Newspaper article The Canadian Press

Guyana Goldfields Revises Cost of Aurora Gold Project to US$249 Million

Newspaper article The Canadian Press

Guyana Goldfields Revises Cost of Aurora Gold Project to US$249 Million

Article excerpt

Guyana's Aurora project to cost US$249M

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TORONTO, Cananda - Guyana Goldfields Inc. (TSX:GUY) has revised up the total capital cost of its Aurora Gold project to US$249 million and approved a spending plan to bring it to commercial production.

The new estimate is above the US$205 million Guyana had said it would take to build the project, but well below an earlier estimate, after the company scaled back its plans earlier this year.

The earlier estimate for the project in northern Guyana had proposed a $525-million cost for a mine with a life of 22 years and total production of nearly 4.4 million ounces of gold.

The company says its board has approved to spend US$238 million at its Aurora Gold project, whose capital cost is now estimated to be US$249 million, of which US$11 million has been spent to date.

The Toronto-based miner said it would keep a close eye on expenditures and was examining opportunities to reduce the capital expenditure for the project, including contract mining as well as third-party ownership and operation of the power plant.

It's also reviewing the potential of extending open pit production and deferring the capital required for the planned underground expansion.

The company had reduced costs to US$205 million in January, saying the estimated cost in a later feasibility study included several changes, such as a phased mining and milling approach, a reduced footprint for the mine site and facilities and an optimized mobile equipment fleet. …

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