The Republic of Guyana is an English-speaking, democratic, South American country tucked between Venezuela and Suriname. In 2016, Guyana produced 690,000 ounces of gold as two mines began commercial production: the Aurora deposit (Guyana Goldfields Inc. [GUY:TSX]) and the Karouni deposit (Troy Resources Ltd. [TRY:TSX; TRY:ASX]).
As Guyana opens its borders to international investment, Guyana Goldstrike Inc. (GYA: TSX.V; GYNAF:OTC; 1ZT:FSE) is updating its historical mineral resource estimate for Mazoa Hill Zone at the Marudi Gold Project.
Guyana Goldstrike announced on Nov. 21 that it has hired Global Mineral Resource Services to establish a new mineral resource estimate to be included in an NI 43-101 technical report. The company noted that there have already been 54 holes (9,666 meters) of diamond drilling completed on Mazoa Hill by previous owners, resulting in a historical mineral resource estimate.
Guyana Goldstrike stated that its immediate objective is to update the historical work with modern geological techniques, and to try to expand the resource through development of the current zones and through the discovery of new zones.
The entire Marudi Gold Project has three known gold-bearing areas: the alluvial areas, the saprorlite overburden, and the underlying hard rock. Project-wide, there has been 42,000 metres of diamond drilling (141 holes) resulting in a delineated historical mineral resource estimate, the company reported.
A 2016 NI 43-101 Technical Report on the Marudi Property states that "The central zone, which includes Mazoa Hill, Peace Creek and Marudi Mountain, is characterized by fine gold associated with massive iron formation."
Metallurgical studies "conducted between 1982 and 1995 indicate the mineralized rock is responsive to conventional cyanidation and pre-concentration by flotation or gravity methods and potentially amenable to heap leaching," the report noted.
"The project has a mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager," the company stated in the Nov. 21 news release.
Guyana Goldstrike warns that the historical estimates and mineral reserves are not accordance with National Instrument 43-101. However, "the Company does consider these historical estimates to be relevant as they may indicate the presence of gold mineralization and favourable geology."
On Nov. 16, Guyana Goldstrike announced that it had commenced phase 1 exploration activities at Marudi.
It noted that the phase 1 objectives included:
- Up to 12,000 metres of trenching
- Extensive rock and soil sampling
- Expansion of surface mineralization in known zone
- Detailed geological mapping (lithologic, alteration, and structural)
- Discovery of new mineralization and evaluation
- Drill-target selection and definition
"The Company's exploration strategy is to upgrade and expand the Project's two known mineralized zones and to continue to explore for new areas of mineralization," stated Locke Goldsmith, MSc., Chief Geologist and Exploration Manager for Guyana Goldstrike. "Marudi is greatly under-explored and possesses tremendous potential for additional discoveries."
The current exploration focus represents less than 5% of the total land package. New areas of interest include: Kimberley Ridge, Marudi North (west and east extensions), Marudi Spur Ridge, Toucan North, Pancake Creek, Mariwa and Success Creek, the company stated.
According to a November 9 press release, "The proposed exploration program on the Property will be completed in multiple phases, as working capital and financing are made available to the Company. The Company may also elect to alter subsequent phases of the program, based on the results and success of earlier phases."
"Political risk discount" refers to share price depreciation caused by the possibility of a local or national government shutting down a mining project.
The political discount in Guyana is rapidly shrinking. Guyana is open to foreign investment and ideas. For example, members of the Guyana Police Force are being trained by Canadian police to improve investigative protocols and techniques.
The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin subgroup.
Guyana Goldstrike noted that a 2016 Independent Technical and Environmental Review of the Karouni project by Behre Dolbear Australia Pty Ltd. determined that "The Guiana Shield has over 100 million ounces of gold inventory and is world-recognized as a premier gold region."