The Board of Directors of Guyana Goldfields Inc. (TSX: GUY) has announced that, due to the identification of several additional mineralized zones at Aurora and the nearby Sulphur Rose discovery (Aranka), the Feasibility Study which was scheduled for completion by year-end will be deferred.
These discoveries are sufficiently significant that their integration into the Feasibility Study may have a materially positive impact and must be evaluated. Accordingly, the planned 2011 drilling programs will be significantly expanded.
Since March 24, 2010, the definitive Feasibility Study drill cut-off date, an additional 36,748 metres of drilling has been completed at Aurora, enabling significant growth of the three (3) newest zones identified within the Golden Square Mile (see press releases dated April 20, 2010 and August 18, 2010). These zones have been tested with forty-three (43) drill holes and remain open along strike and at depth. The discovery and further confirmation of these zones significantly increases known gold mineralization within the bounds of the Aurora Gold Project area.
Furthermore, with the upcoming release of the initial resource estimate at Sulphur Rose (Aranka District) by year end, and given the proximity (35km by road) of this new discovery to the Aurora Gold Project, additional drilling and assessment are warranted to explore the possibility of including Sulphur Rose and its new resource ounces in the Aurora Feasibility Study.
Patrick Sheridan Jr., CEO, commented, "Mineralization encountered at the new zones within the Golden Square Mile have increasingly become material to the Aurora resource calculation and now warrants inclusion in the definitive Feasibility Study. Not only will these new zones add to the robust nature of the Aurora Gold Project but will be included as part of the underground operation in the early years of mine life. Given the recent discoveries and ongoing geological modeling and understanding, we believe more mineralized zones will be discovered and must be appropriately tested."
AURORA PROJECT
The definitive Feasibility Study will be modified to include the following:
- Infill drilling within the Golden Square Mile completed from March 24, 2010 (the current Feasibility Study cut-off date), to the end of June 2011 (the new Feasibility Study cut-off date), will be included in a new resource estimate to be completed by the end of August 2011
- A mine plan to include the three zones mentioned above plus assessment of any additional new zones discovered before the end of June 2011
- Assessment of the Sulphur Rose discovery
- Feasibility Study Completed in Q4 2011 (calendar year)
Additionally, the Company will continue to carry out civil and infrastructure works that are critical to an expanded exploration effort and mine construction. Below are some of the key objectives and milestones for the remainder of 2010 and 2011:
- Completion of the access tote road to the Aurora site
- Completion of key Buckhall facilities
- Relocation and expansion of current camp and related facilities
- Construction of a larger permanent airstrip
- Additional site road construction for site preparation
- Examine merits of early construction of an underground portal and access ramp to allow for earlier underground access and additional underground exploration drilling
- Complete the Hydropower Feasibility Study and assess its potential inclusion in the overall Feasibility Study
- Complete negotiations with the government on the Mineral Agreement and obtain the Mining License for the Aurora Gold Project
DRILLING PROGRAMS
Expanded future drilling plans at Aurora and Aranka for 2011 have been designed to significantly increase potential local and regional mineralization along trend and expand newly discovered zones. Guyana Goldfields is dedicating an estimated $25-30 million for exploration in 2011 to advance both programs at Aurora and Aranka.
Ten (10) drill rigs will be operational at Aurora and will complete approximately 70,000 metres of drilling through June 2011 dedicated to further resource conversion from Inferred to Measured and Indicated as well as exploration drilling for a total combined budget of $15-20 million.
Up to Six (6) drill rigs with a budget of $10 million will be operational at Aranka with the potential to increase based on success. Further details are listed below on 2011 drilling activities at both properties.
Aurora (over 110,000 acres)
Within Golden Square Mile
Established Zones
Additional infill drilling will be completed on specific targeted areas of the eight (8) known and delineated zones.
New Aleck Hill (1) and Mad Kiss Zones (2)
Further infill and delineation drilling will be carried out on these three (3) new zones.
Underground Exploration and Rory's Knoll Deep Drilling
Continue drilling at depth below all Aleck Hill and Mad Kiss zones which remain unexplored to date below 500 metres. A deep drill has also been contracted for Rory's Knoll in the first half of 2011 to test for additional mineralization at depth below 1,000 metres. Previous deep drilling completed to date in this area indicates continued mineralization.
Outside Golden Square Mile
In 2010, the Company re-evaluated a geophysical survey over a five (5) km radius outside the Golden Square Mile and has identified forty-three (43) geophysical targets that resemble mineralization at Rory's Knoll through a specific potassium signature. These targets will be systematically drilled to identify gold mineralization outside the Golden Square Mile at Aurora.
Aranka District (over 307,000 acres)
Sulphur Rose
Assay results have been received from a total of sixty-two (62) holes aggregating 22,819 metres (as of October 31, 2010). The Company has so far delineated a northwest trending gold zone of significant mineralization measuring ~500m strike length by 200m width and approximately to a depth of 500m. An initial resource is being completed by Micon International Limited ("Micon"); an independent mining consultant company based in Toronto, Ontario, and is expected to be completed by the end of 2010. Targeted diamond drilling with two (2) rigs will continue to test mineralization laterally and at depth.
North Ridge
North Ridge is located approximately 5 kilometres north from the current area of drilling at Sulphur Rose. Mapping and sampling has demonstrated additional gold mineralization. A drilling program with one (1) rig has been initiated and assays are pending. Further drilling is expected to continue in 2011.
Wynamu
Wynamu is located approximately 35 kilometres north of Sulphur Rose and has been delineated by a 5km by 2km airborne radiometric potassium anomaly, with anomalous gold in stream sediments. Reconnaissance work and stream sediment sampling at the Wynamu prospect has continued to demonstrate very high assays. Several new areas have been selected for detailed grid soil sampling. One (1) drill rig will be mobilized to this highly prospective area in the first half of 2011.
Pakira Hills
Pakira Hills is located approximately 20 kilometres north of Sulphur Rose and is an area of anomalous gold in stream sediments. Reconnaissance drill programs are being contemplated.
Patrick Sheridan Jr. further commented, "We are extremely excited by the results of recent drilling and how, with additional work, it will further enhance the Aurora Gold Project. We look forward to bringing the country and people of Guyana a truly world-class gold mine. This next step forward will allow us to unlock the full potential of the Golden Square Mile, Sulphur Rose and our vast exploration portfolio."
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.
Source: Guyana Goldfields Inc.