Canadian firm Guyana Goldfields has signed a mineral agreement with the Government of Guyana and has received a mining licence for its Aurora gold project.

The mineral agreement includes all fiscal, property, import-export procedures, taxation provisions and other related conditions for the continued exploration, mine development and operation of the project.

According to the agreement, Guyana Goldfields will pay a mining royalty of 5% on gold sales at a price of $1,000/oz of gold or less and 8% on gold sales at a price of over $1,000/oz of gold.

With the receipt of the permit, the firm will start construction work on the mine site facilities and the mill in the first quarter of 2012, and complete the work in two years.

Currently, the firm is working towards completing its updated resource estimate at the project by mid-December and is planning to deliver its feasibility study by January 2012.