Aurora drilling adding to resources (November 19, 2007)

Drilling by Guyana Goldfields (GUY-T, GUYFF-O) at the Aurora gold project in north-central Guyana has indicated extensions beyond the recently calculated resources on the Rory’s Knoll and Aleck Hill zones.

Two stepout holes on Rory’s Knoll intersected multiple zones of mineralization on the northern and western edges of the mineralized body. Hole RKD-70, on the northern edge, intersected 144 metres grading 2.3 grams gold per tonne, including a higher-grade interval of 14 metres at 7.4 grams per tonne. Another intersection, nearer surface, cut 9 metres averaging 15.7 grams per tonne.

Hole RKD-75, on the western edge, cut 27 metres of 7.3 grams gold per tonne and 68 metres at 2.1 grams.

Two infill holes confirmed gold grades in the resource envelope, one intersecting 82 metres grading 3 grams per tonne and the other 206 metres grading 3.5 grams gold. Both holes intersected other, narrower zones.

On the Aleck Hill zone, three holes tested targets at depth below the known resource. One intersected four zones, ranging from 1.5 to 4.2 metres in core length; gold grades were mainly at 1 to 2 grams per tonne, but one 4-metre intersection ran 8.7 grams per tonne. In two other holes, zones of 3 metres to 11 metres graded in the 0.5- to 2.7-gram range, and a narrow intersection (0.8 metre) averaged 14.9 grams per tonne.

A resource estimate earlier this month by consulting firm Micon International showed 11.7 million tonnes, indicated, grading 3.4 grams gold per tonne on Rory’s Knoll, with another 20.2 million tonnes inferred at 3.5 grams gold. Aleck Hill had an indicated resource of 5.3 million tonnes at 3.6 grams per tonne, plus 1.6 million tonnes inferred at 2.1 grams per tonne.

Both the resources were calculated to a vertical depth of 405 metres. The resource outcrops at surface and Guyana Goldfields is looking at the economics of mining from an open pit.

A third zone, East Walcott, has an inferred resource of 1.5 million tonnes grading 3.8 grams gold per tonne.

The resource was calculated based on a cutoff grade of 1 gram gold per tonne, which assumed a gold price of US$525 per oz. The indicated resources were mainly drilled off on 25 by 25-metre grids, or 50 by 50 metres where the geology was more continuous.

On the Aranka project to the north, Guyana Goldfields and equal joint-venture partner Aranka Gold (ARK-V, ARKMF-O) are performing soil surveys using shallow auger sampling.

Two drill targets have been tested. At Arangoy, a 9.2-metre intersection averaged 1.2 grams gold per tonne, and at Red Hill, a 53.1-metre intersection ran 0.67 gram gold.