Investors find holes in Guyana Goldfields definitive study, decide the company is worth 20% less

Guyana Goldfields (TSX:GUY) was pushed deep into the red on Friday afternoon after releasing a feasibility study that came way short of expectations.

The company was trading down 19.5% at $6.76 in brisk late afternoon trade recovering somewhat from an earlier decline to $6.62.

Around a million more shares in the $500 million company changed hands on Friday compared to the daily average of 330,000.

Before the open the Toronto-based firm announced its Definitive Feasibility Study for its 100% owned Aurora Gold Project in Guyana. It's the South American nation's only large-scale licensed gold mine development project.

Guyana Goldfields said estimated initial capital costs for surface and open pit operations at Aurora was $525 million, with the underground portion funded from cash flow.

The company expects to enter production in late 2014.

Total gold production is expected to be 4.359 million ounces at a cash cost of $626/oz over a life of mine of 22 years.

Click here for more details from the feasibility study.