TORONTO, February 28, 2011 /PRNewswire/ -- 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.
- 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 Gold Price Tonnes Grade Gold % Change (US$) (000 t) (g/t) (000 oz) $1,040/oz O/P M&I 17,277 3.51 1,947 64.3% Inf 3,533 3.74 425 8.0% U/G M&I 24,894 4.24 3,394 67.5% Inf 6,898 4.10 910 -6.5% O/P & U/G M&I 42,171 3.94 5,341 66.3% Inf 10,432 3.98 1,334 -2.3% TOTAL 52,603 3.95 6,675 45.8% *Cutoff grade: 0.45 g/t Au for O/P and 2.0 g/t Au for U/G. (Table continued) August 2009 Gold Price Tonnes Grade Gold (US$) (000 t) (g/t) (000 oz) $750/oz O/P M&I 11,136 3.31 1,185 Inf 5,013 2.44 393 U/G M&I 13,010 4.85 2,027 Inf 7,931 3.82 973 O/P & U/G M&I 24,146 4.14 3,212 Inf 12,944 3.28 1,366 TOTAL 37,090 3.84 4,578 *Cutoff grade: 0.85 g/t Au for O/P and 2.0 g/t Au for U/G.
Note: The following references are made: Open pit = O/P; Underground = U/G, Measured and Indicated = M&I; Inferred = Inf
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 within Mineral Inventory COG Tonnes Grade Gold (g/t) (000) (g/t) (000 oz) 0.3 51,452 3.49 5,770 0.4 51,239 3.50 5,760 0.5 50,887 3.52 5,760 0.6 50,488 3.54 5,750 0.7 49,898 3.58 5,740 0.8 49,372 3.61 5,730 0.9 48,614 3.65 5,700 1.0 47,879 3.69 5,680 2.0 36,706 4.34 5,130 3.0 23,572 5.38 4,080 Inferred Resources within Mineral Inventory COG Tonnes Grade Gold (g/t) (000) (g/t) (000 oz) 0.3 14,539 3.17 1,480 0.4 14,451 3.19 1,480 0.5 14,268 3.22 1,480 0.6 14,020 3.27 1,470 0.7 13,788 3.32 1,470 0.8 13,480 3.38 1,460 0.9 13,074 3.45 1,450 1.0 12,712 3.52 1,440 2.0 9,029 4.37 1,270 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.
For further information: Guyana Goldfields Inc., Claude Lemasson, President & COO, Director Jacqueline Wagenaar, Vice President, Corporate Communications Tel: +1-416-628-5936 Ext. 2295, Fax: +1-416-628-5935, E-mail: email@example.com, Website: http://www.guygold.com
SOURCE Guyana Goldfields Inc.