Reports overestimating the amount of gold led to junior miners flying high, but the gold was ‘never there’
Junior gold-mining executive Scott Caldwell was in a jovial mood as he sat down for a national television interview in February, 2016. Even though the price of gold bullion had tumbled by more than a third from its 2011 peak, and many of his competitors were struggling, his company was defying the odds.
Guyana Goldfields Inc. had managed to raise US$700-million from investors and put a high-grade gold mine into production in early 2016.
Mr. Caldwell, an avuncular mining engineer with a soothing tone, was happy to promote the company’s Aurora mine, located in a remote Guyanese rainforest, as a cash machine. Indeed, at the prevailing gold price of US$1,200 an ounce, Guyana looked like a surefire winner. Continue Reading →