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Canadian gold companies talk up Guyana’s mining-friendly policies and tax breaks
…the government is ready to issue licenses to companies
Kaieteur News – In a presentation describing its various operations, Canadian mining company Goldsource Mines Inc. outlined to its new owner, Mako Mining Corp., the significant advantages of Guyana’s gold industry.
In July, Mako Mining announced the acquisition of Goldsource Mines, giving it full ownership of the Eagle Mountain gold project in Guyana.
Goldsource Mines has highlighted the strategic advantages of its operations in Guyana, noting that the country has a favorable mining environment. The Eagle Mountain gold project in Area Eight (Potaro-Siparuni) has proven to be a high-quality discovery with nearly 1.2 million ounces of indicated gold and 582,000 ounces of inferred resources. The gold deposits are located close to the surface, further enhancing the value of the project.
Guyana is fast becoming one of the most attractive mining jurisdictions in South America, Goldsource Mines said, adding that the country has introduced a number of government initiatives aimed at promoting new mining projects, including tax exemptions and a simplified licensing process.
Natural Resources Minister Vickram Bharrat
Goldsource stressed that Guyana’s mining-friendly policies complement the existing infrastructure and history of significant contributions from the mining, oil and gas sectors, which together accounted for approximately 62% of GDP in 2022.
The Eagle Mountain exploration license covers 5,000 hectares and is strategically located with highway access to the Mahdia commercial airport, just 7 kilometers from the site. The project is located 45 kilometers southwest of the historic Omay gold mine, which produced approximately 4 million ounces of gold between 1993 and 2005. The Eagle Mountain project also enjoys strong government support, including infrastructure improvements such as road upgrades and power enhancements, as well as a favorable licensing regime.
The Canadian company outlined that the above situation simplifies the advancement of mining operations in Guyana. The recent oil discovery in Guyana further enhances the attractiveness of the Eagle Mountain project.
Additionally, Goldsource Mines recently released a preliminary economic assessment (PEA) for the Eagle Mountain gold project, prepared by ERM Consultants Canada Ltd. The PEA is based on the April 2022 Mineral Resource Estimate (MRE) and highlights the project’s low cost and low capital expenditure intensity, making it both economically viable and an attractive investment opportunity. The project is expected to have a mine life of 15 years.
Additionally, Natural Resources Minister Vikram Bharat announced this month that the Guyana government will soon issue mining licenses to companies operating in Eagle Mountain. He stated: “We are in the process of issuing mining licenses to large companies in Area Eight of the region, following completion of due diligence, which will be followed by the start of production of Reunion (gold) in late 2027.” Minister Bharat added: “The future of mining in Guyana is bright, especially for large-scale mining. However, we would like to see more Guyanese stay while joining the small and medium-sized mining sector to take advantage of the opportunities available.”
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