Guyana Goldfields Inc. Announces Aurora Gold Mine is Mechanically Complete

TORONTO, Sept. 21, 2015 /CNW/ - Guyana Goldfields Inc. (TSX:GUY) (the "Company" or "GGI") is pleased to announce that its saprolite circuit is fully operational and its hard rock circuit is mechanically complete at its Aurora Gold Mine (the "Project") in Guyana, South America.

Previously, the Company announced that it had obtained first gold production through the gravity and saprolite production circuits which allowed for earlier gold production (pre-commercial production) through the processing plant (see press release dated August 4, 2015). The saprolite circuit is now fully operational along with the semi-autogenous-grinding mill, gravity circuit, carbon-in-leach tanks, tailings line, and gold refinery. The hard rock crushing circuit has been commissioned and is mechanically complete and is awaiting hard rock for processing.

The Company expects to produce between 30,000 ounces to 50,000 ounces of gold in 2015, depending on how quickly full ramp-up is achieved, and approximately 120,000 ounces to 140,000 ounces of gold in 2016. To date, GGI has milled approximately 80,000 tonnes of ore to date and mined approximately 190,000 tonnes of ore and 549,000 tonnes of waste. Total gold produced to date is approximately 1,800 ounces. First gold sales are anticipated at the end of September. GGI is sufficiently funded to complete construction of the Aurora Gold Mine with the Project remaining on budget with an untouched US$52 million of overrun facility available, if needed.

GGI has entered into a swap transaction with one of its debt syndicate lenders which establishes a ceiling for approximately one-third of the Company's diesel fuel purchases over the following two years. The price was based on US$39.00 WTI Crude Oil and settles monthly with no margin requirements. The Company will continue to monitor its exposure to fuel prices and will seek to further reduce this exposure going forward.

GGI expects to issue an updated National Instrument (NI) 43-101 Technical Report Feasibility Study in the fourth quarter of 2015 for the Project which will reflect an extended open pit mining scenario while deferring the underground production until later in the mine life, as well as, current operating cost parameters and reserves based on updated metal prices.

Scott A. Caldwell, President and CEO, commented: "Having the full saprolite circuit and hard rock circuits successfully running brings us one step closer to full operational status as we continue ramping-up and delivering our milestones."