100,000-oz gold mine opened at Konawaruk
By Andrew Richards
North American Resources Inc Ltd (NARIL) officially commissioned its new mining site at Konawaruk on Saturday which has the capacity to yield 100,000 ounces of gold. "By April of 2000, NARIL will more than double its present mining capacity by investing significantly more capital in this site and other sites which have just received final approval from our board of directors," NARIL's president Sheikh Hassan told the gathering at Konawaruk for the opening. Those present included chairman of the Guyana Geology and Mines Commission (GGMC), Robeson Benn and GGMC's commissioner, Brian Sucre. The 2,500-acre Konawaruk operation was named the Bob Stutzman mine site in memory of the company's late vice president who was instrumental in laying the groundwork for its establishment. He was killed in a helicopter crash last year at the Cheddi Jagan International Airport, Timehri. Addressing the invitees at the opening, Benn stated that the presence of the GGMC at the opening is not necessarily an endorsement of NARIL's type of mining operations but an indication of government's willingness to assist the sector in any way it can. The sector needs all the help it can get given the effects of the low gold price on the industry, he said. Among the steps taken by government to facilitate better conditions under which the local mining industry operates is the $60 million disbursed for the rehabilitation of the road to Mahdia, Benn stated. Noting that the government is presently ironing out a regulatory framework to ensure the operators in the mining sector work in a more hospitable environment, GGMC's chairman said the commission will also continue to develop improved processing and recovery mechanisms. He described this as a critical area since alluvial mining, in which NARIL is involved, has low recovery rates and the industry has to keep "re-inventing" itself to remain viable and, at the same time, environmentally safe. Benn pointed out that the issue of environmentally sound practices is of national concern and stressed the importance of the reduction of collateral damage such as the siltation of rivers during mining operations. NARIL is financed by US-based South American Minerals Inc. Alluding to Demerara Bank Limited's involvement in NARIL's investment, Benn lauded the role being played by the institution since it is commonly perceived that the mining industry is an ephemeral field. Hassan described the opening of the site as a testament to the company's perseverance despite major setbacks along the way. Among these were the millions of dollars lost when NARIL had to abandon the Tamakay project which was the company's primary focus over a two-year period from 1995, he said. Hassan explained that although GGMC had granted a large scale prospecting permit to the company, a claimant obtained an ex-parte injunction preventing NARIL from continuing operations when a major exploration programme had already started. More misfortune was encountered when valuable drilling and exploration data were lost when a plane in which company officials were travelling crashed at the Kurupung airstrip in 1997. There were no fatalities. The following year Stutzman was killed. "Despite these setbacks, NARIL's board of directors has always been extremely confident about Guyana's economy and, in particular, its mining sector. Later that year, we took a decision to substantially increase our presence in Guyana," Hassan stated. The company has so far invested some $500 million in the local mining industry and employs 90 persons. To sustain the operation at Konawaruk, NARIL has deployed two D8K Caterpillar bulldozers, one 215 Caterpillar excavator, one 235 Caterpillar excavator, three 14- inch hydraulic suction dredges capable of processing 4,000 cubic yards of solids per day and two 14-inch bailers at the site. The Bob Stutzman site is located approximately 30 miles from Mahdia and will initially produce between 10,000 to 15,000 ounces of gold annually. NARIL's concession covers 75,000 acres of land in the Mazaruni, Cuyuni, Mahdia and Konawaruk areas.
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