Aurora produces 96,000 ounces up to September 30

Oct 31, 2019 News

Canadian-controlled Guyana Goldfields Inc., which operates the biggest gold mine for the country at Aurora, Cuyuni, Region Seven, has produced up to 96,000 ounces in the first three months of the year.

The Aurora plant area, Cuyuni, Region 7

According to the company, in its financial and operating results for the third quarter ended September 30, 2019, the third quarter gold production was 22,100 ounces.
“Gold sales of 23,500 ounces at a total cash cost (before royalty) of $1,372 per ounce of gold sold as a result of very low gold sales this quarter.”
Mining rate averaged 51,500 tonnes per day, an 11% decrease in the mining rate compared to the previous quarter due to pit room constraints imposed by smaller benches and reduced working faces, heavy rainfall and a work stoppage.
“The company experienced a three-day work stoppage at its Aurora Mine as a result of a contingent of the workforce blocking delivery of ore to the mill resulting in approximately 22,500 tonnes not being processed…”
So far, the company’s underground exploration decline construction was advanced to 394 metres.
The company is moving into underground mining.
It was disclosed that the company received a Trade Union Certificate of Recognition from the Trade Union Recognition and Certification Board in Guyana identifying the National Mine Works Union as the representative union for employees below the supervisory level.
Meanwhile, the mining company disclosed that it has initiated a comprehensive mine, production and cost savings plan review to make the necessary changes and improvements to increase productivity and profitability.
“The result of the review is expected to be delivered in the first quarter of 2020; however, some cost improvements are expected to be realised almost immediately.
Allen Palmiere, Interim CEO, stated, “Since assuming the Interim CEO role on July 31, 2019, I’ve taken a hands-on, first principles approach to reviewing all operations, identifying the challenges and opportunities, and we are in the process of reviewing the overall mine plan.
“Our reviews have confirmed that we have a sound asset, including geological resources and a robust processing facility, however, the mine plan requires further review in order to maximise the value of Aurora.”
In fact, in recent weeks, the company said it has commenced changes to the operating team, modified operating procedures and enhanced reporting.
He said that fourth quarter gold production is expected to improve over the third quarter as mining moves back into the primary ore zone within Rory’s Knoll.
However, full year production is expected to be below previously released guidance.
The company has helped push declarations for the country above 600,000 ounces annually but faced shareholders’ troubles earlier this year, which saw a reshuffle of management.