Guyana Goldfields New Com (GYGC)

[NYBob]

It's Happening Again... Investors Dump Everything 'China' | Zero Hedge

https://www.zerohedge.com/markets/its-happening-again-investors-dump-everything-china

[Girona1]

I purchased some shares of Guyana Goldfields not long ago. Suddenly, there has been a lot of interest in the is Gold company. Today, Silvecorp announced that it will not be matched the superior offer that it has received from an international company. In addition to this...Guyana Goldfields has announced that it will not longer be an open-pit mine; but, an underground mine. Frankly, if we think about it...I wouldn't be surprised if they've found a "Motherlode" Goldmine. This company was worth over $ 20.00 Dollars not long ago. I have a feeling that inside sources are not telling us everything.

[NYBob]

Ottawa to scrutinize Chinese acquisition of gold miner as Huawei case reaches crucial stage
Author of the article:
Gabriel Friedman

https://vancouversun.com/commodities/ottawa-to-scrutinize-chinese-acquisition-of-gold-miner-as-huawei-case-reaches-crucial-stage/wcm/909b7f42-8397-4c21-93ae-4b4f9b1e757f/


Chinese to scrutinize Canadian gold & silver miners etc.
Ex...
SILVERCORP METALS INC. its producing mines and exploration and development projects in China @ High Risk to be
nationalized by China,
Imo!

Reaction after Huawei CFO Meng Wanzhou loses key court fight, must remain in Canada | LIVE
665 watching now•Started streaming 48 minutes ago

Huawei executive Meng Wanzhou loses key court fight, will remain in Canada to fight extradition
1,136 views•May 27, 2020

Global News
1.7M subscribers

Global News
1.7M subscribers
The B.C. Supreme Court has ruled against Huawei executive Meng Wanzhou
in a major decision Wednesday morning. The decision by Justice Heather
Holmes, means Meng must stay in Canada and keep fighting the U.S.
extradition order.
Global News' Nadia Stewart has the details of the decision.

Also, immigration lawyer Richard Kurland talked to the media outside the courthouse about what the next steps could look like in Wanzhou's case, but Kurland said this is not good for the Huawei executive.


https://www.youtube.com/watch?v=PWGWks7u8h4

Global News
1.7M subscribers
The B.C. Supreme Court has ruled against Huawei executive Meng Wanzhou in a major decision Wednesday morning.

The decision, released Wednesday by Justice Heather Holmes, means Meng must stay in Canada and keep fighting the U.S. extradition order.

The legal arguments centre on whether the allegations Meng is facing in the United States would be a crime in Canada.

https://www.youtube.com/watch?v=fGKwhYnTJLs

[NYBob]

Ottawa to scrutinize Chinese acquisition of gold miner as Huawei case reaches crucial stage
Author of the article:
Gabriel Friedman

https://vancouversun.com/commodities/ottawa-to-scrutinize-chinese-acquisition-of-gold-miner-as-huawei-case-reaches-crucial-stage/wcm/909b7f42-8397-4c21-93ae-4b4f9b1e757f/


Chinese to scrutinize Canadian gold & silver miners etc.
Ex...
SILVERCORP METALS INC. its producing mines and exploration and development projects in China @ High Risk to be
nationalized by China,
Imo!

Reaction after Huawei CFO Meng Wanzhou loses key court fight, must remain in Canada | LIVE
665 watching now•Started streaming 48 minutes ago

Global News
1.7M subscribers
The B.C. Supreme Court has ruled against Huawei executive Meng Wanzhou in a major decision Wednesday morning.

The decision, released Wednesday by Justice Heather Holmes, means Meng must stay in Canada and keep fighting the U.S. extradition order.

The legal arguments centre on whether the allegations Meng is facing in the United States would be a crime in Canada.

https://www.youtube.com/watch?v=fGKwhYnTJLs

[MemoryLeaks]

New Technical report added for Aurora mine yesterday which maybe helping move the price. For a $40 million market cap company with a good bit of cash i liked what i read and seems like a great risk / reward play.

I have bought another load to average down. Time will tell

March 2020 - Technical Report on the Aurora Gold Mine, Guyana

[MemoryLeaks]

Guyana mention in relation to screwing up there estimates. That they sure did and there share price took a massive hit because of it. We are on the other side of this now and looking for expansion of resource with ongoing drilling.

Its been a great week for share price action but i feel we are at the start of a big rebound.

------------------------

Article
Golden blunders: How a string of technical mishaps has hampered Canada’s junior gold miners
Reports overestimating the amount of gold led to junior miners flying high, but the gold was ‘never there’
NIALL MCGEE MINING REPORTER
PUBLISHED JULY 12, 2019
UPDATED 7 HOURS AGO

Globe & Mail Article

[MemoryLeaks]

Took a position in this today.

With the recent increase in gold price , i feel this is screaming buy. Extra price should make up for the over estimation of gold grade recovery from the mine.

Also this has room to expand out resource as Gold price moves north. Has plenty of cash at hand ($40 million net cash) and producing good amount of oz already

[MemoryLeaks]

Any recent activity on this

[andre b]

Yeah, now we're cooking. Go Guyana.........

[andre b]

As a result of 2015 mine and mill production rates, the Company's Aurora Gold Mine has achieved commercial production effective January 1, 2016.

[andre b]

Volume up again. Next leg up coming?

[andre b]

Are you kidding me? http://ih.advfn.com/p.php?pid=nmona&article=68016411 Great news and this board is dead?

[andre b]

Wow, look at this rising volume and PPS. Gold will start pouring any day now. GUY !!!

[andre b]

This may be a good time to take another look at GUY.

[andre b]

Did we break through the rising wedge yet? PPS and volume way up. I'm very busy lately and don't do much DD (I'm gonna be a grandpa on or around Christmas Day). GUY money will come in handy. Go GUY

[moroDDstocks]

seem s like it...need some gold price cooperation to break through rising wedge...

[andre b]

Are we done filling the gap at $3.54 yet?

[andre b]

Keep loading before they start poring gold. After that it'll be just chasing up and up......

[andre b]

I hope that we will never go down to $3.54 again.

[moroDDstocks]

GUY INVESTOR PRESENTATION MAY 2015

http://www.guygold.com/i/pdf/ppt/GUY%20Presentation%20May%202015-Final2.pdf

[moroDDstocks]

TORONTO, May 27, 2015 /CNW/ - Guyana Goldfields Inc. (GUY.TO) (the "Company" or "GGI") is pleased to announce that the mill commissioning process has commenced and the Aurora Gold Project ("Aurora" or "the Project") remains on track for projected initial gold production in mid-2015.

Overall, Project construction is approximately 85% complete with the Company focusing on operational readiness training and commissioning. GGI has commenced the commissioning of the following areas:

SAG Mill
Power Plant Generators
Water and Air Support Systems

The Company will continue the commissioning phase during the second quarter of this year and is in the process of completing the remaining piping, electrical and surface conveyor construction. GGI is on track to start-up the gravity gold and saprolite production circuits for mid-2015 which would allow for earlier gold production (pre-commercial production) through the processing plant. The commissioning and startup of the hard rock crushing circuit is projected to be completed in the third calendar quarter of 2015.

The mining fleet is fully operational and all materials required for construction are on site. All surface and on-site construction and bulk earthworks are completed except for the river dike and runway expansion. The Company is currently operating at peak construction and manpower levels with over 1,000 personnel at site. The operational readiness team has been hired and undergoing initial training.

Initial open pit mining at Rory's Knoll has defined the pit outline with excavation below river level with no in-flow of water, as expected.

The Company expects to produce between 30,000 ounces to 50,000 ounces of gold in 2015 and approximately 120,000 ounces to 140,000 ounces of gold in 2016.
Related Quotes

GUY.TO3.75+1.63%

Guyana Goldfields Inc.
Watchlist
3.75+0.06(1.63%)
TorontoTue, May 26, 2015 3:59 PM EDT

GGI has approximately US$44 million (as at March 31, 2015) of capital expenditures remaining to projected initial production. The total initial development costs for all facilities as well as mining equipment, owner's costs, indirect costs, etc., remains forecasted to be US$249 million. The Project is tracking on budget with US$52 million available as an overrun facility, if needed.

Scott A. Caldwell, President & CEO, commented, "The commissioning of the mill circuit is a major milestone which we've been able to deliver on schedule and brings us one step closer to initial production. I am proud of what our team has accomplished in just a little over a year. The energy at site is vibrant and I would like to thank all our employees and contractors for their dedication and excellent work. At this stage in the game, we are so close to production that it has eliminated a large portion of capital over-spending risk. Our next focus is producing ounces at or above our target for 2015 gold production and join the ranks of producers."

About Guyana Goldfields Inc.

Guyana Goldfields Inc. is a Canadian based company, focused on the exploration and development of gold deposits in Guyana, South America. GGI is focused on the construction and development of the Aurora Gold Project scheduled for first production in mid-2015. The Aurora Gold Project has a total gold resource of 6.54 million ounces in the measured and indicated categories (62.83 million tonnes at 3.24 g/t Au) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at 3.34 g/t Au). For further details, please refer to the press release dated December 9, 2013 and the report entitled "NI 43-101 Technical Report, Updated Feasibility Study – Aurora Gold Project" dated January 29, 2013 available on SEDAR at www.sedar.com. GGI also holds a significant portfolio of attractive exploration properties and holds cash and cash equivalents of US$16 million as of March 31, 2015.

Forwarding-Looking Information

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the receipt of applicable regulatory approvals, the timing of the advance of the funds pursuant to the project loan facility to fund the development and construction of the Aurora Gold Project (the "Facility"), fulfilling all conditions precedent to the advance of funds pursuant to the Facility, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

http://finance.yahoo.com/news/guyana-goldfields-inc-commences-mill-113000058.html

[moroDDstocks]

first we need to fill the gap at 3.54...

[andre b]

Good action today, volume up, at this rate we will hit $5 by the end of this week.

[moroDDstocks]

at least...what a stock this one is...been buying-flipping since 1.50...now holding strong

[andre b]

5 bucks in two weeks, IMHO.

[moroDDstocks]

10 cad$ in 2 years at current gold price....

[moroDDstocks]

AISC at about 750 $ per oz...450 per oz. profit margin...show me a producer with this margin....

[moroDDstocks]

Strong institutional ownership...

[moroDDstocks]

This one is a 5-6 CAD$ stock on NPV basis at current gold price...

[moroDDstocks]

And the chase beginns

[andre b]

We're getting really close to the mid-2015, start loading now....

[andre b]

Keeps trying to break through the resistance. The higher lows will push it through and then upwards of $10 IMHO.

[andre b]

With the first gold production expected in mid-2015 (that's just a few weeks away)this one should skyrocket any day now IMHO.

[andre b]

30% up in the last few months and it seems to me that everybody gave up on this company. Is there something that I don't know?

[andre b]

I got in @ 2.76 and am waiting for the first smelting. If I remember correctly it was suppose to happen in the Q1 2015. Did anyone hear anything?

[Tommy]

$GUYFF - Guyana Goldfields approves $238M capex for Aurora Gold project

Guyana Goldfields (GUYFF) says its board has approved $238M of spending for the Aurora Gold project to reach commercial production, subject to successful completion of project financing and other approvals expected to be finalized by Q2 2014.
Construction is expected to last 18 months, with commissioning of the mill beginning in Q1 2015 and commercial gold production achieved by mid-2015.

http://seekingalpha.com/currents/post/1453721?source=email_rt_mc_readmore

[Tommy]

$GUYFF - nearing major support

[Tommy]

$GUYFF - $GUY.TO - Guyana Goldfields Inc. Orders Long Lead Time Equipment and Provides Aurora Gold Project Update

http://finance.yahoo.com/news/guyana-goldfields-inc-orders-long-113000621.html

TORONTO, Oct. 17, 2013 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (GUY.TO) is pleased to announce the progress regarding the development at the Aurora Gold Project (the "Project") located in Guyana, South America and has committed to securing long lead time equipment.

Earlier this year, the Board of Directors of the Company approved a fiscal 2013 Budget of approximately US$ 43 Million with the majority of the expenditures dedicated towards the development and construction of the Aurora Gold Project.

The Company has entered into an agreement to purchase one 7.9x6.0 meters (5.5 megawatts) semi-autogenous (SAG) mill as its primary grinding solution for the initial milling facility. The purchase of this key long lead time item is a significant milestone in the development of the Project. The mill is designed for an initial throughput of 5,000 tonnes per day ("tpd") expanding to 10,000 tpd in the third year after the commencement of underground production. A ball mill will be added in order to facilitate the expansion and the additional throughput. The purchase price of the SAG mill including motors and spares is approximately US$ 6.3 Million (including freight) and the anticipated delivery time to Guyana is approximately 46 weeks.

The Company has also purchased a fully-equipped and self-contained camp. The camp will meet the Company's near term requirements for construction. The camp was purchased for approximately US$ 3.0 Million (including freight) and the anticipated delivery time to Guyana is approximately 6 weeks. The Company is currently evaluating options for remaining accommodations and recreational facilities required for full construction and will source from local vendors. Additional equipment and supplies will be required over the course of construction and operation of the Project and the Company is dedicated to purchasing as many items as possible from within Guyana.

The SAG mill and camp purchase prices and time lines are comparable with estimates reported in the National Instrument ("NI") 43-101 Technical Report, Updated Feasibility Study filed on January 29, 2013.

The bulk of the development and construction activities planned for the remainder of the year will be focused on continuing to upgrade the existing access road to the Project site, establishing the off-site Buckhall Port facility, the construction of the first phase of the living accommodations at the Project site, and communications systems for both data and voice.

The Company is also pleased to announce that it expects to award the full engineering, procurement, construction and management ("EPC/EPCM") contract(s) for physical construction of the mill, power plant, river levee, tailings and support facilities for the Project within the next 30 days.

Scott A. Caldwell, President and CEO, states, "We are excited to be moving the Aurora Gold Project forward and the ordering of these key long lead time items is a significant milestone in the development of the Project."

About Guyana Goldfields Inc.:

Guyana Goldfields Inc. is a Canadian based Company, focused on the exploration and development of gold deposits in Guyana, South America. The Company is focused on the construction and development of the Aurora Gold Project scheduled for initial production in early 2015. The Project is designed to produce 3.29 million ounces of gold, averaging 194,000 ounces per year, over an initial 17 year mine life. The Aurora Gold Project has a total gold resource of 6.54 million ounces in the measured and indicated categories (62.83 million tonnes at a grade of 3.24 g/t) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at a grade of 3.34 g/t). The Company also holds a significant portfolio of attractive exploration properties and currently holds cash balances of US$112 Million as of September 12, 2013.

Forwarding-Looking Information

[Tommy]

Chart update

[Tommy]

$GUY.V - latest presentation

http://www.guygold.com/s/Presentations.asp

[Tommy]

$GUY.V - Corporate Profilehttp://www.guygold.com/s/Corporate.asp

[Tommy]

$GUY.V - Projects

http://www.guygold.com/s/Projects.asp

[Tommy]

$GUYFF - $GUY.V - Guyana Goldfields Is Highly Undervalued

Aug 6 2013, 04:26 | about: GUYFF.PK (GUYANA GOLDFIELD NEW)

http://seekingalpha.com/article/1606462-guyana-goldfields-is-highly-undervalued?source=email_portfolio&ifp=0

This article is about Guyana Goldfields (GUYFF.PK). Guyana Goldfields has a market capitalization of $204 million, or $215 million fully diluted. It owns two projects in Guyana: the Aurora Gold Project, and the Aranka Project.

The Aurora Gold Project is currently in the development stage. It contains an estimated 8.5 million ounces of high grade gold, and the company expects to bring it into production by the beginning of 2015 at over 100,000 ounces per year. This figure is expected to exceed 300,000 ounces per year at the peak of the mine's life.

The company is advanced in getting the Aurora Gold Project into production. It has already obtained permitting from Guyana's government, and it has $123 million of the $205 million that it needs in order to develop the mine. Further, given that the mine is estimated to have relatively low production costs, it should be very profitable, and therefore Guyana Goldfields should have no trouble securing the $82 million or so that it needs to develop the Aurora Gold Project.

Given that the company has a market capitalization of just $204 million, and its $123 million cash position, it is very inexpensive relative to its estimated resources and its anticipated production. It therefore seems to be a solid investment opportunity for gold bulls.

Guyana Goldfields' Properties

Guyana Goldfields has two projects: the Aurora Gold Project, and the Aranka Project, containing the Sulphur Rose deposit. Both properties are located in northern Guyana.

(click to enlarge)

A; The Aurora Gold Project

The Aurora Gold Project is by far Guyana Goldfield's most valuable property, accounting for the vast majority of the company's resources and all of its foreseeable production.

Resources

Guyana Goldfields has an estimated 8.4 million ounces of gold, with 3.5 million ounces of reserves at 2.8 grams of gold per ton, and 4.9 million ounces of gold resources at roughly 3.3 grams per ton. The following tables detail this information. Note that Guyana Goldfields counts its reserves also in its measured and indicated resources in the two tables.

(click to enlarge)

(click to enlarge)

With the company's cash backed out its high grade in-ground gold is very inexpensive at just $10 per ounce.

Production

Production at Aurora is expected to begin in 2015. It will expand until it peaks in 2020. At first the company will mine ore at the surface using open pit mining, and it will begin underground mining in 2017. This information is detailed on the following chart.

(click to enlarge)

As the mine ages Guyana Goldfields will mine more and more underground, which means that as the mine moves past peak production it should be producing less gold at higher prices (underground mining is more expensive than open pit mining). The following charts the company's anticipated production plan for Aurora.

(click to enlarge)

Aurora will have low production costs, with cash costs being around $300/ounce for the first five years of the mines life. In the next 5 years of the mine's life the company will mine more underground ore, and its costs will go up to $380/ounce. It predicts that its all-in costs will be $783/ounce and $814/ounce for each respective timeframe. The following chart itemizes the company's estimates of its production costs.

(click to enlarge)

Given the company's production and cash cost estimates the following table estimates its future cash flow. I have provided four estimates of this at each of six gold prices. I assume production of both 150,000 and 250,000 ounces of gold per year in order to take both the early (2015 - 2017) and later stages (2018 - 2023) of Aurora's life into consideration. I also calculate each of these estimates for $800/ounce production costs, and a more conservative $1,000/ounce production cost.
Gold Price (U. S. Dollars Per Ounce) 150,000 Ounces of Production (Cash Flow in Millions of U. S. Dollars) 250,000 Ounces of Production (Cash Flow in Millions of U. S. Dollars)
1,000 0 - 30 0 - 50
1,250 37.5 - 67.5 62.5 - 112,5
1,500 75 - 105 125 - 175
1,750 112.5 - 142.5 187.5 - 237.5
2,000 150 - 180 250 - 300
2,500 225 - 255 375 - 425

From these figures it appears that Guyana Goldfields is highly undervalued relative to its future estimated cash flow. Even if we assume the worst case scenario for the company's cost of production, at $1,250 gold the company will see cash flow in 2015 of $37.5 million, and the company's shares trade at just 5.4 times this cash flow. Even if we factor in the money that Guyana Goldfields needs to raise by either diluting shareholders or selling some of its gold to a royalty company, it still trades conservatively at around 8 or 9 times cash flow. Keeping in mind that this cash flow is only a year and a half away, and that this is a worst case scenario for the company, the shares appear to provide excellent value based on these figures for Aurora.

B: Aranka (Sulphur Rose)

Given that the Aurora project is so close to production and requires so much capital and labor the Aranka project is of little importance to the company at this point in time. It is an exploration project with roughly 500,000 ounces of resources, the details of which are found on the following table.

(click to enlarge)

Thus far the company has not found enough for a mine. Furthermore, there is a reasonable possibility that the 100,000+ underground ounces occur at too low a grade to be mined economically. Thus in order to determine if the property has any value the company has to do additional drilling in order to find more resources. Given the company's high capital needs, however, I would not expect this to take place until after Aurora goes into production at the very earliest, and probably not until the company begins mining underground in 2017.

Risks

A: The Price of Gold

Guyana Goldfield's share price will be correlated to the price of gold, which has plummeted as of late as is evidenced in the following chart. However it seems to have found support at $1,200 per ounce.

(click to enlarge)

The price increase above $1,300 appears to be bullish, which suggests that the downtrend in gold may come to an end. Still, the downtrend is intact, and lower gold prices will be reflected in Guyana Goldfields' share price.

B: Mining in Guyana

Guyana is a relatively stable place to mine with transparent regulatory and taxation policies. Furthermore, gold mining is and has been an essential part of Guyana's economy for decades. There doesn't seem to be a significant risk of work stoppages, which are prevalent in many African countries such as Tanzania or Egypt, and there is no history of property usurpation as there has been in Venezuela. Nevertheless Guyana is an impoverished third world country, and these are especially prone to capricious government action or violence due to terrorist organizations. Thus investors should not shy away, but they should be on guard and unwilling to pay as much for Guyana Goldfields as they would for a similar mine in a safer jurisdiction such as most of Canada and the United States.

C: Guyana Goldfield's Size

Guyana Goldfields essentially has one property. If for whatever reason the company cannot mine Aurora, then the company is worth the cash on its balance sheet. Fortunately for now this is more than half of the company's market capitalization, although keep in mind that it will be using this capital over the next several months to build Aurora, and that in a few months there may not be nearly as much cash to cushion the shares should anything happen to Aurora.

Conclusion

Guyana Goldfields appears to be an undervalued, solid investment for those who are bullish on the price of gold and who have a long-term investment horizon. Even in conservative scenarios the company trades at a very low multiple to its future cash flow. Furthermore, the company has most of the capital it needs to develop Aurora, and it should have little trouble securing the rest of what it needs in a way that is not very punitive to existing shareholders.

The only caveat is Aurora's location. But while Guyana is not as safe a place to mine as Canada or Sweden, there are no immediate threats to Guyana Goldfields' properties. Ultimately for investors who are willing to endure this somewhat heightened political risk Guyana Goldfields is an excellent investment opportunity.

[Tommy]

$GUYFF - $GUY.V - Video Analysis

[Tommy]

$GUYFF - $GUY.V - 'Stupid Cheap' Gold In Guyana

http://seekingalpha.com/article/1516482-stupid-cheap-gold-in-guyana?source=email_authors_alerts&ifp=0

Doug Casey coined the phrase 'stupid cheap prices'. Today we are writing about a company for which this label applies. The company we are writing about has a market capitalisation of $156M. Considering that the company also had $122M in cash and no debt at the end of May we can conclude that assets are currently valued at a mere $34M. A recent feasibility study came up with an NPV of $800M for the flagship project of this company. In other words: the company is currently selling at 1/24 of its asset value. Stupid cheap? Yes, stupid cheap it is.

The company is called Guyana Goldfields (GUYFF.PK), and the flagship project mentioned above goes by the name of Aurora. The latest updated feasibility study considered a gold price of $1300 as a base case and showed total reserves of 3.5M ounces at a grade of 2.74g/t. Additionally there are 6.5M ounces in measured and indicated resources and 1.8M in inferred resources. This feasibility study investigated a two-staged approach with a 5000 tpd open pit starter operation, and underground development and mill expansion to 10,000 tpd funded by operating cash flows. Tropical weathering has transformed the top layer into a saprolite which can be mined at a relatively low cost, making this staged approach a very attractive proposition.

(click to enlarge)

(mine plan taken from company presentation)

Capital expenditure for the open starter pit is calculated to $205M. Considering the current cash position of $122M above the company is more than half way there already. The base case results in an NPV (5%) of $800M and an IRR of 38%, both after tax. Even with an assumed gold price of $1000 the NPV remains respectable at $429M and the IRR comes out at 25%. Payback for the base case is given a tad over 3 years and mine life at current reserves is 17 years for production of 3.5M ounces. These are very robust project economics. Life of mine cash costs have been computed to $604 per ounce and all-in cash costs are given as $1041 per ounce.

At 94% for fresh rock and 97% for saprolite recoveries are very high and ore processing is straight forward using a standard CIL plant. An unpaved road links the Aurora project with the port of Buckhall which is owned and operated by the company and will be expanded as required. The proposed mine is situated next to a navigable river with ample of water at its disposal, but also making water management implementing a river dyke a priority. Power will be generated locally using diesel fuel.

Aurora is only a small speck in a huge prospective land package that offers blue sky potential for future exploration. A resource estimation exists for a deposit called Sulphur Rose and multiple further exploration targets have been identified.

The company is not wasting any time and seems serious about taking this project all the way to production. It is cashed up and engineering works are under way. Early construction activities are also being undertaken while financing for the remaining capex is being negotiated. The time line to production shown below has the open pit online by the start of 2015 followed by underground mining three years later.

(click to enlarge)

The Guyana Shield is a continuation of the West African Shield from a time when the two continents were still joined together in what is now termed as the paleoproterozoic super-continent Pangaea as shown in the map below. This super-continent started to break up about 200M years ago and continues to drift apart today, but certain common geologic signatures can still be identified across today's Atlantic Ocean, including the prospectivity for gold.

Guyana is English speaking, a democracy and a member of the Commonwealth. Mining legislation is transparent and modern. This free supplement to the Mining Journal on Guyana has a lot of detail on the country and its mining industry for interested readers. Aurora is fully permitted and Guyana Goldfields will pay 30% corporate income tax and a 5% or 8% royalty depending on the gold price.

The company is listed on the Toronto stock exchange under the ticker GUY and shares are available in the USA via the pink sheets. There are 126M shares outstanding (134M fully diluted) which are currently trading for $1.24 a piece. Institutions and insiders own almost 64% of the shares including the World Bank (IFC) with 5.5%. There are presently ten analysts following Guyana Goldfields.

Management has undergone some changes in recent times, but the present team gives a solid and experienced impression. CEO Scott Caldwell headed Allied Nevada (ANV) for several years and has more than 30 years of experience in building and operating mines. And the recently appointed COO Peter Galassi is based in Guyana and has over 15 years of mine development experience.

(click to enlarge)

There are two possible investment theses for investors with a high risk tolerance.

This is another company that has entered the orphan stage as defined so eloquently by Brent Cook. The exuberance of exploration success has gone and reality has kicked in. The down trend may continue for a while until catalysts stemming from mine construction provide reason for a break northwards. Wait for a bottom and ride the uptrend to production.
Of course, all could change if a major or mid-cap gold miner picks the project up. Aurora has all the trimmings that could create interest: a large reserve with a long mine life, production of 200,000+ ounces per year at sufficiently low production costs, fully permitted, a relatively secure legislative environment. Invest rather quickly in order to be on board should a takeout offer eventuate. Note: fellow Guyana gold explorer Azimuth Resources (TSX:AZH) has just received a takeover bid from Troy Resources (ASX:TRY).

Take your pick.

[wshaw14]

Interesting company.

[buccaneer1961]

look at that volume!

[goldisking3000]

GUY looking to break out of the $10 ....

[goldisking3000]

Got to love it >>>>>>>>> GUY

[goldisking3000]

Looking very good ....