Guyana’s lucrative gold sector attracts new large-scale producer

0
347

Another large-scale gold producer is looking to extend its reach in the Guyana interior with the acquisition of the Ianna Gold Project, located in the country’s North-West region, less than 20 kilometers South-East from its existing exploration operations at the Arakaka Gold Project.gold

The take-over was effected by Alicanto Minerals Ltd, which in making its announcement, said the company has completed its due diligence and has since exercised its rights to take a three-year exclusive option to acquire the Ianna Gold Project

The company had in July last entered into a binding agreement to acquire the Ianna Gold Project in North-West Guyana. The Project is located in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s North West District.

The Ianna Gold Project, according to Alicanto, “has excellent infrastructure, including existing camp facilities, an existing airstrip and river port landing on the property, and can be accessed by road from the Arakaka Project area.”

In making the announcement, the company which already boasts interests in the Guyana gold mining industry explained that since it had now completed a detailed due diligence study, it has elected to formally secure its three-year exclusive option to acquire the Project, subject to terms and option payments.

Alicanto had previously entered into legally binding arrangements with a private Guyanese entity – Sheik R Minerals, Inc (SRM) – where Alicanto retained exclusivity for a wholly owned Guyanese subsidiary to acquire any and all rights or beneficial interest held by SRM over the Project area, for the duration of a due diligence period which ended on Tuesday.

The company will now be required to fork over US$3 million in a lump sum or through payment arrangements.

During the option period, Alicanto has agreed to keep the Project tenements in good standing and ensure a minimum aggregate expenditure of US$600,000 on exploration and various land holding costs over a 24-month period.

Alicanto Minerals Limited is touted to be an emerging mineral exploration company focused on the exploration and development of a portfolio of gold projects in the prospective geological provinces of Guyana.

In addition to the exploration of its current Guyanese projects, the company is said to be continually evaluating additional projects in both Guyana and overseas for potential joint venture or acquisition.

The announcement comes on the heels of a public political spat over the gold industry and the contributions of large companies versus the small- and medium-scale mining operations.

Natural Resources Minister Raphael Trotman has since denied assertions by sections of the political Opposition that two large-scale gold companies were responsible for the vast majority of gold being mined in Guyana and had essentially buoyed the local economy.

Rebutting the assertions related to the gold mining industry, Minister Trotman revealed that up to the end of October last, gold declarations had reached 545,000 ounces.

Of this amount, according to Minister Trotman, small- and medium-scale miners are responsible for a whopping 362,000 ounces. The two major companies, he said, brought in only 183,000 ounces representing some 33 per cent of the overall production.

According to Minister Trotman, the two companies – Troy Resources and Guyana Goldfields Inc – are making their contribution but it is not on their backs or shoulders the mammoth declaration is based.

Minister Trotman said the projection of 650,000 ounces of gold as envisioned by the Finance Minister in his budget presentation would be met.

“We shall make the target and that target will be met by average men and women involved in mining,” Trotman noted, adding that this would be supplemented by the declarations of the two large companies. (Guyana Times)

Let us hear from you...