Loading ...Guyana Gold Field News Release
Financial release. Any comments????
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Guyana Goldfields Inc. Updates Feasibility Study and Demonstrates Aurora as a Low-Cost Producer with Average LOM Production of 190koz/yr with an AISC of US$661/oz
The updated FS reflects an extended open-pit/deferred underground mining scenario, as well as current cost parameters, and reserves based on a revised gold price of US$1,000 per ounce.
The mine plan produces 2,865,726 ounces of gold at an average life of mine (“LOM”) grade of 2.94 grams per tonne (“g/t”) gold over an initial 16 year mine life at an all-in sustaining cost (“AISC”) of US$661 per ounce. Average annual gold production over the LOM is 188,000 ounces, and averages 200,000 ounces per year over the period from 2017 – 2028. Gold production peaks in year 2023 at 231,000 ounces. Gold production is staged with an initial open pit mill throughput rate of 5,000 tonnes per day (“tpd”) from the Rory’s Knoll deposit expanding to 8,000 tpd in early 2017 with the inclusion of other open pit feeds from the Aleck Hill and Mad Kiss deposits. Underground mining at Rory’s Knoll commences in year 2022 and lasts for nine years.
robust project, numbers, management and balance sheet. i own it. accumulate on weakness. i have categorized it as stage 2 uptrend. so it can be bought and held (coffee can it).
Here is the kicker: “Management estimates from internal modelling that with a higher gold price of approximately US$1,250 per ounce, an additional 1.5 million economic ounces of gold can be returned back into the mine plan.”
Thats another $500 million cash gross earnings goes through the balance sheet in a rising gold price environment.
What is not mentioned is the exploration upside along the trend…many targets yet to be tested.
If they are not liars and con artists when it comes to the Feasibility Study, then you are getting a great deal here… one has to remember, these Feasibility Studies are usually fantasy. If one believed feasibility studies for the paper they are written on, Goldcorp should be taking ounces out of the ground at Eleonore for 400$ an ounce and they are currently taking them out of the ground for closer to 1000$. One should go back and do a history lesson and search for old feasibility studies and see projected costs vs actually costs when the mine is up and running. You will be sorely disappointed.
That being said, I like it.