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Guyana Goldfields to suspend ore production 4 to 6 months

Kitco News

Facing difficulty in sequencing activities within its mine plan, Guyana Goldfields (TSX:GUY) said today ore production will be suspended between four and six months in 2020 to focus on waste stripping.

The company made the announcement in its year-end production results.

In its initial mine plan, the company thought it could keep processing ore but faced difficulty smoothing out waste stripping, which resulted in a smaller operating areas with "...reduced productivity rates from increased congestion and delays in drill-blast-load cycles."

"In an attempt to find a mine sequence with continuous ore release while maintaining high safety standards, management reviewed a significant number of mine plans and scenarios. However, these objectives were not achievable," writes the company.

"The company has concluded that waste stripping needs to be suspended temporarily to allow ore production from the bottom of the current pit."

The company said the suspension will last from 2Q to 3Q or 2020.

Guyana Goldfield traded down 9% to 67 cents a share.

Q4 2019 gold production results were 28,3001 ounces, up 28% from Q3 2019 but down 28% from Q4 2018. The full year 2019 annual production was 124,2001 ounces, down 17% from 2018.

The company has cash of $22.1 million. Guyana Goldfields is currently seeking financing to fund additional waste stripping at its open pit and for underground development.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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