TORONTO, June 25, 2012 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI" 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 April 30, 2012. The estimate was prepared by SRK Consulting (Canada), Inc. ("SRK") of Toronto, Canada in accordance with National Instrument 43-101 ("NI 43-101") and provides an update to the previous estimate released on September 9, 2011. The Bankable 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.
- 78% of all mineral resources are in the measured and indicated category (6.54 million gold ounces) and 22% are in the inferred category (1.82 million gold ounces)
- 27% increase in open pit measured & indicated mineral resources from 2.18 to 2.76 million gold ounces
- 15% increase in combined open pit and underground measured and indicated mineral resources from 5.71 to 6.54 million gold ounces
- 55% increase in open pit and underground inferred mineral resources from 1.17 to 1.82 million gold ounces
Dan Noone, Vice-President, Exploration states, "The overall 830,000 ounces increase in measured and indicated contained gold ounces, particularly the 580,000 ounces within the open pit, has the potential to significantly impact the economics of the Bankable Feasibility Study. Furthermore, the 650,000 ounces added in the inferred category has significantly increased the overall total resource of the Aurora Project into the ranks of world-class gold mines."
Mineral Resource Drilling Data
The updated mineral resource statement incorporates drilling data consisting of:
- All drilling completed from May 31, 2011 to April 30, 2012, incorporating an additional 171 drill holes and 56,337 metres since the previous resource estimate issued on September 9, 2011.
- The new mineral resource statement considers a total of 366,851 metres of drilling in 1,110 holes.
Resource Estimate Comparison
|Comparison between the September 9, 2011* and June 25, 2012** Mineral Resource Statements|
| Contained Gold
|Open Pit Mining|
|Measured + Indicated||20.22||32.77||3.34||2.62||2.18||2.76||27|
|Measured + Indicated||47.04||62.83||3.83||3.24||5.71||6.54||15|
|Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates.|
|* 2011 cut-off grades are based on a gold price of US$1,200 per ounce of gold and metallurgical recoveries of 95% for saprolite and fresh material. Open pit resources are reported at a cut-off grade of 0.40 gpt gold within conceptual pit shells, Underground mineral resources are reported at a cut-off grade of 1.8 gpt gold and include all blocks above cut-off outside the conceptual pit shells.|
|** 2012 cut-off grades are based on a gold price of US$1,300 per ounce of gold and metallurgical recoveries of 97% and 94.7% for saprolite and fresh material respectively. Open pit resources are reported at a cut-off grade of 0.30 and 0.40 gpt gold for saprolite and fresh respectively within conceptual pit shells, Underground mineral resources are reported at a cut-off grade of 1.80 gpt gold and include all blocks above cut-off outside the conceptual pit shells.|
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.
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 mineral resource statement 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. Ms El-rasi and Mr. Cole confirm that they have reviewed the information contained within 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.
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 1,200 professionals in 40 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 company, primarily focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Aurora Gold Project in Guyana has a current measured and indicated resource of 6.54 million ounces gold (62.83 million tonnes at a grade of 3.24 g/t). The Company plans to issue a revised Bankable Feasibility Study by the end of 2012. For further details regarding the Aurora Gold Project, reference should be made to the technical report for the Aurora Gold Project on SEDAR at www.sedar.com and on the Company website at www.guygold.com.
The Company has ongoing exploration programs at both its Aurora and Aranka properties.
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) 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 the opinions and estimates of management as of the date such statements are made and are based on various assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GGI to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the final findings set forth in the Feasibility Study , general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in GGI's annual information form. Although GGI 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 to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and GGI disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. 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.