G2 Goldfields (GTWO) - Guyana Gold District Scale Exploration
G2 Goldfields Inc. (formerly known as Sandy Lake Gold) is a gold exploration company listed on the Toronto Stock Exchange (TSX: GTWO) and the OTC markets (OTCQX: GUYGF). The company is focused on the discovery of large-scale high-grade gold deposits in the Guyana Shield. G2 Goldfields are the founders of the Oko Aremu District along with the old Peters mine in the Puruni District. The company has made significant high-grade discoveries in Guyana, South America.
We met with Dan Noone, CEO, and Director, G2 Goldfields. Dan has over three decades of experience in mineral exploration and development. He currently serves as the Chairman at GPM Metals Inc. He is also a member of the Institute of Australian Geoscientists (AIG).
Dan has worked with Rio Tinto in Papua, New Guinea, Newcrest in Indonesia, Homestake in Peru, and Veladero in Argentina. His educational credentials include a degree in Geology from Ballarat University and an MBA from Melbourne University.
G2 Goldfields is focused on exploring Tier 1 assets with high-grade deposits. The company has claims within Guyana and the northwest Ontario region. They plan to acquire larger properties on the district-scale that would offer a series of orogenic gold deposits over porphyry reserves.
The Aremu and Peters mine properties were acquired as an option from the Vieira family in Guyana along with Bardicombe Investments. These sites are historically known for their high-grade mineralization deposits. The deal was carried out in exchange for 50M shares, 35% of the company, which was then reclaimed through investing the team's personal wealth with plans to raise additional capital through financing.
The area shares similar geography as the Aurora basin, which made exploration a lot more streamlined owing to the team's past experience in the region. Currently, the company is taking the Guyana project to the pre-feasibility stage seeking out potential acquisition deals along the way.
The Oko Aremu Gold District
Located in the southeast end of the Cuyuni basin, the Oko Aremu Gold District also includes the Aurora Gold Mine. The types of mineralization available at this property are fold hinges, shears, and breccia. The site offers a tropical climate and is accessible through a combination of boats and trucks. G2 Goldfields has a strong working relationship with the local drill operators and contractors.
The company has explored 13,971 meters so far through 63 drill holes. The site features a 1.2 km strike length featuring gold mineralization up to the depth of 350m. This area also houses 6 historical artisanal shafts and multiple alluvial pits.
The Aremu mine area features the site of the historical mine which was operated up to 1911. Based on 97 grab samples from the region, the deposit values ranged up to 51g/t gold. In the months that follow, the company plans to drill an additional 5000 meters spread across 20 holes.
G2 Goldfields is mainly focused on bringing the project to the Preliminary Economic Assessment (PEA) stage as it is currently drilling hole 73. The company has discovered 3.5 high-grade orogenic gold veins along with 6 parallel sheers. The assays are over 10 grams with more than 3-5m sheers per zone. However, the company is still being conservative with its claims and rating the assays at 8 grams, which is still a significantly high-grade deposit. This is because, in an open pit, there are several low-grade halos alongside the high-grade veins, dropping the average down to 8 grams.
G2 Goldfields has built around 900m of the mine and to continue the operation, they would need to raise up to $30M. The mining operation has returned promising results with mineralized deposits along the sheers. There's a significant potential over at the southwest turnstile with an additional 1.5km stretch.
The Puruni District features the Jubilee Mine, which resides in the Cuyuni Basin and has a prospective zone featuring gold mineralization.
This district also houses Peters Mine, the first Gold mine in Guyana that started operations in 1905. This site features significant historical data from diamond drilling, mapping and sampling carried out in the mid-1960s. The property was acquired by Guyana Goldfields in the late 1990s.
A Team of Experts
Patrick Sheridan is the Executive Chairman at G2 Goldfields and is credited with the discovery, development, and financing of the Aurora Gold Project. In 1994, He founded Guyana Goldfields. Patrick is also the founder of the Gold Eagle which was acquired by Goldcorp for USD $1Bn. He has a strong family background in mining along with 25 years of working experience in Guyana. He possesses a Master's degree from the London School of Economics. Over the years, he has had exceptional success in the Junior mining sector. He currently owns 27% of the company.
Violet Smith, a Canadian-Guyanese national who serves as the Country Manager at Guyana Goldfields, co-founded the company with Patrick in the 90s. She has over two decades of experience in mining and exploration and is responsible for managing the operations, logistics, media, and public relations for G2 Goldfields.
Boaz Wade, Vice President, Exploration. He is a Guyanese resident who is an expert in structural geology. He is credited for the first round of exploration and remodeling at Troy Resources before joining the team at G2 Goldfields.
The management team is responsible for the feasibility and financing of the Aurora Gold mine, located 35 miles north of the Oko Aremu Project.
Originally, the company was called Largo de Rardo, based in Brazil. G2 Goldfields is the third iteration of the company. After their acquisition of Bardicombe Investments in Guyana, the company was able to raise $10.5M in the past two years, inclusive of warrants.
The company insiders are currently in possession of 30% of the company's stocks and have invested $5M out of their personal holdings. Currently, they are looking to raise additional funds that would be sourced/used towards the drilling program.
The dividends offered to the team and shareholders were issued at a 1:10 ratio. The company also extended the right to purchase additional shares at a price of $0.10. The shares were oversubscribed by 11M. The total shares are projected at a volume of 25M, fetching $1.25M in equity.
Sustainability and Community Outreach
The company's CSR initiatives are targeted towards environmentally friendly and sustainable mineral resource development. They are consciously working towards minimizing the company's environmental footprint to preserve the natural integrity of the surrounding area.
The company has multiple initiatives targeted towards the First Nations community and seeks to create lasting relationships with local businesses through the procurement of community-owned goods.
G2 Goldfields will continue the drilling operation at the Oko Aremu Gold District and work towards further expansion. In Q2, 2021, the company will begin drilling at Peters and Jubilee mine, testing out the model currently being employed at the Oko Aremu site.
The Aremu project is located 17km from the Oko site. The company drilled 3.7m deep, resulting in the discovery of multiple shafts and 10.5g/t deposits. This discovery was made below the old Oko mine and the company has plans to drill further and potentially establish an additional mining rig at the property.
G2 Goldfield plans to further explore the north Canadian properties utilizing the existing team and resources. Streamlining logistics, and managing first nation agreements is vital for initiating the drill programs and has a projected timeline of 18 months. During the initial phase of the project, 95% of the team and resources will be allocated to the G2 Goldfields projects while the remaining 5% will be diverted towards the north Canadian properties.
The team's confidence in the project is evident from the fact that they deferred from collecting salaries for the initial two years when the company started and invested their personal wealth towards the exploration programs.