The Cuyuni River Gold Project is a collection of properties located in central Guyana, South America west of the Capital of Georgetown. Access to all the properties are either by water or road with numerous local air strips in the vicinity of many of the properties. The project is located in thick jungle with temperatures ranging from 25 to 30 degrees Celsius throughout much of the year. Exploration, drilling and mining can occur year round in Guyana. Local resources can be readily available in Georgetown, Bartica and from villages located along the river systems that cross-cut much of the project.
The Guiana Shield of South America located in the northern portion of the Amazonian Craton, is a dismembered portion of the West African Craton. Both continents host world class gold deposits while the majority located in Africa are present gold producers as a result of excellent infrastructure and sustained exploration. Within the Northern Province of Guyana, the Barama-Mazaruni Supergroup consists of shear zone hosted, gold bearing greenstone belts within a gold rich corridor striking generally east-west across the country. Prolonged weathering of surface outcrops in Guyana has produced an environment where saprolitic in-situ, weathered) and placer gold (water aided, removed from source) deposits are readily discovered and have been sporadically mined for their coarse gold since the 1600s. World class, hard rock, lode gold deposits of Guyana can be divided into three main types: Type 1-large auriferous quartz veins in mafic and ultramafic rocks; Type 2-shear hosted auriferous quartz veins near felsic dykes or stocks represent the largest type; and Type 3-gold associated with tuffaceous, pelitic, carbonaceous and cherty metasediments. Large lode gold deposits have only recently been discovered in Guyana and additional discoveries will be identified with sustained exploration and increasing infrastructure into the interior. Guyana is possibly one of the last remaining areas in the world where world class lode gold deposits remain to be discovered by sustained exploration efforts below a thin veneer of vegetation and overburden.
Cuyuni’s Project has excellent potential for advancement of its alluvial gold mining operation and discovery of additional alluvial deposits along the favourable gold rich corridor of the Guiana Shield. The project has been the subject of over 40 active and past producing alluvial coarse gold mining operations through the development of saprolite and placer gold deposits over the years. An estimated minimum amount of 250,000 ounces of raw gold (~$250,000,000 at a gold price of $1000 per ounce) has been recovered on the project by the present land owners. Alluvial coarse gold mining continues to this day. Cuyuni has the exclusive right to develop the Cuyuni #1 Alluvial Mine within the project and secure additional future alluvial operations from the land owner. Plans for Cuyuni #1 Alluvial Mine will be to substantially enlarge the operations within the first year through state of the art technology and equipment by increasing gold recoveries and daily tonnage output. Gold production is estimated at between 5,000-7,500 gold ounces per year each. Annual positive net cash flow for Cuyuni #1 is estimated at $2.0-$3.0M annually. Excellent potential remains to discover additional saprolite and placer gold deposits on the present properties within the project. The cash flow from Cuyuni #1 will substantially offset the hard rock exploration of the project.
Cuyuni’s project has excellent potential to host significant world class lode gold deposits. The majority of the project is located the gold-rich, Barama-Mazaruni Supergroup; a series of greenstone belts associated with a major gold rich corridor in Guyana. Cuyuni’s properties have never been explored for their underlying lode gold potential even though strong evidence of abundant, sustained surface gold mining and close proximity to world class lode gold deposits (Aurora and Toroparu) suggests that the underlying greenstone belts have excellent lode gold potential. The favorable greenstone belt located below the existing saprolite mines will be the focus of exploration programs moving forward. The Cuyuni River Gold Project represents one of the last remaining unexplored hard rock-lode gold environments where potential world class hard rock lode gold deposits are waiting to be discovered under a thin veneer of overburden and vegetation.
In conclusion, the Cuyuni River Gold Project has excellent potential to host a cash flowing alluvial operation within the first year of operatorship. Profits from the alluvial operations will substantially augment the exploration of the hard rock potential of the project for the potential discovery of world class lode gold deposits. A first phase $2.0M program is warranted and recommended to move the project into a mining phase and to initiate hard rock exploration.
Hard Rock Exploration Strategy
Cuyuni’s hard rock exploration will be funded from the profits of its alluvial operations. This business model will substantially augment the exploration requirements of the project. Proper exploration programs will be a function of using state of the art technology and exploration techniques successfully used in the discovery of world class lode gold deposits within Guyana. Exploration techniques in the country are very similar to what is presently used in Canada when searching for precious metals and diamonds. Cuyuni will use exploration programs that have been successfully used in Guyana and will quickly adapt to our own special geological needs when required.
The exploration program will focus on five (5) main phases to advance any gold target to a sizeable gold resource with upside potential.
- Data compilation: past and present work on the project (mostly from surface work from present landowners) and regional exploration completed from previous companies. Successful digital entry into a computer database will eliminate overlapping work programs and save on time and money. Additional attention will be placed on areas of the project where saprolite gold mining has or is occurring.
- Geophysical airborne surveys: The airborne geophysical program will include magnetometer, potassium and radiometric surveys. This is the first significant step in isolating areas with tectonic complexities within the project boundaries.
- Geological/Geophysical Surveys: Once the airborne surveys have been processed and areas of interest have been identified in conjunction with areas of saprolite mining then additional geological programs consisting of prospecting, geochemical and rock sampling and mapping will be initiated in these areas. Additional surface geophysics could include Induced Polarization (IP) surveys over areas where high priority gold targets have been outlined.
- Surface Diamond Drilling: This program will focus initially on high priority gold targets with surface and depth potential identified in the regional and local exploration completed in the previous programs
- Compilation of Drilling Programs: The compilation of all drill results will determine the initial potential of each high priority gold target tested. Once a significant gold discovery is located then it will be the focus of future drill programs to determine the ultimate size and grade of that gold deposit.