Guyana Goldfields gets greenlight to resume underground operations

Some three months after being ordered to stop operations, the Guyana Goldfields Inc. has announced that it has been given the go ahead to resume it underground works at the Aurora Gold Mine in Region Seven (Cuyuni-Mazaruni).
Just one week after announcing back in November 2018 that it has started underground work, the Environmental Protection Agency (EPA) had issued a cease order to the Canada-based mining company since the necessary permit had not yet been approved.

Nevertheless, the Guyana Goldfields said in a statement on Wednesday that it received environmental authorisation from the EPA to resume construction and development work on an underground exploration decline at the Aurora Gold Mine.
The underground decline is intended for exploration and definition drilling in support of planned underground production. The recommencement of work on the underground decline will begin immediately, the company said in its missive.
The mine, which has been in commercial operation as an open pit since 2016, is anticipated to transition into an eventual combined open pit and underground operation and would become the first modern underground mine developed in Guyana.
“We appreciate the thorough oversight that the EPA is providing,” said Perry Holloway, the company’s Senior Vice President, Strategy & Corporate Affairs.
He added, “The Company is committed to meeting the highest standards in its planning and execution of this important project and we look forward to continued co-operation with the EPA and the Government as we unlock the value of Aurora for Guyana and the Company’s shareholders.”
According to the Guyana Goldfields, Wednesday’s authorisation to resume operations follows the provision by the Company to the EPA of additional information concerning the application of internationally accepted codes concerning the environment, health and safety practices being proposed.
The EPA also conducted a routine compliance inspection of the Aurora mine and camp facilities in December 2018. Additionally, the environmental agency requested the Company to modify some aspects of its current waste management plan, camp waste water treatment circuit and upgrade the waste oil containment facility.
Guyana Goldfields said it has addressed all the matters raised by the EPA during its inspection which will be further assessed during the next site inspection. At the time of the December inspection, the Company was compliant on all other environmental conditions of the operating permit.
Going forward, the contractor will complete and reinforce the collar and extend the decline 200 metres to fulfil the scope of the early works phase. The Company expects this work will take approximately three months to complete once the contractor is fully mobilized. A budget of US$2.0 million has been approved for the early works phase.
The company is finalising the review of bids received for the underground development contract with the target of final award in the second quarter of 2019.
The plan is to advance the exploration decline approximately 2,500 metres and provide a platform for further underground exploration and definition drilling. The decline is intended to provide access to all principal underground mining areas, including some higher-grade zones in Mad Kiss and East Walcott which will allow us to further delineate exploration targets and potentially add mineral resources and help convert mineral resources to mineral reserves.
In addition, the permit allows for test mining of up to 350,000 tonnes that could potentially provide supplemental mill feed during the development period and further unlock value at the Aurora Gold Mine.