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COVER

So, are Guyana Goldfields, Troy

and Alicanto the pioneers of the

long-anticipated Guyanese gold

rush?

“I think respect is building in North

America because of what Guyana

Goldfields was able to achieve in

a difficult time in the market; that

shows the ability to build a mine in

Guyana. Troy has also done an ex-

cellent job in taking a project through

permitting and construction in such

a short space of time,” Schwertfeger

said.

Purvis is proud to have Troy play-

ing its role and believes they may be

opening the country up to further de-

velopment.

“The pioneering work of Guyana

Goldfields and Troy played its part in

lifting awareness of Guyana and its

potential,” he said. “The majors have

looked at Guyana over two decades

or more and obviously Suriname and

Poz Minerals Ltd executive chairman Jim Richards on his gold dredge during Venezuela have long histories of
his days as a Guyanese “pork knocker” gold mining.
“However, the lack of information

West Africa. If I had a choice between volvement by international companies. and access has been a major impedi-

the two, I’d go to Guyana in a heartbeat. “The success of Guyana Goldfields ment and the majors have just not been

It has far more prospectivity, is underex- and Troy has led to a rerating of the im- willing to invest to prove up the major ge-

plored and has a generally supportive age of exploration companies in the ological structures. But, it is usually jun-

government and there is no track record Government’s eyes,” he said. “They are iors who act as pioneers in new regions

of nationalisation of assets.” seeing success after decades of disap- and we are now seeing the majors com-

Purvis said the importance of small- pointment and have become much more ing in with a watching brief. As that de-

scale mining to the economy – artisanal welcoming.” velops, I’m sure more interest will come

miners produced more than 400,000oz Schwertfeger has been impressed by from the larger companies.”

gold last year – meant government and both the simplicity of the tax regime and Alicanto can attest to such interest,

the population in general were well- the support government and the Guy- with Barrick Gold Corp last year farming

versed in gold mining. ana Geology and Minerals Commission into the Arakaka project.

““People understand and are happy to (GGMC) has provided Alicanto. Schwertfeger said there was a queue

embrace mining; the indus- of parties interested in Araka-

try is part of Guyana’s cul- But, it is usually juniors who ka and expects more should
ture. Now, the challenge is the company take its newest

taking it to the next level, a act as pioneers in new regions project, Ianna, to the market.
large-scale level, and Troy “I’d expect the same level of
and we are now seeing the majors
and Guyana Goldfields can interest in Ianna if it begins to

help achieve that.” coming in with a watching brief. As stack up,” he said.
Richards encouraged com-
Guyana’s Common- that develops, I’m sure more interest
will come from the larger companies.
wealth connections mean panies to look at Guyana but
its legal system is based on warned it was not for the non-
English Common Law and committed.

Purvis said the regulatory “A company has to be will-

framework was robust. ing to put at least $5 million

“In many cases in the developing “There is a 30% corporate tax, an 8% into establishing itself in-country. It takes

world, regulatory systems and process- gold royalty and development projects a year just to set up the team and every-

es are antiquated which makes it difficult are VAT and import duty exempt,” he thing associated with that so if a junior

to move through the regulatory process said. “There is no free-carried interest for explorer has got $400,000 in the bank

with any certainty,” he said. “However, the Government, no export tax on gold or Guyana is not the place for them. In fact,

Guyana has new agreements and struc- on repatriation of profits. It is a simple tax you are probably going to need $10 mil-

tures which are best practice and the structure which is very competitive with lion to make a decent fist of it.”

country has learnt not to make the same West African countries.” A $10 million budget may be beyond

mistakes of others. It is a fairly transpar- The GGMC has initiated a policy, Vi- the reach of many explorers but if it gives

ent system, most of the guidelines and sion 2020, through which it wants to map a company a sniff of a 10 moz gold de-

regulations are very clear.” the entire country for all minerals and it posit, it could just be worth the risk.

Harden said Troy and Guyana Gold- has proven open to collaboration with in- – Dominic Piper
fields had paved the way for further in- dustry.

PAGE 22 MAY 2017 AUSTRALIA’S PAYDIRT