Shares of Guyana Goldfields (TSX: GUY; US-OTC: GUYFF) plunged 46% to $1.62 on news that the company has cut its 2018 production guidance and launched a review of the underlying resource model at its Aurora gold mine.
The company has hired engineering firm RPA Inc. to investigate the geologic controls and grade variability of the mine’s Rory’s Knoll deposit. Results of the review will be released in the first quarter of next year, and incorporated into Guyana Goldfield’s 2019 guidance and its annual reserve and resource update. In the meantime, the company says it anticipates a revision to the life-of-mine production profile.
The guidance revision was announced on Oct. 30 in conjunction with the release of the company’s third quarter results, along with news that Patrick Sheridan had resigned from Guyana Goldfields’ board of directors. Sheridan had served as executive chairman from June 2013 to July 2018, when the company eliminated the executive chair position to streamline the company’s organizational structure under president and CEO Scott Caldwell.
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