Guyana Goldfields Inc has commenced underground development at the Aurora mine completing the first blast on the Mad Kiss portal. Guyana Goldfields is Canadian-based, focused on the exploration, development and operation of gold deposits in Guyana. Its primary operation is the 100%-owned Aurora gold mine which reached commercial production January 2016.

The contractor will complete and reinforce the collar and extend the decline 200 m to fulfil the scope of the early works phase. The company expects this will be completed early in Q1, 2019. It is finalising the review of bids received for the underground development contract with the target of final award in the fourth quarter of 2018.

The plan is to advance the exploration decline approximately 2,500 m 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 that could potentially provide supplemental mill feed during the development period.

Scott A. Caldwell, President & CEO states, “The blast is a key milestone marking the commencement of underground construction. The decline provides an ideal platform to potentially upgrade and expand the current underground resource and unlock the full potential of the Aurora deposit.”

The production guidance is 150,000 – 155,000 oz of gold for 2018 at a cost of sales of $1,030 -$1,055/oz and all-in sustaining cost of $1,025 -$1,050/oz, and cash cost (before royalty)¹ of $660 – $685/oz for the year. Looking forward, a revision to the life of mine production profile is anticipated.