News - GUY/aurora increases to 5.34M oz AUGuyana Goldfields' Aurora at 5.34 Moz Au M+I
Guyana Goldfields Inc (C:GUY)
Shares Issued 81,570,743
Last Close2/25/2011 $8.23
Monday February 28 2011 - News Release
Mr. Claude Lemasson reports
GUYANA GOLDFIELDS SIGNIFICANTLY INCREASES MINERAL RESOURCESAND GRADE AT THE AURORA GOLD PROJECT, GUYANA
Guyana Goldfields Inc. has released an updated mineralresource statement for its 100-per-cent-owned Aurora gold project in Guyana,South America. This new estimate includes all drilling data obtained up to theend of November, 2010. The estimate was prepared by SRK Consulting (Canada) Inc.of Toronto, Ont., in accordance with National Instrument 43-101 (NI 43-101) andprovides an update to the previous estimate released in Stockwatch news on Aug.24, 2009. The next estimate is scheduled to be released in August, 2011, andwill incorporate drilling up to June. The feasibility study is scheduled forcompletion during the fourth quarter and will be based upon the August, 2011,resource estimate.
Highlights
- --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 thelikelihood of more ounces being added with the additional drilling planned forthis year support our organic growth strategy and should significantly enhancethe economics of the Definitive Feasibility Study, which is currently underway.The positive impact of the 2009/2010 drilling campaigns which discovered andextended various zones at depth within the Golden Square Mile is finallyreflected in the new resource numbers. We remain very confident that thisalready robust project will continue to grow and soon join the ranks ofworld-class producing gold mines." said Mr. Claude Lemasson, President &Chief Operating Officer.
Mineral Resource Drilling Data
The updated mineral resource statement incorporates drillingdata consisting of:
Drilling for the Preliminary Assessment completed in August2009 totaling 140,442 metres with drilling data up to June 2, 2009 --Infill andexploration drilling completed from June 3, 2009 to November 21, 2010 totalingan additional 79,446 metres, during which new mineralized zones were discoveredbeneath the Aleck Hill and Mad Kiss shallow zones (see press releases datedApril 20, 2010 and August 18, 2010) --The new mineral resource statementcontains a total of 209,000 metres of drilling in 776 holes.
Resource Estimate Comparison
February 2011 August 2009
Gold Price(US$)$1,040/ozTonnes(000 t)Grade(g/t)Gold(000 oz) Gold Price(US$)$750/oz Tonnes(000 t)Grade(g/t)Gold(000 oz)
O/P O/P
MandI 17,277 3.51 1,947 M&I 11,136 3.31 1,185
Inf 3,533 3.74 425 Inf 5,013 2.44 393
U/G U/G
MandI 24,894 4.24 3,394 M&I 13,010 4.85 2,027
Inf 6,898 4.10 910 Inf 7,931 3.82 973
O/P and U/G O/P & U/G
MandI 42,171 3.94 5,341 M&I 24,146 4.14 3,212
Inf 10,432 3.98 1,334 Inf 12,944 3.28 1,366
TOTAL 52,603 3.95 6,675 TOTAL 37,090 3.84 4,578
*Cut-off grade: 0.45 g/t Au for O/P and 2.0 g/t Au for U/G. *Cut-off 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
Mineral Inventory
The new resource estimate is based on a mineral inventory.The table below summarizes the global tonnes and grade estimates in the blockmodel constructed by SRK at various cut-off grades. It is to be noted that thefigures presented in the following table should not be misconstrued with themineral resource statement presented in the table above. They are presented onlyto illustrate the sensitivity of the global tonnes and grade estimates to theselected cut-off grades.
Measured and Indicated Resources within Mineral Inventory Inferred Resources within Mineral Inventory
COG (g/t) Tonnes (000) Grade (g/t) Gold (000 oz) COG (g/t)Tonnes (000)Grade (g/t)Gold (000 oz)
0.3 51,452 3.49 5,770 0.3 14,539 3.17 1,480
0.4 51,239 3.50 5,760 0.4 14,451 3.19 1,480
0.5 50,887 3.52 5,760 0.5 14,268 3.22 1,480
0.6 50,488 3.54 5,750 0.6 14,020 3.27 1,470
0.7 49,898 3.58 5,740 0.7 13,788 3.32 1,470
0.8 49,372 3.61 5,730 0.8 13,480 3.38 1,460
0.9 48,614 3.65 5,700 0.9 13,074 3.45 1,450
1.0 47,879 3.69 5,680 1.0 12,712 3.52 1,440
2.0 36,706 4.34 5,130 2.0 9,029 4.37 1,270
3.0 23,572 5.38 4,080 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 thetable above should not be misconstrued with the mineral resource statement. Theyare presented only to show the sensitivity of the global quantity and gradeestimates to the selection of cut-off grades.
A total 2011 budget of $20 million is being allocated fordrilling at Aurora. Ten (10) drill rigs are operational with the goal ofdrilling 70,000 metres by the end of June. This drilling aims to further convertinferred to measured & indicated resources during the first half of theyear. Exploration drilling will continue for the remainder of the year and isdesigned to significantly increase the discovery potential of local and regionalmineralized trends and recently identified zones.
Currently there are over 20 geologists working at both Auroraand the Company's Aranka properties. The Company continues its assessment of thepossibility of including Sulphur Rose and its initial resource of 460,400 ounces(see press release dated December 31, 2010) into the Aurora Feasibility Studydue to its proximity and similar metallurgical character. Two (2) drills areoperating at Sulphur Rose dedicated to carry out exploration and infill drillingin order to confirm additional resources.
"We are very pleased by the drilling success and the increasein mineral resources. We are also continuing infrastructure constructionactivities at site and will be in a position to start the mine developmentprocess in the fourth quarter of this year after the completion of theFeasibility Study. The Aurora Gold Project will make a significant contributionto the economy of Guyana with gold production expected to commence in late2013." stated Mr. Lemasson.
The Aurora exploration and infill drilling programs are beingcarried out under the supervision of Mr. Niel Silvio (Aus.IMM), a qualifiedperson within the meaning of NI 43-101. Mr. Silvio has reviewed the contents ofthis news release.
The resource estimate was prepared by SRK resource estimationspecialists Dorota El-Rassi P.Eng (APEO #100012348) and Glen Cole, P.Geo (APGO#1416) who are the independent "Qualified Persons" for the Purposes of NI43-101, Standards of Disclosure for Mineral Projects of the Canadian SecuritiesAdministrators, and confirm that they have reviewed the information containedwithin this release.
Drill core samples for the 2009/2010 drilling campaigns weresent to and prepared at ACME Analytical Laboratories Ltd (ACME Lab) inGeorgetown, Guyana while assaying was done at ACME Lab in Santiago, Chile.
About SRK Consulting
SRK Consulting is an independent, international consultingpractice that provides focused advice and solutions to clients, mainly fromearth and water resource industries. The SRK Group comprises over 1,000professionals in 36 offices worldwide, offering expertise in a wide range ofresource engineering disciplines. The SRK Group's independence is ensured by thefact that it holds no equity in any project and that its ownership rests solelywith its staff. This permits SRK to provide its clients with conflict-free andobjective recommendations on crucial judgment issues. SRK has a demonstratedtrack record in undertaking independent assessments of Mineral Resources andMineral Reserves, project evaluations and audits, technical reports andindependent feasibility evaluations to bankable standards on behalf ofexploration and mining companies and financial institutions worldwide.
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