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Guyana Goldfields Inc. is pleased to announce the completion
of an initial Mineral Resource Estimate for the Company's wholly owned Sulphur Rose property at its Aranka
group of properties in Guyana, approximately
35 kms away (by road) from the Aurora Gold project.
Highlights
- Resource estimate includes 460,400 ounces of inferred resources.
- Infill drilling with the objective of upgrading inferred
resources to measured and indicated will commence in the New Year.
- Potential for further resource additions in nearby areas
considered excellent.
- Exploration potential remains open at depth and along
strike.
The reported resource contains
6,853,000 tonnes with an average grade of 2.09
grams per tonne Au ("g/t") for a total of
460,400 contained ounces of gold in the inferred category, as set out in the
table below. The base case resource was estimated assuming a long term gold
price of US$1,000 per ounce. Open pittable
mineral resources were determined from a conceptual
pit, designed using Whittle software, metallurgical test results from Sulphur Rose mineralization and operating costs estimated
for the nearby Aurora project. Potentially mineable underground mineral resources
were determined from the remaining mineral resource below the pit bottom
using mining costs determined for the Aurora project and Sulphur
Rose metallurgical recovery results, after leaving a 30 m thick crown pillar.
Sulphur Rose Inferred Mineral Resource
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Tonnes
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Au Grade
(g/t)
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Contained Au
(ounces)
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Open Pit1
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6,366,000
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1.99
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407,300
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Underground2
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487,000
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3.39
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53,100
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Total
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6,853,000
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2.09
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460,400
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Note: Table may not add
precisely due to rounding errors.
1 - Determined using the following assumptions: $1.45/t
mining, $10.02/t processing, $10/t G&A and 91.9% recovery.
2 - Determined using the following assumptions: $75.70/t
mining, processing and operating costs and 91.9% recovery.
The mineral resources above were
determined using the "CIM Standards on Mineral Resources and Reserves -
Definitions and Guidelines" as adopted by CIM Council on December 11, 2005. The estimate's effective date
is December 29, 2010. Mineral resources are
not mineral reserves and do not have demonstrated economic viability.
At this time the mineral resources are not understood to be materially
affected by any known environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant issues.
Patrick
Sheridan, CEO of Guyana
Goldfields, commented: "The initial resource estimate at Sulphur Rose highlights the robust nature of this project
with attractive grades and good widths. This initial resource estimate
represents a strong starting point as we continue to advance the deposit
forward with our expectation that significant potential exists to add ounces
both at Sulphur Rose and at other nearby
prospective properties within Aranka."
The reported open pittable
mineral resource extends from surface to a vertical depth of approximately
215 metres. The underground portion of the
resource was determined from a block model which extends to 630 metres below surface, with the deposit remaining open to
depth.
The initial Resource Estimate for Sulphur Rose will be evaluated for possible inclusion in
the Aurora Feasibility Study. The Aurora revised Resource Estimate is
due to be completed in Q3 2011 with the final NI 43-101
Technical Report due in Q4 2011.
The Company expects to be able to
complete an updated resource estimate at Sulphur
Rose by the end of the second quarter in 2011.
The Company has significantly
allocated more drills and funds to the exploration program at Sulphur Rose and at its other Aranka
properties, currently known as Wynamu, North Ridge,
Pakira Hills and Kopang.
A total budget of up to ~$10million will be spent for 2011 with up to 6 drill
rigs to support the extensive exploration efforts. Guyana Goldfields will continuously report on the
drilling success of these properties as the programs progress.
Micon International Limited employee, B. Terrence
Hennessey, P.Geo. was
the independent "Qualified Person" for this estimate for the
purposes of National Instrument 43-101, Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators, executing the
NI43-101 Technical Report and he confirms that he has reviewed the
information contained within this release.
Micon International Limited has provided consulting services to the
international mining industry since 1988, with particular focus upon mineral
resource estimations, metallurgical services, mine design and production
scheduling, preparation of pre-feasibility and feasibility studies,
independent reviews of mining and mineral properties, project monitoring,
independent engineer roles, financial analysis and litigation support.
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 in an ongoing program and recently discovered a new gold
zone at Sulphur Rose with plans of an initial
resource by the end of 2010. As at the date hereof, the Company has
approximately $63 million in cash and short-term
bank guaranteed investment certificates and no debt and 80,785,593 shares
issued and outstanding.
All scientific and technical
information contained in this press release has been prepared under the
supervision of Mr. Niel Silvio (AusIMM/AIG), a
"qualified person" within the meaning of National Instrument 43-101
of the Canadian Securities Administrators.
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.
For
further information:
GuyanaGoldfields Inc.,
Dan Noone,
VP, Exploration
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
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