Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698073032891.pdf (Guyana)
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Box 1028 Upper Brickdam Georgetown Guyana December 2000 1 1., r TABLE OF CONTENTS 1.
GEOLOGICAL SERVICES DIVISION 1.1 Functions 1.2 Overview 1.3 Technical Personnel 1.4 Field Projects 1.5 Technical Assistance Projects 1.6 Prospecting Licences/Geological & Geophysical Survey Permissions "10 1.7 Initiatives with South African Council for Geoscience and Mining Companies 1.8 Technical Presentations/Conferences 1.9 Prospecting Permits (Medium Scale) 1.10 Cartographic Section 1.11 Chemical and Petrological Laboratories 2.
MINES DIVISION Technical Section 2.1 2.2 Mandia Project 2.3 Inspectorate 3.

4.

5.

PETROLEUM UNIT 3.1 Functions 3.2 Introduction 3.3 Projects (1997) 3.4 Expenditure ENVIRONMENT, RESEARCH AND DEV.
DEPARTMENT 4.1 Introduction 4.2 Environment Unit 4.3 Mineral Processing Unit 4.4 Administrative Unit ADMINISTRATIVE DIVISION 5.1 Personnel ex Industrial Relations Department 5.2 Information and Documentation Department 5.3 Services Department Pages 7.
7.

LEGAL SERVICES DEPARTMENT FINANCE DIVISION 8.

 1997 FINANCIAL STATEMENT 71 74 /Z 0 1.

GEOLOGICAL SERVICES DIVISION 1.1 FUNCTIONS The Geological Services Division consists of the Geologist Field Section, the Chemical Laboratory, the Petrological Laboratory and the Cartographic Section.

The Geological Services Division's functions under the Guyana Geology and Mines Commission Act.
1979 are - The promotion of mineral development; providing technical assistance in mining, utilization and marketing of mineral resources; mineral exploration; research in exploration and utilization of minerals and mineral products; enforcement of the conditions of Prospecting Licences, Prospecting and Mining Permits for Medium Scale operations; and collection of rentals, fees, etc related to Prospecting and Mining Permits and Geological and Geophysical Survey Permissions.
1.2 OVERVIEW The 1997 Work Programme focused on the generation and the preparation of high quality geological reports and maps through mineral exploration and the Commonwealth Technical Assistance supported GIS project covering the Potaro degree square area; the promotion of mineral development by attendance, participation and support for international mining investment conferences and exhibitions, responding to potential investors/persons expressing interest or enquiring into mineral development, reproduction of maps and the initiation of a large and medium scale Mineral Property database for enhanced management; in-house and in-field staff training in the technical areas of rock and mineral identification, geological mapping and geochemical sampling; and the administration of Geological and Geophysical Survey Permissions, Prospecting Licences and Permits; including the update and maintenance of 1:50,000 stock sheets and 1:1,000,000 maps showing mineral property status, and the verification of areas under application for Permissions, Licences and Permits, or to be advertised for the cancellation of Prospecting Permits.
As planned, Technical Assistance played a major role in lending institutional support by providing a Senior Geologist/Geochemist under ITEC, a short-term expert Geochemist from CPRM in Brazil, a short-term CESO Geologist Consultant, and in technical training in mineralogy, petrology, geochemistry and preparatory training for GIS application.
Technical and financial assistance from STEP Fund for the characterisation and researching the utilization of selected industrial minerals, were again not realised (since the contracts were not signed), and there was a major change in the nature of the Commonwealth Technical Assistance, as the Senior Geologist/Geochemist, Or, Mike Petterson, withdrew.
An alternative one-year GIS project run by the British Geological Survey, and supported by the Commonwealth Technical Assistance Services, was initiated in May 1997.

1 ce:( 1.3 TECHNICAL PERSONNEL In December 1996 there were four field geologists, two of whom were expert Geologists/ Geochemists recruited under the Indian Technical Assistance (ITEC) and Commonwealth Technical Assistance schemes.

A third was a newly graduating Canadian Geologist Mr. Chris Ashley recruited from Canada.
The Commonwealth Technical Assistance Senior Geologist Dr. Mike Petterson left unexpectedly in November 1996, due to the illness of his son.

Dr. Petterson did not return in 1997 as was expected, and the Commonwealth Technical Assistance project was changed from the original provision of technical leadership and field support to the regional stream sediment geochemistry and geological mapping project the New River Triangle area.

Geologist Mr. Chris Ashley resigned in December 1996.
With Dr. Petterson's and Mr. Ashley's departure, the complement of field geologists fell to two, ITEC Senior Geologist, Dr. Raju Duna, and Senior Geologist I, Mr. Gordon Nestor.

Three Geotechnicians, GGMC scholars, graduated from the University of Guyana with the Diploma of Technology in Geology and joined the staff in September 1997.

Two scholars who did not graduate, were appointed as Field Assistants.
Two Field Assistants also graduated with the Diploma in Technology, and were promoted to Geotechnicians.

At the end of 1997, there were twelve Geotechnicians and four Field Assistants attached to the Geological Services Division.

1.4 FIELD PROJECTS Field projects planned for 1997 were the New River Reconnaissance Survey, a major regional project, and mapping of quarriable raw materials in the Bartica triangle area.
Other field projects planned were Special Projects under STEP Fund, the Characterisation of selected Industrial Minerals and Industrial Testing of selected Industrial Minerals.

Of these, the New River Project was implemented in June to August 1998.

The project benefitted from the expertise of CPRM Geochemist, expert in laterite regolith geochemistry, Dr. Romulo Angelica, who spent three weeks in Guyana, from June 26 to July 21, under the auspices of the UNTCDC.
Dr. Angelica spent approximately two weeks in the field on attachment to the New River Project, where he advised on field procedures and the importance of standardisation to the interpretation of geochemical results; the usefulness of multi-element geochemical surveys with very low detection limits, covering a wide range of trace elements; the importance of understanding the laterite profile and its chemistry and applying this knowledge to geochemical sampling (this practice is increasing in exploration geocherhistry), and the handling and preparation of geochemical samples for analyses.
2 .4 Dr. Angelica donated a copy of the Final Report of IGCP Project 259, "A global geochemical database for environmental and resource management', and a CPRM geochemical field manual, the latter in Portuguese, to the GGMC.

He recommended also that GGMC should try to get scholarships at the University of Belem to which he is attached, to train Geotechnicians to the BSc level in Geology.

Contracts for the two STEP Fund Projects were not signed, so the projects could not be initiated.
New River Mineral inventory As project leader, ITEC Senior Geologist/Geochemist Dr. Raj u Dal la was responsible for all technical aspects of New River Project, from planning to report writing and the production of maps.

The major mobilisation for the project started on May 22, and field work was completed on July 24.

An area of approximately 2200 km2 (850 sq miles) partially was surveyed along the New and Oronoque River drainages above Oronoque Falls (see index map, fig.1).
The focus of the project was shifted, from the original regional stream sediment and pan concentrate sampling programme at a sample density of one sample/km2, with complementary geological mapping, both on a 1:50,000 scale.

The revised programme, still of regional dimensions, was for semi-detailed stream sediment.
soil and pan concentrate sampling over four mafic/ultrarnafic bodies identified along Oronoque and New Rivers, with geological mapping, and reconnaissance geological mapping and geochemical stream sediment and pan concentrate sampling of the intervening Southern Guyana granite- complex, Kanuku complex granulites and gneisses, Kwitaro Group metasedimentary rocks and Kuyuwini Group subvolcanics and granophyres, that together make up the country rocks.
Senior Geologist I, Mr. Gordon Nestor, and Geotechnicians Lorrel Ferreira, Carl Matthews, Elton Sampson, Michael Abraham, Mohammed Karamat participated in the New River Project.

Training in geochemical sampling and geological mapping procedures were given to the Geotechnicians by Dr. Dulla.

The technical staff was supported by thirty casual workers.

Mr. Lorrel.
Mr. Lorrel.

Ferreira had special responsibility for project administration, and Kerion Husbands, Field Assistant, had responsibility for logistical and radio support in Georgetown.

Guyana Defence Force personnel were attached to the project for its entire duration, for security purposes.

The project area was large and remote, and all transportation was by outboard powered dugouts.

Several fly camps established along New and Oronoque Rivers were supported from the main supply camp at Oronoque Base camp.
3 4- • Work Completed r. Geochemical soil, stream sediment, pan concentrate and rock surveys were undertaken in the project area, partially covering Terra Survey topographic sheets 80NW, 80SW, 81NW, 75NW, 75SW, 74SW and 74SE (see index map, fig.1).

Work was concentrated on six mafic/ultramafic bodies of the Appinitic Intrusive Suite, that varied in size from 0.8km x 0.2km to 12km x 2.5km.

Table 1 indicates the main exploration targets.


Statistics of the field work completed are given below.

Samples taken No.

 263 333 581 118 Type Stream sediments Pan concentrates Soil Samples Rock samples Total 1295 Soil, stream sediment and rock samples are to be analysed for nine major element oxides S102, A1,03, CaO, MgO, Fe,03, Na,03, K2 0, TiO, and MnO,.
In addition, analyses for 45 trace elements have been requested, of which nine elements, Pd, Zn, Pt, Li, Ni, Cu, Pb, Cr, Ag, can be determined by AAS by the Chemical Laboratory.

Gold can be determined by Fire Assay-AAS (see Table 2).

Soil, stream sediment and rock samples, representing 46% of the total amount, are to be sent overseas for multi-element analysis by XRF/INAA.
The strength of XRF in analyses for the major elements and base metals is complemented by [NAA, with good ability to determine the REEs, PGEs, Au, Sb, Hf and Ta.

In addition petrological and mineralogical analyses, the latter including magnetic separation and gold eye count, arc required for the pan concentrates and rock samples.

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Preliminary Results Preliminary results, drawn from Dr. Dulla's report, indicate: Five major types of basic/ultrabasic rocks of the Appinitic Intrusive Suite were mapped at six locations.
The two that seem the most interesting are: 1) 2) • • • The Oronoque River Gabbro/anorthosite body east of Oronoque Falls.

Streams draining this body carry considerable black sands comprised of magnetite.

ilmenite and (?)

chromite.

The Oronoque River magnetite pyroxenite body on the Karia River contains an appreciable amount of magnetite.

Dr. Dulla reports that patches of violet/purple/ blue colour could be indicative of appreciable cobalt content.
The Oronoque River peridotite/harzburgite body appears to be layered.

It is brecciated, and is emplaced along a major regional fault representing a zone of crustal weakness which was reactivated from time to time.

Gold eyes in the battel was reported by Dr. Dulla and Mr. Nestor.
Senior Geologist I, G. Nestor reported the occurrences of gold eyes in pan concentrates near the contacts of the Kuyuwini Group rocks (in New River) with the Southern Guyana granite, and the Oronoque Formation with the Southern Guyana granite, between the Maipuru and New Rivers, in their lower reaches.

Gold eyes are reported from streams that drain both the granite, and the granite-metasedimentary rock contact, on both sides of the new River - Maipuru River divide, covering an area of approximately 11 km2.
1.5 TECHNICAL ASSISTANCE PROJECTS CDB STEP Fund Projects As noted earlier, the two Industrial Minerals projects planned did not materialise, since the contracts for the Consultants were not signed.

Training in the Interpretation of Geophysical Data There was no response from the Ministry of Foreign Affairs regarding the project documentation that was submitted for United Nations Technical and Financial assistance.
However, Dr. Nok Frick, Director of the South African Council of Geoscience visited GGMC in October 1997.

Dr. Frick was receptive to a proposal for the establishment of a formal co-operative link between GGMC and the South African Council of Geoscience.
He agreed that a Guyanese graduate under such a co-operative programme could spend a one- 6 /S6 7- year attachment at the Geoscience Council in South Africa interpreting the geophysical data from Golden Star Resources Geological and Geophysical Survey areas that were relinquished, under the supervision of the experts from the Geoscience Council.
"P` Technical co-operation with the University of Hertfordshire, United Kingdom Despite a few administrative setbacks, the co-operative projects planned did take place under the supervision of Leading Researcher, Dr. Richard Tecuw of the University of Hertfordshire.

Field Assistants Kerion Husbands and Renwick Solomon were attached to the field project in the Surama-Armi, Lethem, and Mazda's Konawaruk dredging operations.
The projects were aimed at collecting samples for C14 dating and Optically Stimulated Luminescence dating and mapping .

This information is intended to help to elucidate the climatic changes and consequent shifting of the rainforest/savannah boundaries in recent geological time.

This would have implications for the geomorphological development of the area, and therefore, for the development and prediction of placer deposits.
The report on this work, due in October-November 1997, has not been received from the University of Hertfordshire.

SYSMIN assistance for geological surveys in Southern Guyana No formal response was received for the project proposal that was submitted to the Ministry of Foreign Affairs.

However, upon the advice of the Ministry of Foreign Affairs, another project proposal was drawn up and submitted in August to the European Union Commission's Office through the Ministry of Finance.
Evaluation of exploration data from Golden Star Resources' Geological and Geophysical data Geologist Consultant Mr. E. Meyers was retained in January-February 1997, through CESO to evaluate GSR's exploration data.

Mr. Meyers assessed the map data and reports, and produced two reports, based on the areas prospective for gold and diamond, respectively.
The reports are an essential part of the information package for the auction of Prospecting Licence exploration blocks, as well as for the promotion of new areas for mining investment.

Mr. Meyers attachment through CESO was organised by Deputy Commissioner, Mr. W. Woolford.

7 GGMC/CFTC Prototype Project This project was initiated in May 1997.
It was run by British Geological Survey (BGS) personnel who functioned as trainers, and as technical persons designing and setting up the various aspects of the GIS project.

There were four training periods, each of three to four weeks duration.

BGS Staff Mr. John Gibson, GIS Analyst/Programmer, and Mr. Andy Merchant, GIS Specialist, and Mr. Berik Davies GIS Analyst spent short attachments.
At the end of the year, the first stage of the project, establishment of the database and tables of records of map holdings for the Potaro degree square, was completed, and the second stage, the 'heads up' digitising of maps from the Potaro degree square area using Map Info software, was in progress.
The next stage will be the translating of the digitised maps into Arc View, followed by the upgrading of geological maps by the addition of new information, the analyses of geological information using thematic mapping and visualisation techniques, and the preparation of final maps for the Potaro degree square.

Map Info Professional (for digital map production) and Arc View GIS software are being used.
1.6 PROSPECTING LICENCES/GEOLOGICAL AND GEOPHYSICAL SURVEY PERMISSIONS The emphasis placed on mineral development promotion and attracting large scale investment for exploration and mining was borne out in the introduction of a new Mining Fiscal regime and Mining Policy in January 1997, by the Honourable Prime Minister, Minister responsible for Mines and Minerals; by attendance and participation at International Mining Investment Conferences and trade shows that culminated with the highest level of representation by His Excellency the President, at the Investing in the Americas '97 Conference in Miami on April 1997, and by initiatives taken by the Commission through a Mine Tour to South Africa by Deputy Commissioner, Mr. W. Woolford and Senior Mining Engineer James Mingo, and the efforts of the Honorary Consul for Guyana in South Africa, Mr. Leyland Hazlewood, to promote the Guyanese mining sector to South African Mining Companies.
In addition to the Investing in the Americas '97 Conference where for the second consecutive year, GGMC participated in the exhibition by running a booth, the Commission participated for the first time in the Prospectors and Developers Association of Canada's Trade Show that accompanies the annual Exposition, and was represented at the Northwest Mining Company's 103rd Annual Convention and exposition in Spokane, Washington in December.
About 450-500 sets of packaged information were distributed to interest potential investors - just over 400 were distributed at the PDAC and Investing in the Americas '97 Exhibitions.
The information provided gave a summary introduction to Guyana's geology and diverse mineral potential, it stated the Mining Fiscal regime, described the Mining Sector and procedures for involvement in mineral development in Guyana, and adverted to the 8 international auction of exploration blocks planned for the areas relinquished from Golden Star Resources' Geological and Geophysical Surveys.

The auction was originally scheduled for 1997.


Twelve Prospecting Licences applications were received, all from persons or companies already operating in Guyana.

This compares with 25 applications received in 1996.

Of the 17 new PL grants anticipated in the 1997 Budget, four were actually granted in 1997.

One reason for the shortfall was that the grant of five PLs to Golden Star in the Barama forest Concession area was held in abeyance pending resolution of Barama's formal objections.
Two Prospecting Lir aces approved for kaolin development were not taken up.

At the end of 1997, there were 47 Prospecting Licences in force, compared with 50 in 1996, and 67-70 projected For 1997.

Table 2 - Prospecting Licences, Geological and Geophysical Survey Permissions - 1997, 1996 Prospecting Licence Applications Prospecting Licence Approvals Prospecting Licence Grants/Issue Prospecting Licences in force at 31/12/97 Geol.
and Geophysical Permissions granted Geological and Geophysical Permissions in force at 31/12/97 1997 12 9 4 46 1 1996 25 28 50 2 2 Budget 1997 24 12 17 57-60 3 5 Of the 47 Prospecting Licences in force in 1997, active exploration was conducted at 24 of these properties.
This included three of Golden Stars Prospecting Licences, Fish Creek One, Fish Creek Two and Barama Head West (out of a total of 16) where diamond was the principal mineral sought, and Groete Creek property, where CAMDICO and joint venture partners Caribbean Basic Industries drill tested the large gold-copper anomaly delineated during the second quarter.

Saprolitic geological resources or reserves were established at thirteen properties, viz: • .
• • • Marudi Mountain (Romanex) Baramita (Case Development/Canarc) • • Peters Mine (Ontario Inc.) Aurora (Alfro Alphonso) Akaiwong (M.O.

Correia) Tassawini (Wayne Vieira/Minrich Aremu (Exploration Brex Inc.) Inc ./Menora) Groete Creek(Camdico/Caribbean .
Mariwa (International Roraima Gold Basic Industries) Corporation) 9 • • Eagle Mountain (Golden Star Resources) Amatuk (Golden Star Resources) • • Aranka (International Roraima Gold Corporation) Mazawinni (FIGB Ventures Inc.) Geological and Geophysical Surveys During 1997 BI IP and Xamuteba conducted geological and geophysical surveys in their Permission areas.

Both permissions were granted in August 1996.


BHP and joint venture partner Golden Star Resources explored for gold by sampling of active stream sediments from streams draining greenstone belts in all three of their Permission areas, and samples were sent for BLFG analysis.

Geophysical airborne magnetic targets were selected for follow-up exploration for iron ore.
The first phase of diamond exploration as conceived focused on a low cost programme relying on the positive identification of isolated dipole magnetic anomalies from the medium-resolution survey over areas 1 and 2 in northwest Guyana.

Xamuteba withdrew from their Geological and Geophysical Survey Permission in May 1997.
Applications for Geological and Geophysical Survey Permissions that were made by Vanessa (Guyana) Inc., International Roraima Gold Corporation and Barama Company, prior to 1997, were not finalised in 1997. t -4!

10 Table 3 - List of Prospecting Licences in force at December 31, 1997.

Name of Licensee Guyanese Foreign Parent and/joint Principals venture Company Property Location 1.

Alfro Alphonso 2.

J.W.

Carter 3.


Caribbean Resource Ltd. (G) Aurora Cuyuni River G Cathedral Gold Corporation Kaburi I lilts, Mazaruni Colonial Life Financial Limited, Trinidad.

Okuwa River Head- waters, Mazaruni 4.

Richard Carter 0 Cathedral Gold Corporation Kaburi Mazaruni Hills, East, 5.

Case Development Company Limited HGB Ventures Inc., Texas, USA Five Star, Barima River 6.
Case Development Company Limited Canarc, Canada Baramita, Barama River Bead 7.

Cathedral Gold Corporation 8.

Cathedral Gold Corporation 9.

Cathedral Gold Corporation Cathedral Gold Corp., Vancouver, Issano - Kaburi Rivers, BC, Canada Mazaruni.

Cathedral Gold Corp., Vancouver, Blue Mountain, Mazaruni BC, Canada Cathedral Gold Corp., Vancouver, 1 lit or Miss Creek, Kaburi, BC Canada Mazaruni.

10.

Correia, M.O.

Snr.

G 11.


Essequibo Timbers Limited Colonial Life Financial Limited, Port-of-Spain, Trinidad.

Akaiwong River Yaiema, Kuribrong 12.

Exploration Brex Inc. 13, CAMDICO Exploration Brex Inc., Val D'or Quebec, Canada.

Aremu, Cuyuni.

Caribbean Basic Industries, subsidiary of Coeur d'Alene, of the USA Groete Creek 14.

George Hicks Mining Company Prospect Creek, Mazaruni 15.

GIUCO G Adex, of Canada.

Pott Falls 16.


Golden Star Resources Limited Golden Star Resources Denver, Colorado, USA.

Amatuk 17.

Golden Star Resources Limited Golden Star Resources Denver, Colorado, USA.

Barama Head East 18.

Golden Star Resources Limited Golden Star Resources Denver, Colorado, USA.
Piai I lead 11 Name of Licensee Guyanese Foreign Parent and/joint Principals (G) venture Company Property Location 19.

Golden Star Resources Limited Golden Star Resources Denver, Colorado, USA.

Kaliaku 20.

Golden Star Resources Limited 21.

Golden Star Resources Limited 22.

Golden Star Resources Limited 23.

Golden Star Resources Limited 24.

Golden Star Resources Limited 25.

Golden Star Resources Limited 26.


Golden Star Resources Limited 27.

Golden Star Resources Limited 28.

Golden Star Resources Limited 29.

Golden Star Resources Limited 30.

Golden Star Resources Limited 31.

Golden Star Resources Limited Golden Star Resources Denver, Colorado, USA.

Fish Creek One Golden Star Resources Denver, Colorado, USA.

Fish Creek Two Golden Star Resources Denver, Whana East Colorado, USA.

Golden Star Resources Denver, Whana West Colorado, USA.
Golden Star Resources Denver, Colorado, USA.

Noseno Golden Star Resources Denver, Colorado, USA.

Barama Head West Golden Star Resources Denver, Colorado, USA.

Rocky River Golden Star Resources Denver, Wapai River Colorado, USA.

Golden Star Resources Denver, Colorado, USA.

Makapa Golden Star Resources Denver, Colorado, USA.

Erakiri Golden Star Resources Denver, Colorado, USA.

Membaru Mouth Golden Star Resources Denver, Colorado, USA.
Eagle Mountain 32.

Graubar Company Limited G Pullanbedan, Cuyuni 33.

HGB Ventures Inc 34.

HGB Ventures Inc 34.

Minrich Inc. HGB Ventures Inc., Texas, USA Upper Monosse, Mazaruni HGB Ventures Inc., Texas, USA Mazawini, Barama Minrich Inc., Richmond Virginia Wamara Hilt USA 12 Name of Licensee Guyanese Foreign Parent and/joint Principals (G) venture Company Property Location 36.

North American Resources Inc. Putareng, m id- azii rim i 37.
Ontario Inc. 35. Pegasus Gold International Inc. 36. Pegasus Gold International Inc. 37. Pegasus Gold International Inc. 832528 Ontario Inc, Toronto, Canada Peters Mine Pegasus Gold Intl Inc., Spokane, Deer Creek, Potaro Washington USA, Seahawk Minerals Limited, USA.

Pegasus Gold Intl Inc., Spokane, Black Water Creek, Washington USA, Seahawk Minerals Limited, USA.

Konawaruk Pegasus Gold Intl Inc., Spokane, South Blackwater Creek, Washington USA, Seahawk Minerals Limited, USA.
Konawaruk.

I .

International Roraima Gold Corporation G International Roraima Gold Corp. White Creek, Cuyuni.

Vancouver, BC, Canada.

42. International Roraima Gold Corporation G International Roraima Gold Corp Aranka.

Vancouver, BC, Canada.

43. International Roraima Gold Corporation G International Roraima Gold Corp Quartzstone Vancouver, BC, Canada.

AIL 44.
AIL 44.

Romanex (Guyana) Exploration Limited Sutton Resources Limited, Rich- Marudi Mountain mond British Columbia, Canada.

45.

Wayne Vieira 46.

Omai Gold Mines Limited 47.

Omai Gold Mines Limited Minrich Inc, Menora USA Cambior, Val d'Or, Quebec, Canada; Golden Star Resources; Government of Guyana.

Tassawini Quartz [till Cambior, Val d'Or, Quebec, Canada; Golden Star Resources; Government of Guyana.
Omai River 13 /s--7•4 ..1 1.7 INITIATIVES WITH SOUTH AFRICAN COUNCIL FOR GEOSCIENCE AND MINING COMPANIES In response to the initiative of the Honorary Consul to Guyana in South Africa, Mr. Leyland FIazlewood, and as a follow-up to GGMC's own initiatives spearheaded by Deputy Commissioner Mr. W. Woolford and Senior Mining Engineer Mr. J. Mingo, aimed at attracting the involvement of South African major and junior companies in Guyana's mining sector, there were follow-up exchanges of information with the Honorary Consul, Mr. Leyland I Iazlewood, and the following South African Companies: • • • • • • GENCOR International Gold Anglovaal Minerals Backfill Rock Mechanics Anglo America (DeBeers) AVGOLD Goldfields of South Africa Limited In addition, Mr. Hazlewood suggested that there might be opportunity to interest the following groups: • • • • Fouche Group (junior company engaged in diamond exploration).
JCI AVMIN NJM Diamonds (a diamond manufacturing operation).

Mr. Hazlewood stressed that the major South African Mining Companies expressed interest in forming joint venture relationships with Companies with mineral properties that had resources that they wished to develop.

- Mr. Hazlewood strongly recommended that associations forged between Guyanese and South African organisations and institutions that support the mining industry would be useful in encouraging South African Mining Sector involvement.
Institutions targetted are the Guyana Gold and Diamond Miners Association and the South African Chamber of Mines, the University of Guyana and the Universities of Witwatersrand.

Rhodes University and the University of Western Cape.

In October 1997, Director of the South African Council of Geoscience, Dr. Nok Frick, visited the GGMC in response to an invitation issued by the Deputy Commissioner when he visited South Africa in May 1997.
Dr. Frick visited Omai Gold Mines and the bauxite mining operations at Linmine, and had discussions with Commissioner, Deputy Commissioner and Manager Geological Services at GGMC about Guyana's mining sector.

He also discussed the possibility of establishing a formal co-operative relationship between GGMC and the South African Council of Geoscience.
14 The attachment of a Guyanese science graduate at the South African Council of Geoscience for one-year to interpret geophysical information from Golden Star's Geological and Geophysical Survey was identified as a co-operative project.

Dr. Frick opined strongly on the similarities that he observed between the Geology and gold mineralisation environment at Omai, and that of Ghana, where South African Mining Companies felt comfortable to operate.
He advised that South African Mining Companies, by policy, sought to have a degree of local ownership in South African Companies operating overseas.

Dr. Frick recommended that Guyana Geology and Mines Commission should aggressively promote Guyana's mining sector to foreign investors: a vital part of this promotion will be the generation and packaging of information and maps on the geology and mineral potential of Guyan•..
He also recommended that GGMC should undertake projects that would support local development projects.

Dr. Frick issued an invitation to the Commissioner and Manager Geological Services to visit the South African Council of Geoscience in 1998.

1.8 TECHNICAL PRESENTATIONS/CONFERENCES Manager, Geological Services, sponsored by CIDA, attended Exploration '97 in Toronto in September.

This was the fourth decennial International Conference on Mineral Exploration, and its theme was "Discovery beyond 2000".
The Conference focused on exploration geophysics and geochemistry, and data enhancement and visualisation through GIS applications.

Mr. K. Persaud, Senior Geologist II, made a presentation at the IX International Gold Symposium in Caracas, Venezuela.

in November 1997.

The paper was entitled "The influence of Geology on Gold property selection in Guyana and its implications for the new millennium".
Several presentations were made by visiting personnel, and a presentation was made by Map Curator, Ms. Irma Lowe.

The presentations were: The application of Regolith and weathering research to geochemical exploration, by Dr. Romulo Angelica, of CPRM, in July 1997.

Collaborative field projects between the University of Hertfordshire and the GGMC, by research personnel from the University of Hertfordshire, in August, 1997.
The activities of the South African Council of Geoscience, and the role of the Geoscicnce in Mineral Development, by Dr. Nok Frick, Director of The South African Council of Geoscience, in October, 1997.

Care of Maps, by Ms. Irma Lowe, Map Curator, GGMC, in October 1997.

• 15 /S • Geochemical Sampling and Error Control, by Mr. Robert Jones, Geochemist, British Geological Survey, in November, 1997.
Geographical Information Systems and the GGMC Licence Management System, by Mr. Berik Davies, GIS Analyst of the British Geological Survey, in November, 1997.

1.9 PROSPECTING PERMITS (MEDIUM SCALE) In 1997, there was a trend towards a large reduction in Prospecting Permit (PP) applications and grants, compared with 1996 (see Tables 4, 4a).

In particular, there was a noticeable reduction in grants and applications from August to December 1997, with a corresponding hike in renewals from September.
Renewals in 1997 were 8% above renewals for Jaminry to December 1996.

Overall, grants plus renewals for January to December 1997 were 32% less than for 10'16.

Prospecting Permit applications and grants fell significantly short of budget (see Tables 4, 5), partly because the proposed auction of exploration blocks from GSRL's relinquished Geological and Geophysical Survey areas did not take place.
If the budgeted 500 Prospecting Permit exploration blocks are excluded, applications and grants were 68% and 37% of budget, respectively.

Table 4 - Prospecting Permit applications, grants, renewals, cancellations - 1996, 1997 ]an-Dec '97 Budget '97 Jan-Dec '96 % change (1996-1997) No.

of Prospecting Permit Applications No.

of Prospecting Permits Granted No.

of Prospecting Permit Renewals No.

of Prospecting Permit Cancellations 560 307 848 233 No.
Of Publication No.

of Prospecting Permits Granted and Renewed_1155 1325 1325* 650 850 922 783 24 75 1705 -34 -67 +8 +870 -32 *825 new grants were projected, plus 500 grants for exploration blocks auctioned from areas relinquished by GSRL, after their Geological and Geophysical Surveys.
1.10 CARTOGRAPHIC SECTION The Cartographic Section gave full support to the Geological Services Division in the administration and processing of Prospecting Permits and Licences and Geological and Geophysical Survey Permissions, and this constituted a major part of their work in 1997.

The Cartographic Section was generally able to keep up with the updating of the 1:50,000 stock sheets and verification of areas under application for Licences or Permits, or due for cancellation of Prospecting Permits.
16 The Section prepared maps for the New River Project, re-drew geological maps on the request of the Information and Documentation Officer, completed four 1V2 degree Geological Atlas Sheets ready for geological editing and printing.

At the end of 1997, six of the sixteen Geological Atlas Sheets that will cover the entire country, were completed.
A Map Curatorship Project was initiated in January 1997, for the inventory and care of the GGMC's Map Archives and the strengthening of procedures for the recording, use, storage and retrieval and care of maps.

Map Curator, Miss Irma Lowe, was in charge of the project.
Two of the Cartographic Staff, Mr. Travis Lyken, Assistant Draughtsman II and Mr. Cyprian Moffett, Assistant Draughtsman I, and Geological Field Section staff Mr. Julius Griffith, Geotechnician a?,d Mr. Lance Persaud, Field Assistant, participated in the Commonwealth GIS prototype project from May to December, 1997.
1.11 CHEMICAL AND PETROLOGICAL LABORATORIES The Chemical and Petrological Laboratories continued to give support to the field projects of the Geological Services Division and the Commission, and to offer services to the mining public.

Analytical work done by the Chemical Laboratory ranged from sieving of samples, gold analyses by Fire Assay/AAS, and by amalgamation and parting, gold assays for Jewellers and sample preparation for heavy mineral analyses (see Table 6).
Chemical Laboratory An important aspect of the Laboratory's work in 1997 was the participation of the Senior Chemist in a programme for National Laboratory Accreditation by the Guyana National Bureau of Standards.

The preparation and adoption of a Quality Assurance Manual and the documentation of the Laboratory's procedures are prerequisite to the attainment of accreditation.
Chemist, Mr. Clyde Thompson accompanied a team from Sudeen's Enterprise that visited the state gold refinery of Zimbabwe in November, 1997.

17 Table 6 - Analyses undertaken in the Chemical Laboratory in 1997 Test or Element Technique Employed Determined # of Sample Type Person or Comoanv reauesting analyses Remarks Sample Yellow metal Guyana National Bureau Weight and karat of Stds.

for Mr. L. Wade Specific Gravity Completed.

Method No cost.
Method No cost.

LC LC LL Ms. Rookmin Ms. M. Jordan Mr. S. Williams -do- -do- -do- 5 3 10 16 1 28 Yellow Metal jewellery Yellow Metal jewellery Yellow Metal jewellery Forensic Exhibits Yellow Metal Soil 11.5 kg Rock 3 Silica Sand S. Persaud, Jeweller Karat C. Persaud, Jeweller Karat K. Ramsaroop, Jeweller Karat Guyana Police Force Au, Hg, Ag, Cu.
Mines Department Mr. G. Nestor, Senior Geologist Mr. Trevor Taylor Mr. 0.

Sears of RMC Silica Sand Au Removal of iron Crushing Size fraction distribution.

% silt and % clay.

Gold size analy- sis of free gold.

2 3 4" Banka Drill Mr. Kevin Jeffrey, blacksand concentrate Miner.

Silica Sand (Brown) Mr. Robeson Benn of Linmine.

Au -do- -do- -do- Specific Gravity Method.

Completed.

Completed.

Completed.

Completed Specific Gravity Method.

Completed Specific Gravity Method.


Completed Wet Chemical Fire Assay.

Completed.

Completed.

Fire Assay Acid leaching followed Completed by filtration washing and drying.

Use of jaw crushed.

Cost $1,613 Screening through 2-range of sieves from 1.00-0.25mm Screening the 0.25 fraction through 63 bm sieve.

Screening through 75 mm sieve Amalgamation and parting.

Fire Assay Cost - $2500.00 Cost-$4,200.

No payments Completed.

180 Pan concentrate Dr. D. Raju, ITEC Senior Geologist.
Sample preparation for Washing, drying, heavy mineral analysis.

 leaching, weighing.

709 Soil Dr. D. Raju, ITEC Complete geochemical Senior Geologist.

Fire Assay; MIBK/AAS; HF Cold Attack; Aqua Regia Digestion.
Not completed 58 samples partially prepared 18 Sample Preparation Laboratory During 1995 this section was plagued with electrical and other problems which affected the operations of all the equipment housed in the section.

In particular the disc mill pulverizer, the sieve shaker and the ventilator fan were out of service for almost the entire year.
It was not until the end of the third and last quarters that the pulverizer and fan respectively, were made operable.

The sieve shaker remained inoperable.

Nevertheless the section was responsible for the preparation of six forensic gravel samples; size fraction analysis of three silica sand samples and two black sand samples for Fire Assay and one hundred and eighty pan concentrate samples from the New River area.
In addition the section was responsible for the crushing of eleven and one-half kilograms of rock and for the partial preparation of fifty-eight soil samples from the New River area.

The air compressor continued to malfunction throughout the year and is being serviced by the Mechanical Workshop.

Equipment needed for this Laboratory include an additional sieve shaker and a vacuum cleaner.
Fire Assay Laboratory During 1997, the Fire Assay Section has been grossly under-utilised due to lack of samples for analysis.

The section has been responsible during the year for the assay of three sand samples and ten forensic samples.

The furnace however could not have been operated fbr the greater part of the year due to inadequate electrical supply to the Laboratory, even though high capacity transformers were installed by the Commission.
The furnace could only have been utilised after working hours when other electrical equipment in the Commission were not in use.

During the year one industrial floor fan and one high capacity analytical balance have been put in operation in the section.

Among other equipment such as trays, tongs, beakers etc., one large Assay Furnace, one Bullion Roll and one Fume Hood have been purchased for this section but these did not arrive in the country during the year.
19 Wet Chemical Laboratory This section was utilised for the analysis of two hundred and thirty-five pan concentrate samples for heavy metal analysis by Geotechnicians, assisted by Chemical Laboratory staff; leaching of twenty-eight samples for removal of iron; amalgamation and parting of sieve fractions of two black sand samples; digestion of seventeen fbrensic samples and assay beads of three sand samples and the conducting of specific gravity test for karat determination of twenty-two pieces of yellow metal jewellery.
The condition of the fume extraction system continues to be deplorable.

Work is to be done on four aspects to this system, namely: a) b) c) d) repairs to one fume hood, sealing of leaking vertical extension of the duct by ten feet (10'), and malfunctioning motor, seemingly due to low voltage.

Use of this Fume Hood is vital to the functioning of the Chemical Laboratory where use of fuming acids and volatile organic solvents are routine.
The section received the following capital equipment during the year: Shower and eyewash unit with basin - not yet installed, awaiting revising of floor plan by Royal Canadian Mint consultant.

Demineralized water apparatus - not yet utilised since there has been inadequate supply of water to the laboratory throughout 1997.

Air conditioner for Chemist's Office.

Eight chairs.

1) 2) 3) 4) A semi-microbalance and acid storage cabinet have been purchased but have not yet arrived in the country.
One strong-safe has been purchased but not put in place pending the revision of the laboratory floor plan.

Spectrographic Laboratory Throughout the year this laboratory has been utilised for analytical purposes since the Emission Spectrograph is still out of order.

20 During the year the floor of this laboratory was raised and resurfaced with rubber tiles in an effort to combat the flooding during rainy seasons.

This section has served as office space for Mr. C. Thompson, Chemist.
Atomic Absorption Laboratory This section was utilised for the analysis of twenty samples of which seventeen were forensic and three were sand samples analysed for gold.

Although the laboratory did not experience much flooding for the year it is still recommended that the floor be raised a few inches as was done to the Spectrographic Laboratory.

The floor also needs to be resurfaced with rubber tiles.
Purchase of equipment supplies Equipment and supplies were purchased for the Chemical Laboratory from the following companies: 1.

2.

3.

4.

5.

6.

Renshaw International (Guyana) Limited.

Canada Wide Scientific of Canada.

Western Scientific Company Limited of Trinidad.

Fischer Scientific of the United States of America.

VWR Scientific Products of the United States of America.

The Royal Canadian Mint.


To the end of the year the laboratory has received and taken into stock all items purchased from the first four companies.

Items from the other two companies are yet to arrive in the country and in fact payment is not yet made for items ordered from the latter company.

Visits/Meetings/Seminars The Chemical Laboratory received the following visits during the year from the following persons/groups.
1) 2) Mrs. Jasmine Dedier-Calix, Sales Representative of Chromaspec Limited of Trinidad - (97-01-31).

Mr. Henri Sauve and Dr. Guillermo Ocampo of the Royal Canadian Mint, who examined the layout of the laboratory as a preliminary exercise towards re-designing of the laboratory floor plan, to achieve greater productivity in Bullion Assays - (97- 06-06).

21 3) 4) 5) 6) Three representatives from CIDA who examined the facilities and scope of operation of the laboratory - (97-06-11).
Dr. Romulo Angelica, Geochemist on a three-week attachment under the programme of technical co-operation in Geochemistry, GGMC/CPRM of Brazil - (97-06-27).

Samantha Singh, Technical Officer of the Guyana National Bureau of Standards, who discussed with the Senior Chemist II, re: preparation of a Laboratory Policy Manual for which compilation, information is being collected - (97-07-14).

Mr. Edwin McKoom, Managing Director of Western Scientific Products Limited of Trinidad - (97-10-20).
)1- The following visits were paid by senior personnel of the Chemical Laboratory staff: 1) 2) 2) 3) The Senior Chemist H, together with officials of the Guyana National Bureau of Standards (GNBS) visited the following two organisations as a pre-requisite for the formulation of a National Standard for the Assaying of Bullion and Jewellery as well as to make an assessment of the Jewellery establishment for accreditation by the GNBS.
a) b) Omai Gold Mines Limited Laboratory - one visit on 97-01-24.

Diyaljee's Jewellery Establishment - two visits on 97-01-22 and 97-01-17.

During December, Mr. C. Thompson, Chemist, participated in a visit to the Fidelity Printers and Refiners' Gold Refinery and Assay Laboratory in Harare, Zimbabwe.

He functioned as consultant to a team from a private company - Sudeen's Enterprises.

(97-11-29 to 97-12-09).


The Senior Chemist II and the Chemist attended the Jewellery Standard Mark Award Ceremony, hosted by the GNBS.

At this ceremony the King's Jewellery World and Diyaljee's Jewellery Establishment were granted the permit to use the Jewellery Standard mark on their products.

(97-05-28).

During the year the Senior Chemist H, attended the following meetings/seminars: a) Laboratory Committee meetings held in the Conference Room of the GNBS.

(97-04- 15 & 17).
(97-04- 15 & 17).

22 b) c) Guyana Laboratory Accreditation Technical Committee meetings held in the GN13S Conference Room to facilitate the approval of the following three standards, "Code of safety for Chemical Laboratories", "Code of safety for Microbiological Laboratories", "Criteria for Accreditation of Chemical Testing Laboratories".

(97- 07-10 and 97-08-28) Seminar conducted by Mr. Steven Buol, International Market Manager of the H.A.C.H.
Company held in the Boardroom of the Institute of Applied Science and Technology for the purpose of promoting sales of water testing products and other customer services marketed by the HACH Company.

(97-01-10) Petrological Laboratory The Petrological Laboratory's main activity was the certification of samples submitted by exploration companies, prior to shipment overseas for analyses.

The Laboratory was involved in the analyses/identification of samples from the earlier phases of the New River Project.
In January 1997, Dr. Dulla trained the Geotechnicians and Field Assistants in the principles and techniques of rock and mineral identification, as a continuation of the training programme that was initiated in 1996.
Table 5 - Analyses undertaken in the Petrological Laboratory in 1997 Date Amount of 1997 Sample Type of Sample Person/Company reauesting analysis 2 pails 6 pails 2 cartons 8 pails 02/0 I 20/0 I 11/02 18/03 02/04 Not stated 03/04 14/04 I6/04 23/04 12/05 22/05 04/07 07/07 25/07 4 pails 4 pails 1 crate 2 pails 16 pails I crate 4 pails I pail I pail Soil Soil Soil Saprolite Soil Rock Rock Rock Soil Rock Soil Soil Silica Sand Alphro Alphonso Golden Star Resources Adams Brothers Golden Star Resources Guyana Goldfields Golden Star Resources -do- Omai Gold Mines Limited Golden Star Resources Wallace Ng-Scc-Quan Omai Gold Mines Limited Golden Star Resources -do- Seeram Brothers 23 Type of Analysis Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Microscopic Remarks Certified for export.


Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.
Date 1997 31/07 21/08 02/09 08/09 08/09 11/09 16/09 30/09 01/10 14/10 15/10 17/10 01/11 09/11 10/11 11/11 10/12 17/12 11/12 Amou t of Sample 1 pails 12 pails 22 pails 28 pails 43 pails 1 pail 26 pails 9 pails 39 pails 133 pails 17 pails 12 pails 1 box 12 tubes 14 pails 1 pail 5 pails 12 pails 10 pails Type of Sample Soil Soil Soil Soil Saprolite Pulp Soil Soil Soil Pulp Core Rock Core Soil Soil Silica Sand Core Rock Core I.- 4 -do- -do- Caribbean Basic Industries Person/Company reauesting analysis -do- Type of Analysis Microscopic Microscopic Microscopic Microscopic International Roraima Gold Corp.
Microscopic Otnai Gold Mines Limited Microscopic Caribbean Basic Industries Microscopic International Roraima Gold Corp.

Microscopic Guyana Goldfields Microscopic Golden Star Resources Microscopic Caribbean Basic Industries Microscopic Golden Star Resources Microscopic Seahawk Minerals Microscopic Golden Star Resources Microscopic International Roraima Gold Corp.

Microscopic Technodomi Brothers Microscopic Golden Star Resources Microscopic -do- Microscopic -do- Microscopic Remarks Certified for export.


Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

Certified for export.

24 2.


MINES DIVISION 2.1 TECHNICAL SECTION Inspection Tours During the year 1997 approximately 5% of the tours planned were executed.

Table 1 below illustrated the number of inspection tours planned and executed by the Technical Section.

Table 1 Tours No.

Of Planned tours for 97 No.


Of tours executed for 97 Bauxite operations (3) Stone Quarries (3) Sand Pits & Quarries Mazda Mining Co. 4 4 4 4 Omai Gold Mines Continuous 3 3 3 2 2 All the above operations were inspected mainly for safe Mining/Quarrying practices and also Occupational Health and Safety practices.
The Bauxite operations inspected were:- I) 2) 3) Linmine Aroaima Bermine The Stone Quarry operations inspected were: 1) 2) 3) Baracara Quarries St Mary's Quarries Mazaruni Granite Production (formerly Guyana Granite Products.

25 The following Sand pits were inspected: 1) 2) 3) 4) 5) 6) Jaundoo Dos Santos Madhori Fung-A-Fat Raghoo Rambarran In September the Guyana Geology and Mines Commission issued a Cease Work Order on the Jaundoo Sandpit for outstanding royalty.
This pit has since ceased operation.

As a result of land tenure problems, Raghoo's Sand pit was stopped by Lands and Surveys Department in October.

This has also ceased operation since.

All these operations are located in the Soesdyke area and ,..:ong the Linden/Soesdyke Highway.

Sand Quarries inspected were Roraima, Dora and Spring Point.

Dora and Spring Point were non-operational for 1997.

Ad Hoc Tours Several Ad Hoc tours were made during 1997.
These were mainly to investigate removal of sand without paying the necessary royalty and obtaining GGMC's permission.

One ad hoc tour was made to Iterinbang to Mr. Wilmont Chan's operation to investigate the accidental death of one of his workers.

Omai Monitoring Throughout 1997, Senior Mining Engineer, Babb, Mining Engineer Sargeant, and Mining Engineer Rameharran were stationed at the Omai Gold Mines Limited site.
These officers continued to monitor the ()mai operation with concentration on the progress and day to day activities with regards to the Tailings dams.

1 26 4 Revenue (Royalty) Royalty received for 1997 are shown in Table 2: Table 2 ROYALTY AMOUNTS Gold (Local) 187,661,000 Sand Stone Loam Clay 3,728,000 4.422,000 72.000 9,000 Total $ 195,892,000 The total above represent % of the amount budgeted for these minerals.
EXPENDITURE Inspection Tours Area Officer Budgeted Expenditure Akawaru Aranka Lower Konawaruk North Rupununi Kurupung Upper Mazaruni/Kaikan Upper Potaro Upper Potaro Middle Mazaruni Kurupung Eteringbang Aranka 0.

Williams (MO) C. Sparman (ME) S. Corlette (MO) C. Walcott (AMO) B. llopkinson/D.

Garraway R. Luckie (AMO) M. Persaud (SMO) M. Persaud (SMO) (revisit) 0.

Williams (MO) (77 days) 0.


Williams (MO) (31 days) Persaud (SMO) (14 days) D. Garraway (SNR) (70) days 583,147.00 144,065.00 1,224,918.00 1,189.558.00 2,814,232.00 1,326,465.00 1,519,418.00 190,000.00 1,675,075.60 253,624.00 386,814.00 2,083,702.50 27 Station Officer Budgeted Expenditure .
)- /I Matthews Ridge Mandia Bartica Puruni G. Best (SMO) A. Bunbury (SMO) T. Semple (AMO) L. Butters 6,587,686 6,238,176 1,329,486 7,962,366 NB: Source- Second Quarter Report - April-June, 1997 and Estimate file GGMC.

Constraints The major constraint which faced the Technical Section for 1997 was the non- availability of personnel.
With the formation of the Environmental Unit in January, three (3) engineers were transferred this Unit and four (4) remained with the Technical Section.

During most of the year Mining Engineer Sparman and Hutson were attached to the Mandia Project, leaving Senior Mining Engineer Babb, Mining Engineers Sargeant and Ramcharran for tour duties and monitoring of the Omai operations.
In addition, Mining Engineer Sargeant resigned in October, 1997, hence inspection tours scheduled were disrupted because of the non availability of personnel.

Drilling The activities of the Drill section during 1997 were as follows:- The Drillers and Mechanics commenced and concluded an inventory exercise to accumulate serviceable and unserviceable drilling equipment which were located in an existing drill shed, west of the GGMC compound.
At the conclusion of this exercise the unserviceable equipment were handed over to Linmine upon administrative directives.

There were also requests by companies and agencies to acquire drilling equipment or auxiliaries, some of which have not been returned to date.

Demerara Distillers Limited (DDL) is one of these agencies.

Ontario Inc. rented the BBS #25 Diamond Drill and commenced drilling at Peters's Mine, Puruni river.
Various small scale miners rented banka drill outfit for exploration on their mining property.

Some of these were D. Ramchangee, V. Macedo, A. Reece, P. Perreira and RMC E & A consultants and Inter-terra.

Requests were made to conduct exploration drilling at Seba Quarries but due to the unavailability of a suitable drilling outfit this activity was not possible.
Several tours of inspection of drilling operations were made by the drilling supervisor and crew on drilling 1 28 location operated by small and medium scale miners who were conducting exploration with similar equipment.

During the second and third quarters, several of the equipment loaned out were returned.

Some that became damaged were repaired while others became unserviceable due to the unavailability of the identical spare part.
Reimbursement of security deposits were made to operators who returned the equipment in good order.

The Commission received rentals for equipment loaned to Ontario Inc. E & A consultants and other companies and agencies which hired drill outfit.

Towards the last quarter, efforts were made to acquire suitable engines to refurbish the BBS #1-15 drills and pumps in addition to much needed tools to effect this exercise.
2.2 MAHDIA PROJECT -4 During 1997, development of Mandia began to manifest some amount of progress subsequent to the cadastral survey of the Mandia Blocks as surveyed by Survey Systems during the period 1996/05/10 to 1996/05/30.

The services of a private Management firm Tafiya Engineering and Management Services (TEAMS), under the management of Mr. Jo Bayah was engaged by the Commission to guide the mining operations within the Project area.
The most important element of T.E.A.M.S engagement was to develop sound workable practices deemed applicable to the Mandia Project and to advise on and detail the requirement for infrastructure development within the vicinity of the Project area.

T.E.A.M.S abandoned its engagement with the Commission as Project Management approximately two and one half months after mobilization.
In April 1997, His Excellency President Samuel A. Hinds appointed a committee to oversee the Project with the primary mandate of supervising and management of mining activities at Mandia.

One of the committee members Mr. W. Woolford, issued an oral directive on 16th April, 1997, to the Engineers engaged by the Commission, to develop a Project Execution document for use as the primary project guide.
The said document was compiled by Mining Engineers, Derrick Babb, Colin Sparman, Peter Hutson and Andrew Ramcharran.

The task of compiling the project document was executed within three weeks of the said directive and a draft document titled "Mandia Project Execution Plan" was submitted to the Committee.

Some modifications to the document were made by the Committee and a final document entitled "Mandia Project Execution Proposal" was submitted as the project document.
29 2.3 INSPECTORATE Overview of Planning Activities for Year 1997 According to the proposed activities planned for the Inspectorate Section for year 1997, the Inspectorate Section was scheduled to continue its function within the small scale Gold and diamond mining sector through monitoring activities being carried out by four (4) mining stations and by undertaking fourteen (14) inspection tours and eight (8) supervisory tours throughout the Mining Districts of Guyana.
The establishment of permanent mining station scheduled for 1997 were as follows:- 1) 2) 3) 4) Bartica Arakaka/North West District Puru-,i.

Mining Station Mandia Mining Station Those stations all have respective areas of monitoring and schedule to operate for a minimum of forty-four (44) weeks which consisting of four (4) periods of eleven (11) weeks.

Each station except "Bartica" was expected to be supervised by a Senior Mines Officer who would have their required supporting staff.
A mining engineer was also earmarked for each station for a period of one (1) month in each quarter to survey the surrounding communities.

For 1997, it was also anticipated that all vacancies will be filled to carry out work programme effectively.

Inspection tours were also schedule for other areas such as Berbice River; Demerara River/Akaiwana; Lower Potaro/Konawaruk; North Rupununi; South Rupununi; Kurupung/Middle Mazaruni/Kaikan and Aranka/Cuyuni.
These areas were schedule to have fourteen (14) inspection tours as stated before with durations of 6,12, and 25 weeks.

Ad hoc trips and supervisory tours were also proposed.

Court matters also formed part of the planned activities for the Section for the year 1997.
ACCOMPLISHMENT OF PROPOSED ACTIVITIES FOR 1997 I As was planned, the four (4) permanent mining stations were maintained throughout the year, interchanging of Senior Mines Officer occur at some of the Mining Stations; however, 30 with the exception of Bartica Mining Station which continued to be manned by an Assistant Mines Officer as the Supervising Officer.

Table 3 below shows the permanent mining stations and the supervising officers, giving details of the period of stint among other things.
These four (4) stations have satisfied more than 90% of their proposed planned period of operation for the year 1997.
Table 3 Station Officer Period Expenditure liartica Mandia Matthews Ridge Puruni T. Semple (AMO) R. Persaud A. Bunbury (SM -1) W. Allen (SMO) L.Butters G. Best (SMO) P. Calender L. Butters (SMO) C. Walcott (AMO) March-June August Jan-July July- August Sep-Dec Jan - Oct Oct - Dec Jan - Sept Sep - Dec Budgeted Actual 1,329,486 4 6,238,176 6,600,000 7,962,366.96 C. Bradford (AMO ag)* continued to mann the Bartica Mining Station in the absence of the station Supervising Officer.
In fact she has done so during the periods of January, February, July and from September to December, 1997.

Verification of Claims Verification of claims was a main focus earmarked for 1997.

Of the four (4) permanent stations, including Akaiwanna and Kurupung, a total of 207 claims were verified.

The ramification is tabulated according to each mining station below as shown in Table 4.
31 114 /57a 10- "Tr Non- Permanent Station Bartica Kurupung Mandia Akaiwana/ Demerara Matthews Ridge Puruni Type of verified claims Total Land Land River Land Land River Land River Land River 0 58 06 85 16 0 35 0 07 0 Total 207 From the information above there was a greater emphasis on land operations rather than river operations.

The mass replacement of river dredges continued to unfold itself, giving rise to new thinking involving the environment at large.
The total number of verification conducted and executed during the year could have been greatly improved but according to officers, there were a number of setbacks which curtailed the process such as:- 1) 2) 3) 4) 5) Performance of additional duties outside the planned programmes for the station.

Absence of claim holders or representatives at the time of verification exercise.

Request from claim holders/representatives for postponement in order to clear boundaries lines and replacing of location boards.
Lack of sufficient manpower.

Illnesses by both officers and client due to malaria and other water bourne diseases.

32 6) High waters in the river, covering lands etc, during certain time of the year, e.g (Feb-July) in the Middle Mazaruni during this year, just to mention a few.

Inspection Tours About 95% of the proposed areas earmarked for inspection tours were visited during 1997.
The presence of Mines Officers and Assistant Mines Officers (AMO) were able to visit and engaged in monitoring of mining activities at the various non-permanent mining stations as shown in Table 5 below.

Non- Permanent Stations Officer Period Expenditure Akaiwana 0.

Williams (SMO Feb-June Aranka C. Spannan (ME) Budgeted Actual 583,147 144,065 R. Luckie (AMO) Feb-March 1,326,465 Kaikan (tipper Mazaruni) Kurupung Potaro/ Konawaruk (Lower) 13.

Hopkinson (MO) D. Garraway 0.


Williams (MO) K. Ramdass S. Cunene (MO) Potaro(Upper) M. Persaud (SMO) revisit Feb-June 2,814,232 July 253,624 1,224,918 1,519,418 190,000 Rupununi (North) Middle Mazaruni C. Walcott (MO) Feb-April 1,189,558 0.

Williams (MO) 1,675,075 Eteringbang M. Persaud (SMO) Aranka M. Persaud (SMO) 386,814 2,083,702 A total of seventy-four (74) claims were verified among the non-permanent mining stations.
A general overview of the inspection tours resulted in revenue collection, licencing of dredges, issuing of Permits and Mining Privileges among other things.

33 Ad-Hoc Trips Several ad-hoc trips were done during the year by various officers of the Mines Inspectorate, these trips were undertaken on immediate and urgent matters which were of great concern to the Commission for remedial action.
Disputes Disputes continued to be a major problem for the year, particularly in the Mandia, Puruni and North West District.

These disputes arise out of improper identification of the boundary lines by medium and large scale blocks; unauthorised placing of tail waste, obtaining water from other miners reservoir for dredging operation without permission, blocking of creek where miners depend on water for jetting purposes; shifting of claim boards to occupy unworked land.
Registry During 1997 the Registry kept accurate and systematic filing and recording of relevant transactions of the Mines Section.

Table 6-11 herein shows the highlights of such transaction.

Challenges and Complaints Table 6 shows the complaints, statement of complaints and challenges held for 1997.

Challenges 1997 No.

Of Complaints filed No.

Of Statements of complaints filed No.


Of Challenge filed Total 44 10 2 56 34 Licence Application Table 7 Licences (Applications received) for the year ending 1997.
Type Districts Total 1997 Total 1996 Trading Licences 1 0 Goldsmith Licence 25 2 35 3 30 3 49 5 52 4 9 0 5 6 G/T Business Permission Residential Permissions Total '97 Total '96 Dredge Registrations Table 8 Registration Licences Renewed Dredges Scrapped Dredges Transferred Total 2 0 0 0 0 0 3 5 0 0 I 6 Sizes Total Total 4 5 141 75 6 63 8 0 10 12 14 3 0 140 111 90 10 42 36 8 9 4 5 4 1 1 0 I 0 0 0 2 2 0 0 289 431 18 16 349 93I 59 31 298 195 158 11 46 36 4 754 1370 35 Court Matters Table 9 Type (Currently before hearing officer) Challenges Complaint Objections Total '97 Total '96 Amount No.
Determined No.
Pending Year Ending 1997 1996 6 1 0 7 Nil Nil Nil 6 1 0 6 1 0 7 20 38 8 66 The Hearing Officer attended to six (6) challenges and one (1) Complaint for the year re: Challenges Leonard Obermuller versus Shurland Sampson and Joshua Sampson; Robert Smith versus Kays' Diamond Enterprise and Clifford Joseph; Shaheed Mohamed versus Ayudhia Narine; Shaheed Mohamed versus John Vangronigen; Keith Cromwell versus John Vangronigen; Edward Hopkinson versus Leonard Felix and complaint Edward I lopkinson versus Leonard Felix.
The matter between Leonard Obermuller versus Shurland Sampson and Joshua Sampson was scheduled for the 20th March, 24th April, 26th June, le September, 1997, and was postponed to the 22' January, 1998.
The matter between Robert Smith versus Kay's Diamond Enterprise and Clifford Joseph was called on the 9th January, 16th January, 6th February, 27th February, 3rd April, 17th April, 24th April, 29th May, 19th June, 3rd July, 11th September, 25th September, gh October, 23 October 27th November, 1997 and was postponed to the 15th January, 1998.
The matters between Shaheed Mohamed versus Ayudhia Narine and Shaheed Mohamed versus John Vangronigen were scheduled for the 6th March, 15th May, yd July, 14th August„ 4th September, 23rd October, 30th October, 27th November, 1997 were postponed to the 22' January, 1998.

1 The matters between Keith Cromwell versus John Vangronigen was scheduled for the 14th August, 4th September, 9th October, 23' October, 27th November, 1997, and was postponed to the 15th January, 1998.
36 The challenge and complaint between Edward Hopkinson and Leonard Felix were scheduled for the 10th July, 21" November, 1997, and was postponed to the 22" January, 1998.

Gold & Diamond Production The following table shows the local production figures for gold and diamond for the year 1997.

Also comparative production figures for the year 1996 are listed.

Table 10 - Gold Production January February March April May June July August September October November December Total 1997 (Ozs) 1996(Ozs.)
4,388 8,339 8,162 10,456 8,450 9,117 7,984 8,042 9,652 9,711 6,564 7,186 5,728 7,527 10,071 11,253 9,149 9,208 2,288 9,652 9,324 10,505 8,108 7,322 98,051 110,135 The comparative totals shows a decrease of 17,990 oz for 1997.

Among other factors responsible for this decrease are (1) The decrease in the price of gold and (2) the drought condition in the latter half of the year 1997.
37 .7 Table 11- Diamond Production 1997 Sts Cts 17,576 28,977 10,477 23,783 15,786 2,378.52 1,884.70 1,411.55 2,874.73 3,446.83 1996 Sts CtA 98,903 5,229.44 55,842 5,887.97 21,108 3,769.67 23,519 3,048.37 38,964 3,054.25 24,224 3,304.95 19,323 2,375.26 8,883 57,346 1,231.62 7,957.24 22,840 3,376.34 50,732 3,225.13 January February March April May June July August September 20,308 4,266.51 17,486 32,256.33 October 23,367 2,802.38 21,653 2,995.99 November 5,240 992.61 24,088 2,296.27 December 22,916 3,060.23 72,574 8,060.00 Total 258,883 35,611.87 467,032 145,500.73 38 LIST OF CASES PENDING BEFORE THE MAGISTRATE COURTS AT THE END OF 1997 Y. CHRISTIANBURG MAGISTRATE COURT No.
Complainants (S) Defendant(s) Offence I .

2.

3.

4.

5.

A. Sunbury A. Bunbury S. Corlette S. Corlette A. Bunbury J. Vieira C. Rodrigues J. Vicira C. Rodrigues C. Rodrigues Breach of CWO Breach of CW() Breach of CWO Breach of CW() Breach of C WO C' No.

2046/97 2047/97 2146/97 2147/97 2148/97 MATTHEWS RIDGE MAGISTRATE COURT No.

 1.

2.

Complainant(s) G. Best G. Best Defendant(s) Joao Ferreira Antonio DosSantos Offence Breach of Reg.
160(a) Breach of Reg.

160(a) C' No 532/97 533;97 KAMARANG MAGISTRATE COURT No.

1.

2.

3.

4.

5.

6.

7.

8 9.

10.

11 .

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

Complainant(s) L. Butters S. Edwards S. Edwards S. Edwards S. Edwards S. Edwards S. Edwards S. Edwards A. Bunbury A. Bunbury A. Bunbury A. Bunbury A. Bunbury A. Bunbury A. Bunbury A. Bunbury B. Hopkinson B.
1 lopkinson B. Hopkinson B. Hopkinson B. Hopkinson B. Hopkinson B. Hopkinson B. Hopkinson B. Hopkinson B. Hopkinson Defendant(s) Amos Greaves Wilton Tofares Alfred Crawford Peters Mining Co. Reggie Fraser Alfred Crawford Peters Mining Co. Reggie Fraser Kenneth Fraser Oswald Walrond Wilton Tafares Robert Rellum Mare Fordyce Peters Mining Co. Tyron Powers Sydney Powers Floyd Moore Charles Gilbert Troy Wong Brian Marks Marvyn Mangra Dennis Simons Gasdale Marques Vibert Adams Floyd Moore Vibert Adams 39 Offence Breach of Reg.
149 (1) I3reach of CWO Breach of Reg.

81(3) Breach of CWO Breach of CWO Breach of CWO Breach of CWO Breach of C WO Breach of Reg.

154 Breach of Reg.

154 Breach of Reg 98 Breach of Reg.

98 Breach of Reg.98 Breach of Reg.

98 Breach of Reg.

98 Breach of Reg.

98 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

155 Breach of Reg.

149(1) Breach of Reg.

149(1) Breach of Reg.


154 Cj no /88 1596/92 1600/92 1601/92 1602/92 1604/92 1605/92 1606/92 215/93 216/93 217/93 218/93 219/93 221/93 222/93 223/93 1484/93 1485/93 1486/93 1487/93 1488/93 1489/93 1490/93 1491/93 1492/93 1499/93 4 111" 70- 3.
PETROLEUM UNIT 3.1 Functions The Petroleum Unit's functions are as summarized: (a) (b) (c) (d) (e) to promote development in the petroleum sector to encourage petroleum exploration to enforce through monitoring activities, the conditions of exploration licences and agreements.

to keep account of all monies due to the Commission by way of contracts between Guyana Geology and Mines Commission (GGMC) and petroleum companies.
to advise the Commissioner, monitor all activities, undertake the responsibilities and present the interest of the GGMC on all matters pertaining to and relating to petroleum developed in Guyana, including negotiating petroleum agreements and effecting development of petroleum resources.
Key Goals A set of milestones or goals which commence with the Work Programme herein are established to accomplish the following key goals: (a) (b) elevate the petroleum sector at the level of the Petroleum Unit so that it may become a better functioning regulatory body, utilizing its upgraded professional skill base to provide through research an enviable resource of prospects developed from available data and within limits, data generated from the Unit's activities, to further encourage petroleum exploration as the sector's prospectivity is promoted for development by worldwide investors.
the sustenance of the growth of the sector in terms of level of investment through exploration, by ensuring attractive but beneficial contract terms and licence conditions without unconsidered compromise to the environment or to the established traditional land use practices.
3.2 INTRODUCTION The Petroleum Unit's performance for 1997 could be described as " generally fair" but warrants assessment from three perspectives: - A comparison of the achievement in 1997 with goals set, revealed under achievements in half of the programme due mainly to crippling but unavoidable circumstances beyond the immediate control of the Unit.

Primarily this situation resulted from the unfortunate but necessary dependency of projects outlined on one key project.
Since that first project could not come on stream, the others were jeopardized.

The Head of Unit recalled that this critical observation was made earlier by the 40 subcommittees to which the programme was presented, yet despite all efforts, the situation after all, could not be adequately controlled.

All programmes hinged on the capital project to construct the Data Storage Facility which could not be executed due to the consequences of prerequisite administrative formalities.
A comparison of the goals achieved by the Unit where more controls were with the Unit in determining and executing the project activities set for 1997, showed that the Unit performed creditably.

For example, Contract Negotiation, and Operation Training were two programmed areas where the goals were accomplished exceedingly well by the end of the year.

Since the Work Programme was inextricably linked to Budget, an assessment from this perspective should also be prudent.
This assessment showed that capital spending was not achieved as budgeted.

There were unexpected carry-overs of expenditure on items which were purchased in 1996 and were received late in 1997.

In addition of course, was the unfinished Data Storage Facility.

Current Expenditure was generally under budget and there will be specific discussions on those matters.

However, Income from the Petroleum Unit by the end of 1997 was on target despite inaccurate forecasting of when such income came due.
The three (3) perspectives given above demonstrate that the Petroleum Unit performed better with respect to the Work Programme and Budget than appearances suggested.

To the Commissions advantage also, the Unit sought to pursue activities of a current and ongoing nature so as to constructively utilize the time which had become available.

3.3 PROJECTS 1997 (REVIEW) Data Storage /Record Management.
This project was hampered by late budget approval, Central or Municipal bureaucracy and other procedural delays.

Approval of building plans by the Central I lousing and Planning Authority was received at the beginning of the third quarter after several weeks since submission.

Advertisements for tenders were immediately placed.

Tenders were received shortly thereafter but at the end of December 1997 no contract was yet awarded.

This project could not commence.

Study Of The Basins Of Guyana.


(Phase 1) This new research project was dependent on the completion of the Data Storage Facility and all the attendant Record Management activities that were detailed to follow therefrom which would render the medium of research data accessible for study.

A field component was also planned which was to utilize the magnetometer purchased in December 1996.
The magnetometer arrived in Guyana in November 1997 but at the end 41 of December 1997 was still in storage since the anxiously awaited duty free status applied for was still to be issued.

This project was not attempted.

.r Takutu Basin Palynofacies Study (Phase 2.)

The history of this project is one of delays.

Approved in 1997 with some alternative objectives to that which was proposed in 1996, the present version shall remain valid until the project is finally executed.
Only very preliminary work was accomplished in 1997.

Set backs were due to the absence of crucial equipment supplies.

These supplies were only received at the end of August 1997.

Contract Negotiations Contract Negotiations proceeded on its own schedule despite attempts by the I lead, Petroleum Unit to have a more active attitude adopted by those involved.

The Century Agreement was pending since their first approach in August 1995.

Negotiations commenced with Maxus in February 1997.
Both Agreements were on schedule for signing in September/October.

Finally, Century and Maxus signed on November 19 and 25 respectively.

There were a flurry of new interests in Guyana's Offshore (coastal and deepwater) basins.

Negotiations were in progress with three companies for concession acreage in the coastal and offshore areas.

Serious interests existed for essentially all of the remaining coastal and offshore acreage and these matters were receiving the Unit's attention.
The Takutu Basin (onshore) was to be promoted by the Commission but the promotion rights were successfully assigned to TM Services Ltd. of London in April 1997.

These promotional rights were to expire in December but were renewed at an agreed cost at the option of TM Services for six months as per the Agreement in force.

At the end of December, one valid proposal from an Australian company named Hardmam Resources Ltd was receiving the Unit's attention.
In addition, there were several enquiries about the Takutu.

This acreage is a difficult area to promote under the existing conditions in the petroleum industry.

Contract Negotiations were a successful element of the 1997 programme of activities.

Monitoring Activities There were no contracts to actively monitor.

The Petroleum Unit responded to one reported sighting of petroliferous occurrences at Wakenaam, Essequibo Islands, on February 13, 1997.
This turned out to be biogenic gas typical of so many coastal areas of Guyana.

Operations Training Development With respect to this activity, the Petroleum Unit achieved total success.

All personnel identified for training development participated fully and reported as required.
42 Additional Staffing In the Work Programme and Budget presentation for 1997, there was a case made which rationalized the needs for additional staff As it turned out, no steps were taken in this direction during 1997 and perhaps it was fortunate that the need for additional staff did not arise.

The resulting situation could be attributed to the various aspects of the Work Programme that were not executed.
Membership and Subscription These were cost effective means of remaining current in geotechnical fields.

The Petroleum Unit subscribed to several recognized journals such as the Canadian Journal of Earth Sciences and the Journal of Petroleum Technology.

The level of subscription was under budget even though new and fulfilling memberships were sought during 1997.
Current and Ongoing Activities With the unavoidable, cr'edling, circumstances experienced during 1997, the Petroleum Unit pursued several alternative activities so as to constructively utilize time which had become available.
Such activities during the first quarter included; — the contributions to the Mineral's Policy Document during January; — the formatting of Drilling Monitoring Reports, Daily Monitoring Reports and Weekly Monitoring Reports, all in anticipation of later monitoring activity; — investigation into attendant requirements for any proposed drilling programme by the Unit e.g general petrophysical and petroleum engineering test that would compliment such activities.
During the second quarter, activities of a similar current and ongoing nature included: — the accumulating of certain coastal well data from the Ilydromet Office for timely inclusion in the Study of The Basins 1.

— the preparation of an informative/promotional document for use at seminars, for example (this activity was not adequately completed).

During the third quarter, these arbitrary activities slowed as staff took vacation which was due them.
In the fourth quarter, the flurry of activity which was associated with the finalizing and signing of the two production sharing contracts as well as the visit by some potential investing parties e.g.

Exxon kept the Unit fairly occupied.

The nature of the activities were such that no actual expenditures were required hence the specifics of the Budget 1997 were not otherwise affected.
4 A 3.4 EXPENDITURE .1r Current and Recurrent The December Board Account was not available at the time this document was prepared.

However, an analysis of the Petroleum Unit's Statement of Account as at the end of November 1997 indicated that for Employment Cost and attendant Expenses an overall variance of less than ten percent (10%)occurred .This was within the limits deemed acceptable by the Board of Directors.

Except for a few isolated areas, under budgeting seemed to be a common situation.
With respect to Field Expenses, the accounts reflected the fact that the project in question was not executed.

This issue was alluded to earlier when it was mentioned that the Unit's Work Programme was incomplete.

The consequence of this occurrence was under spending in specific associated areas.
While there is no need to encumber this section with details as they are in appropriate quarterly reports, the following brief comments illustrate some of the scenarios which brought about variances in the budgeted expenditures for 1997.

In 1997, projected expenditure for the Petroleum Unit was G$2,775,000.

which was in addition to recurring Employment Cost of G$19,069,000.
Anticipated costs for the categories such as Responsibility Allowances, Office Equipment/Computer Maintenance, Rental and Professional Services, turned out to be in excess by some 30% and more in the extreme case.

Services were sought with respect to Computer Maintenance but even with the substantial down time due to computer malfunction, Computer Maintenance was over budgeted for in 1997.
The computer down time and problems such as power outages, however, caused Printing and Duplicating to almost double what was budgeted.

The high density of prints for the contracts negotiated, added to data sets printed for companies interested in exploration, contributed to the increased actual Duplicating costs.

Postage was also considerably more than budgeted since volumes of data were shipped by courier to various companies at their request.
For both Printing and Duplicating Costs and Postage Cost, some level of reimbursement occurred which was expected to be reflected in the Statement of Accounts at the end of year.

In order to cater more adequately for the situation experienced in 1997, the Current and Recurrent Expenditures shall be more carefully forecast in the further.

Capital Variances in Capital Expenditure related to capital purchases, showed the only major item to be purchased was not acquired.
The item was an air conditioner which could not be purchased because the electrical facility to install it was unavailable in 1997.

Rewiring of the main building's distribution panel may allow for the air conditioner's installation in 1998 if it is approved once again.

44 -"r Capital Expenditures for Special Projects suffered from the same malaise as reported in previous sections of the review.

The Petroleum Unit's Work Programme for 1997 was incomplete.
The elements of the Work Programme that were part of the project expenditures that were actually utilized, related to a single business trip undertaken for the purpose of negotiating a Petroleum Contract with Maxus Energy Corporation.

The expenditure amounted to just under fifty percent(50%) of the G$1.3 million budgeted.

Although monies were budgeted for consultants, none were contracted for the occasion.
The demise of the other projects were discussed previously at section 2.2 and no further comments are necessary.

It is sufficient to report that approximately G$2.3 million allotted to Special Projects for Petroleum Unit were not utilized.
G$160,000 for a Capital equipment purchase was unavoidably unable to be utilized and some G$9.5 million for the Petroleum Unit's Data Storage Facility was not utilized since procedural delays affected its progress to commencement Income 1997 The anticipated income for the Petroleum Unit in 1997 was Budgeted at G$35.

million.

The actual income received was approximately G$30.

million.
million.

This was due to Application Fees for Petroleum Prospecting Licences, Rentals and Training Fees accrued from companies that have assigned interests in Guyana's prospective areas.

The scheduling of the returns were not consistent with the actual payments because of delay's in receiving approvals for finalizing Petroleum Agreements.

As a result, the major payments were not received until November, 1997 when Maxus Guyana Ltd and Century Guyana Ltd. both signed Production Sharing Agreements.
Other receipts were from TM Services Ltd with respect to their Agreement to promote the lakutu Basin and, an instalment from Petrel Petroleum Corporation as per their Agreement to promote the Georgetown Area, Offshore Guyana.

Income not budgeted for was received by the Petroleum Unit.

These income were related to funds paid by companies for generation and shipping of data to which an arbitrary administrative charge was added.
Comments In 1997, it was obvious that the integrated nature of the activities meant that shortcomings in one area would adversely affect other areas.

In 1998 the same situation is likely to occur but it is expected that there will be sufficient latitude for activities as planned to move forward.

45 Accommodation continues to hamper the Unit and with monitoring activities coming on stream in 1998 the need for additional space will be more critical.
It is suggested that as a temporary solution, another room be found when arrangements in the new building are finalized.

From this report it should be obvious that correcting our deplorable data situation is foremost and a most critical assignment upon which almost everything is dependent.

Whatever the requirements this should not be allowed to continue.

SUMMARY Generally fair performance by Petroleum Unit saw the Unit through 1997 with grand expectations for 1998.
The interconnected nature of the programme however, was critical to the short comings experienced as key links could not be connected due to one main project being delayed.

Expenditure for 1997 was below that which was budgeted, however, there were some unexpected carry overs in 1997 from 1996 where equipment purchased earlier were received in 1553.

Income on the other hand was on target for 1997 despite inaccurate forecasting.

4.
4.

ENVIRONMENT, RESEARCH at DEVELOPMENT DEPARTMENT 4.1 introduction The Environment Research and Development Department (ERDD) of the Guyana Geology and Mines Commission (GGMC) was set up to co-ordinate all environmental matters and general research affecting the Commission.

The Department, which was set up as a unit within the Mines Division, is supervised by a Senior Mining Engineer II, who is also the acting Manager of the Division.

The Department is divided into three (3) Units viz.
the Environment Unit, the Mineral Processing Unit and the Administrative Unit.

The Environment Unit throughout the year was manned by one (1) Senior Mining Engineer and two (2) Mining Engineers.

The Mineral Processing Unit was practically manned by one person during most of the year as the Senior Mineral Processing Engineer (I) was on leave during the first half of the year while the Mining Engineer attached to this unit obtained leave, during the third quarter of 1997, to further his studies.
The Administrative Unit towards the end of 1997 was manned by four (4) persons - up from three (3) persons at the start of the year - including one (1) Administrative Assistant, one (1) Clerk III, one (1) Office Assistant and one (1) Cleaner.

The total staff complement of the Environment Research and Development Department towards the end of 1997 was ten (10) persons inclusive of the Manager (ag) Mines Division and his Confidential Secretary.
46 The performance of the ERDD during 1997 can be described as modest when assessed against the odds the department faced, such as no approved budget and no formal training for staff.

The non-implementation of the Institutional Strengthening Programme for the staff of the Environment Unit, by the Inter American Development Bank (IDB) also adversely affected the planned activities of this unit.

However, several activities of an in- house, field and national character were undertaken during the past year.
4.2 ENVIRONMENT UNIT The approved programme of work for the Environment Unit for 1997 centered around an Inter - American Development Bank (I.D.B) sponsored Institutional Strengthening Project.

The recipient agencies identified in the I.D.B project were the Environmental Protection Agency (E.P.A), the Environment Unit - (G.G.M.C), and the Environmental Unit - Guyana Forestry Commission (G.F.C).
This project emphasized training in the areas of environmental monitoring, preparation and assessment of Environmental Impact Assessments and Statemer,,s (E.T.A.

and E.I.S), drafting of environmental regulations and standards, preparation of emergency response and contingency plans, minesite rehabilitation etc.
Actual Work Done In-house The Memorandum of Understanding (M.O.U) and Work Plan for the institutional strengthening of the Environment Unit of G.G.M.0 was redrafted and sent for ratification to the Inter - American Development Bank (I.D.B) - the sponsor.
A simplified version of the final draft of the M.O.0 was signed in October 1997 by B.Sucre (Commissioner - G.G.M.C) and S. Wickham as (Acting Head of the E.P.A) but, to date, a work plan between the above-mentioned agencies to give effect to the MOU is still to be finalised.
Field Trips Several reconnaissance environmental inspection tours, designed to have a first hand look at the environmental problems resulting from mining activities, were conducted during the year by staff of the EU to the following locations:- a) Teperu Quarry b) Bara Cara Quarry c) St. Mary's Quarry d) Mandia Project Area e) Mazda Mining Operations - Mazaruni River Essequibo River Essequibo River Mandia, Potaro Konawaruk River 47 /eqc.
Reviews The ERDD is charged, inter alia, with the responsibility of reviewing and assessing Environmental Impact Assessments (E.I.A's) and Environmental Impact Statements (E.I.S's) of proposed and existing operations in the mining industry.
The unit, during the past year, completed reviews of the following E.I.A's and E.I.S's submitted by: 1) D. Rambarran (with respect to a proposed sand quarry - Soesdyke Linden Highway) 2) Garraway Resources Limited (with respect to gold dredging operation in the Kuribrong River).

Attendance at Seminars and Workshops During the year staff of the EU actively participated in a series of seminars/workshops.
Of notable mention are: a) Regional Workshop on Environmental Management of Mine Sites held by the Government of Guyana (G.O.G) in collaboration with the United Nations Development Programme (U.N.D.P), United Nations Environmental Protection (U.N.E.P) and the Environmental Studies Unit of the University of Guyana (February 25 to March 3, 1997, Pegasus Hotel).

46, b) Guyana's Programme to phase out ozone depleting substances hosted by the Hydrometeorlogical Department of the Ministry of Agriculture.
c) National workshop on "Health hazard recognition in the workplace" jointly sponsored by Ministry of Labour and the Pan American Health Organisation (P.A.H.0).

d) Conservation International (Guyana) Seminar for Secondary School Teachers.

Two (2) papers were presented on pertinent topics.

Others Committees on which staff of the EU represented the GGMC and actively participated were:- i) National Environmental Education Advisory Committee.

ii) National Biodiversity Advisory Committee.


iii) Mining and Environment Committee.

4 48 Expenditure Current There was no approved budget of operating expenses for the ERDD for 1997, save such provisions made for the employment of staff for the entire Mines Division.

Also, there was no approved programme of work for the Department, for the period under review.

Thus there can be no meaningful analysis of budgeted operating expenditure and actual operating expenditure.
Capital A temporary capital provision of one million dollars ($1.0M) was made in the budget of Capital Expenditure by the Commissioner for the ERDD.

This provision catered for office furnishings and supplies for the Department.

The Environment Research and Development Department was, towards the end of the period under review, still awaiting further instructions with respect to the capital purchases for the Mineral Processing Unit which were put on hold, pending such instructions.
No analysis is therefore possible as there was no approved list for Capital Expenditure.

(b) (c) (d) (e) (f) (g) (h) (i) In the Konawaruk, above the confluence with the North Fork.

In the Konawaruk approximately 100m upstream from the first set of dredges.

First set of dredge tailings.

In the Konawaruk approximately 100m downstream from the first set of dredges.

In the Konawaruk approximately 100m upstream from the second set of dredges.

Second set of dredge tailings.


In the Konawaruk approximately 100m downstream from the second set of dredges.

In the Konawaruk, just before it discharges into the Essequibo River.

Water samples will be collected in strict conformity with established sampling protocols for environmental samples.

A total of seven (7) additional sediment sample stations have been tentatively identified.

A representative sample of approximately 300g will be collected from each station.
The addition of new sample stations, as Mazda operations progressed along the Konawaruk River, will be required for continuous monitoring, to detect changes in both water and river sediment quality.

Others Environmental reconnaissance tours to the bauxite mining operations at Linmine, Aroaima and Bermine, and to Pereira's operations at Honey Camp and Issano will be undertaken during the year.
The purpose of these tours is to conduct preliminary environmental assessment of the areas and establish sample stations for environmental monitoring of the operations.

49 The assessment will look, inter alia, at the impact of the operation on water and soil qualities, and in this regard water and stream sediment samples will be collected and analysed.

Sampling to establish surface water quality will be conducted and the results used to assist in determination of baseline values.
4.3 MINERAL PROCESSING UNIT Introduction The Mineral Processing Unit's 1998 work program has been considerably modified from its original version to focus on work in the Mandia area.

Sampling and analysis of mineral deposits at different locations in Mandia will be done.

The planned emphasis is the determination of grain size distribution, heavy mineral distribution, and where prisible gravity recoverable gold content ofthe various mineralised deposits in the Mandia area.
In addition, mineral processing equipment obtained by the Unit will be tested at Mandia at selected locations.

Towards this end, ancillary equipment will be obtained as required.

The sampling and analysis exercise is planned to be a continuous program, as such additional technical staff (probably geo-technicians from the Geol.

Serv.

Div.)

will still be required to complete the program.

The Sluice-box Project, which remained unchanged, will also be based at Mandia.
With the Commission's available resources (human, material, and financial), the Unit will attempt to achieve as much as possible for each program.

It is anticipated that with the additional equipment and technical personnel, the full activities for the Unit, for 1998, should be realised.

-r Philosophy The underlying philosophy for the unit's revised program is to assist the Proto - Mandia project administered by the Commission with mineral processing data.
This should help ensure efficient processing methods and techniques are practised to extract gold values from allocated blocks.

SPECIAL PROJECTS Sampling And Laboratory Analyses 4 The aim of sampling and analysing any mineral deposit (virgin or previously worked) mineral stockpile, or tailings, is ultimately to determine the amount of mineral values available for possible extraction.

50 Equipment and facilities presently available to the Unit do not allow for such an informative sampling program.
The necessary equipment will therefore be acquired to improve the units capabilities.

An initial field exercise to select work locations and to design the sampling exercise for each area will be embarked upon.

The present suggested areas for work are St Elizabeth, White Hole and Red Hole, in this order.

At each location, sampling and the testing of all mineral processing equipment, on an individual basis, will be done.
A field decision will be made as to the number of sampling pits which will he dug at any particular location.

At each pit, mineralised material will be sampled for GSD, NMD, and gravity recoverable gold.

The mineral processing equipment will then be tested consecutively (the Knelson, the jig, the spiral, not necessarily this order); as determined by estimated GSD field data.
For each Unit, the operating parameters will be studied to determine optimum conditions to process the various kinds of material at Mandia.

All product materials (concentrates and tailings) will be recovered and re-used in each unit.

This will enable comparison of the various processing units.

Improving The Sluice Box For Gold Recovery Evaluation of the sluice box will be the main focus of this project in 1998.
Since 1995, some research literature showed Guyana to be way behind in improving the sluice box for gold recovery.

In 1996 and 1997 field visits established this fact.

However, visits by one of Canada's leading researchers in this area in 1996 and 1997 generated a great deal of interest among local operators, students, engineers and geologist in the industry.

Operators also benefited from some field demonstrations during 1997.
In 1998, test sluice boxes would be constructed and tested to evaluate the following: 1.

The optimum cycle time to maximize the concentration ratio, while minimising losses due to overloading riffles' storage capacity.

2.

Size distribution of gold particles in sluice box concentrate.

3.
3.

The effect of the following on sluice box recovery: a) Feed rate b) Slope of sluice box c) Types of riffles d) Clay minerals e) Types of matting I) Removal of matting g) Sluice box size and h) Classified or non-classified feed.

51 Nr At the end of this exercise, it is hoped that there will be a better understanding of what affects sluice box recovery, with respect to the types of alluvial material processed in Guyana.
Information on suitable processing parameters can then be shared with operators working various types of deposition in the local industry.

Assumptions And Constraints With respect to the original work program, the first assumption and constrain still holds.

For the second, since the unit will no longer get its own computer, it will surely experiences delays in generating data and information.

The general handling of all documentation is expected to be a tedious time consuming process.
It is still assumed that additional technical staff will be recruited into the unit, regarding the third point.

The final assumption no longer holds since the focus has shifted.

In addition to previous assumptions, with this present focus, it is assume that all ancillary equipment for processing units will be acquired.

Also additional sampling equipment will be acquired WORK SCHEDULE Sampling And Laboratory Analyses TABLE A ACTIVITIES/TASK MAY JUNE JULY AUG SEPT OCT NOV DEC 1.
Source and purchase sampling equipment.

2.

Source and purchase ancillary equipment.

3.

Transportation of equipment to the Mandia Project area.

4.

Field Sampling Program to first Mandia location.

5.

Field Sampling Program to second Mandia location.

6.

Assessment of Analytical Data and generation of progress reports and annual report.
----•- 52 IMPROVING THE SLUICE BOX FOR GOLD RECOVERY TABLE B WEEKS Sites Identification Mobilization - - - - Sampling for Head Grade - Lab Analysis Field Experiments Demobilization Report & Conclusions - - - - - - - The project is scheduled to commence on August 2nd, 1998.

Head Office Activities Employment Costs The 1998 budget has been revised to reflect no salary increases, no filling of vacancies and no recruitment of additional staff for 1998.
Currently, both engineers in the unit have same job designation, so if the more senior engineer goes on leave, the next engineer, may be entitled to a duty allowance of one increment.

Travelling allowances for engineers, have also been estimated.

Estimates have been made local for training and subscription to professional organisations.

All permanent staff will have safety gear, this includes protective clothing and other safety devices (dust respirator, protective glasses etc.)
Expenses The Engineers and Technicians will be supplied with calculators.

Stationery and Office supplies include costs for both field and office work (which includes the laboratory).

Furnishings for the offices which will be occupied by the Mineral Processing have been catered for.

53 Printing and Duplicating will cater for all paper work for designing the MGDP, and the production of a project document for its fabrication in 1999.
Budgetary provision for sample analyses (Chemical and Physical) have been made at two thousand dollars ($2000) per sample, on the advice of the chemist in the Geological Services Division.

Samples will be generated from field work from the Sluice Box project, and Sampling and Laboratory Analysis project.

This estimate provides for if samples have to be analysed externally.

Samples will include those collected in 1996 field work which recruited technicians will work on.
Field Expenses Field expenses takes care of field work for the Sluice Box and Sampling Projects.

The Sluice Box Project is sixty (60) days and scheduled for May-June.

Personnel will camp when required whilst working in the three areas at Mandia i.e.

Dickman Hill, Red Hole and St. Elizabeth.

Total personnel are two (2) Engineers and five (5) casuals.

The Sampling Program is forty-two (42) days, twenty-one (21) days in June and twenty- one (21) days in September.
Personnel will be two Officers (Engineer and Technician) and four (4) casuals (Labourers and Cook).

Since this will involve a lot of mobilisation.

Provision have been made to hire a vehicle, if GGMC vehicle not available.

Camp conditions will prevail, with same provision for the female Officer, as with the sluice box project.

All wages and allowances have been recalculated at the 1997 values.

Overtime wages estimated at three thousand dollars ($3000) per week per person.
Stationery for field work has been included in Head Office expense.

Field expendables include sample bags, buckets, indelible ink markers, etc.

Other field material requirements (e.g tarpaulin, cooking implements, specialist equipment etc.)

will not be budgeted for, since the Commission stocks these items in its General Stores.

The sluice box project involves the building of sluice box modules which will be tested.
Capital estimates are then towards purchasing materials and labour for building the sluice boxes and acquiring ancillary equipment such as slurry pump, water pump, piping, hosing etc.

Estimates include costs for matting and riffles.

Ancillary mineral processing equipment, which will be used to feed and to link the items of equipment to be tested, have been budgetted for.
It must be noted that the following have not been budgeted for in field estimates, since it was advised that the Commission's stores stock these items.

They include equipment spares (spark plugs, oil filter, etc.

); material requirements (tarpaulin, cooking implements, Hurricane Lamps etc.

); Mechanical equipment and spares, outboard engine, pick-up or land cruiser - 4x4; specialist equipment (VHF Transmitter/Receiver, power generator, etc.)
54 4.4 ADMINISTRATIVE UNIT Overview The role of this unit is to ensure the overall efficiency to the Department.

This unit also has the responsibility of ensuring the comfort and well - being of the staff, along with adequate and comfortable working conditions.

It is expected that the Unit will ensure that the office furnishings (chairs, desks, etc) are adequate and comfortable.
Air conditioning of the offices are essential as the present building is not adequately ventilated and is extremely hot and uncomfortable for most of the working day.

The unit will also be responsible for the procurement, installation and proper operation of essential office equipment such as filing cabinets, magazine racks etc, and will also be responsible for the typing and printing of all reports generated by the Department.
Adequate provisions for proper drinking water, and a hot or cold mid morning beverage for the staff, must be made by the Administrative Division of the Commission which is also tasked with the responsibility of ensuring that the provisions made for the cleaning of the building and surroundings are adequate and in place.

The unit will also be required to make a biannual inventory of the Commission's assets at the Department's offices.
Efficient co-ordination of the field activities of the Department will necessitate radio- phone contact between office and the field.

This must be set up and functional before the commencement of field activities.

Electronic data-management will be done as required.

It is envisaged that a period of training in the use of the environmental data base will be required for the Administrative Officer who will supervise the Unit and the data processing officer who will operate the computer.
Assumptions And Constraint It is assumed that the Environment and Research Development Department will be housed at its present location for 1998 whilst the building at Head Office is completed.

Since the formation of this Department the unavailability of a vehicle and driver has impeded the smooth flow of activities.
Operating Expenditure It is envisaged that in the absence of air conditioning and the time that will be taken to obtain same, the need to purchase additional fans for the Department is an early necessity.

The Work Programme of this Unit requires the use of a computer with accessories, three radio phones for field trips.

It is anticipated that the majority of items will be purchased during the first and second quarter of 1998.
55 Employment And Expenses Reflected in the budget are salaries for two additional members of staff and salary for the Secretary of the Manager (ag) Mines Division who is also the Head of ERDD and the existing three staff members with a 20% allowance for overtime.

5.

 ADMINISTRATIVE DIVISION During the year 1997, the Administrative Division comprised: 1) The Personnel and Industrial Relations Department 2) The Information and Publication Department 3) The Services Department.
5.1 THE PERSONNEL ANr INDUSTRIAL RELATIONS DEPARTMENT Staffing Appointments • January February March April May June July August September 1 Confidential Secretary 1 Senior Electrical Technician- Nil 1 Lapidary Attendant 1 Confidential Secretary 1 Driver Nil 1 Office Assistant 2 Security Guards 1 Mining Engineer 2 Cleaners Nil Nil 1 Office Assistant *3 Geological Technicians *2 Field Assistants Finance Division Electrical Workshop Lapidary Laboratory Commissioner's Office Services Department Mines Division Security Section Mines Division Services Department Commissioner's Office Geological Services Division Geological Services Division October 1 Information & Documentation Officer Library 56 November December 1 Mining Engineer 1 Office Assistant 1 Mining Technician/ Assistant Inspector Mines 3 Rangers *6 Geological Technicians 1 Confidential Secretary 1 Clerk 1 1 Typist Clerk Mines Division Environmental Unit Mines Division Mines Division Mines Division Petroleum Unit Mines Division Mines Division *Five (5) students sponsored by the Commission were among the 3' batch of students who attended the Diploma in Geology programme tenable at the University of Guyana.
Three (3) successfully completed the programme and were appointed as Geological technicians.

Two (2) were referred and were therefore employed as Field Assistants pending their successful completion of the programme in the 1997/1998 academic year.

The other six (6) s4 dents who were not sponsored by the Commission were subsequently offered employment as Geological technicians within the Mines Division.
Resignation March May Retirement June August Death May Transfer November Promotion 1 Confidential Secretary 1 Confidential Secretary Commissioner's Office 1 Administrative Assistant - 1 Administrative Assistant - Mines Division Geological Service Division 1 Cleaner 1 Cleaner Lapidary Environmental Unit 1 Confidential Secretary was transferred from the Petroleum Unit to Administrative Division on promotion to the post of Confidential Secretary 11.
1 Chief Clerk was transferred to the Geological Services Division on promotion to the post of Administrative Assistant 11.
1 1 Telephonist to Typist Clerk 11 (Registry) Office Assistant to Telephonist (Registry) 57 - - - 1 1 1 2 1 1 2 1 1 1 1 2 1 1 2 Clerk 111 to Clerk 1V (Personnel Department) Confidential Secretary 11 to Administrative Assistant 1 (Mines Division) Confidential Secretary 1 to Confidential Secretary 11 (Administrative Division) Chief Clerk to Administrative Assistant 11 (Mines Division & Geological Services Clerk 1V to Chief Clerk (Registry) Security Guard 1 to Security Guard 11 (Security Section) Office Assistant to Clerk 1 (Mines Division) Clerk 1 to Clerk 11 (Mines Division) Assistant Draughtsman 11 to Senior Assistant Draughtsman (Cartographic Dept.
Assistant Draughtsman 1 to Assistant Draughtsman 11 (Cartographic Dept.)

Senior Draughtsman to Assistant Cartographer (Cartographic Dept.)
Assistant Mines Officer to Mines Officer (Mines Division) Female Searcher to Assistant Mines Officer (Mines Division) Ranger to Assistant Mines Officer (Mines Division) Laboratory Assistant to Technician Assistant 1 (Chemical Laboratory) Confirmation 1 1 Lapidary Supervisor Senior Chemist 11 Chief Mechanic Assistant Manager Services Training and Seminars January March May June The Administrative Officer (P&IR) attended a Workshop on Performance Appraisal hosted by Ms. Joyce Sinclair.
The Manager - Geological Services and the Senior Geologist 11 attended an International Convention and Trade Show in Canada, during the period 9th-12th March, 1997.

The Public Service Ministry (PSM) sponsored a two (2) day training programme "Accounting for Supervisors" which was attended by an Assistant Account and Clerk 1V.

The PSM sponsored a one (1) day training programme "Financial Management for Non-Financial Managers" which was attended by; the Canteen Supervisor and Chief Clerk (Mines).
The Georgetown Women's Junior Chamber sponsored a one (1) day seminar for "Junior Managers and Senior Supervisors" which was attended by a Mining Engineer and Chief Clerk (Mines).

- 58 August September Two (2) employees benefitted from a Refresher course in Defensive Driving conducted by the Guyana Junior Chamber.
Fifteen (15) employees of the Geological/Field Section benefitted from a one (1) week training course in Emergency First Aid which was conducted by a member of the St. John Ambulance Brigade.

An Accounts Clerk 1, Miss P. Monize was selected to pursue the Foundation Certificate in Accounting Course tenable at the Government Technical Institute (GTI).
Mr. M. Samaroo - Mining Engineer was awarded a one (1) year scholarship under the Canadian Commonwealth Scholarship and Fellowship Plan to pursue a Master's Degree in Mining Engineering.

October Mr. Nicholas Chuck-A-Sang - Petroleum Geologist attended a two (2) weeks course on Formation Evaluation in Dallas, Texas.

The first batch of nine (9) students were sponsored by the Commission to pursue and complete the Diploma in Surveying Programme tenable at the University of Guyana.
Study Leave Mr. Rudolph McDonald, Assistant Draughtsman 11 was seconded to the Lands and Surveys Department to pursue and complete a three (3) year on the job work study programme.

Work Study The Ministry of Education Work-Study Programme concluded on 22' August, after a period of six (6) weeks.

Three students were accommodated by the Commission on this exercise in the Stores, Accounts Department and Electrical Workshop.
Wages and Salary The Prime Minister approved a twenty percent (20%) increase in salaries for employees of the Commission retroactive from January, 1997.

Wages paid to casual/seasonal employees were also increased by twenty (20) percent with effect from 1' January, 1997.
En addition, employees were awarded salary increases of ten percent (10%) five percent (5%) or two and half percent (2Y2%) with effect from 1st January, 1997 based on an assessment of their performance during the period 15` January 1996 to 315t December, 1996.

Welfare A supply of three (3) sets of uniform was issued to each member of staff.

The males received theirs in January, the females in April and the security staff in May.
59 Protective gear'was also distributed to employees who qualified for such gear.

Employees were given their annual issue of drinking glasses and hand towels and their quarterly supply of toiletries.

The Commission held a Family Fun Day at the Guyana Public Service Union's Ground on 1st August, 1997.

The Commission's 13th Bursary Award Presentation Ceremony was held on 3rd October, 1997.

The Board of Directors approved the following amendments to the Bursary Award Scheme from the 1997 academic year.
i) ii) iii) The amount of the award was increased from ten thousand dollars ($10,000.00) to twenty thousand dollars ($20,000.00).

The period of the award was increased from five (5) years to a maximum of seven (7) years to cater for students proceeding to the sixth form.

The maximum number of awardees was increased from three (3) to six (6).

Six (6) awards were given out.


The Commission also granted an incentive award in the sum of forty thousand dollars ($40,000.00) to Ms. Samantha Scotland for her outstanding performance at the CXC examination.

She obtained ten (10) subjects - nine (9) grade (1) and one grade 11.

Samantha is the daughter of Mr. George Scotland - Internal Auditor.
Workers' Representative Mr. Gordon Nestor was elected Workers' Representative on the Board of Directors The Annual Xmas Party was held on 16th December, 1997 at the Georgetown Club.

5.2 INFORMATION AND DOCUMENTATION DEPARTMENT Library The basic functions of the gathering and dissemination of information were executed by the Library, through text books, maps, geological reports and journals.
Ms. Patricia Hackett, who has a BSc in Communication and fifteen (15) years experience in library procedures at the University of Guyana, was appointed Information and Documentation Officer.

Ms. Hackett introduced several new procedures and re-arranged material, which enhanced the efficiency and effectiveness of the Library, and improved the physical environment of the library.
60 -4- The programme "Mineral in Focus" was successfully resuscitated, and a Committee was set up to plan for the publishing of a Newsletter, Quarterly Mineral Reports, Brochures etc.

At the close of the year, the clientele totalled one thousand one hundred and eighty one (1,181) and nine hundred and thirty one (931) books were loaned.

Two hundred and eighty six (286) maps and one hundred and forty four (144) reports were sold.
One hundred and fifty seven (157) maps and one hundred and four (104) reports were issued free of cost.

Thirty four (34) books were accessioned.

Reports Fives (5) Geological reports were submitted by three (3) Geologist of the Commission, while five (5) others were also channeled to the library.

The reports were: Author Ref.


• The Occurrence of Ultrabasic Rocks in Guyana G. Nestor GN 1/97 The Inspection tour of Upper Demerara River, Between Ekuk Landing and Great Falls; Akaiwanna, Kurupukari and Siparuni J. Griffith JG 1/96 Artifacts of Jasper, Amethyst Agate, Black Pearl, Green Quartz, etc.
K. Livan KL 1/94 The Mining Sector in Guyana K. Livan KL 1/92 Report on the Investing in the Americas '97 Conference and Exhibition held at the Fontainebleau Hilton, Miami Beach Florida K. Livan KL 2/97 An investigation into the appearance of Canopy gaps in ERS -1 Synthetic aperture Radar Images of Tropical Rainforest Using Idrisi GIS Tristan Quaife April '97 "The Quantitative Analysis of the Undeclared Gold Production of Local Miners in Guyana" by Sherwood Lowe - Lecturer, Division of Mining; Faculty of Technology, University of Guyana, (July 1997).
"Update of International Auction of Prospecting Licence Exploration Blocks" GGMC, 27th November, 1997.

"The Influence of Geology on Gold Property Selection in Guyana and its Implications for the New Millennium" by Kampta Persaud (Paper presented at the IV International Gold Symposium sponsored by Association Venezeolana Del Oro) • • • • • • 61 / Cp November 1997, Caracas, Venezuela.
• "Geochemical Sampling and Error Control" by R.0 Jones British Geological Survey (Presentation given at GGMC on 10th November, 1997).
Maps Received Map with the undermentioned depictions were received:- • Administrative Regions of Guyana Scale 1:000 000 - Gift (Land and Guyana's Natural Resources Scale 1:000 000 - World Map: Wall Series (5 copies) Scale 1:35,000 000 Topographical Satellite Scale 1:47,810 000 • • • Texts Surveys; Agriculture Ministry Gift (Land and Surveys; Ministry of Agriculture) Gift (from CFTC) Gift (from CFTC) Six (6) Texts were purchased from various publishers.
Two (2) were donated by the Commonwealth Fund for Technical Co-operation and a list of Subject Headings by Library of Congress (3 volumes) were received from the Document alist of the Guyana Natural Resources Agency (GNRA).

Nineteen (19) copies of M.M Veiga's publication on technologies for mercury pollution abatement were presented to the Library.
These titles are listed below:- • Ecosystem Geography by Robert G. bailey: 1995 Source Purchased Geological Maps: an introduction by Alex Maltman: 1995 Purchased The Mapping of Geological structures by Ken R. Mc Clay; 1996 Purchased Ores and Minerals - Introducing Economic Geology by J. W. Barnes: 1996 Purchased The Geology of the Guiana Shield by C.N Barron and A.K Gibbs; 1993 (2 copies) Purchased Health, Safety and Reclamation Code for Mines in British Columbia by Ministry of Mines, B. Columbia; 1994.
Purchased • • • 62 • • • Geographic Information System for Geoscientists - Gift (From CFEC) Modelling with GIS by Graeme F. Bonham - Carter; 1994 Statistics and Data Analysis in Geology by John C. Davis; 1996 Gift (from "Introducing New Technologies for Abatement of Global CFTC) Gift (from Dr. Veiga) Mercury Pollution in Latin America" Dr. M.M.
Veiga (19 copies) Library of Congress - Subject Headings (3 volumes) Gift (from GNRA) Reproduction of Reports Attempts were made to reproduce seven (7) Geological reports.

Five (5) of them (listed below) were completed.

Fifty (50) copies each were reproduced.


Alluvial Gold Mining in Guyana by E.M Watkins and W. Woolford; 1992 WW 1/92 Tikwah Mine Prospect compiled by Geologists of the Organisation Wariri Alluvial Gold Deposits, Cuyuni River; Further Evaluation by C. Gibson and J. Alexander GG 1/72 The Guyana Geological Surveys and Mines Department's response to the Questionnaire resulting from the United Nations General Assembly Resolution 32/176 by J. C. Inasi.
JCI 6/76 A short note on the Manganese Deposits in Guyana by K. C .

Singh KC 1/82 • • • • • Photocopier A 10-bin Sorter was purchased and attached to the NP 6030 Canon copier.

This equipment proved to be valuable when multiple copies of documents were required.

The machine produced one hundred and three thousand, five hundred and eighty seven (103,587.00) prints, and of this amount, almost ninety one thousand (91,000) prints were done for the Commission.
63 New Equipment r In October of 1997, a Compaq Presario Computer complete with Laser Printer, was installed in the Library.

Utilization of this equipment commenced immediately with the "inputting" of a list of all doctoral and Masters theses held in the section.

The equipment has served to facilitate the recommencement of publication of the Mineral Industry Survey Bulletin, and a News Letter.

Quick Reference A "Quick Reference" section was established.
The section comprises a collection of Annual Reports, Abstracts, Bibliographies, Catalogues, Directories, Encyclopedias, Handbooks, Indexes and Year books.

Patrons were allowed access to this collection, from which they were allowed to extract information without necessarily requiring the assistance of a Librarian or an Attendant.
Affiliations To enhance the possibilities of the Library benefitting from new Technological Development in Information Science, as well as enhancing our recognition, six (6) organisations/associations were identified as fellowship bodies to the GGMC's Library.
These were:- American Geological Institute American Library Association Association for Library Information Management Association of Caribbean University Research and Institutional Libraries Commonwealth Library Association International Federation of Library Associations (AGI) (ALA) (ALIM) (ACURIL) (CLA) (IFLA) Computerization Steps were taken to have the Library computerized.
The relevant CD/ISIS software was acquired, and contact was made with someone who would conduct a programme.

List of Publication for Sale The current List of Publication for Sale was revised and enlarge during the last quarter of 1997.

New prices were quoted and a number of documents not previously listed were included.

Twenty (20) copies were spiral bound and plastic covers attached and distributed to individuals, libraries and companies overseas.

Circulation was also done locally.


64 General Remarks The return of computer facilities to the library, tremendously enhanced the information output.

The new procedures introduced have enhanced the efficiency of the library.

It is envisaged that the recruitment of additional staff will become a priority in the new year.

Already the need exists for a data entry clerk.


The occupation of additional space which will be afforded on the completion of the extension to the building, is anxiously awaited.

The extension will allow the effective display of valuable material, and the storage and proper maintenance of the map collection.

Printery and Bindery Section The Rotaprint Press, after being in operation of twenty two (22) years, finally ceased functioning.
Spare parts required for repairs of the machine could not he obtained either locally or overseas.

The parts also could not have been fabricated.

Consequently, a great amount of the printing jobs, inclusive of all forms and books used by the Commission in the execution of its work and those sold to the mining public, had to be done by other printing agencies.
Printing Material A total of forty three thousand, four hundred and eighteen (43,418) forms, two thousand, one hundred and eight (2,108) cards and one hundred and twenty eight thousand, six hundred and forty seven (128,647) book pages were printed.

One thousand, four hundred and thirty-four (1434) books were bound.
5.3 SERVICES DEPARTMENT Radio and Electrical Workshop Installations during the year 1997 included:- 1) 2) 3) 4) 5) Fluorescent lamps (complete), fluorescent tubes, a circuit, socket outlets, ballasts, fans, switches, stabilizers, plugs, surge protectors and circuit breakers.

The power cable for electrical supply to the Accounts Department.

The antenna cable for the television in the boardroom.

The power supply lines to the standby generator which was relocated in the compound.
The power supply system for the Guy Expo and the Women's Art and Craft booths at Sophia.

65 / 6 7 r The following equipment were serviced:- 1) 2) 3) 4) The Printing Press in the Printery Section.

The Disc Mill Pulverizer in the Chemical Laboratory.

The Assay furnace in the Chemical Laboratory.

The standby generator.

Repairs were also completed in the following areas:- 1.

2.

3.

4.

5.

6.

Fluorescent lamps and the lighting system in various sections.

The water pump at the Lapidary.


The standby generator.

The polishing machine motors at the Lapidary.

The vacuum frame in the Printery Section.

The lighting table and switch socket outlet in the Cartographic Section.

Carpentry and Maintenance Workshop Construction works during the year 1997 included:- 1) 2) A guard but for the Environmental and Research Development Unit.

A new trestle to accommodate the water tanks located by the Photo Laboratory.

3) Six (6) crates for drill equipment.


4) The floor in the Registry Section.

5) Casting and tiling of the floor in the Purchasing Department.

6) Casting and tiling of the floor in the Spectrographic Laboratory.

7) A concrete garbage bin in the compound.

8) A booth for the 1997 Guy Expo Exhibition to Sophia.

9) Three (3) cupboards in the Inspectorate Laboratory.

10) A toilet for guards at the Commissioner's residence.

11) Two (2) stairways for the Mines Officers' house at Mandia.
12) 13) A large trolley for the Commissioner's Secretary.

14) 15) A new ceiling in the Accounts Section.

16) A concrete fence to the front of the building in Brickdam.

Three (3) tiled concrete work tables for the Lapidary.

The stairway to the Field Section.

Repairs were also done to the following:- Roof, desks, steel cabinets, walls, doors, ceiling, canteen boxes, floors, windows, chairs, the Mines Officers' house at Bartica, cupboards and stairways.

66 Painting was also done in various areas.
The Lapidary and Head Office compounds were weeded and cleaned.

Plumbing Pipelines and fittings were installed and repairs were done to leaks and choked systems.

Mechanical Workshop and Transport Section Activities relating to general servicing and repairs were done to the following vehicles:- GDD 596 GDD 1686 GFF 3475 GFF 4665 PDD 4273 PFF 4709 GFF 6092 PDD 4274 GDD 7181 PDD 4944 PEE 1678 PCC 9949 PDD 4943 Repairs and servicing were also done to the forklift, the standby generator and the brush cutter.
Transportation Transportation facilities were provided for the Georgetown and interior areas.

Vehicles in service were as follow:- Motor Pickups/Land Bus Truck CarsNans Cruisers PDD 5854 GFF 6092 PFF 4709 GDD 1686 PDD 4273 PDD 4274 PDD 4943 PCC 9949 PDD 4944 PGG 356 GGG 138 PFF 6768 GDD 7181 GDD 596 GFF 4665 GDD 8486 PGG 139 67 Capital Projects Caribbean Engineering and Management Consultants Ltd (CEMCO) was contracted to supervise the execution of capital projects which were planned by the Commission.
The New Office Block The contract for the construction of the New Office Block was awarded to Carlton Ambrose Enterprises.

The contract sum was twenty seven million, four hundred thousand dollars ($27,400,000.00).

Parking Lot 16- The contract for the construction of a Parking Lot was awarded to Carlton Ambrose Enterprises.

Construction of the Parking Lot commenced in March, 1997 and was completed in May, 1997.
The completion date was delayed by two (2) weeks, due to rainfall and additional work in relation to excavation.

Petroleum Unit Bond The project in relation to the construction a Bond in the compound of the Lapidary, for the Petroleum Unit was advertised late September, 1997, and the receipt of tenders closed in October, 1997.

The tenders were evaluated by CEMCO and a recommendation was made for the award of the contract.
However, by the end of December, 1997, the Tender Board had not met to consider the recommendation.

Installation of Generator A contract in the sum of one hundred and twenty five thousand, seven hundred and ninety eight dollars ($125,798.00) was signed between Mr. Samuel Johnson, Electrical Consultant and the Commission, for the preparation of contract documents (Plans and Bills of Quantities) and for the supervision of the electrical installation of the Caterpillar 3406 Generation Set.
A contract was also signed with Dynamic Engineering in November, 1997, for the amount of one million, seven hundred and sixty thousand, five hundred dollars ($1,760,500.00) for the installation of the generator.

The completion date for the installation was January 20, 1998.
Construction of Generator Hut A contract for the sum of seven hundred and forty five thousand, nine hundred and fifty two dollars ($745,952.00) was awarded to Foster Construction Enterprises for the construction of a "hut" to accommodate the generator.

The generator but was completed in June, 1997.

6.

LEGAL SERVICES DEPARTMENT The year 1997 was a year of mostly routine activity for the Legal Services Department.
The Department continued to provide advice and other assistance as requested and as necessary in support of the other division of the Commission.

COURTS MATTERS A.

 High Court There was a reduction in Court Matters filed against the Commission in 1997, and in particular, there was a marked reduction in injunctions granted.
This is essentially due to the fact that oft times the facts premising the ex-parte injunction are later discovered to be seriously flawed and the Courts have thus become wary in their approach.

The Guyana Geology and Mines Commission has also, in several matters, been made a party to the action to ensure that the facts are before the Court per GGMC's records.

New Matters Matters filed in 1997 against the GGMC are as follows:- IGNATIUS TIMMERMAN v. GGMC ET AL - Action No.
15/1997 A. BARN WELL & D. MANNING v. GGMC - Action No.

896/1997 D. FRAITES El' AL v. MAZDA LTD.

ET AL - Action No.

1148/1997 J. VIEIRA v. JARDINE & GGMC - Action No.

 A. ALPHONSO v, LaCRUIZE & GGMC - Action No.

1339/1997 S. JARDINE v. R. STUART & GGMC - Action No.

4194/1997 APPLICATAION BY MANOEL MELVILLE - Action No.

/1997 1997 Peters V. GGMC.

HGB VENTURES Court held in favour of Plaintiff.

Stay of execution for six (6) weeks.

GGMC to appeal.
GGMC to appeal.

: APPLICATION BY SHAHEED MOHAMED Matter discontinued.

LESLIE SOBERS v. GGMC Injunction discharged.

Matter to take its normal course.

69 16, S. JARDINE V. R. STUART & GGMC Mandatory injunction against GGMC disharged.

Matter awaiting date for arguments.

JERRICK.

JERRICK V, GGMC RUDOLPH JERRICK v. GGMC Withdrawn.

No order as to costs.

ANDRE' FREDERICKS v. GGMC Matter dismissed.

Appeal pending MANNING.

RODNEY v. GGMC Action dismissed.

Preliminary point of res judicata upheld.

B.


Mining Court (Before Hearing Officer Mrs. Juliet Holder-Allen).

At the end of 1997 there were five (5) challenges and on (1) complaint pending.

There was one (1) objection pending.

C. Magistrate Court These are prosecutions for offences under the Mining Act, 1989, and Regulations.

Courts.
Courts.

There were as follows:- Kamarang - 27 cases Bartica - 7 cases Mandia - 4 cases New Amsterdam - 8 cases Seven (7) new cases wee filed in this, as follows:- Christianburg - 5 cases Matthew's Ridge - 2 cases During 1997 the cases in New Amsterdam were struck out, a were four (4) cases at Mandia.

In Bartica three (3) cases were dismissed and two (2) withdrawn.
Two (2) of these were withdrawn due to the death of the Defendant and two (2) others as a result of an out-of-Court settlement under the Mining Act, 1989.

At the conclusion of 1997, thirty-four (34) cases were pending.

70 COMMENTS Due to the nature of activities of mines, the GGMC' s prosecuting officer has the perennial problem of service of summonses since many times it is difficult to effect service.
Also, the matters do take quite some time to be heard and adjudicated on, given that for some interior courts, the Magistrate is itinerant and not resident.

Some courts sit only four (4) times a year.

GENERAL Below are some of the major areas dealt with specifically in 1997.

- SPECIAL MINING REGULATIONS The Department, after considerable consultation with the Hon.
Minister of Mines and Minerals, the Commissioner, and Deputy Commissioner, drafted and finalised special Mining Regulations and Order to facilitate the relinquishment and auction of areas formerly held by Golden Star Resources under a permission for Geological surveys.

Discussion on the development of a new generic Mineral Agreement began in September, 1997, and remained pending at November, 1997.

Meetings were held with private sector interests and with the GGMC executive and.
Technical and financial sub-committees of the Board of Directors.

The Three-Year Plan - 1998-2000 - the Department participated in the extensive discussions towards completion of the above.

Liaison with Mr. R. Jansen of British Geological survey to provide assistance, as requested, for the development of the data base for Permits (Medium Scale) and Licences.
Preliminary discussions with Ms. Kamala Bhoolai and Mr. Constantine Chikosi, representatives of the commonwealth Secretariat, re: Drafting of New Regulations under the Mining Act, 1989, and development of a Standard Mineral Agreement - - - - The Department continued its routine functions of drafting and vetting contracts; drafting legislation generally (as required); and providing advice and assistance, generally.

It also continued to provide services to the Board.
This year was less stressful for the Department since computer facilities were up for the most part.

There were still, however, some factors hindering efficiency, e.g photocopying facilities, which at times, due to breakdowns, severely hinders the work of the department, especially vis-a-vis documents for Board meetings.

The Department is also in need of a greater work area.

71 7.

FINANCE DIVISION Introduction 1997 was a successful year for the Finance Division.
The hallmark of our achievement was the way the Division's staff were able to reapply and commit themselves to their respective tasks.

There are still some short coming which will be worked on, but one need to take note from where we came from.

The importance of the Finance division cannot be underscored, being the center of all activities within the Commission, we try to provide a timely and efficient service.
Elimination of excess spending to the provision of timely reports have been our focus for the year.

We continue to grow without increasing in size, and by making communication easier we are unified.

During the year we worked together offer the greatest chance of success.

Our staff attendance and punctuality were remarkable taking into account the tend in the Commission.

This is an area that we in the Division will strive to improve.
FINANCIAL REPORT Income Particulars Actual Budgeted Variance Fees & Fines 25769 47730 -21961 Permits & Rentals Royalties Others Total 295782 279426 16365 903435 1115611 -212176 64089 1289675 66480 1509247 2391 % or total Income 2 23 70 5 The Commission 's total income for the year was G$1,289.075M, this represented 85% of what was budgeted for the year.

Royalties and Rentals were the two major income earners, representing 705 and 23% respectively of total income earned.
Royalties fell short by $212M or 20% of budgeted figure.

72 Expenditures PARTICULA RS ACTUAL G $000 BUDGET VARIANCE % TOTAL EXP Employment Cost Transportation/ Travelling 237451 229289 -8162 39025 38500 525 Administrative 114026 98716 -15310 Depreciation Total 20114 410616 18000 2114 384505 58 10 28 4 The Commission spent G$410.616M on current and expenditure, 7% in excess of what was budgeted.
Our major expenditures were employment and administrative cost, these were 58% and 28% respectively of total expenditure.

The Commission was able to meet all its financial statutory commitment as all statutory deductions were made and remitted to the relevant authorities.

Contribution to Central Government The Commission remitted G$841.824M to the Cental Government, this represented 65% of the Commission's total revenue.
The Commission in the foreseeable future will be unable to make such a sizeable contribution as it is putting severe strain on our cash flow.

Surplus The Commission recorded a surplus of income over expenditure after depreciation of G$36.6M.

Creditors The Commission's payable account consists of the following as a 31.12.97.

Refundable deposit - Sundry Creditors $ 3.192M $25.441M $28.633M These payable accounts are interest free„ no cash was therefore paid on interest.
73 Debtors The Commission receivable account consists of the following:- Omai Receivable Staff Loan Sundry Others G$13.736 12.096 20.514 7.833 $54.179 Loans are given to staff to purchase motor car, these are interest bearing accounts.
Omai's Receivable Account is as a result of the Omai's spill, Omai is expected to refund the Commission as these expenses are paid on behalf of them.. Cash advances are also given to staff who are at Mining Stations, on projects and tours, it is used to cover all expenses incurred.

Cash The Commission's cash stands at a $207M as at 31.12.97.

During the year the Commission's cash flow position remained stable devoid of any cash flow difficulties.

All the Commission cash is in interest bearing accounts.
Capital Expenditure The Commission spent $51.4M on Capital Expenditure during the year.

The construction of the Commission's new office block commenced and is in progress.

The following below illustrates the breakdown of monies spent on capital expenditure.
New Office Block Motor Vehicles Furniture and Fittings Mining & Lab Equipment G6.0M 13.3M 16.8M 15.3M $51.4M Stock Verification A stock verification exercise was conducted in December and all the relevant adjustments were made.

Stock levels were closely monitored to ensure that the Commission's cash was not unnecessarily tied up in stock.
74 ¤ "7" -Er Final Accounts The Finance Division was able to complete the preparation of all past financial statements, but was unable to get them audited.

Unaudited financial statement were from 1994 to 1997.

It is expected that the Auditor General's Office will complete all outstanding audit in 1998.

Asset Register A comprehensive exercise will be conducted in 1998 to bring the Commission's asset register to the auditors requirement.
The fixed asset register on completion will contain all the relevant information on the assets owned by the Commission.

Investment During the year the Commission continued to invest its excess cash in interest bearing account.

Interest earned from investments during the year was G$24.96M.

Stores and Purchasing The Stores and Purchasing Department were able to service the Commission, mining stations and all projects/tours adequately.
There were system improvements in both departments which made operation more transparent and efficient.

The Finance Division will continue to look at its system with the aim to avoid unnecessary spending and to improve the quality of our service.

General The Finance Division continues to run with twenty; five (25) staff, but 1998 may se some reduction as system improvement and duplicity will be identified and addressed.
During the year several staff successfully completed their examination, whilst others were encouraged to update themselves.

Several staff were also sent on Computer Training Progammes.

The major disappointment of the Finance Division was our inability to get t our operation computerised.

Once finance is available the Division will endeavour the issue of computerisation.
75 1997 FINANCIAL STATEMENT GUYANA GEOLOGY AND MINES COMMISSION STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 1997 1996 06 INCOME 766,079,221 ROYALTIES 163,538,565 LICENCES 22,396,758 FEES, FINES ETC 13,366,089 CONCESSIONS 57,227,290j OTHERS 1,022,607,923 EXPENDITURE; r 174,177,646 EMPLOYMENT COSTS 96,641,525 ADMINISTRATION TRAVELLING AND 21,894,494 TRANSPORT 20,550,206 DEPRECIATION 19,286,103 STOCK ADJUSTMENT 332,549,974 690,057,949 SURPLUS/(DEFICIT): APPROPRIATION TO 794,202,803 CONSOLIDATED FUND ___(104 144 854) RETAINED SURPLUS/(DEFICIT) NOTES 1997 GS 903,435,924 272,004,095 25,769,565 23,778,199 64,087,689 T 237,451,214 114,026,381 39,025,121 20,114,098 3,995,603 STATEMENT OF ACCUMULATED SURPLUS (DEFICIT) 464,774,838 BAL.
AT BEGINNING OF YEAR (104,144,854) RETAINED SURPLUS/(DEFICIT) FOR THE YEAR: 360,629,984 BAL.

AT END OF YEAR 1,289,075,472 414,612,417 874,463,055 841,824,701 32,638,354 360,629,984 32,638,354 393,268,338 -4r .

-Er GUYANA GEOLOGY AND MINES COMMISSION 96 BALANCE SHEET AS AT 31 DECEMBER 1997 NOTES GS 103,670,274 FIXED ASSETS CURRENT ASSETS: 5,988,241 INVENTORIES 45,814,045 SUNDRY DEBTORS CASH ON HAND 144,812,120 AND IN BANK SHORT TERM INVESTMENT 146,289,000 8,505 LORING LAB.
INVESTMENT 0 WORK - IN - PROGRESS 16,066,468 SUSPENSE ACCOUNT 358,978,379 CURRENT LIABILITIES: SUNDRY 9,933,005 CREDITORS DEFERRED 86,919,633 INCOME 2,791,206 ACCRUED EXPENSES 99,643,844 259,334,535 NET CURRENT ASSETS: 363,004,809 FINANCED ay: GOVT.
OF GUYANA 2,374,825 CAPITAL 360,629,984 ACCUMULATED S/PLUS 363,004,809 11 1991 GS 134,963,583 1,992,638 54,131,454 207,300,576 0 8,505 5,742,960 16,066,468 285,242,601 28,633,338 58,384 (4,128,701) 24,563,021 260,679,580 395,643,163 2,374,825 393,268,338 - 396,643,163 COMMISSIONER .e< CHAIRMAN GUYANA GEOLOGY AND MINES COMMISSION NOTES ON THE ACCOUNTS ),* 1.
ACCOUNTING POLICIES (a) ACCOUNTING CONVENTION The accounts have been prepared under the historical cost convention as modified for the valuation of certain fixed assets.

(b) DEPRECIATION No depreciation is provided on freehold land.
Depreciation on other fixed assets is charged on the straight line method calculated at the rates specified below which are estimated to write off the assets over the terms of their useful lives as follows:- Buildings Scientific, field and mining equipment Motor vehicles Office furniture, fixtures and fittings.

2% 10% - 20% 25% 5% - 10% (c) INVENTORIES These are valued at the lower of cost and net realisable value.

Cost is arrived at using the first-in-first-out method.
2 - ROYALTIES - $903,435,924 1997 1996 ROYALTIES: BAUXITE GOLD - GGB OMAI PRECIOUS STONES SAND STONES OTHERS CLAY 3 - LICENCES - $272,004,095 GOLD & PRECIOUS STONES PROSPECTING LIC.

(SM) PROSPECTING LIC.

(MED.)

PROSPECTING LIC.

(LG) CLAIMS GOLD PRECIOUS STONES RIVER CLAIM LICENCES QUARRY LICENCE MINING LEASE TRADING LICENCE GOLDSMITH LICENCE DREDGE LICENCES PROSPECTING PERMIT (MED.
SCALE) MINING PRIVILEGES DUPLICATE LICENCES PETROLEUM PRODUCTION LICENCE PETROLEUM PROMOTIONAL AGREEMENT GEOLOGICAL/GEOPHYSCIAL SURVEYS PROSPECTING PERMIT (SM.

SCALE) 4 - FEES FINES ETC - $25,769,565 FEES FINES TRIBUTES APP.

FOR DREDGES REGISTRATION FEES IRAN.
OF DREDGES DUTY ON TRANSFERS APPLICATION MEDIUM SCALE PERMIT APPLICATION LARGE SCALE PERMIT _.. .... rt 6 - CONCESSIONS - $23,778,199 MINING PROPERTIES MINING PERMIT EXCL.
PERMISSION 6 - OTHERS - $64,087,689 APPLICATION OF PROSPECTING LIC.

MINING EQUIPMENT RENTAL PROFESSIONAL SERVICES REGISTRATION CERTIFICATE INTEREST ON INCOME SALE OF OFFICIAL PUB.

- CARTO SALE OF OFFICIAL PUBLICATION-LIB.

DRILLING RENTAL DRILLING CORE GEOLOGICAL & GEOPHY.


SURVEY SALE OF LAPIDARY PRODUCT DISPOSAL OF ASSETS INTEREST ON LOAN MINING & QUARRYING CONFERENCE BANKA DRILLING CANTEEN SALES SURCHARGE VERIFICATION OF CHALLENGE VERIFICATION OF CLAIMS GAIN ON FOREIGN EXCHANGE MISCELLANEOUS OTHER ENTAL INSTALMENT RENTAL PETROLEUM PHOTOCOPYING BLASTING & CRUSHING OF ROCKS PERCHLORIC ACID SALES TENDER (OFFICE BLOCK) SUBVENTION FOR TRAINING 8,143,236 15,634,963 0.
, , - EMPLOYMENT COSTS - S237,451,214 SALARIES WAGES SALARIES OVERTIME COMMUTED OVERTIME WAGES OVERTIME STATION/BUSH ALLOWANCE HOUSE ALLOWANCE DUTY ALLOWANCE SUBSISTENCE & TRAVELLING RISK ALLOWANCE CASH IN LIEU OF LEAVE TRAVELLING ALLOWANCE ENTERTAINMENT ALLOWANCE PENSION SCHEME(EMPLOYERS CONTRIBUTION) N.I.S.
EMPLOYERS CONTRIBUTION DIRECTORS EMOLUMENT LEAVE PASSAGE RESPONSIBLITY ALLOWANCE ACTING ALLOWANCE UNIFORM & SAFETY GEARS TRAINING AND EDUCATION MEDICAL SCHEME UTILITY ALLOWANCE GRATUITY AND SEVERANCE PAY PURCHASE OF MEALS SEMINARY & WORKSHOPS MEMBERSHIP & SUBSCRIPTIONS LUNCH & SNACKS - ADMIN EXPENSES - $114,026,381 LOOSE TOOLS & SUNDRY EQUIPMENT LUNCH & SNACKS FUEL LUBRICANTS - VEHICLES ETC.
MAINTENANCE OF RADIO & COMM.

EQUIP.

MAINTENANCE OF ELECTRICAL EQUIP.
MAINTENANCE OF VEHICLES MAINTENANCE OF CRAFT, EQUIPMENT HIRE OF EQUIPMENT TELEPHONE, TELEX, CABLES ELECTRICITY RENTAL OF OFFICE EQUIPMENT MAINTENANCE OF OFFICE EQUIPMENT PRINTING & DUPLICATING MATERIALS & SUPPLIES - DRAWING OFFICE PROFESSIONAL&CONSULTANCY SERVICES AUDIT FEES OFFICE STATIONERY HONOURARUM POSTAGE MAINTENANCE & REPAIRS TO BUILDINGS MAINTENANCE OF GROUNDS JANITORIAL & CLEANING SECURITY SERVICE (EXTERNAL) LEASES & RENTAL FUEL & LUBRICANT BURSARIES SUBSCRIPTION/GAZETTES/JOURNAL TECHNICAL & MANAGEMENT SERVICES DRUGS & MEDICAL SUPPLIES ASSAY LABORATORY SUPPLIES ELECTRICAL SUPPLIES PETROLOGICAL LABORATORY SUPPLIES LAPIDARY LABORATORY SUPPLIES INSURANCE OF ASSETS/LICENCE BANK CHARGES RATION MISCELLANEOUS - OTHER EXPENSES ADVERTISEMENT DONATIONS - GIFTS, WREATHS, ETC.
BAL.
C/FW: 19ffi • 4r 4 8 - ADMIN.
EXPENSES 1997 BAL, B/FW: 84,363,714 CHEMICAL LABORATORY FOOD PREPARATION MAINTENANCE GENERATOR/BUSH CUTTER MAINTENANCE PRINTING MACHINE MISCELLANEOUS EXHIBITIONS ENTERTAINMENT EXPENSE STORAGE CUSTOMS & EXCISE FREIGHT & HANDLING CHARGES LEGAL EXPENSES MINING SEMINAR AMMUNITION/CLEANING TRANSPORTATION & TOLL FEES WELFARE & SUNDRIES REVENUE STAMPS DEVELOPMENT SUPPORT & COMMUNICATION MATERIAL & SUPPLIES - COMPUTER FIELD EXPENDABLE FIELD EXPENSE PROMOTIONAL SEMINAR PERSONAL KIT GGB SUBSIDY HIRE CHARGES/EQUIPMENT SPORT CLUB STAFF PARTY ANNIVERSARY CELEBRATION WITHOLDING TAX PEST CONTROL WELDING MATERIAL & SUPPLIES COOKING GAS MAINTENANCE OF CANTEEN EQUIP.
BOARDING & LODGING TOTAL -96,641,525 -qr 9 - TRANSPORT AND TRAVELUNG $39,025,121 OVERSEAS CONFERENCE & VISITS ROAD AIR AND OTHER CHARTER 1997 16,171,654 22,853,467 39,025,121 7,359,709 14 I 534 I 785 21,894,494 10 APPROPRIATION TO CONSOLIDATED FUND - $841,824,701 included in this amount is Omai Royalties which is paid into the Omai Gold Mines Account No.
964 at the Bank of Guyana.

All payments made are then transferred to the Consolidated Fund.

The following is a breakdown of appropriations in this regard.

()mai Royalties Consolidated Fund 11 - FIXED ASSETS - $134,963,583 1997 682,767,361 159,057,340 841,824,701 1996 473,702,803 320,500,000 794,202,803 LAND & BLDGS.

MOTOR VEHICLES OFF.

FUR.

FIX.
AND FITTINGS SCIENTIFIC FIELD AND MINING E/MENT TOTAL COST/VALUATION At 1 January, 1997 G$ 6,606,443 G$ G$ 59,132,738 30,161,785 G$ 76,496,758 172,397,724 G$ Additions in 1997 6,001,422 13,331,424 16,778,531 15,296,030 51,407,407 Disposals Cost at 31 December, 1997 0 12,607,865 _51,925,294) 70,538,868 0 46,940,316 (1925,294) 91 ,792,788 221,879,837 0 DEPRECIATION: At 1 January, 1997 1,004,329 41,167,963 6,453,986 20,101,172 68,727,450 Charged for the year 421,907 5,783,464 4,293,050 9,615,677 20,114,098 Depreciation on Disposals Accumulated Depreciation at 31 December, 1997 NET BOOK VALUES: 0 (1,925,294) 0 0 (1,925,294) 1,426,236 45,026,133 10,747,036 29,716,849 88,916,254.
At 31 December, 1997 11,181,629 25,512,735 36,193,280 62,075,939 134,963,583 = At 31 December, 1996 5,602,114 17,964,775 23,707,799 56,395,586 103,670,274 12 - INVENTORIES - $1,992,638 STOCK OF DRILLS STOCK OF GOLD STOCK OF DIAMONDS STORES CONTROL ACCOUNT 13 SUNDRY DEBTORS - $54,131,454 SUNDRY DEBTORS CONTROL DEPOSITS LODGED OMAI RECEIVABLE PREPAYMENTS ACCOUNTS RECEIVABLE SHORT TERM LOAN STAFF LOAN 14 - CASH ON HAND AND IN BANK - $207,300,576 1997 0 1,018 0 1,991,620 1,992,638 20,514,389 2,880 13,735,921 2,133,034 4,830,229 818,515 12,096,486 54,131,454 1990 0 1,018 0 5,987,223 5,988,241 16,782,365 2,880 12,250,387 447,664 4,836,229 818,515 10,676,005 45,814,045 '4.
, k BANKBALAN_CES: GNCB G.B.T.I.

7 DAY CALL ACCOUNT G.B.T.I.

CURRENT ACCOUNT G.B.T.I.
FOREIGN CURRENCY A/C CASH BALANCES PETTY CASH IMPREST STAMP IMPREST STAMP IMPREST (CASHIER) ICE IMPREST CANTEEN IMPREST WATER IMPREST 14,070,811 171,335,629 (3,306,910) 24,970,367 207,069,897 14,070,811 212,910,815 (82,461,881) 0 144,519,745 SUB TOTAL: 192,993 (3,900) 42,666 (19,090) 100 17,910 230,679 274,202 (2,224) 23,196 (2,899) 100 0 292,375 SUB TOTAL: TOTAL: 207,300,576., 144 812,120 15 - SHORT TERM INVESTMENT - 5-NIL OPENING BALANCE NEW INVESTMENTS TREASURY BILLS LESS TREASURY BILLS MATURED 1997 146,289,000 1.995 249,708,600 0 146,289,000 (146289,000) 0_ (249,708,600) _146 289 000_ 16 WORK - IN PROGRESS $6,742,960 PAYMENT FOR WORK DONE TO CONSTRUCTION OF NEW OFFICE BLOCK 5,742,960 • "7b- 17 - SUNDRY CREDITORS - $28,633,338 SUNDRY CREDITORS CONTROL PROVISION FOR AUDITING REFUNDABLE DEPOSIT 24,777,856 662,997 3,192,485 28,833,338 6,309,023 662,997 2,960,985 9,933,005 18 - ACCRUED EXPENSES - $4,128,701 ACCRUED SALARIES ACCRUED WAGES OTHER ACCRUED EXPENSES PAYE N.D.S.
SALARIES PAYABLE N.I.S PAYABLE WAGES PAYABLE LIFE INSURANCE DEPENDANTS FUND PAYABLE DEPENDANTS FUND MORTGAGE PENSION FUND PAYABLE UNION DUES P.S.U.

CREDIT UNION RENT DUE AND PAYABLE MORTGAGE FINANCE PAYABLE LEAVE PASSAGE PAYABLE FIELD ALLOWANCE PAYABLE RESPONSIBILITY ALLOWANCE GNCB TRUST MORTGAGE RISK ALLOWANCE SUB.

& TRAVELLING SPORTS CLUB WITHOLDING TAX HOUSE/ELECTRICITY ALLOWANCE PERSONAL ALLOWANCE PAYABLE D.I.A.

PAYABLE H.I.A.
PAYABLE H.I.A.

PAYABLE ACTING ALLOWANCE INTEREST PAYABLE ACCRUED LEAVE PASSAGE MISCELLANEOUS GROUP HEALTH INS.
PAYABLE MEDICAL SCHEME PAYABLE DIRECTORS FEES PAYABLE 1997 208,210 100,318 (202,889) (70,388) 7,987 4,476,071 (413,561) 0 706,136 (156,379) 717,030 (837,168) 1,576,341 (257,604) (1,678) 95,845 281,734 (11,507) 10,205 (35,171) (948) (38,057) (12,402) (492,182) 1,798 (274,196) 8,825 (800) 32,488 (14,917) 15,379 (57,421) 298,994 (968,254) 330 4,128,701 19% 239,019 100,318 (61,213) (1,547,373) 7,987 (1,015,197) (414,054) 3,000 701,910 (156,379) 717,030 (826,435) 1,580,036 (261,349) (1,678) 95,845 15,379 (51,819) 10,205 (35,171) (948) (133,877) (12,402) (730,968) 1,798 (274,196) 8,825 (800) 32,488 (14,917) (296,223) (57,421) 298,994 (711,620) 0 (2,791,206) f • 19 - GOVT.
OF GUYANA CAPITAL - $2,374,825 This is comprised as follows:- Assets less liabilities at 1/8r/9 Other expenditure 1985 2,139,306 235,519 2,374,825 The Commission came into existence on 118/79 by an order enacted through the Geology and Mines Commission Act 1979.
According to Section 35(1) and (2) of the Act, for the assets and liabilities vested at 1/8/79 the Commission shall issue to the Government debentures or debenture stock of such nominal value and bearing such interest rates and repayment dates as may be agreed upon between the Minister responsible for finance and the Commission.

The debenture stock has not been issued to the Government and the repayment terms and interest rates have not yet been agreed.
20 - ACCUMULATED SURPLUS: - 9393,268,338 The Guyana Geology and Mines Commission Act 1979 Section 20 (1) provides that the Commission shall maintain a reserve fund and shall, out of the net surplus of each year, transfer to that fund a sum equal to not less than such sum as may be fixed by the Minister.
T • 0 21 - RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITES: OPERATING PROFIT LESS GAIN ON DISPOSAL OF ASSETS INTEREST ON INVESTMENT WITHHOLDING TAX DEPRECIATION INCREASE IN DEBTORS INCREASE IN CREDITORS DECREASE IN DEFERRED INCOME DECREASE IN ACCRUED EXPENSES 22 - ANALYSIS OF CHANGES IN CASH DURING THE YEAR: BALANCE AT 97/12/31 BALANCE AT 97/01/01 INCREASE IN CASH EQUIVALENT !GS 195,691,297 (1,595,500) (24,966,890) 2,246,257 20,114.098 (8,317,409) 18,700,333 (86,861,249) (6,919,907) 108,091030 207,300,576 (144,812,120) 62.488.456 • GUYANA GEOLOGY AND MINES COMMISSION CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER, 1997 A NET CASH INFLOW FROM OPERATING ACTIVITIES RETURN ON INVESTMENTA SERVICING OF FINANCE INTEREST RECEIVED ON INVESTMENT CONTRIBUTION CONTRIBUTION TO CENTRAL GOVERNMENT NET CASH INFLOW FROM RETURN ON INVESTMENT & SERVICING OF FINANCE TAXATION WITHHOLDING TAX TAX PAID INVESTING ACTIVITIES; NOTES: 21 GS 108,091,030 24,966,890 (159,057,340) (2,246,257) (134,090,450) (2,246,257) PAYMENT TO ACQUIRE TANGIBLE FIXED ASSET SALES OF FIXED ASSETS SHORT TERM INVESTMENT WORK - IN - PROGRESS NET CASH OUTFLOW FROM INVESTING ACTIVITIES INCREASE IN CASH & CASH EQUIVALENT 22 (51,407,407) 1,595,500 146,289,000 (5,742,960) 90,734,133 62 488 456