Advancing Toroparu to Production

Why Guyana?

Why Guyana

Guyana contains one of the most highly prospective, yet under-explored, gold regions in the world. It has a long history of alluvial gold production, but only recently declared itself open to foreign investment and mineral exploration after enacting the Land Tenure Act in 2004. The self-financing Guyana Geology and Mines Commission (GGMC) is the government entity responsible for overseeing the country's mining and quarrying sector, a critical component of the Guyanese economy.

On November 9, 2011, Sandspring signed a mineral agreement with the Government of Guyana that detailed all fiscal, property, import-export procedures, taxation provisions, and other related conditions for the continued exploration, mine development, and operation of the open pit mine at the Toroparu Project. The first comprehensive mineral agreement for the Guyanese gold sector since 1991, it includes the following terms:

  • A two-tiered gold royalty structure of 5% of gold sales at gold prices up to US$1,000 per ounce, and 8% of gold sales at gold prices above US$1,000 per ounce;
  • A royalty of 1.5% on sales of copper and other valuable minerals;
  • A corporate income tax rate of 30% and no withholding tax on interest payments to lenders; and,
  • Duty and value added tax exemptions on all imports of equipment and materials for all continuing operations at Toroparu, including the construction and operation of a planned port facility, road and power improvements, and the construction and operations of the mine at Toroparu.

The country is located on the northeast shoulder of South America, bordered by the Atlantic Ocean, Suriname, Brazil, and Venezuela. Formally known as the Co-operative Republic of Guyana, it is a stable parliamentary democracy with a population of approximately 770,000 people. Its currency is the Guyanese dollar, and its capital city is Georgetown, which is home to approximately 250,000 people. Guyana's other major cities include Linden, New Amsterdam, Rose Hall, Anna Regina, and Bartica.

The Toroparu Gold Deposit is located in the Upper Puruni River region of northwestern Guyana. There are no formal or established communities in the immediate vicinity of the proposed mine site, which sits at a safe elevation above the 100-year storm event boundary limit. Toroparu's on-site infrastructure includes:

  • A 120-person camp;
  • A 2,500-foot all-weather airfield;
  • Service roads and river crossings;
  • Water supply and treatment;
  • Power supply and distribution; and,
  • Equipment, maintenance, and support facilities.

Guyana at a Glance

  • Originally colonized by the Netherlands, it became a British colony---British Guiana---in the nineteenth century. Guyana achieved independence in 1966, and became a republic in 1970;
  • The mining sector is a vital sector of the Guyanese economy that represents more than 50% of export revenues and is a major source of direct foreign investment for the country;
  • In addition to gold, Guyana has rich mineral deposits of bauxite, manganese and alluvial diamonds;
  • Guyana is the only English-speaking nation in South America; and,
  • Guyana's literacy rate is estimated to be close to 99%, and its labor force is well educated.