Canadian gold company talks up mining-friendly policies, tax waivers in Guyana

Aug 26, 2024 News

…as Govt prepares to grant license to company

Kaieteur News – In a presentation about its various operations, Canadian mining company Goldsource Mines Inc. outlined the significant advantages of Guyana’s gold industry to its new owner, Mako Mining Corp.

In July, Mako Mining announced its acquisition of Goldsource Mines, securing full ownership of the Eagle Mountain Gold Project in Guyana was announced.

Goldsource Mines has highlighted the strategic benefits of its operations in Guyana, citing the country’s favorable mining environment. The Eagle Mountain Gold Project, situated in Region Eight (Potaro-Siparuni), has proven to be a high-quality find with nearly 1.2 million ounces of indicated gold and 582,000 ounces of inferred resources. The proximity of the gold deposit to the surface further enhances the project’s value.

According to Goldsource Mines, Guyana is rapidly emerging as one of South America’s most attractive mining jurisdictions. It was stated too that the country has introduced various government initiatives aimed at promoting new mining projects, including tax exemptions and a streamlined permitting process.

Minister of Natural Resources, Vickram Bharrat

Guyana’s mining-friendly policies are complemented by existing infrastructure and a history of significant contributions from the mining, oil, and gas sectors, which collectively accounted for approximately 62% of the GDP in 2022 – Goldsource highlighted.

The Eagle Mountain Prospecting License, which spans 5,000 hectares, benefits from its strategic location with highway access to Mahdia’s commercial airport, just 7 kilometers from the site. The project is situated 45 kilometers southwest of the historic Omai gold mine, which produced an estimated 4 million ounces of gold between 1993 and 2005. The Eagle Mountain Project also enjoys substantial government support, including infrastructure improvements such as road upgrades and power enhancements, along with a favorable permitting regime.

The Canadian company outlined that the aforementioned simplifies the advancement of mining operations in Guyana. The appeal of the Eagle Mountain Project is further boosted by the recent oil discoveries in Guyana

Moreover, Goldsource Mines recently released its Preliminary Economic Assessment (PEA) for the Eagle Mountain Gold Project, prepared by ERM Consultants Canada Ltd. The PEA is based on the April 2022 Mineral Resource Estimate (MRE), and underscores the project’s low cost and low capital expenditure intensity, making it both economically viable and an attractive investment opportunity.  The project is projected to have a mine life of 15 years.

Additionally, Minister of Natural Resources Vickram Bharrat this month announced that the Government of Guyana will soon issue a mining license to the company operating at Eagle Mountain. He stated, “And we are in the process of issuing once the due diligence is done, a mining license to another company in the region eight district large scale company that should produce after Reunion [Gold] which will start in late 2027.” Minister Bharrat added, “The future for mining especially at a large-scale level is bright for Guyana’s mining sector. However, we want to see more Guyanese remaining and joining at the same time the small and medium scale mining and taking advantage of the opportunities that exist.”