South American Goldfields busy on Guyana gold bets

President Alan Spence presented slides from his recent trip to Guyana. He explained that his company is now poised to spend about $2 million this year, together with its partners, on several large gold concessions scattered throughout the South American country’s interior.

After sifting through 160 opportunities, the company selected seven 20-sq-mile claim blocks and lined up two major joint venture partners with international experience to participate in the venture.

Exploration agreements made late last year with Homestake International Minerals and Denison Mines (TSE) could see more than $10 million(US) spent over three phases on seven different properties.

Homestake can earn a 60% interest in three concessions by spending $3.55 million, while Denison can earn a 60% interest in four others by spending $5.07 million.

Goldfields, for its part, will be going to the market to raise between $1.5 and $2 million for its share of the joint-venture funding. The company is preparing a prospectus and says had cash totalling $554,927 at year end.

“Homestake has been working on its properties for about four months now and Denison is just getting under way,” said Spence. Homestake set up an office in one of the old colonial buildings in Guyana’s capital, Georgetown, and is exploring the Peter’s mine, Dazier Creek and Akaiwong properties.

The Peter’s mine property hosts a past producer and contains a large north-south-trending gold soil anomaly coincident with an area of exten sive prospector workings.

Among the four concessions in the Denison joint venture is the Quartz Hill property, which is adjacent to and on strike with the Omai property being developed by Golden Star Resources (TSE) and Placer Dome (TSE).

Other concessions to be explored by Denison are the West Kaburi, Aurora mine and Five Stars properties.

Guyana, an English speaking country with a population of 755,000, has in recent years attracted a number of foreign mining companies with Canadian firms now ranking prominently among them.

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