Mr. Suresh Kalathil reports
GUYANA GOLDFIELDS INC. ANNOUNCES SECOND QUARTER 2019 OPERATING RESULTS; ON TRACK FOR ANNUAL GUIDANCE
Guyana Goldfields Inc. has provided its operating results for the second quarter 2019 from its Aurora gold mine in Guyana, South America. Full operational and financial results will be released after market on Tuesday, July 30, 2019, with a conference call held on Wednesday, July 31, 2019, at 10 a.m. ET to discuss the results.
Second quarter 2019 summary
Second quarter gold production of 37,300 ounces amounting to 74,000 ounces of gold produced in the first half of 2019, on track to achieve the 2019 production guidance range of 145,000 to 160,000 ounces of gold;
Mining rate averaged 57,710 tonnes per day, a 45-per-cent increase in the mining rate compared with the previous year;
Record quarterly mill performance of 7,815 tonnes per day and a 10-per-cent increase from the previous year;
Underground exploration decline was resumed and advanced 164 metres during the second quarter;
Exploration drilling at Mad Kiss hole MKD 187 drilled into the central mineralized zone returned an average of 6.11 grams per tonne gold over a core interval of 301.4 metres starting from 14.1 metres downhole;
Strong balance sheet with an unaudited cash balance of approximately $38.9-million (U.S.) at June 30, 2019, and no outstanding debt.
Suresh Kalathil, senior vice-president and chief operating officer, states: "Cost reduction plans initiated this quarter focused on diesel and reagent consumption reduction as part of our operational optimization efforts to further reduce costs and improve operating efficiencies. We look forward to continuing a mutually beneficial working relationship with all contractors and employees at Aurora while collaboratively working towards achieving enhanced economies of scale on a cost per unit basis within defined operating metrics. The Aurora mill is back up to full capacity following the work stoppage from last week and we continue to demonstrate best practices in health and safety with over two million-person hours without a lost-time injury."
Key production statistics Q2 2019 Q2 2018
Gold sold ounces (000s) 38.3 31.7
Gold produced (1) ounces (000s) 38.3 31.3
Average realized gold price US$/ounce $1,325 $1,300
Gross revenue (unaudited) US$ M 50.7 41.2
Ore mined t (000s) 547 467
Waste mined t (000s) 4,705 3,148
Total mined t (000s) 5,251 3,614
Strip ratio waste:ore 8.6 6.7
Tonnes mined per day tpd 57,710 39,700
Ore processed t (000s) 711 646
Tonnes processed per day tpd 7,815 7,100
Head grade g/t Au 1.81 1.65
Recovery % 90.2 91.4
(1) Gold produced defined as recovered ounces of gold.
* Numbers may not add due to rounding.
The company's balance sheet remains strong with an unaudited cash balance of approximately $38.9-million (U.S.) at June 30, 2019, and no outstanding debt. Management believes the company has sufficient cash flow to finance its working capital and underground capex requirements, however, the company is reviewing various debt facility alternatives to provide operational flexibility and mitigate risk of any potential cost overruns related to the underground development.
Underground exploration decline update
Work on the underground exploration decline resumed in the second quarter. The contractor completed and reinforced the collar at the Mad Kiss portal and advanced the exploration decline approximately 164 metres. In order to fulfill the scope of the early works phase, the decline will be extended to 200 metres.
The company's permit allows for test mining of up to 350,000 tonnes that could potentially provide supplemental mill feed during the development period and further unlock value at Aurora. In addition, the underground exploration ramp will allow the company access in the fourth quarter to perform infill drilling at depth to delineate exploration targets and potentially add mineral resources, as well as convert mineral resources to mineral reserves, and further unlock value by potentially prolonging the mine life at Aurora.
The company is finalizing the review of bids received for the extended underground exploration development decline contract with the target of final award in the third quarter of 2019.
The company is continuing its near mine exploration efforts and has an active drill campaign utilizing two surface drill rigs to test down plunge extensions of the high-grade mineralization reported in late 2018. The company allocated $6.8-million (U.S.) in 2019 for additional surface brownfield drilling, initial underground exploration drilling and the resumption of greenfield exploration for a combined total of approximately 30,000 metres.
Two diamond drills were in operation during the second quarter completing 18 holes totalling 5,059 metres bringing the total for the year to 52 holes and 13,001 metres drilled. Drilling was completed at Mad Kiss, North Aleck Hill and commenced at East Walcott. A complete list of the results received during the second quarter will be presented in the forthcoming management's discussion and analysis for the second quarter of 2019.
Drilling at East Walcott targeted the depth extension to recently modelled ore shoots extending beneath the Rory's Knoll pit. Through the end of the quarter, a deep parent hole test had been completed intersecting multiple zones of intense veined silica-pyrite mineralization. Assay results from this work are pending.
A conference call will be held on Wednesday, July 31, 2019, at 10 a.m. ET to discuss second quarter 2019 operational and financial results.
A webcast will be available on the company's website for 90 days following the call or through the On24 website.
Conference call details
Date: Wednesday, July 31, 2019
Time: 10 a.m. ET
Conference ID: 92200450
North America toll-free: 888-390-0605
A recorded playback of the call will be available until Wednesday, Aug. 7, 2019, by dialling 1-888-390-0541 or 416-764-8677 and entering the call back passcode 200450.
Unless stated otherwise herein, all scientific and technical data contained in this press release have been reviewed, approved and verified by Ron Stewart (PGeo), who is a qualified person for the purposes of National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario. Mr. Stewart serves as senior vice-president of technical services and corporate development for the company.
About Guyana Goldfields Inc.
Guyana Goldfields is a Canadian-based mid-tier gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.
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