Guyana Goldfields has revealed that its Aurora mine would fail to meet its 2019 production target of 145,000-160,000 ounces. In fact, the company’s third-quarter gold production was only 22,100 ounces bringing the first nine months’ production to a total of 96,000 ounces.
As a result of ending its third quarter with $24.8M in cash and cash equivalents, management is moving immediately towards a mine plan review that is expected to bring significant cost savings.
Speaking to the details of the plan was Allen Palmiere, the Interim Chief Executive Officer (CEO) of Guyana Goldfields. The CEO said, “With the changes in corporate and site management oversight coupled with ongoing challenges in achieving the optimized sequence of mining and waste development in the open pit, we have embarked on a comprehensive mine, production and cost savings review plan to make the necessary changes and improvements to increase productivity and profitability.”
Since assuming the Interim CEO role on July 31, last, the official said he has taken a hands‐on, first-principles approach to reviewing all operations, and identifying the challenges and opportunities as it relates the overall mine plan.
He said that preliminary reviews have confirmed that the company has a sound asset, including geological resources and a robust processing facility. The CEO noted however that the mine plan requires further review in order to maximize the value of Aurora.
Further to this, Palmiere said that the company has commenced changes to the operating team, modified operating procedures and enhanced reporting. It has also appointed Roscoe Postle Associates Inc. (“RPA”) to assist in this review and to build on the prior work conducted which culminated in the release of an updated Technical Report of the Aurora Gold Mine on March 29, 2019.
Mr. Palmiere explained that part of this review includes assessing the cost savings initiatives which were underway as a result of the implementation of the management optimization plan announced earlier this year.
