G2 Goldfields (GTWO) - Maiden Resource in Q1/22, after High-Grades
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 within the Guiana Shield. The company founded 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.
Matt Gordon caught up 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 a member of the Australian Institute of Geoscientists (AIG). Dan has previously worked with Rio Tinto in Papua, New Guinea, Newcrest in Indonesia, Homestake in Peru, and Veladero in Argentina. His educational credentials include a Geology degree 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. It plans to acquire larger properties on the district-scale that would offer a series of orogenic gold deposits over porphyry reserves. The company was founded in 2009 and is headquartered in Toronto, Canada.
G2 Goldfields is currently drilling at the high-grade Oko discovery in Guyana. The company has 2 drill rigs employed that will continue operating into the next year. The company is looking to publish a resource estimate in the first quarter of 2022.
The drill area features a 900m strike length with 5 major zones. The company carried out the last round of drilling at Zone 3 and identified sufficient intersections for a resource calculation. At Zones 4 and 5, the company had significant gaps ranging in 80m-150m between high-grade intercepts. The company is looking to carry out additional drilling at these zones to bring them into the resource. Additionally, the company is looking to step down-plunge on Zone 3, along with Zones 4 and 5 to expand the deposit. The company plans to achieve these targets by Christmas.
The Oko discovery currently has 104 holes that are a result of an aggressive drill operation. The company is looking to publish the resource estimate to demonstrate the potential size of the deposit.
G2 Goldfields has identified 2m - 8m of 10g/t high-grades reserves within the intercepts. The shear zones feature high-grade veins with an average grade of 15g/t. The company has identified 500 vein intercepts so far. The dilution of the shear zone determines the grade, hence the company is targeting coherency in its resource calculation with a focus on higher grades.
G2 Goldfields does not plan on conducting a Feasibility Study for the Oko Aremu district. It is looking to unlock the value of the deposit through drilling, eventually developing it into a mineable resource. The company is looking to offload the property through a buy-out, takeover, or a merger to a party that would take the project into production.
The company hasn't entered discussions for a takeover. However, it is looking to keep the market and its neighbors informed about the developments within the district. The company anticipates that once the resource has been published, it will gain a better idea of the project's value.
A New Land Package
G2 Goldfields recently acquired a large land package nearby its Oku Aremu district. This acquisition is an investment for the company and was paid through an options agreement. This 7,000-acre land package spans over 17km from the old Aremu mine to the Oko deposit and is located at the inflection point in the northeast direction. The deposit is a triple-point junction between 2 large batholiths featuring mineralization.
The company seeks to discover 3-4 deposits similar to Oko Main. It is currently focusing on the Oko Main 1 deposit and is working towards building a land package with a mine-building potential. The second priority for the company is to drill the region and carry out detailed geology across the district for pattern identification.
The company has identified similar geological patterns and mineralization throughout the deposit heading towards Aremu and the northeast. This led the company to acquire the land package.
G2 Goldfields plans to drill the Oko Main 1 deposit up to a depth of 400m. As depth-based drilling is cost-intensive, the company plans to develop multiple high-prospect deposits within the district. The Oko Main 1 zone is open in all directions and at depth.
Following this, the company is looking to carry out drilling at the Oko Northwest zone which is located 3.5km from the Main Zone. The northwest zone features a 1km track opened up by local artisanal miners in the past year, providing access to the underlying geology. The company is currently mapping out the zone and has identified east-plunging chutes throughout the deposit.
At the Shepherd mine, the company has developed a 120m long open pit with grades up to 120g/t. The company has also carried out limited exploration at the Jubilee deposit.
It plans to develop multiple high-prospect deposits as opposed to a single deposit. As the district features multiple areas that feature similar geology and mineralization to the Main Zone, the company is looking to unlock the potential of the district through efficient capital utilization.
Targets 2021 and Beyond
G2 Goldfields is looking to conclude the current drill operations at Zone 3,4 and 5 within the Oko district by Christmas 2021. In January 2022, the company plans to carry out infill drilling at Oko and determine a drill plan to reach a depth of 400m. Based on the results obtained from the drill operations, the company will devise an exploration and drill strategy for the coming year. Once the drill plans are finalized, the company has plans for a capital raise.
The company has a strong shareholder base that ensures that financing is a non-issue. It plans to time the capital raise as per the market conditions. The company is strategic and efficient with its capital use.
The highlight of the Oku Aremu district is the scale of artisanal and historic mining in the area. The deposit's core comes out to a high-strain zone featuring a quartz vein featuring visible gold. This pattern is evident over multiple sections of the district.
G2 Goldfields currently has 2 drill rigs under operation at the Oku Aremu asset. It plans to increase the number of rigs in a scenario where it receives bids from the gold market. The company is planning to strategize between drilling and dilution.
Following the resource estimate, the company plans to carry out a down-plunge expansion. The plunge towards the northeast of the mineralization envelope is shallow at 20 degrees, providing significant room before hitting the 400m depth target.
G2 Goldfields has a host of drill targets that remain to be explored. It plans to demonstrate the size potential for Northwest Oko and the Aremu District while also working towards increasing the tonnage and grades at the Oko Main deposit.