Strong returns at G2’s new Northwest target in Guyana

G2 Goldfields (TSX: GTWO; US-OTC: GUYGF) reported on Monday a new discovery at its Northwest (NW) OKO target in Guyana with intersections as strong as 8.5 grams gold per tonne over 7 metres.

Drilling at Target 1, the most advanced of the discoveries at NW OKO, returned results including 7 metres at 8.5 grams gold from 34.5 metres in hole NWOD-37, 4.4 grams gold across 7.8 metres from 166.2 metres in NWOD-43, and 46.5 metres at 1.1 grams gold from 63 metres depth in hole NWOD-45.

“The NW OKO discovery is the third discovery by Dan Noone, Boaz Wade and their team, illustrative of the considerable prospectivity within G2’s properties,” G2 executive chairman Patrick Sheridan said. “This summer will be very busy for the company as we will be drilling with two rigs in NW OKO, three rigs in the Ghanie area, as well as maiden drill programs at several new, previously unexplored, high priority targets along the 17-km long OKO-Aremu trend.”

The discoveries come just two months after G2 released an updated resource estimate for the OKO-Aremu project in the South American country. The combined OKO Main zone open pit and underground host 2.4 million indicated tonnes grading 9.03 grams gold for 686,000 oz., and 2.4 million inferred tonnes at 6.38 grams gold for 495,000 ounces.

At Ghanie, the combined underground open pit resource totals 3.3 million indicated tonnes grading 2.2 grams gold for 236,000 oz., and 12.2 million inferred tonnes at 1.54 grams gold for 604,000 ounces.  

Reunion tie-up?

NW OKO is about 3.5 km from the OKO Main/Ghanie resource, itself located 120 km west-southwest of the country’s capital city, Georgetown. Reunion Gold’s (TSXV: RGD) OKO West project is also just south of OKO Main/Ghanie. G Mining Ventures (TSX: GMIN; US-OTC: GMINF) this year agreed to buy Reunionfor $875 million.

G2 also has Reunion’s property on its mind, after CEO Dan Noone suggested last month that the concessions could “coalesce” at some point in the future.

G2’s first discovery at NW OKO was reported in February, when drill hole NWOD-1 cut 10.3 metres grading 3.7 grams gold from 37.7 metres depth at the site, and hole NWOD-22 returned 15 metres at 6.3 grams gold from 21 metres downhole.

Near-surface gold

The company has drilled 58 shallow diamond drill holes so far at NW, for 5,747 metres along a 2.5-km strike length. Near surface gold mineralization has been traced over an 800-metre strike length and drill holes have intersected disseminated mineralization over significant widths as well as discrete, high-grade shoots, spaced along the length of the shear zone.

G2’s projects sit inside Guyana’s Cuyuni mining district, which also hosts Aris Mining‘s (TSX: ARIS) Toroparu project, west of OKO.

In the wider geological setting, G2’s projects are on top of the Guiana Shield that underlies the region and hosts Omai Gold Mines’ (TSXV: OMG; US-OTC: OMGGF) namesake operation in Guyana and the Aurora mine, which G2 sold to Zijin Mining in 2020 for US$238 million. Troy Resources‘ (ASX: TRY) Karouni mine is about 100 km south of Oko. In neighbouring Suriname, Newmont’s (NYSE: NEM; TSX: NGT) Merian gold mine and Zijin’s Rosebel mine also sit on the shield.

G2 shares were up 1.4% to $1.39 apiece on Monday at mid-day, valuing the company at $290.8 million. Its shares traded in a 52-week range of 98¢ and $1.44.