Guyana Goldfields Inc. Announces First Gold Sale at Its Aurora Gold Mine

TORONTO, Oct. 29, 2015 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company" or "GGI") is pleased to announce its first sale of refined product of 1,400 ounces at an average price of US$1,179 per ounce from its 100%-owned Aurora Gold Mine ("Aurora") located in Guyana, South America.

Scott A. Caldwell, President & CEO, states, "Plant ramp-up is progressing well and we expect to reach commercial production in the first quarter of 2016 and still hold an untouched US$52 million ("M") of overrun facility. The first gold sale for the Company is a true testament to the quality of the construction team at site and I look forward to this new phase of revenue generation for the Company as Aurora ramps up to becoming Guyana's newest large-scale gold producer."

Operational Update

GGI staff have taken over the full operational control of the entire plant including the primary crusher. The entire plant has now been commissioned with saprolite (soft) ore. Hard rock will not be available until late Q4 2015.

Grade control drilling and mining reconciliation to date have continued to demonstrate that the ore-body is extremely robust showing improved grades and tonnage as rock previously modelled as waste is returning as ore.

Commercial Production

Commercial production will be declared once Aurora has the ability to mine and mill an average of 75% of the designed capacity without significant interruption, composed of both hard and soft rock with gold recoveries at or near expected production levels. Initially, the tonnage requirement was fulfilled with only soft rock ore, however with the inclusion of the hard rock component and its unavailability until later in the fourth quarter, the Company now believes it is expected to declare commercial production at Aurora during Q1 2016.  All sales prior to commercial production will be credited against capitalized project costs, rather than recorded as revenue.

Updated National Instrument ("NI") 43-101 Technical Report

GGI remains on target to issue an updated NI 43-101 Technical Report Feasibility Study for the Aurora Gold Mine in late Q4 2015 which will reflect an expanded open pit mining scenario while deferring the underground production until later in the mine life. In addition, current operating cost parameters and reserves based on updated metal prices will also be incorporated.

Fuel Hedging

The Company has a total of 18 million litres of diesel forward contracts at an average rate of $0.44/litre, which will settle on a net basis.   This commodity swap covers the period October 2015 through to August 2017, and represents approximately 60% of the Company's expected diesel consumption over this twenty-three month period.

Quarterly Results

GGI expects to report its interim consolidated financial statement results of the Company for the third quarter ended September 30, 2015 on or around Friday, November 13, 2015.

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 an emerging gold producer with the onset of its 100% owned Aurora Gold Mine which achieved first production in mid-2015. The Aurora Gold Mine 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. 

SOURCE Guyana Goldfields Inc.