TORONTO, Oct. 20 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("Guyana Goldfields" or the "Company") reports the acquisition of three contiguous groups of properties totaling approximately 79,000 acres. The newly acquired area has a long history of gold production dating back ninety years. Furthermore, the properties are contiguous to the Company's current holdings in the Aranka district. Company geologists have so far identified two areas for immediate follow up exploration work including diamond drilling.
Guyana Goldfields may earn a 100% interest in Property 'A' (24,000 acres) by paying US$40,000 over three years. The vendor maintains a 1.5% net smelter return ("NSR") and the Company has the option to purchase the NSR at any time for US$1.5 million. Augering of soil and saprolite material has delineated a distinct zone of gold enrichment, measuring approximately 100 metres by 300 metres. Further infill augering and trenching is planned for this area prior to establish drilling locations.
The Company may earn a 100% interest in Property 'B' (33,000 acres) by paying US$475,000 over five years. The vendor shall maintain a 2% NSR, with the Company having an option to purchase the NSR at any time for US$2 million. Property 'B' has been the subject of recent extensive exploitation by itinerant miners and is believed to host the geological structures considered to be highly prospective for gold mineralization.
Property 'C' (22,000 acres) was purchased outright for approximately US$200,000. The property hosts several historical and current gold workings. A road cut on the property has exposed auriferous quartz vein stockworks over a distance of approximately 60 metres. An excavator and drill have been mobilized to the property and drilling is expected to commence shortly.
Patrick Sheridan Jr., CEO of Guyana Goldfields, states, "We are excited about the acquisition of these key properties and the expansion of the Company's exploration efforts. In the same manner as our discovery at Aurora, we have the expertise and the resources needed to explore the full potential of the area. Through further exploration in the near term, I am confident that we will continue to discover additional targets given the prominent gold history in the area and its highly prospective nature."
The Aranka district exploration campaign has been running for about three years and consists of airborne geophysical surveys, the collection of high resolution satellite imagery, extensive stream sediment and soil sampling surveys and limited hand trenching and diamond drilling. In addition to the areas described in this release, several other areas have been selected for follow-up work. Current land holdings in the district exceed 300,000 acres. The Aranka exploration campaign is running concurrently with the Aurora property exploration and development program.
This news release and its contents have been reviewed by Mr. Niel Silvio (Aus.IMM) and Mr. Alexander Po (P.Geo./ MEng), both qualified persons within the meaning of National Instrument 43-101.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based mineral exploration company primarily focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Company is currently undertaking technical studies to advance and develop the Aurora Project in Guyana. As at the date hereof, the Company has approximately $22 million in cash and short-term bank guaranteed investment certificates and no debt.
SOURCE Guyana Goldfields Inc.
For further information: For further information: Mr. Claude F. Lemasson, President & COO or Ms. Jacqueline Wagenaar, Director of Investor Relations, Guyana Goldfields Inc., Suite 1205-141, Adelaide Street West, Toronto, Ontario, Canada, M5H 3L5, Tel: (416) 628-5936, Fax: (416) 628-5935, email@example.com, www.guygold.com