VANCOUVER, July 11, 2012 /PRNewswire/ - Guyana Frontier Mining Corp. ("Guyana Frontier") announces that it has received a program and budget from Mulgravian Ventures Corporation ("Mulgravian", a private Canadian exploration company) for proposed 2012 exploration and administration costs on the Five Star Gold Project ("Five Star"), located in Guyana, South America. A joint venture was formed in 2012 on Five Star between the two companies, with Mulgravian as operator holding a 51% interest and Guyana Frontier holding a 49% interest (see Guyana Frontier news release dated April 17, 2012).
Highlights of 2012 Exploration Plans
- Program and budget presented by Mulgravian totals US$3,945,000;
- Geochemical survey consisting of approximately 2,000 samples;
- Prospecting and mapping program of an estimated 500 samples;
- Airborne magnetic and radiometric survey over areas of Five Star not previously flown;
- Diamond drilling program of approximately 5,000 metres, using up to two drills;
- Permit received for construction of an airstrip and its associated infrastructure.
Guyana Frontier has elected not to contribute to the 2012 Five Star program, and awaits the results of the ongoing exploration from Mulgravian.
Five Star Exploration Focus
The objective of the 2012-2013 exploration program is to better establish local structural and lithologic controls to gold mineralization at several target areas. Various anomalies along the Green Hill trend have been the focus of recent artisanal mining. In general, the Green Hill trend is a significant ENE trending shear zone system hosted in greenstones of the Barama-Mazaruni Supergroup. The zone has a clear geochemical expression based on historical sampling to 2007 where gold mineralization is believed to be associated with discrete and anastomosing shears. Geologically disrupted areas within the general northeast trend result in apparent periodic mineralized pods. For example, Mulgravian's 2012 sampling in Trench 2 on the western extent of the Green Hill trend returned 0.83 grams/tonne gold over 28.0 metres, which included 1.41 grams/tonne gold over 12.0 metres. Not all of the anomalies defined by historical work have been duplicated by recent work, which may be due to difficulty in locating the historically anomalous areas where they are heavily vegetated or have been subject to previous mining activity. Continued sampling and mapping is recommended, leading to diamond drilling in the most prospective areas.
The technical work disclosed in this document was supervised, reviewed and approved by Robert Lunceford, M.Sc., CPG, who is a Qualified Person as defined in National Instrument 43-101 ("NI 43-101").
About Five Star
Five Star consists of 17 mining permits and 8 prospecting permits, which cover an area of approximately 25,065 acres (10,144 hectares) near the settlement of Matthew's Ridge, Guyana. Guyana Frontier acquired its 100% interest in Five Star from two separate underlying vendors, Case Development Company Ltd. and Marcel Waaldijk (the "Underlying Vendors"), with each of the Underlying Vendors currently maintaining a 3% net smelter returns royalty ("NSR") on their respective permits. Each NSR is subject to buy-down provisions. Mulgravian earned its 51% working interest in Five Star from Guyana Frontier by incurring exploration expenditures and by purchasing shares in Guyana Frontier, as follows:
- making aggregate exploration expenditures and certain property acquisition payments to the Underlying Vendors totalling US$2,000,000 within a four-year period from the date of TSX-V acceptance, being May 10, 2011;
- purchasing an aggregate of 700,000 units (the "Units") of Guyana Frontier by way of private placement for gross proceeds of CDN$210,000; and
- exercising all of the common share purchase warrants comprising the Units for further gross proceeds to Guyana Frontier of CDN$420,000.
On May 9, 2011, Guyana Frontier filed a technical report in respect of Five Star on SEDAR compliant with the standards of NI 43-101, available at www.sedar.com
About Guyana Frontier
Guyana Frontier is a public mineral exploration company listed on the TSX Venture Exchange (TSX-V: GYG), and is focused on the exploration, discovery and development of precious metals deposits located within Guyana, South America. Guyana Frontier began acquiring interests in Guyanese exploration properties in 2007, and now holds various rights to obtain working interests in approximately 342,000 acres (138,400 hectares) of prospective lands. Guyana Frontier's goal is to develop a significant gold resource at the Marudi Mountain Gold Project in southern Guyana, and to explore its other Guyanese projects using funding from exploration partners.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that Guyana Frontier expects or anticipates will or may occur in the future, including such things as planned exploration activities at the Five Star property, the operation of the joint venture between Guyana Frontier and Mulgravian, future business strategy, competitive strengths, goals, expansion, growth of Guyana Frontier's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the existence of weather conditions suitable for exploration activities; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Guyana Frontier's publicly filed documents. Although Guyana Frontier has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Guyana Frontier Mining Corp.