Guyana Goldfields Significantly Increases Mineral Resources and Grade at the Aurora Gold Project, Guyana
TORONTO, Feb. 28 /CNW/ --
TORONTO, Feb. 28 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ('Guyana' or 'the Company') is pleased to report an updated mineral resource statement for its 100%
owned Aurora Gold Project in Guyana, South America. This new estimate
includes all drilling data obtained up to the end of November 2010. The
estimate was prepared by SRK Consulting (Canada), Inc. ('SRK') of
Toronto, Ontario in accordance with National Instrument 43-101 ('NI
43-101') and provides an update to the previous estimate released on
August 24, 2009. The next estimate is scheduled to be released in
August 2011 and will incorporate drilling up to June. The Feasibility
Study is scheduled for completion during the fourth quarter and will be
based upon the August 2011 resource estimate.
Highlights
-- 80% of all mineral resources are in the measured and indicated
category (5.34 million ounces) and 20% are in the inferred
category (1.33 million ounces)
-- 66% increase in measured and indicated mineral resources from
3.21 to 5.34 million ounces
-- 64% increase in open pit measured and indicated mineral
resources from 1.19 to 1.95 million ounces
-- 67% increase in underground measured and indicated mineral
resources from 2.03 to 3.39 million ounces
-- 17% increase in open pit grade from 3.0 to 3.6 g/t Au
-- 3 % increase in total overall grade from 3.8 to 4.0 g/t Au
'This significant increase in mineral resources and the likelihood of
more ounces being added with the additional drilling planned for this
year support our organic growth strategy and should significantly
enhance the economics of the Definitive Feasibility Study, which is
currently underway. The positive impact of the 2009/2010 drilling
campaigns which discovered and extended various zones at depth within
the Golden Square Mile is finally reflected in the new resource
numbers. We remain very confident that this already robust project will
continue to grow and soon join the ranks of world-class producing gold
mines.' said Mr. Claude Lemasson, President & Chief Operating Officer.
Mineral Resource Drilling Data
The updated mineral resource statement incorporates drilling data
consisting of:
-- Drilling for the Preliminary Assessment completed in August
2009 totaling 140,442 metres with drilling data up to June 2,
2009
-- Infill and exploration drilling completed from June 3, 2009 to
November 21, 2010 totaling an additional 79,446 metres, during
which new mineralized zones were discovered beneath the Aleck
Hill and Mad Kiss shallow zones (see press releases dated April
20, 2010 and August 18, 2010)
-- The new mineral resource statement contains a total of 209,000
metres of drilling in 776 holes.
Resource Estimate Comparison
_____________________________________________________________________
|February 2011 | | | |August 2009 |
|____________________________| |______| |_____________________________|
| Gold |Tonnes| |Gold | | % | | Gold | | |Gold |
| Price | (000 |Grade|(000 | |Change| | Price |Tonnes | Grade |(000 |
| (US$) | t) |(g/t)| oz) | | | | (US$) |(000 t)| (g/t) | oz) |
|$1,040/oz| | | | | | |$750/oz| | | |
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
|O/P | |O/P | |
|____________________________|_|________|_______________|
|M&I |17,277| 3.51|1,947| |64.3% | |M&I | 11,136| 3.31|1,185|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
|Inf | 3,533| 3.74| 425| | 8.0% | |Inf | 5,013| 2.44| 393|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
| | | |
|____________________________|_|________________________|
|U/G | |U/G | |
|____________________________|_|________|_______________|
|M&I |24,894| 4.24|3,394| |67.5% | |M&I | 13,010| 4.85|2,027|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
|Inf | 6,898| 4.10| 910| |-6.5% | |Inf | 7,931| 3.82| 973|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
| | | |
|____________________________|_|________________________|
|O/P & U/G | |O/P & U/G |
|____________________________|_|________________________|
|M&I |42,171| 3.94|5,341| |66.3% | |M&I | 24,146| 4.14|3,212|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
|Inf |10,432| 3.98|1,334| |-2.3% | |Inf | 12,944| 3.28|1,366|
|_________|______|_____|_____| |______| |_______|_______|_______|_____|
| | | |
|____________________________|_|________________________|
|TOTAL |52,603| 3.95|6,675| |45.8% | |TOTAL | 37,090| 3.84|4,578|
|_________|______|_____|_____|_|______| |_______|_______|_______|_____|
|*Cutoff grade: 0.45 g/t Au | | |*Cutoff grade: 0.85 g/t |
|for O/P and 2.0 g/t Au for | | |Au for O/P and 2.0 g/t Au|
|U/G. | | |for U/G. |
|____________________________|_|______|_________________________|
Note: The following references are made: Open pit = O/P; Underground =
U/G, Measured and Indicated = M&I; Inferred = Inf
Mineral Inventory
The new resource estimate is based on a mineral inventory. The table
below summarizes the global tonnes and grade estimates in the block
model constructed by SRK at various cut-off grades. It is to be noted
that the figures presented in the following table should not be
misconstrued with the mineral resource statement presented in the table
above. They are presented only to illustrate the sensitivity of the
global tonnes and grade estimates to the selected cut-off grades.
____________________________________________________________________
|Measured and Indicated Resources| |Inferred Resources within Mineral|
|within Mineral Inventory | |Inventory |
|________________________________| |_________________________________|
|COG |Tonnes |Grade | Gold | |COG |Tonnes |Grade | Gold |
|(g/t)| (000) |(g/t) | (000 oz) | |(g/t)| (000) |(g/t) | (000 oz) |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.3 |51,452 | 3.49 | 5,770 | | 0.3 |14,539 | 3.17 | 1,480 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.4 |51,239 | 3.50 | 5,760 | | 0.4 |14,451 | 3.19 | 1,480 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.5 |50,887 | 3.52 | 5,760 | | 0.5 |14,268 | 3.22 | 1,480 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.6 |50,488 | 3.54 | 5,750 | | 0.6 |14,020 | 3.27 | 1,470 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.7 |49,898 | 3.58 | 5,740 | | 0.7 |13,788 | 3.32 | 1,470 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.8 |49,372 | 3.61 | 5,730 | | 0.8 |13,480 | 3.38 | 1,460 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 0.9 |48,614 | 3.65 | 5,700 | | 0.9 |13,074 | 3.45 | 1,450 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 1.0 |47,879 | 3.69 | 5,680 | | 1.0 |12,712 | 3.52 | 1,440 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 2.0 |36,706 | 4.34 | 5,130 | | 2.0 | 9,029| 4.37 | 1,270 |
|_____|_______|______|___________| |_____|_______|______|____________|
| 3.0 |23,572 | 5.38 | 4,080 | | 3.0 | 5,953| 5.34 | 1,020 |
|_____|_______|______|___________|_|_____|_______|______|____________|
Note: COG references cut off grade; selected cut off grades are shown.
The reader is cautioned that the numbers presented in the table above
should not be misconstrued with the mineral resource statement. They
are presented only to show the sensitivity of the global quantity and
grade estimates to the selection of cut-off grades.
A total 2011 budget of $20 million is being allocated for drilling at
Aurora. Ten (10) drill rigs are operational with the goal of drilling
70,000 metres by the end of June. This drilling aims to further convert
inferred to measured & indicated resources during the first half of the
year. Exploration drilling will continue for the remainder of the year
and is designed to significantly increase the discovery potential of
local and regional mineralized trends and recently identified zones.
Currently there are over 20 geologists working at both Aurora and the
Company's Aranka properties. The Company continues its assessment of
the possibility of including Sulphur Rose and its initial resource of
460,400 ounces (see press release dated December 31, 2010) into the
Aurora Feasibility Study due to its proximity and similar metallurgical
character. Two (2) drills are operating at Sulphur Rose dedicated to
carry out exploration and infill drilling in order to confirm
additional resources.
'We are very pleased by the drilling success and the increase in mineral
resources. We are also continuing infrastructure construction
activities at site and will be in a position to start the mine
development process in the fourth quarter of this year after the
completion of the Feasibility Study. The Aurora Gold Project will make
a significant contribution to the economy of Guyana with gold
production expected to commence in late 2013.' stated Mr. Lemasson.
The Aurora exploration and infill drilling programs are being carried
out under the supervision of Mr. Niel Silvio (Aus.IMM), a qualified
person within the meaning of NI 43-101. Mr. Silvio has reviewed the
contents of this news release.
The resource estimate was prepared by SRK resource estimation
specialists Dorota El-Rassi P.Eng (APEO #100012348) and Glen Cole,
P.Geo (APGO #1416) who are the independent 'Qualified Persons' for the
Purposes of NI 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and confirm that they have
reviewed the information contained within this release.
Drill core samples for the 2009/2010 drilling campaigns were sent to and
prepared at ACME Analytical Laboratories Ltd (ACME Lab) in Georgetown,
Guyana while assaying was done at ACME Lab in Santiago, Chile.
About SRK Consulting
SRK Consulting is an independent, international consulting practice that
provides focused advice and solutions to clients, mainly from earth and
water resource industries. The SRK Group comprises over 1,000
professionals in 36 offices worldwide, offering expertise in a wide
range of resource engineering disciplines. The SRK Group's
independence is ensured by the fact that it holds no equity in any
project and that its ownership rests solely with its staff. This
permits SRK to provide its clients with conflict-free and objective
recommendations on crucial judgment issues. SRK has a demonstrated
track record in undertaking independent assessments of Mineral
Resources and Mineral Reserves, project evaluations and audits,
technical reports and independent feasibility evaluations to bankable
standards on behalf of exploration and mining companies and financial
institutions worldwide.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based mineral exploration company
primarily focused on the exploration and development of gold deposits
in Guyana, South America where the Company has operated since 1996.
The Company is currently undertaking drilling and studies to advance
and develop the Aurora Gold Project in Guyana.
At the Aranka Properties, currently in advanced staged exploration,
drilling of highly prospective targets is ongoing. The Company
discovered a new gold zone at Sulphur Rose and identified an initial
resource of 460,000 ounces. As at the date hereof, the Company has
approximately $60 million in cash and short-term bank guaranteed
investment certificates and no debt; there are 82 million shares issued
and outstanding.
Forward Looking Statements - Certain information set forth in this news
release may contain forward-looking statements that involve substantial
known and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain of
which are beyond the control of Guyana, including, but not limited to
the impact of general economic conditions, industry conditions,
volatility of commodity prices, risks associated with the uncertainty
of resource and reserve estimates, currency fluctuations, dependence
upon regulatory approvals, the availability of future financing and
exploration risk. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
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Guyana Goldfields Inc.,
Claude Lemasson,
President & COO, Director
Jacqueline Wagenaar,
Vice President, Corporate Communications
Tel: (416) 628-5936 Ext. 2295,
Fax: (416) 628-5935,
E-mail: jwagenaar@guygold.com,
Website: www.guygold.com