Drilling begins at Paul Isnard

Partners Rio Tinto (RTP-N) and Guyanor Resources (GRL.B-T) have begun exploration at the latter’s Paul Isnard gold project in French Guiana.

The US$750,000 program is being funded by Guyanor Resources (GRL.B-T) through a loan from parent company Golden Star Resources (GSC-T). Golden Star, in turn, is using proceeds from the private placement of 500,000 unregistered shares, at $2 per share, to Rio.

Rio can earn a 40% interest in the project by spending US$2.25 million over four years. Another 30% can be earned in exchange for US$6.7 million in expenditures.