of approximately 6 months.
  • Optimized the timing and the level of the open pit and underground interface utilizing a more selective mining method of long hole open stoping (LHOS) at Rory's Knoll starting in 2020, which is expected to result in a higher grade profile.
  • Gold production for 2018 is expected to be between 190,000-210,000 ounces with cost of sales (production costs, royalty & depreciation) expected to be US$850-$900 per ounce, operating cash costs (excluding royalty)¹ of US$430-$480 per ounce and all-in sustaining costs¹ ("AISC") of US$830-$880 per ounce. 
  • Purchased initial underground mining equipment in 2017 at a total capital cost of US$4 M with expected delivery to site by the third quarter of 2018.

Comparison of Economic & Operational Highlights


2018 Optimized
LOM Plan

2017 Feasibility 
Study


(02/2018)

(02/2017)*

Economic Assumptions




Gold price (US$/oz)

$1,200

$1,200


Electricity (US$/kWh)

0.14

0.14


Diesel price (US$/L)

0.55

0.55


Income tax rate (%)

27.5

27.5


Net smelter royalty (%)

8.0

8.0




Mine Parameters




Open Pit





Total mined (Mt)

188.4

172.0



Ore mined (Mt)

19.0

17.1



Average grade (g/t)

2.74

2.91



Ounces mined (Moz)

1.7

1.6



Strip ratio

8.9

9.0


Underground





Ore mined (Mt)

23.1

16.5



Average grade (g/t)

3.04

3.19



Ounces mined (Moz)

2.3

1.7


Processing





Ore milled (Mt)

43.0

34.7



Average grade (g/t)

2.87

3.00



Gold recovery (%)

94.8

93.8



Total gold recovered (Moz)

3.8

3.1



Mine life (years)

16

14



Average annual production 2018-2022 (koz)

270

242



Average annual production LOM (koz)

235

223


Financials





Operating cash cost (pre royalty)1 (US$/oz)

531

517



Operating cash cost (incl. royalty)¹ (US$/oz)

627

613



AISC¹ (US$/oz)

797

745



Pre-tax NPV (5%) (US$mlns)

1,142

1,035



Post tax NPV (5%) (US$mlns)

898

821


(*) Adjusted to commence in 2018

 

The optimized LOM plan was prepared by the Company with contributions from JDS Energy & Mining ("JDS") and has an effective date of December 31, 2017.

Mining and Production

The Company was able to successfully smooth the forecast production and cost profiles via the elimination of large variations in production and costs over the medium term. The Optimized LOM Plan contains a total of 43.0 Mt of ore grading 2.87 g/t Au. Total recovered gold production over a 16-year mine life is estimated to be 3.8 Moz, averaging 270,000 ounces per year for the first five years (2018 – 2022). Production is expected to peak in 2022 at 313,000 ounces.  Of the total 3.8 Moz ounces recovered over the LOM, 1.7 Moz are sourced from the open pit operations and 2.1 Moz are sourced from the underground operations. A summary of the annual mine production plan is included at the end of this press release.

Open Pit Mining

The open pit has a mine life of 13 years based on a total of 19.0 Mt of ore mined at an average grade of 2.74 g/t. Approximately 55% of the ore tonnes are sourced from Rory's Knoll, 30% from Aleck Hill, with the remainder coming from the Walcott Hill, Mad Kiss and North Aleck Hill satellite deposits. Mining activity over the near term will be focused on fresh rock ore at Rory's Knoll.    

The Company was able to successfully smooth the mining rate over the LOM with an average total (waste plus ore) rate of 70,000 tpd over the next four years and thereafter maintained at a steady 30,000 tpd rate over the remaining LOM. The average strip ratio over the life of mine is 8.9 to 1. The Company is reviewing strategic bids from contract miners to handle the waste stripping requirements, which is envisioned to be a 3-year campaign.  Contract mining will allow the Company to save on the capital expenditure of a fleet not required beyond this stripping campaign, and based on initial proposals, is suggestive of reduced mine operating unit costs.

Underground Mining

Rory's Knoll
The Optimized LOM plan demonstrates improved economics through accelerating selective underground mining of higher grade stopes concurrent with open pit operations. Following a two-year pre-production period, underground mining at Rory's Knoll is expected to be fully ramped up in year 2022. Long hole open stoping ("LHOS") will initially target higher grade material between the bottom of the pit from -240 metres below river level ("mRL") and -460 mRL. In 2023, the Crown Pillar will be blasted and mining will then transition to sublevel cave mining (SLC) for the remainder of the mine life at an estimated average mining rate of 4,700 tpd. An improved mine schedule is expected to provide supplemental feed from the other satellite deposits later in the mine life which resulted in Rory's Knoll underground mining becoming deeper by approximately 200 metres than what the previous 2017 Feasibility Study envisioned.

Accelerating underground development is also expected to provide an ideal platform to potentially upgrade and expand the underground resource, especially at East Walcott where limited historical drilling has produced exceptional results. Initial underground mine development will be conducted primarily by contract underground mining experts. An extensive training and development program will allow the transition to an underground workforce that is expected to be composed of approximately 80% Guyanese Nationals over the life of the underground operations.

Satellite Deposits – Mad Kiss & Aleck Hill
The Mad Kiss underground contributes an estimated 107,00 ounces (0.6 Mt at an average grade of 5.18g/t Au) to the overall Optimized LOM Plan. Mad Kiss is expected to be developed concurrently with the Rory's Knoll underground with initial production expected in 2019 and continuing through to 2021. Mad Kiss will be mined via longitudinal LHOS from a depth of about -10 mRL to about -400 mRL.

The Aleck Hill underground is expected to contribute 153,000 ounces (1.1 Mt at an average grade of 4.28 g/t Au) to the overall Optimized LOM Plan beginning in 2028 and continuing through to 2033. Aleck Hill will be mined through a combination of transverse and LHOS from a depth of about -140 mRL to about -500 mRL.

Processing

The existing process circuit has a capacity for 5,600 tpd and includes a cyanide leach and carbon adsorption process comprising crushing, single-stage grinding, gravity, cyanide leaching, carbon adsorption, carbon elution and regeneration, gold refining, cyanide destruction and tailings disposal.

The proposed plant expansion to 7,500 tpd will be completed in two phases. The first phase is currently ongoing and is expected to be completed by the end of the first quarter of 2018. This expansion is expected to increase the hard rock throughput rate from 5,600 tpd to 6,600 tpd and consists of debottlenecking the back end of the circuit and includes the addition of three leach tanks, a pre-leach thickener, carbon management systems and the expansion of the elution circuit. Due to additional retention time within the leaching circuit, the phase one mill expansion is expected to increase recoveries by approximately 1% to an estimated average recovery of 92.5%.

The second phase of the expansion will allow the continued processing of 7,500 tpd of hard rock ore and is expected to be completed by the end of the fourth quarter of 2018. It includes the utilization of a pre-crushing circuit and ball mill from a previously purchased 1,000 tpd modular processing plant. Results from a series of bulk test work on expanding the pre-crushing capacity have been highly encouraging demonstrating an approximate 3% improvement in grind as well as an approximate 2% overall improvement in gold recovery. Once completed, the overall gold recovery is expected to significantly increase to approximately 95.0%. In addition, a significant increase in gravity recoveries results in lower overall reagent consumption. The Company has awarded JDS Mining with the engineering and procurement for the Phase 2 Mill Expansion.

Financials

Operating cash costs¹ (including the royalty expense) average US$627 per ounce over the LOM. AISC¹ over the life of the mine, assuming an annual corporate general and administrative ("G&A") expense and stock based compensation of US$8 M and annual exploration expenses of US$5 M, are expected to average US$797 per ounce over the LOM.  A summary of the annual costs plan is included at the end of this press release and highlights are provided below.

Financials

2018
Optimized 
LOM Plan 
(02/2018) 

2017 
Feasibility Study 
(02/2017)* 


Revenue (US$mlns)

4,518

3,769


Operating cash flow (US$mlns)

2,158

1,837


OP Mining cost (US$/t material moved)

2.20

2.09


OP Mining cost (US$/t ore mined)

21.76

19.97


UG Mining cost - RK (US$/t mined)

24.83

25.72


UG Mining cost - Satellites (US$/t mined)

48.35

50.82


Processing cost (US$/t processed)

16.06

14.25


Site G&A (US$/t processed)

9.12

8.67


Operating cash cost (pre royalty)¹ (US$/oz)

531

517


Operating cash cost (incl. royalty)¹ (US$/oz)

627

613


AISC¹ (US$/oz)

797

745


Pre-tax NPV (5%) (US$mlns)

1,142

1,035


Post tax NPV (5%) (US$mlns)

898

821


 (*) Adjusted to commence in 2018

 

Gold Price Sensitivity

Financials @ 5% DR

$1,000/oz 
gold price²

$1,100/oz
gold price

$1,300/oz
gold price

$1,400/oz
gold price

Pre-tax NPV ($mlns)

722

891

1,393

1,645

Post-tax NPV ($mlns)

588

713

1,081

1,264


(2)  Royalty decreases from 8% to 5% at gold prices at and below US$1,000/oz

 

Aurora Gold Mine Mineral Reserves

The Company has updated its mineral reserves for its Aurora Gold Mine utilizing a gold price of US$1,200 per ounce and has an effective date of December 31, 2017. Overall mineral reserves increased by 12% to 4.0 Moz compared to the most recent mineral reserve estimate which had an effective date of December 31, 2016 and also utilized a gold price of US$1,200 per ounce.

As at December 31, 2017

Category

Quantity
(kt)

Grade

(g/t Au)

Ounces

(k Oz)

Proven

OP Saprolite

108

0.73

3

OP Rock

4,569

2.75

404

Total Proven

4,677

2.70

406

Probable 

OP Saprolite

2,291

1.77

130

OP Rock

12,959

2.81

1,172

UG Rock

23,120

3.04

2,262

Total Probable

38,370

2.89

3,565

Total P&P

43,047

2.87

3,971



Notes:

1.

The CIM definitions were followed for mineral reserves.

2.

Mineral Reserves are based on a gold price of US$1,200 per ounce, an 8% royalty and an average metallurgical recovery of 96.0% for saprolite and 94.0% for fresh rock material.

3.

Open pit saprolite and rock reserves are reported at a cut-off grade of 0.44 g/t Au and 0.42 g/t Au for vein and upper saprolite material respectively. Open pit rock reserves are reported at a cut-off grade of 0.76 g/t Au and 0.64 g/t Au for vein and Rory's Knoll rock material respectively.

4.

Underground fresh rock reserves are reported at a cut-off grade of 1.5 g/t Au.

5.

Mineral reserves are contained within mineral resources.

6.

All figures have been rounded to reflect the relative accuracy of the estimates. Numbers may not add due to rounding

7.

The mineral reserve estimate was prepared by Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining and both are a "qualified person" under National Instrument 43-101.

 

Aurora Gold Mine Mineral Resources

As at December 31, 2017

Category

Quantity

(kt)

Grade

(g/t Au)

Ounces

(k Oz)

Measured

OP Saprolite

108

0.73

3

OP Rock

4,728

2.91

442

Total Measured

4,836

2.86

445

Indicated

OP Saprolite

2,984

1.56

150

OP Rock

19,321

2.65

1,643

UG Rock 

30,060

3.91

3,780

Total Indicated

52,365

3.31

5,573

Total M + I

57,201

3.27

6,018

Inferred 

OP Saprolite

2,357

0.96

73

OP Rock

2,163

2.07

144

UG Rock

11,810

4.12

1,560

Total Inferred 

16,330

3.39

1,777



Notes:

1.

The CIM definitions were followed for mineral resources.

2.

Mineral resources are inclusive of mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

3.

All figures have been rounded to reflect the relative accuracy of the estimates. Number may not add due to rounding.

4.

Open pit mineral resources are reported at a cut-off grade of 0.30 g/t for Saprolite and 0.40 g/t for Fresh rock respectively, and underground mineral resources are reported at a cut-off grade of 1.8 g/t. Cut-off grades are based on a price of US$1,300 per ounce of gold and a gold recoveries of 97 percent for saprolite and 94.5 percent for fresh material.

5.

Mineral resources have been adjusted using the 2017 EOY topography, to account for open pit mining to date, and include ore stockpile inventories as of EOY 2017.

6.

The qualified person is not aware of any mining, metallurgical, infrastructure, permitting, or other factors that could materially affect the mineral resource estimates.

7.

The mineral resource estimate for Rory's Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting Ltd. Mr. Maunula is a "qualified person" under NI 43-101 and is independent of the Company. The mineral resource estimate for the satellites was prepared under the supervision of Daniel Noone of Guyana Goldfields Inc. Mr. Noone is a "qualified person" under National Instrument 43-101.

 

2018 Guidance

The Company's production and cost guidance for 2018 is provided below. Production is expected to be weighted towards the second half of the year due to mine sequencing and increased throughput to be available with the completion of the phase 1 expansion after the first quarter of 2018.  The 2018 mine plan is primarily made up of all hard rock ore from the central tonalite/diorite ore at Rory's Knoll and East Walcott deposits.

Cost of sales are expected to be US$850-$900 per ounce and AISC¹ of US$830-$880 per ounce.  These costs are based on an increased stripping rate during 2018, offset by the increased and more cost-efficient production offered by the process plant expansion investments. The royalty cost is based on an assumed gold price of US$1,200 per ounce. 

2018 Guidance

Gold production (000's ounces)

190,000-210,000

Cost of sales (production costs, royalty and depreciation) (US$ per ounce)

850-900

Cash cost¹, excluding royalty (US$ per ounce)

430-480

AISC¹ (US$ per ounce)

830-880

 

Conference Call

The Company will hold a conference call on Wednesday, February 21, 2018 at 10:00am EST where senior management will discuss the key findings of the Optimized LOM Plan and respond to any questions.

A webcast will be available on the Company's website following the call or through the following link at: 
http://event.on24.com/r.htm?e=1599688&s=1&k=FD85236DBA07FD4CFDEF52E370E1C980

To join the call:

Conference Call Details:
Date of Call: Wednesday, February 21, 2018
Time of Call: 10:00am EST
Conference ID: 5267697

Dial-In Numbers:
North America Toll-Free: (888) 231-8191
International: (647) 427-7450

A recorded playback of the call will be available until February 27, 2018 by dialing: 1-855-859-2056 or 416-849-0833 and entering the call back passcode 5267697.

Workshop Presentation

The Company will host a teach-in technical workshop for analysts and institutional investors on Wednesday, February 21, 2018 starting at 11:00AM EST in Toronto at Vantage Venues (Formerly St. Andrew's Conference Centre) to discuss the results of the Optimized LOM Plan. The event will be webcast and the accompanying presentation will be available on the Company's website under the Investors and Events & Presentations section at www.guygold.com.

For further details on this event or to rsvp, contact Jacqueline Wagenaar, VP Investor Relations, at (416) 628-5936 x.5295.

Qualified Persons

The compilation of the Optimized LOM Plan was completed by Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining. By virtue of their education, membership to a recognized professional association and relevant work experience, Tysen Hantelmann and Gord Doerksen are independent Qualified Persons as defined by National Instrument 43-101 and have reviewed, approved and verified the technical content of this news release.

The mineral reserve estimates were prepared under the supervision of Tysen Hantelmann, P.Eng. and Gord Doerksen, P.Eng of JDS Mining. Mr. Hantelmann and Mr. Doerksen are a "qualified person" under NI 43-101 and is independent of the Company.  The mineral resource estimate for Rory's Knoll was prepared under the supervision of Tim Maunula, of T. Maunula & Associates Consulting. Mr. Maunula is a "qualified person" under NI 43-101 and is independent of the Company. The mineral resource estimates for the satellite deposits were prepared under the supervision of Daniel Noone of Guyana Goldfields Inc. Mr. Noone is a "qualified person" under National Instrument 43-101 and has also reviewed the contents of this press release.

About Guyana Goldfields Inc.:
Guyana Goldfields Inc. is a Canadian based mid-tier gold producer primarily focused on the exploration, development and operation of gold deposits in GuyanaSouth America.

About Optimized LOM Plan Contributor:

About JDS Energy & Mining Inc.

JDS was founded in 2004 and is composed of a diverse set of skilled and highly experienced mining and construction professionals. With a proven record providing clients with fit-for-purpose solutions and value delivery, JDS has acquired a reputation for delivering and executing project plans on budget, on time, and most importantly, safely. The JDS team prides itself on delivering project concepts from inception to full operations – a process it has executed seamlessly for operations throughout Canada and worldwide.

Annual LOM Production Profile





















Units

Total/
Avg

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

OPEN PIT MINING




















Open Pit Ore

ktonnes

19,022

2,579

3,078

1,553

2,317

1,976

1,098

820

684

1,039

1,096

957

822

684

320





Au Grade Mined

gpt

2.74

2.62

2.90

2.89

2.80

2.74

3.09

2.61

2.86

2.03

2.93

2.44

1.78

3.99

2.20




Au Mined from Open Pit

koz

1,675

217

287

144

208

174

109

69

63

68

103

75

47

88

23




Open Pit Waste

ktonnes

169,376

22,071

22,472

24,067

19,416

8,880

8,465

8,640

8,943

8,705

8,622

8,984

9,577

9,755

779




Open Pit Material Moved

ktonnes

188,397

24,650

25,550

25,620

21,733

10,855

9,562

9,460

9,627

9,745

9,717

9,942

10,399

10,439

1,098




Strip Ratio


8.9

8.6

7.3

15.5

8.4

4.5

7.7

10.5

13.1

8.4

7.9

9.4

11.7

14.3

2.4






















UNDERGROUND MINING




















Ore Mined - Rory's Knoll

ktonnes

20,537



347

554

1,332

1,506

1,714

1,725

1,714

1,720

1,738

1,707

1,704

1,748

1,677

1,349



Au Grade Mined

gpt

2.92



4.76

4.24

3.85

2.93

2.88

3.25

3.43

3.05

2.50

2.38

2.34

2.31

2.69

2.74


Au Mined from Rory's Knoll UG

koz

1,925



53

76

165

142

159

180

189

169

140

131

128

130

145

119


Ore Mined - Satellites

koz

2,583


140

420

562

285

67





165

181

209

205

205

144



Au Grade Mined

gpt

4.06


3.41

4.98

3.66

3.23

2.97





4.72

4.64

3.90

4.07

3.77

4.93


Au Mined from Satellites UG

koz

337


15

67

66

30

6





25

27

26

27

25

23




















Total Au Mined

koz

3,937

217

302

265

350

368

257

227

243

257

272

240

205

242

179

170

142




















PROCESSING



















Tonnes Milled

ktonnes

43,047

2,355

2,738

2,745

2,738

2,738

2,738

2,745

2,738

2,738

2,738

2,745

2,738

2,738

2,738

2,745

2,337

Throughput Rate

tpd

7,400

6,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

6,400


Mill Feed Average Grade

gpt

2.87

2.91

3.12

3.30

3.48

3.70

3.01

2.87

3.12

2.95

3.07

2.70

2.37

2.83

2.14

2.15

2.11


Recovery

%

94.8%

92.1%

95.4%

95.6%

95.8%

96.1%

95.2%

95.0%

95.4%

95.1%

95.3%

94.6%

93.9%

94.9%

93.3%

93.3%

93.1%





















Total Au Recovered

koz

3,767

203

262

278

294

313

252

240

262

247

258

226

196

236

176

177

148

 

Annual LOM Cost Profile


























Units

Total/
Avg

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

FINANCIALS




















Revenue

$mlns

4,508

243

314

333

352

374

302

288

313

295

309

270

235

283

211

211

177



NSR Royalty (8%)

$mlns

361

19

25

27

28

30

24

23

25

24

25

22

19

23

17

17

14


Site Operating Costs

$mlns

1,989

92

100

118

141

121

126

129

130

135

137

138

139

146

119

113

108



Sustaining Capital

$mlns

295

9

21

34

29

16

14

19

21

16

12

15

17

26

21

16

10



Deferred Stripping

$mlns

138

36

28

37

11

5

2

4

6

-

-

3

4

2

-

-

-



Expansion Capital

$mlns





















Mill Expansion

$mlns

13

13

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-




UG Mining

$mlns

151

19

73

17

-

-

-

-

-

-

20

21

-

-

-

-

-




Other

$mlns

3

3

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


Total Capital Costs

$mlns

599

79

122

88

41

20

16

22

27

16

32

40

21

28

21

16

10


Total Site Costs

$mlns

2,950

190

247

232

210

171

166

174

182

175

193

200

178

196

157

147

132


AISC

$mlns

3,002

170

188

229

223

185

180

188

196

188

187

192

191

210

171

160

145























Pre-tax Cash Flow

$mlns

1,567

50

61

98

140

204

138

112

128

120

113

70

57

82

60

64

46


NPV (5%) (pre-tax)

$mlns

1,142


















Tax

$mlns

348

1

7

6

24

50

33

30

35

33

32

20

14

23

14

16

11


NPV (5%) (after tax)

$mlns

898







































Operating Cash Cost¹

$/oz

531

455

385

425

483

389

501

540

498

551

532

614

710

618

679

645

732


Operating Cash Cost (incl Royalty)¹

$/oz

627

551

481

521

579

485

597

636

594

647

628

710

806

714

775

740

828


AISC¹

$/oz

797

836

717

821

761

592

713

783

747

764

723

851

977

886

970

907

985

 

Non-IFRS Performance Measures

The Company has included certain non-IFRS performance measures in this press release including total cash costs per ounce and AISC per ounce. These measures are not defined under IFRS and should not be considered in isolation.  The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to similar measures presented by other issuers. For a reconciliation of these numbers please refer to the Company's most recent management discussion and analysis.

Forwarding-Looking Information

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. Forward-information includes, but is not limited to, statements with respect to mineral reserve and mineral resource estimates, mining operations and production, processing capacity, exploration and development activities, and cost estimates. Generally, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on the reasonable assumptions, opinions, analysis and estimates of management as of the date such statements are made and are based on various assumptions regarding, among other things, the realization of mineral resource and mineral reserve estimates, currency fluctuations, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the progress of exploration and development activities, the receipt of necessary regulatory approvals, and assumptions with respect to environmental risks, title disputes or claims, and other similar matters.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risks relating to the inability to realize mineral resource and mineral reserve estimates at anticipated recovery levels or at all, assumptions underlying mineral reserve and mineral resource estimates being incorrect, as well as those factors discussed in the section entitled "Risk Factors" in the Company's annual information form and management's discussion and analysis. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.  Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking information, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

1  

This is a non-IFRS Performance measure.  Refer to Non-IFRS Performance Measures section.

 

SOURCE Guyana Goldfields Inc.

Guyana Goldfields Inc., Scott A. Caldwell, President and Chief Executive Officer; Jacqueline Wagenaar, Vice President, Investor Relations & Corporate Communications, Tel: (416) 628-5936 Ext. 5295, Fax: (416) 628-5935, E-mail: jwagenaar@guygold.com, Website: www.guygold.com