G2 reports near-surface gold at Peters project in Guyana

Canadian explorer G2 Goldfields (TSXV: GTWO; US-OTC: GUYGF) said early drilling at its Peters mine in northern Guyana showed significant widths of near-surface gold mineralization.

Hole PDD1 cut 76 metres grading 1.5 grams gold per tonne from 62 metres downhole, including 16.5 metres at 5 grams grams gold , G2 said Tuesday in a statement. Also significant was hole PDD3, which returned 42 metres at 0.8 gram gold from 133 metres depth.

PDD1 and PDD3 explored the area between the historical main shaft area and the incline shaft area.

“At face value, we think these results are encouraging,” SCP Resource Finance mining analyst Brandon Gaspar said in a note. The results indicate “both bulk near-surface and discrete high-grade opportunities,” he said as he reaffirmed his “buy” rating on the stock.

G2, which focuses on finding gold deposits in the Guiana Shield, is planning a major drill program in the area. The company’s founders financed and developed the country’s largest gold mine, Aurora, before selling the asset to China’s Zijin Mining in 2020 for US$238 million.

Gold portfolio

Peters is part of a regional portfolio of gold properties in the Oko-Aremu-Peters district. The project, spread out over 33.8 sq. km, lies about 35 km southwest of the company’s flagship Oko property, which hosts indicated gold resources of 1.5 million ounces.

“The Peters mine and greater Puruni district have been among Guyana’s most prolific goldfields for over a century,” CEO Dan Noone said. “Despite its storied history, the area remains remarkably unexplored, and our initial results demonstrate the considerable potential of the region.”

Peters is among the Guyanese assets that G2 is preparing to spin out into a new company, called G3 Goldfields. Discovered in 1902, it opened three years later as an underground operation.

G2 shares fell 1.8% to $3 apiece in morning trading Wednesday in Toronto, for a market capitalization of about $720 million. The stock has traded in a range of $1.25 to $3.68 during the past year.