Gold Exploration in the Guiana Shield
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Guyana Goldstrike Inc. (TSXV:GYA,OTC:GYNAF,FWB:1ZT) is exploring and developing the advanced-stage Marudi gold project in Guyana, South America. Guyana Goldstrike holds an 18-year mining license for the property, which remains 85 percent unexplored. The property lies within the Guiana Shield which hosts numerous gold deposits and has geological continuity to West Africa. The Marudi project lies within the southern gold belt of the shield. The property is divided up into two developed zones and three exploration targets.
The two most developed areas of the property are Marudi North and Mazoa Hill. The Marudi North zone covers an 800-meter by 500-meter area, is open to the west and at depth and has the potential to host an 80,000-ounce deposit. Guyana Goldstrike intends to extend the mineralization at Marudi North. The Mazoa Hill zone, however, hosts a 2018 resource estimate that outlines an inferred resource of 86,200 ounces of gold grading 1.60 g/t gold and an indicated resource of 259,100 ounces of gold grading 1.80 g/t gold.
Guyana Goldstrike is focusing its efforts on the Toucan Ridge target. Over 2,000 meters of trenching has been completed to date at Toucan Ridge, and gold has been found in nine separate trenches. Mineralized interval lengths of up to 40 meters have been assayed and returned values up to 23.5 g/t gold. In 2019, Guyana Goldstrike uncovered the second discovery area to 2.3 kilometers northeast of Toucan Ridge. The new zone is geologically distinguishable from Toucan Ridge. Highlights from the company’s 2019 trenching program include 3.60 meters grading 4.28 g/t gold, 4.20 meters grading 3.8 g/t gold and six meters grading 1.46 g/t gold.
Guyana Goldstrike will continue with its exploration efforts to find additional zones of mineralization. The company expects to commence drilling at Marudi in the near term to deliver an updated resource estimate containing at least one million ounces of gold and to begin work on a preliminary economic assessment (PEA) within the next 24 months.
Guyana Goldstrike has received support from Zijin Mining Group (SHA:601899) who owns approximately 24.4 percent of the company’s shares. Zijin Mining has invested over $3 million in Guyana Goldstrike for exploration via its investment funds. Management and insiders are also notably invested in the company holding approximately 50 percent of the shares.
- Holds 18-year mining lease on the Marudi project.
- Marudi project is located in the Guiana Shield which hosts numerous gold deposits and has geological continuity to West Africa.
- Marudi North zone is open to the west and at depth with the potential to host an 80,000-ounce deposit.
- Mazoa Hill zone hosts an inferred resource of 86,200 ounces of gold grading 1.60 g/t gold and an indicated resource of 259,100 ounces of gold grading 1.80 g/t gold.
- Over 2,000 meters of trenching has been completed to date at Toucan RIdge.
- Drilling to commence in the near term.
- An updated resource estimate and PEA expected within the next 24 months.
- Zijin Mining holds 24.4 percent of shares.
- Management and insiders notably hold approximately 50 percent of shares.
Mining in Guyana
Guyana has a long history of gold production and currently produces over 600,000 ounces of gold annually. All of the country’s gold production occurs within the Guiana Shield which has geological continuity with West Africa. The shield, however, is underexplored when compared to its African counterpart, providing exploration and development potential.
The democratic country has an established mining act and hosts a strong Canadian public mining company presence. Barrick Gold (TSX:ABX) has also expressed an interest in pursuing opportunities in the Guiana Shield by investing in early-stage exploration projects.
Marudi Gold Project
The 13,500-hectare Marudi gold project contains an 18-year mining license and is located 230 kilometers from Lethem in southern Guyana, South America. The property is accessible year-round by road and by air. The project also has an established mining camp already on-site.
The property is part of the Guiana Shield, a highly mineralized geological formation that covers over 415,000-square-kilometers. Mining in the Guiana Shield dates back to the sixteenth century, and numerous artisanal miners are still active across the region
Marudi North Zone
The Marudi North zone covers an 800-meter by 500-meter area and is open to the west and at depth. The target is one-kilometer north-northwest of the Mazoa Hill deposit and is 100 meters from the main camp. In 2012, a previous operator intersected 8.92 meters grading 2.95 g/t gold and 8.95 meters grading 0.26 g/t gold. The former operators also completed 3,327.40 meters of trenching and assay results returned values of up to 11 g/t gold.
The western extension of the Marudi North zone is open to the west and has the potential to host an 80,000-ounce deposit. In 2018, Guyana Goldstrike uncovered quartzite-metachert, the host rock for gold mineralization, in its first three trenches. The mineralization occurs between one and four meters below the surface. Assays from the trenches are pending.
Mazoa Hill Zone
The Mazoa Hill zone is a 300-meter by 300-meter zone that remains open to the southeast and at depth. A drilling program conducted in 2011 and 2012 intersected 6.5 meters grading 14.85 g/t gold, 33.6 meters grading 1.86 g/t gold and 37.5 meters grading 2.59 g/t gold. In 2019, the company identified previously unmapped outcrops along 1,100 meters of a magnetic trend at Mazoa Hill. Grab samples from four of the outcrops returned values up to 1.04 ppm gold. The trend extends north from Mazoa Hill for approximately 1,700 meters and remains underexplored.
Mazoa Hill 2018 Resource Estimate
In January 2018, Guyana Goldstrike released a resource estimate for Mazoa Hill. The report outlined an inferred resource of 86,200 ounces of gold grading 1.60 g/t gold and an indicated resource of 259,100 ounces of gold grading 1.80 g/t gold.
“The resource estimate for Mazoa Hill is a company milestone and a great step towards the further development of the Marudi gold project. The potential for additional ounces on the property is excellent when one considers the following factors: Mazoa Hill is open in a number of directions including at depth, the Marudi North zone is also open in a number of directions and contains a historic resource estimate and lastly, only five percent of the entire property has ever been explored,” said Guyana Goldstrike President and CEO Peter Berdusco.
Toucan Ridge target
The Toucan Ridge target continues in an easterly direction for over 1.75 kilometers. The eastern portion of the target is approximately 400 meters south of the Paunch target. In 2018, Guyana Goldstrike completed a mapping, sampling and trenching program at the Toucan Ridge target. Over 2,000 meters of trenching has been completed to date and resulted in the discovery of two new gold areas.
Gold has been found in nine separate trenches, and visible gold has been found in samples. Mineralized interval lengths of up to 40 meters have been assayed and returned values up to 23.5 g/t gold.
In 2019, Guyana Goldstrike uncovered the second discovery area to 2.3 kilometers northeast of Toucan Ridge. The new zone is geologically distinguishable from Toucan Ridge. Highlights from the company’s 2019 trenching program include 3.60 meters grading 4.28 g/t gold, 4.20 meters grading 3.8 g/t gold and six meters grading 1.46 g/t gold.
A total of 166.4 meters of surface trenching was completed at the Paunch target in 2018. The trenching program returned two meters grading 7.45 g/t gold, two meters grading 1.86 g/t gold and two meters grading 5.98 g/t gold in three separate trenches.
Guyana Goldstrike will continue with its trenching, sampling and geophysics to find additional zones of mineralization. The company also intends to commence drilling at defined target areas in the near term. Guyana Goldstrike expects to deliver an updated resource estimate containing at least one million ounces of gold and plans to begin work on a PEA within the next 24 months.
Peter D. Berdusco — President, CEO and Director
Peter Berdusco is a senior executive officer and a board member in the public and private sectors. Over the past 20 years, he has applied his expertise to corporate restructurings, reverse-take-overs, capital pool companies, board oversight, strategic planning, corporate management and project financing. As a founding director and president of Giantstar, a TSX capital pool company, he steered its reverse-take-over of Chalk Media which was later sold to Blackberry. In the last 10 years, he has fulfilled the position of Chief Executive Officer for a number of junior resource companies that trade on the TSXV. During his tenure as CEO, he has successfully raised capital and funded mining projects in the Americas and in Africa. Berdusco brings the executive acumen needed to achieve the exploration upside and mining potential that the Marudi project possesses.
Locke Goldsmith, M.Sc., P.Eng, P.Geo — Chief Geologist and Exploration Manager
Locke Goldsmith has been a self-employed consulting mining exploration geologist since 1970 and has worked on projects worldwide. He is a registered Professional Engineer in Ontario and British Columbia, and a registered Professional Geologist in British Columbia, Oregon, Minnesota and Wisconsin. Goldsmith is a member of the Society of Economic Geologists, and the American Institute of Mining and Metallurgical Engineers. He is a graduate of the Haileybury School of Mines in Ontario, Canada and received his B.Sc. (Honours) in Geology from Michigan Technological University. He received his M.Sc. in Geology from the University of British Columbia, Canada.
Donald J. Birak, M.Sc., Regis, Mem. SME, Fellow AusIMM — Independent Technical Director
Donald Birak is a Consulting Geologist with over 37 years of experience in the minerals industry. He served as Senior VP of Exploration and consultant for Coeur Mining from 2004 through 2013, VP of Exploration for AngloGold North America from 1999 to 2004, for Independence Mining from 1995 to 1999 and for Hudson Bay Mining and Smelting from 1992 to 1995. Currently, he serves as an Independent Director of Dolly Varden Silver Corp. He is a Registered Member of the Society for Mining, Metallurgy and Exploration (SME) a Fellow of Australasian Institute of Mining and Metallurgy (AusIMM) and of the Society of Economic Geologists (SEG). Birak has been published in a number of scientific and geologic journals and is a co-recipient of the ‘Bill Dennis Prospector of the Year’ award given by the Prospectors and Developers Association of Canada. He has a M.Sc. in Geology from Bowling Green State University in 1978.
Scott Davis, CPA, CGA — CFO and Director
Scott Davis is a Chartered Professional Accountant and a partner of Cross Davis & Company LLP Chartered Professional Accountants, a firm focused on providing accounting and management services for publicly listed companies. His experience includes CFO positions of several companies listed on the TSXV and his past experience consists of senior management positions, including four years at Appleby as an Assistant Financial Controller. Prior to that, he spent two years at Davidson & Company LLP Chartered Professional Accountants as an auditor, five years with Pacific Opportunity Capital Ltd. as an Accounting Manager and two years at Jacobson Soda and Hosak, Chartered Professional Accountants.
Rodney Stevens, CFA — Independent Director
Rodney Stevens is a CFA charter holder with over 10 years of experience in the capital markets, first as an Investment Analyst with Salman Partners Inc., then as a merchant and investment banker. While at Salman Partners, he became a top-rated analyst by StarMine on July 17, 2007 for the metals and mining industry. Over the course of his career, Stevens has been instrumental in assisting in financing and M&A activity worth over $1 billion in transaction value.
Sha Liu, M.Sc. — Director
Sha Liu is currently a marketing director of Gold Mountains Asset Management Limited. Prior to joining Gold Mountains Asset Management Limited, she worked at the Zijin Mining Group as an investment manager between 2010 and 2014, where she was responsible for direct investments. Prior to this, she worked at the China Development Bank from 2014 to 2015, where she specialized in making direct investments in the resources sector and provided M&A advice for mining projects. Liu received a bachelor’s degree in Geology Engineering from Jilin University in 2007 and a masters degree in Mineral Resources Engineering from the RWTH Aachen University in 2010, a masters degree in Mineral Resource Management from Exeter University in 2010 and a masters degree in Geology Engineering from the China University of Geosciences (Beijing) in 2011.
Robert Stuart “Tookie” Angus – Advisor to the Board
Mr. Angus is an independent business advisor to the mining industry and is presently Chairman of San Marco Resources Inc, K92 Mining Inc, and Kenadyr Mining (Holdings) Corp. He was formerly Head of the Global Mining Group for Fasken Martineau. For the past 40 years, Mr. Angus has focused on structuring and financing significant international exploration, development and mining ventures. More recently, he was managing Director of Mergers & Acquisitions for Endeavour Financial and was responsible for merger and acquisition mandates. Mr. Angus is the former Chairman of the Board of BC Sugar Refinery Limited, he was a Director of First Quantum Minerals until June 2005, a Director of Canico Resources Corporation until its takeover by Brazil’s CVRD in 2005, a Director of Bema Gold Corp. until its takeover by Kinross Gold Corporation in 2007, a Director of Ventana Gold Corp. until its takeover by AUX Canada Acquisition Inc. in 2011 and a Director of Plutonic Power Corporation until its merger with Magma Energy Corp. in 2011. He resigned June 30, 2017 as Chair of Nevsun Resources Ltd following its acquisition of Reservoir Minerals.
Donald J. Birak – Advisor to the Board
Mr. Birak is a Consulting Geologist with over 40 years of experience in the minerals industry. He served as Senior Vice President of Exploration and consultant for Coeur Mining Inc. from 2004 through 2013, Vice President of Exploration for AngloGold North America from 1999 to 2004, for Independence Mining Inc. from 1995 to 1999, and for Hudson Bay Mining and Smelting Co. Ltd. Currently, he serves as an Independent Director of Dolly Varden Silver Corp. and of Revival Gold Inc. He is a Registered Member of the Society for Mining, Metallurgy and Exploration (SME), a Fellow of Australasian Institute of Mining and Metallurgy (AusIMM), Fellow of the Society of Economic Geologists (SEG) and has extensive experience with Canadian and US securities regulations with respect to public reporting of exploration results and mineral resources and reserves. Mr. Birak has been published in a number of scientific and geologic journals and was a co-recipient of the ‘Bill Dennis Prospector of the Year’ award given by the Prospectors and Developers Association of Canada. He has a M.Sc. in Geology from Bowling Green State University.
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