Guyana Goldstrike Reports Assays of 3.28 g/t Au over 4.20 Metres and 1.29 g/t Au over 12.60 Metres in Trenches TTR-18-11, 12 and 13 at Toucan Ridge, Marudi Gold Project, Guyana
(TheNewswire)
February 14, 2019 / TheNewswire / Vancouver, Canada – Guyana Goldstrike Inc. (the “Company” or “Guyana Goldstrike”) (TSXV: GYA, OTC: GYNAF, FSE:1ZT) is pleased to report assay results from Trenches TTR-18-11, TTR-18-12, and TTR-18-13 at the Toucan Ridge area on its Marudi Gold Project ("Marudi" or the "Property") located in the Guiana Shield, Guyana, South America.
Trench TTR-18-11
TTR-18-11, located approximately 500 metres northeast of trench TTR-18-06 along Toucan Ridge, was trenched for a total length of 125.00 metres and 50 samples were taken. Quartzite-metachert (host rock) was exposed in place for two intervals with a total length of 56.40 metres. Assay results are from samples taken in hard and slightly weathered host rock. Assays returned values of 0.81 g/t Au over 6.00 metres, within 22.60 metres of 0.28 g/t Au, and 3.28 g/t Au over 4.20 metres within 23.80 metres of 0.61 g/t Au.
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Note: Interval lengths do not represent true widths.
Trench TTR-18-12
Trench TTR-18-12, located approximately 500 metres northeast of trench TTR-18-06 along Toucan Ridge, was trenched a total length of 136.50 metres with 57 samples taken. It was trenched parallel to trench TTR-18-11 and was oriented to cross an outcrop of quartzite-metachert. Assay results are from samples taken in hard and slightly weathered host rock. Assays returned values of 1.29 g/t Au over 12.60 metres and 1.18 g/t Au over 9.00 metres, within 85.10 metres of 0.36 g/t Au. The interval length of 85.10 metres represents the trenching programs longest mineralized interval to date.
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Note: Interval lengths do not represent true widths.
Trench TTR-18-13
TTR-18-13, also parallel to TTR-18-11 and 12, located approximately 500 metres northeast of trench TTR-18-06 along Toucan Ridge, was trenched for a total length of 137.90 metres with 55 samples taken. Assay results are from samples taken in hard and slightly weathered host rock. Assays returned values of 1.37 g/t Au aver 6.00 metres within 60.00 metres of 0.21 g/t Au.
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Note: Interval lengths do not represent true widths.
Toucan Ridge Trenching
These represent the final assays from trenches TTR-18-11, TTR-18-12, and TTR-18-13. A total of 2023 metres has been trenched and 630 samples taken. The area of interest continues for more than 1.75 kilometres to the east of trench TTR-18-06. To date, a total of 12 trenches have been completed within the area of interest. Trench sites are planned where quartzite-metachert is exposed or interpreted to occur beneath the transported overburden.
Please view below, "Table of Significant Gold Assay Results to Date" for a list of all trenching results on Toucan Ridge to date, and "Toucan Ridge Location Map" for the location of the Toucan Ridge area of interest and related trenches.
Current Gold Zones and Mineral Resource Estimates at Marudi
The Mazoa Hill Zone contains the Company’s current mineral resource estimate. The Toucan Ridge area is located approximately one kilometre north of the Mazoa Hill zone. Data analyzed suggests that the mineralized zone is open at depth and to the southeast. Mazoa Hill zone mineral resource estimates:
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- 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.80 g/t;
- 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 g/t
For further information regarding the resource estimates, readers are encouraged to review the technical report “Marudi Property Mazoa Hill Mineral Resource Estimate”, available under the Company’s profile on SEDAR.
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TOUCAN RIDGE LOCATION MAP
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About Quartzite-metachert (Host Rock) at Marudi
At Marudi, all important gold mineralization discovered to date is associated with the medial quartzite-metachert (host rock) unit of the Marudi Mountain Formation. Gold occurs within the magnetite-hematite rich quartzite and in the magnetite-silicate iron formation. Mineralization of the host rock may be affected at surface by the erosion at different levels of the strata. Therefore, all discoveries of quartzite-metachert on the Property are considered important for the potential of containing mineralization at surface and/or at depth and should be explored through trenching and drilling.
Marudi Geology
Gold mineralization at Marudi is regarded as being related to iron-formation-hosted gold ("IFG") deposits that occur in other cratonic greenstone belts around the world. These deposits can be remarkably long-lived with sizeable gold production. They have a strong association between gold and iron sulfide minerals, the presence of gold bearing quartz veins and structures, the occurrence of deposits in structurally complex terranes, and the absence of lead and zinc enrichment.
Examples of some existing IFG deposits are: the Homestake Mine, Lupin Mine, and Musselwhite Mine.
The Homestake Mine located in South Dakota USA and was the largest and deepest gold mine in North America. It has reported production of 43.9 million ounces of gold and was in production from 1878-2001. (Source: https://en.wikipedia.org/wiki/Homestake_Mine_(South_Dakota)
The Lupin Mine located in Nunavut, Canada, no longer in production, produced approximately 3 million ounces of gold. (Source: http://www.kinross.com/news-and-investors/news-releases/press-release-details/2003/Suspension-of-Operations-at-the-Lupin-Mine/default.aspx)
The Musselwhite mine located in Ontario, Canada has estimated reserves of 2.29 million ounces of gold and is owned and operated by Goldcorp and will be in production until 2020. (Source: https://en.wikipedia.org/wiki/Musselwhite_mine)
About the Marudi Gold Project
The Company is developing the Marudi Gold Project located in Guyana, South America. The project has 18-year mining license in good standing, all-season road access, infrastructure in place, with an established camp serviced by employees, service buildings, and a full-time camp manager. The Property has three known gold bearing areas: the alluvial areas, the saprolite, and the underlying hard-rock.
There has been 42,000 metres of historic diamond drilling (141 holes) completed on the project by prior operators that have delineated two zones of mineralization: Mazoa Hill and Marudi North zones. The Company has recently completed a mineral resource estimate on the Mazoa Hill zone containing 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.80 g/t and 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 g/t. The Company has recently discovered a third mineralized zone: Toucan Ridge. This zone is the current focus of the Company’s 2018 trenching program. There exists excellent exploration upside for the further discovery of mineralized zones through the development of previously and newly identified mineralized bedrock targets on the project.
For information concerning the mineral resource estimate and the project, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate”, a technical report prepared for the Company by Global Mineral Resource Services and is available at http://www.guyanagoldstrike.com/images/pdf/43101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf and under the Company's profile on SEDAR www.sedar.com.
Sampling and Assaying
All samples collected during the trenching program were delivered by Guyana Goldstrike personnel to Activation Laboratories Ltd. (Actlabs), located in Georgetown, Guyana. Actlabs is ISO 17025 accredited and an ISO 9001:2008 qualified and certified assayer that performs and makes available internal assaying controls. Actlabs has more than 25 years' experience and maintains complete analytical laboratories that perform high quality analysis for many industries around the world.
Two samples are collected from each interval in the trenches. The first sample is sent to Actlabs to be assayed either by fire assay for gold, or for gold by total metallic content, to account for free gold and nugget effect. The second sample is panned to determine if visible gold may be present; a count of gold points and dust is recorded.
All samples that are identified by the project geologist as quartzite-metachert (the typical host rock for gold mineralization at Marudi) are routinely sent to Actlabs for total metallic content. Sample intervals of any rock type that contain visible gold in panning are also assayed by total metallics.
Quality Assurance / Quality Control
Certified blanks and standards are systematically used in the trenching program as part of Guyana Goldstrike's quality assurance/quality control (QA/QC) program. One blank and one standard are inserted into sample shipments at every 20th sample. Duplicates are also inserted into sample shipments.
Debt Financing
The Company also announces that it has reached an agreement with an arms’-length third-party (the “Lender”) pursuant to which the Company will borrow $300,000 to be used for general working capital purposes (the “Loan”). The Loan will be evidenced by the issuance of a debenture (the “Debenture”) to the Lender, which will be secured by a charge over all of the assets of the Company. The Debenture will have a term of thirty-six months, and will bear interest at a rate of fifteen percent per annum, payable quarterly. At the option of the Lender, the Debenture will be convertible into common shares of the Company at a price of $0.20 per share.
As additional consideration for providing the Loan, the Lender will be entitled to receive 1,500,000 common share purchase warrants (the “Warrants”) upon issuance of the Debenture. The Warrants will entitle the Lender to acquire 1,500,000 common shares of the Company at a price of $0.30 per share for a period of thirty-six months.
In connection with completion of the Loan, the Company intends to pay an advisory fee of $12,000 to an arms’-length third-party who assisted in introducing the Lender to the Company. All securities to be issued in connection with the Loan, including the Debenture and the Warrants, will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of the Loan, and issuance of the Debenture and the Warrants, remains subject to the approval of the TSX Venture Exchange.
About Guyana Goldstrike Inc.
Guyana Goldstrike Inc. is a Canadian based junior gold company focused on the exploration, development, and operation of the Marudi Gold Project in Guyana, South America.
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About Guyana
The Republic of Guyana is located in South America adjacent to Suriname. The country is English speaking and under British Common Law with a democratically-elected government. It has an established mining act and a rich history of gold production. In 2016, 690,000 ounces of gold was produced by operators mining in the country. 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 sub-group. The Guiana Shield is the geographic gold-hosting region, and is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa.* In 2016, two mines in Guyana declared the commencement of commercial production: the Aurora deposit (Guyana Goldfields) and the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29, 2016
Qualified Person
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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