Guyana Goldfields Inc TSX:GUY announced a positive feasibility study for its Aurora gold project in Guyana, South America. At a base case gold price of $1,300 per ounce and with proven and probable reserves of 4.6 million ounces gold, Aurora is projected to have a 22-year mine life, at an average cash operating cost of $522 per ounce (pre-royalty). Total gold production is estimated at 4.36 million ounces with average per-year production of 256,800 ounces for the first 10 years. The project has a pre-tax net present value of $644 million at a 5% discount rate generating an internal rate of return of 14.9% and a 6.9-year payback period. Initial capital costs are estimated at $525 million.
A conference call will be held February 24 by Guyana Goldfields management at 11:00 AM EST to discuss the results. The Aurora gold project is presently the only large-scale licensed gold mine development project in Guyana.
or Jacqueline Wagenaar
VP Corporate Communications
by Ted Niles