Guyana Goldfields Completes Positive Feasibility Study for its Aurora Gold Project in Guyana
Monday, Feb 27, 2012
Guyana Goldfields Inc. (TSX: GUY) ("GGI" or "the Company") is pleased to announce positive Feasibility Study results for its 100% owned Aurora Gold Project in Guyana, South America. The NI 43-101 Feasibility Study report will be compiled under the supervision of SRK Consulting (Canada) Inc. ("SRK") with contributions provided by prominent industry consultants. A conference call will be held today by Guyana Goldfields management at 11:00 am Eastern Time to further discuss the results (see details at the end of this release).
The Aurora Gold Project is expected to have a positive impact on the economy of Guyana by maximizing employment, skills training, and generating business opportunities for local suppliers and service providers. The Company is dedicated to becoming a leading corporate citizen and a productive partner in the future of Guyana's economy. The Aurora Gold Project is presently the only large-scale licensed gold mine development project in Guyana and will be the next producing gold mine in the country in late 2014.
All figures in this release are in US dollars except where noted. All figures include contingency where applicable.
At a recent spot gold price of $1,775/oz and $100/barrel WTI Crude Oil, pre-tax NPV increases to $1.7 billion at a 5% discount rate generating a pre-tax IRR of 28.6% with cash costs of $522/oz (pre-royalty).
Claude Lemasson, President and COO, stated: "The completion of the Feasibility Study is a major accomplishment for the Company, establishing the Aurora Gold Project as Guyana's largest undeveloped gold reserve in the country's history. The positive results confirm that the Aurora Gold Project is poised to become a future significant gold producer in Guyana and in the Guiana Shield. Construction on the project is expected to commence later this year and will last for approximately 24 months."
An independent third party review of the Feasibility Study was initiated last month as well as an internal review by Guyana Goldfields which are both ongoing.
Source: Guyana Goldfields Inc.