LATIN AMERICA SPECIAL — Gold potential of Guyana, Suriname

Development of the large Omai gold mining project in Guyana has spurred exploration efforts in neighboring Suriname by one of the Omai partners.

Golden Star Resources (TSE) which, with project partner and operator Cambior (TSE), recently poured the first gold at the open pit Omai mine situated inland about 100 miles from the Atlantic coastline, has an active program in Suriname, known formerly as Dutch Guyana.

The Omai project, which fed its first ore to the mill in mid-December, reached its planned daily production rate of 11,800 tons toward the end of January. The companies are hoping to be able to increase that rate to 15,500 tons during the second half of this year.

Projected output for 1993 at Omai, which was officially opened March 11, is 280,000 oz. Known reserves would give the mine a 10-year life at current operating rates. The Guyanese government is a minority owner of the mine. For English-speaking Guyana, the new mine is a major economic blessing. Output from Omai will almost quadruple the country’s annual gold production. On the exploration side, the Omai partnership has been granted a prospecting licence to the east of the Omai project and has also entered into an agreement with Golden Star for exploration of the Quartz Hill property on the western boundary.

Golden Star, which merged in 1992 with junior South American Goldfields, also has other property interests in Guyana. While its Mazaruni alluvial diamond project has been cut down in size and two other concessions have been eliminated from its portfolio, the company is making exploration plans for its Aranka, Aremu and Tikwah projects. As well, Golden Star says its Mahdia alluvial gold property is at the financing stage.

In Suriname, Golden Star recently reported the results of its 1992 exploration program on its Gross Rosebel concession. (Other concessions awarded to the company include the Headley’s Reef and South Benzdorp Rights of Reconnaissance.) Field work at Rosebel concentrated on two known prospects, the Royal Hill and Mayo zones, where 12 miles of assay trenches were cut. Channel sampling and systematic deep augering yielded 11,000 samples to a depth of 50 ft.

The company describes Royal Hill as a complex sequence of volcaniclastic rocks hosting quartz porphyry intrusives and several alteration zones enveloping shear zones. It says that Mayo is about 2.5 miles along strike from Royal Hill and is geologically similar.

A newly discovered zone, Roma, has been uncovered between Royal Hill and Mayo. And the company says an access road has been constructed to the concession’s Koolhoven zone.

The Headley’s concession surrounds Rosebel and covers several historical gold workings and areas with potential for large tonnage gold deposits, the company says. A reconnaissance program was started last year and the company says at least eight areas have been earmarked for further evaluation. Golden Star says two drill rigs were placed into operation at the Rosebel concession during the first week of February.

Guyana and Suriname are both bauxite producers. The Guyanese government nationalized the operations of Alcan and Reynolds in the 1970s and both aluminum producers pulled out; Reynolds returned a decade later. In Suriname, the two major foreign bauxite-aluminum players are Alcoa and Billiton. Other Canadian juniors with property interests in Guyana include Exall Resources (TSE), Menora Resources and Sutton Resources (VSE). Exall reported recently that it has received government approval for its expanded Mazaruni River diamond project. Exall and the Guyanese government must now sign a formal agreement, which will allow the company to build a pilot plant with a processing capacity of 2,000 cubic metres of river gravels per day. Exall says that if the test work is positive, it will apply for a 20-year mining licence.

Still at the grassroots stage are Menora’s Tassawini gold project and Wenamu base metal project. Menora’s partners in both projects are Altai Resources (TSE) and Noranda Exploration.

Sutton is planning to spend about $500,000 by mid-August on its grassroots Marudi Mountain gold project, more than 450 acres in size, in the country’s south. The company hoped to have a drill rig in operation by mid-March to test some nine targets. Sutton is optimistic an open-pit mining operation can be developed.

In French Guiana, the importance of the mineral industries on the economy is reported to be minimal. Sand, gravel and some gold are extracted. French Guiana, a departement of France, borders Suriname on the west and Brazil on the east. Dense tropical forests cover in excess of 80% of the country’s land area.