Toronto-based Denison Mines (TSE) and little-known South American Goldfields (COATS) are set to launch a $1-million exploration program for gold in Guyana, South America.
The program was given the go- ahead Nov 1, after the signing of an agreement with the Guyanese government.
The first phase of the multi- phase gold exploration program will get under way early in the new year on two 20-sq-mile concessions known as the Quartz Hill and West Kaburi concessions.
Quartz Hill has three known occurrences of placer gold, and is adjacent to and on-strike with the Omai property on which Placer Dome (TSE) and Golden Star Resources (TSE) are currently defining ore reserves in a feasibility study for open pit mining.
West Kaburi, has three placer gold occurrences, and adjoins property currently being drilled by Overseas Platinum (VSE), which has indicated a preliminary surface resource of 250,000 tons grading 0.17 oz gold per ton in saprolite.
“The (Guyana) gold prospects are excellent and, if they prove out, will eventually spearhead Denison’s entry into the mining of precious metals,” said Stephen Roman of Denison Mines.
In April this year, Denison took an early profit from Sikaman Gold Resources ‘ Bogosu project in Ghana by selling its 27% interest for $4.44 million.
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