VANCOUVER, July 11, 2012 /PRNewswire/ - Guyana Frontier
Mining Corp. ("Guyana Frontier")
announces that it has received a program and budget from Mulgravian
Ventures Corporation ("Mulgravian", a private Canadian exploration
company) for proposed 2012 exploration and administration costs on
the Five Star Gold Project ("Five Star"), located in Guyana, South
America. A joint venture was formed in 2012 on Five Star
between the two companies, with Mulgravian as operator holding a
51% interest and Guyana Frontier holding a 49% interest (see Guyana
Frontier news release dated April 17,
2012).
Highlights of 2012 Exploration Plans
- Program and budget presented by Mulgravian totals US$3,945,000;
- Geochemical survey consisting of approximately 2,000
samples;
- Prospecting and mapping program of an estimated 500
samples;
- Airborne magnetic and radiometric survey over areas of Five
Star not previously flown;
- Diamond drilling program of approximately 5,000 metres, using
up to two drills;
- Permit received for construction of an airstrip and its
associated infrastructure.
Guyana Frontier has elected not to contribute to
the 2012 Five Star program, and awaits the results of the ongoing
exploration from Mulgravian.
Five Star Exploration Focus
The objective of the 2012-2013 exploration
program is to better establish local structural and lithologic
controls to gold mineralization at several target areas. Various
anomalies along the Green Hill
trend have been the focus of recent artisanal mining. In general,
the Green Hill trend is a
significant ENE trending shear zone system hosted in greenstones of
the Barama-Mazaruni Supergroup. The zone has a clear geochemical
expression based on historical sampling to 2007 where gold
mineralization is believed to be associated with discrete and
anastomosing shears. Geologically disrupted areas within the
general northeast trend result in apparent periodic mineralized
pods. For example, Mulgravian's 2012 sampling in Trench 2 on the
western extent of the Green Hill
trend returned 0.83 grams/tonne gold over 28.0 metres, which
included 1.41 grams/tonne gold over 12.0 metres. Not all of the
anomalies defined by historical work have been duplicated by recent
work, which may be due to difficulty in locating the historically
anomalous areas where they are heavily vegetated or have been
subject to previous mining activity. Continued sampling and mapping
is recommended, leading to diamond drilling in the most prospective
areas.
The technical work disclosed in this document
was supervised, reviewed and approved by Robert Lunceford, M.Sc., CPG, who is a Qualified
Person as defined in National Instrument 43-101 ("NI 43-101").
About Five Star
Five Star consists of 17 mining permits and 8
prospecting permits, which cover an area of approximately 25,065
acres (10,144 hectares) near the settlement of Matthew's Ridge,
Guyana. Guyana Frontier acquired
its 100% interest in Five Star from two separate underlying
vendors, Case Development Company Ltd. and Marcel Waaldijk (the "Underlying Vendors"), with
each of the Underlying Vendors currently maintaining a 3% net
smelter returns royalty ("NSR") on their respective permits. Each
NSR is subject to buy-down provisions. Mulgravian earned its 51%
working interest in Five Star from Guyana Frontier by incurring
exploration expenditures and by purchasing shares in Guyana Frontier, as follows:
- making aggregate exploration expenditures and certain property
acquisition payments to the Underlying Vendors totalling
US$2,000,000 within a four-year
period from the date of TSX-V acceptance, being May 10, 2011;
- purchasing an aggregate of 700,000 units (the "Units") of
Guyana Frontier by way of private
placement for gross proceeds of CDN$210,000; and
- exercising all of the common share purchase warrants comprising
the Units for further gross proceeds to Guyana Frontier of
CDN$420,000.
On May 9, 2011,
Guyana Frontier filed a technical report in respect of Five Star on
SEDAR compliant with the standards of NI 43-101, available at
www.sedar.com
About Guyana Frontier
Guyana Frontier is a public mineral exploration
company listed on the TSX Venture Exchange (TSX-V: GYG), and is
focused on the exploration, discovery and development of precious
metals deposits located within Guyana, South
America. Guyana Frontier began acquiring interests in
Guyanese exploration properties in 2007, and now holds various
rights to obtain working interests in approximately 342,000 acres
(138,400 hectares) of prospective lands. Guyana Frontier's goal is
to develop a significant gold resource at the Marudi Mountain Gold
Project in southern Guyana, and to
explore its other Guyanese projects using funding from exploration
partners.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This release contains "forward-looking
statements" within the meaning of applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements that address activities, events or
developments that Guyana Frontier expects or anticipates will or
may occur in the future, including such things as planned
exploration activities at the Five Star property, the operation of
the joint venture between Guyana Frontier and Mulgravian, future
business strategy, competitive strengths, goals, expansion, growth
of Guyana Frontier's businesses,
operations, plans and with respect to exploration results, the
timing and success of exploration activities generally, permitting
time lines, government regulation of exploration and mining
operations, environmental risks, title disputes or claims,
limitations on insurance coverage, timing and possible outcome of
any pending litigation and timing and results of future resource
estimates or future economic studies.
Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"planning", "planned", "expects" or "looking forward", "does not
expect", "continues", "scheduled", "estimates", "forecasts",
"intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements are based on a
number of material factors and assumptions, including, the result
of drilling and exploration activities, that contracted parties
provide goods and/or services on the agreed timeframes, that
equipment necessary for exploration is available as scheduled and
does not incur unforeseen break downs, that no labour shortages or
delays are incurred, that plant and equipment function as
specified, that no unusual geological or technical problems occur,
and that laboratory and other related services are available and
perform as contracted. Forward-looking statements involve known and
unknown risks, future events, conditions, uncertainties and other
factors which may cause the actual results, performance or
achievements to be materially different from any future results,
prediction, projection, forecast, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, the interpretation and actual
results of current exploration activities; changes in project
parameters as plans continue to be refined; the existence of
weather conditions suitable for exploration activities; future
prices of minerals; possible variations in grade or recovery rates;
failure of equipment or processes to operate as anticipated; the
failure of contracted parties to perform; labour disputes and other
risks of the mining industry; delays in obtaining governmental
approvals or financing or in the completion of exploration, as well
as those factors disclosed in Guyana Frontier's publicly filed documents.
Although Guyana Frontier has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
SOURCE Guyana Frontier Mining Corp.