Guyana Goldfields Chief Operating Officer Claude Lemasson
Canadian-owned Guyana Goldfields Inc has announced plans to start construction of the first underground gold mine in the Guianas — a US$175M operation — by the end of this year. Chief Operations Officer Claude Lemasson, in an exclusive interview with Guyana Times International, said some Gy$3 billion in equipment has already started to arrive in the country.
Guyana Goldfields Inc is a Canadian-based mineral exploration company primarily focused on the exploration and development of gold deposits in the Guiana Shield.
This company is hopeful that the “critical” mineral agreement with the government of Guyana is finalised soon, so that personnel could forge ahead with their plans to develop the underground mine. “We would hope that we are able to secure the mineral agreement with the government in the near future. That would allow us to move forward and finish our technical studies, and also do some other project financing,” Lemasson said.
He explained that multiple pits will be operated simultaneously within a square mile area of the underground mine. “All of the mineralisation extends underground… about two-thirds of deposits (are) actually underground,” he added.
He explained that since underground mining is a larger part of the initiative, the intention is to fast-track this aspect. While the plan was to have the phases start one immediately after the other, there will be a delay. According to him, the open pits will be operated through years one to 10 of the project, and the underground mining will last from year three to 16.
According to him, the plan is to drill to a maximum depth of 1,350 metres to extract 250,000 ounces per year at an estimated production cost of US$365 per ounce, which he considers very low.
Guyana Goldfields Inc has said it is investing Gy$165 billion in gold mining operations here, and the state would earn Gy$150 billion in revenue during the 16 years of operation.
This sum translates into a five per cent – US$160 to US$250 million in royalties; US$250 to US$400 million in corporate taxes; and US$220 to US$250 million in income taxes. Lemasson explained that the Gy$150 billion is a “conservative” sum, which could increase with the rising price for gold. He explained that the royalties, for example, are calculated at US$1,200 per ounce. The price for gold is currently US$1,436 and is predicted to increase.
Meanwhile, hundreds of jobs will be created as a result of this massive investment.
This year, the company will employ 250 persons for the exploration and pre- development stage of the project.
But, according to Lemasson, this could rise to 700 persons during the development and construction stage, between 2012 and 2013. For operations in 2014 and beyond, the plan is to have some 400 to 500 employees, 90 to 95 per cent of whom would be Guyanese who will have to be trained.
“This will be the first underground gold mine in the Guiana Shield. It is very important that we obviously provide extensive training to Guyanese nationals; and to train them properly to become underground miners and to develop that new set of skills,” he added.
Recently, the company hosted a reception at which its investment plans were outlined by the chief operations officer. Acting President Samuel Hinds, while addressing the gathering at the Savannah Suite of the Pegasus Hotel, said government was excited about the project and was encouraged that the company is proceeding with developmental activities.
“For us in Guyana… we should see this as an opportunity to work and earn good rates of pay, and also to develop good skills and competence in this area,” Hinds encouraged.
Canadian High Commissioner to Guyana, Francois Montour, congratulated the company on its massive investment, while stating that, as a Canadian, he is proud of this venture.
He also expressed pleasure that the Guyana Goldfields Inc will be involved in social development in areas surrounding the mine, since social responsibility is a major issue for the Canadian government.
The company holds advanced exploration projects in various stages of development, and has been operating in Guyana continuously since 1996.
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