Guyana Goldfields Provides an Update on the Aurora Feasibility Study and Deep Drilling at Rory's Knoll
TORONTO, Sept. 9, 2011 /CNW/ --
TORONTO, Sept. 9, 2011 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ('GGI' or 'the Company') is pleased to provide an update in 3 key areas on its 100% owned Aurora
Gold Project in Guyana, South America:
-- Definitive Feasibility Study - On-Track for December 2011
-- Resource Estimate - Confirms Measured & Indicated Resource with
improved modeling
-- Drilling at depth at Rory's Knoll - Releasing spectacular
results on extension at depth
Definitive Feasibility Study
GGI reports that the definitive Feasibility Study work for the Aurora
Gold Project is on track for delivery of results and key highlights as
planned by the end of the calendar fourth quarter of 2011.
The definitive Feasibility Study ('FS') work led by GGI Staff is
aggressively continuing with technical work advancing well in all
disciplines. The following main areas are being managed and supported
as follows:
-- Overall Coordination of DFS - GGI
-- Off-site and On-site Infrastructure - GGI
-- Resource Estimation, Open Pit and Underground Design and
Engineering - SRK (Toronto)
-- Underground Mine Shaft & Infrastructure - DMC 'Dynatec'
(Toronto)
-- Processing (Crushing & Milling) - Ausenco (Montreal)
-- Tailings, Water Management and River Dyke - AMEC (Mississauga)
-- Hydro-Power - MWH (Argentina)
As the work is progressing, the Feasibility Study team has now locked in
some key parameters:
-- Open Pit Mining is expected to include 6 pits within a square
mile, with bottom depths varying from 70 to 315 metres; the
average strip ratio is expected to be between 9 and 10 to 1
-- Underground Mining will concentrate on Rory's Knoll with access
via a shaft and a main ramp from surface, to allow production
from several mining areas concurrently, but will also include
mining from underground satellite deposits via small ramps
below the pits at Aleck Hill, Mad Kiss and East Walcott Hill
-- The Mine Shaft will be approximately 1,200 metres deep, and
mining will be done to approximately 1,300 metres deep
-- Milling will be through a SAG mill and Ball mill combination
with design throughput of 9,500 tonnes per day (increased from
previous 8,000 tonnes per day in the Preliminary Assessment of
August 2009); design is well advanced with ongoing work
currently being focussed on optimization of the grinding
circuit and the tailings disposal system and acquiring vendor
quotations for the various plant components, including
long-lead items
-- Power will be provided from On-site Diesel Power Generators, as
the base case for the FS
-- An alternative source of power is a hydro-electric power
project within 10 km of the mill that would have the capacity
to replace a significant amount of the power required for the
mine; a feasibility study on the hydro-project has been
completed, indicating a positive economic and technical
scenario; this is under review and will be included as an
alternative in the FS
-- The design of important components of site infrastructure such
as the airstrip, personnel accommodations and power plant are
sufficiently advanced to allow detailed design to be completed
rapidly and construction to commence shortly after the
Feasibility Study has been completed and project has been
approved
-- Construction of certain critical off-site infrastructure
facilities such as the access road and the Buckhall port and
transfer facilities is well advanced
-- Capital costs work will be completed in the final stages of the
Feasibility Study, however early indications show that there
will be escalation, particularly in the areas of steel, major
equipment, fuel and shipping which will be included in the
Feasibility Study. Due to the expansion of the underground, GGI
anticipates undertaking the underground development at an
earlier stage than previously planned which will require a
larger initial Capex improving the net present value and
internal rate of return on the project.
The Company has concluded its assessment on including Sulphur Rose and
its initial inferred gold resource of 460,400 ounces (see press release
dated December 31, 2010) into the Aurora Feasibility Study. Due to its
difference in grade compared to Aurora, the stage of development of the
discovery and the distance between the sites, the Sulphur Rose deposit
will not be included with Aurora. GGI expects to grow Sulphur Rose and
potentially combine it with other nearby discoveries within the Aranka
properties. A revised resource estimate is expected to be completed for
Sulphur Rose in the calendar fourth quarter of 2011 after which a
Preliminary Assessment will be conducted for a stand-alone operation.
Another important requirement for the Aurora Project is obtaining the
Mining License. GGI has conducted extensive negotiations with the
Guyanese Government on the fiscal terms to be included in a Mineral
Agreement. Such Mineral Agreement is a key requirement to obtaining the
Mining License and we anticipate obtaining it in order to build and
operate the Aurora Gold Project by year-end.
Resource Estimate for the FS
GGI reports a revised mineral resource statement for the Aurora Gold
Project. This new estimate includes all drilling completed to the end
of May 2011. 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 SRK's previous resource
estimate issued earlier this year (see press release dated February 28,
2011).
The Feasibility Study is scheduled for completion at the end of the
calendar fourth quarter of this year and will be based on the measured
and indicated categories of this revised resource estimate. The main
purpose of drilling for the first half of 2011 was to consolidate and
strengthen the resource model as part of the Feasibility Study efforts
as well as better define the known mineralization to allow the
development of a solid mine plan for the Aurora Gold Project.
Highlights include 5.71 million ounces in the Measured & Indicated
categories, including about 2.2 million ounces for the Open Pit and 3.5
million ounces for the Underground; and confirmation of the high grade
nature of the Open Pit material at over 3 grams per tonne. A total of
1.17 million ounces in the Inferred category have been identified but
will not be included in the Feasibility Study as per NI 43-101
regulations (Table 1).
Table 1: Resource Estimate
____________________________________________________________
| September 2011 |
|____________________________________________________________|
|Gold Price |Quantity|Grade| Gold |
| (US$) | (Mt) |(g/t)| (M oz) |
| $1,200/oz | | | |
|___________|________|_____|_________________________________|
|Measured & Indicated Resources |
|____________________________________________________________|
|O/P | 20.22 |3.34 | 2.18 |
|___________|________|_____|_________________________________|
|U/G | 26.82 |4.09 | 3.52 |
|___________|________|_____|_________________________________|
|TOTAL | 47.04 |3.83 | 5.71 |
|___________|________|_____|_________________________________|
| |
|____________________________________________________________|
|Inferred Resources |
|____________________________________________________________|
|O/P | 3.48 |3.41 | 0.39 |
|___________|________|_____|_________________________________|
|U/G | 6.49 |3.74 | 0.78 |
|___________|________|_____|_________________________________|
|TOTAL | 9.97 |3.63 | 1.17 |
|___________|________|_____|_________________________________|
|*Cutoff grade: 0.40 g/t Au for O/P and 1.80 g/t Au for U/G.|
|____________________________________________________________|
Note: The following references are made: Open pit = O/P; Underground =
U/G
Between January and June 2011, GGI drilled an additional 163 core
boreholes throughout the Aurora deposit, the majority targeting
existing auriferous zones as infill with the objective of improving the
confidence in the geological continuity of the gold mineralization.
Structural geology investigations, geological modeling and information
from the infill drilling completed during the period, support a better
definition of the structures hosting the gold mineralization within all
the gold mineralized zones, and consequently improve the confidence in
the geological continuity of the gold mineralization.
As a result of new drilling at Rory's Knoll and the improved
understanding of gold mineralization continuity, the geological model
for Rory's Knoll was revised. Several previously modeled internal waste
zones inside Rory's Knoll were removed except geologically continuous
waste zones that were remodeled and excluded from the resource model to
support more confident mine planning. As a result of these enhancements
to the geological model, size increases to the Rory's Knoll zone have
been limited and its average grade was reduced slightly in the
September 2011 resource model.
Limited deep drilling at Rory's Knoll however confirms the continuity of
the gold mineralization to a depth of 1,550 metres below the surface
and support vertically extending the mineral resources by over 200
metres. Compared to the February 2011 resource statement, total
reported Measured and Indicated tonnes at Rory's Knoll increased from
34.79Mt to 36.38Mt at a slight reduction in grade from 3.97 g/t Au to
3.79 g/t Au.
Infill drilling completed on the other auriferous zones (Aleck Hill, Mad
Kiss and Walcott Hill termed the 'satellite deposits') prompted
revision to the geological interpretation. The boundaries of the gold
mineralization were revised to take into account of the revised
geological interpretation, thereby improving the confidence in the
continuity of the gold mineralization. Previously poorly defined and
new auriferous structures were intersected by the new drilling
information. Compared to February 2011 resource statement, total
reported Measured and Indicated tonnes within the satellite deposits
increases from 7.38Mt to 10.66Mt at an increased grade from 3.79 g/t Au
to 3.82 g/t Au.
'We are pleased by the improvement in the overall quality of the mineral
resources in preparation for the Feasibility Study. The additional
drilling has improved our confidence in the geological continuity of
the mineralization. We are also continuing off-site infrastructure
construction activities and will be in a position to start the mine
development in the calendar first quarter of 2012 after the completion
of the Feasibility Study. We remain very confident that this already
robust project will move to development 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 February 2011 Resource Estimate totaling
209,000 metres of drilling in 776 holes with drilling data up
to November 21, 2010.
-- New infill drilling from November 22, 2010 up to the end of May
2011 totaling 82,556 metres of drilling in 163 holes.
-- The new mineral resource statement contains a total of 291,556
metres of drilling in 939 holes.
Figure 1 shows the Measured & Indicated resource model blocks within the
Aurora Gold Project which will be in the Feasibility Study. The image
incorporates all drilling up to the end of May 2011 and assay results
received by mid-August 2011.
http://files.newswire.ca/826/Figure_1.pdf
Drill hole assay results received prior to April 15, 2011 were issued in
a previous press release (dated May 3, 2011). The complete assay
results received between April 15, 2011 and September 3, 2011 for the
one hundred and forty-one (141) new drill holes are tabulated in the
attached intercept spreadsheets 1 and 2.
Spreadsheet 1
Aleck Hill 74
Mad Kiss zones 26
East Walcott 35
Total 135
Spreadsheet 2
Rory's Knoll 6
Total 6
Total new drill holes 141
*Please note that highlighted information in Spreadsheet 2 is not
included in the Feasibility Study.
http://files.newswire.ca/826/Spreadsheet_1.pdf
http://files.newswire.ca/826/Spreadsheet_2.pdf
Mineral Inventory
The revised resource estimate is based on a mineral inventory. Table 2
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 Table 2.
They are presented only to illustrate the sensitivity of the global
tonnes and grade estimates to the selected cut-off grades.
Table 2: Global Tonnage and Grade Sensitivities
_____________________________________________________________________
|Measured and Indicated Resources | |Inferred Resources within Mineral|
|within Mineral Inventory | | |
| | |Inventory |
|_________________________________| |_________________________________|
|COG |Tonnes |Grade | Gold | |COG |Tonnes |Grade | Gold |
|(g/t)| (M) |(g/t) | (M oz) | |(g/t)| (M) |(g/t) | (M oz) |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.3 | 62.38 | 3.12 | 6.27 | | 0.3 | 15.45 | 2.74 | 1.36 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.4 | 61.92 | 3.14 | 6.26 | | 0.4 | 15.35 | 2.75 | 1.36 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.5 | 61.22 | 3.28 | 6.25 | | 0.5 | 15.21 | 2.78 | 1.36 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.6 | 60.21 | 3.22 | 6.23 | | 0.6 | 15.01 | 2.81 | 1.35 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.7 | 59.12 | 3.27 | 6.21 | | 0.7 | 14.73 | 2.85 | 1.35 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.8 | 57.82 | 3.32 | 6.18 | | 0.8 | 14.36 | 2.90 | 1.34 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 0.9 | 56.35 | 3.39 | 6.14 | | 0.9 | 13.85 | 2.98 | 1.32 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 1.0 | 54.69 | 3.46 | 6.09 | | 1.0 | 13.24 | 3.07 | 1.31 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 2.0 | 36.42 | 4.45 | 5.21 | | 2.0 | 7.95 | 4.14 | 1.06 |
|_____|_______|______|____________| |_____|_______|______|____________|
| 3.0 | 22.21 | 5.73 | 4.09 | | 3.0 | 4.64 | 5.36 | 0.80 |
|_____|_______|______|____________|_|_____|_______|______|____________|
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.
Drilling at Depth at Rory's Knoll
At Rory's Knoll, where known mineralization previously went to a depth
of 1,566 metres below surface (see press release dated May 3, 2011),
results for Mother-Hole RKD-163 shows the mineralization extends to a
depth of 2,100 metres and remains open.
RKD-163, a second mother hole for deep drilling, was stopped at 2,112
metres in mineralized tonalite and confirms the continuity of
mineralization at Rory's Knoll to 2,100 metres and still remains open
at depth. The new drilling depth extended the mineralization model
approximately 530 metres below the known mineralization boundary.
-- Mother-Hole RKD-163
o 1,248 m @ 2.33 g/t Au from 815 m, including:
# 64 m @ 5.07 g/t Au from 1,645 m
# 80 m @ 5.02 g/t Au from 1,725 m
# 124 m @ 6.15 g/t Au from 1,939 m
# 20 m @ 10.80 g/t Au from 1,983 m
# 32 m @ 10.03 g/t Au from 2,007 m
A 2D model of Rory's Knoll is shown in Figure 2 showcasing the new down
dip mineralized extension to a depth of 2,100 m.
http://files.newswire.ca/826/Figure_2.pdf
Exploration drilling within the Golden Square Mile restarted in June
2011 with 5 rigs and will continue for the rest of the year. Any
additional resources identified post the May cut-off may not be
included in the Feasibility Study, however will be incorporated in an
updated resource estimate in the future.
Dan Noone, Vice-President, Exploration states, 'We are very delighted
that we have extended the mineralization by 530m. In the current
resource, an average of 300,000 ounces is added for every vertical 100
metres. This augurs well for adding more ounces at Rory's Knoll as well
as at depth elsewhere within the Golden Square Mile and we are
confident that we will continue achieving exploration success.'
The Aurora deep drilling program is being carried out under the
direction of Mr. Niel Silvio (Aus.IMM), a qualified person within the
meaning of National Instrument 43-101. Mr. Silvio has reviewed the
contents of this news release. Drill core samples 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 and
Vancouver, Canada using FA-AAS with Fire-Assay gravimetric finish for
samples with > 3,000 ppb Au.
The revised 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.
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 gold deposit at Sulphur Rose containing an initial
inferred resource of 460,400 oz and plans to release an updated
resource estimate in the fourth quarter of 2011. As at the date
hereof, the Company has approximately $49 million in cash and
short-term bank guaranteed investment certificates and no debt; there
are approximately 83 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/September2011/09/c9778.html
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