G2 Goldfields (GTWO) - Technical Analysis and Due Diligence

G2 Goldfields Inc. is a Canadian mineral exploration company focused on the discovery of gold deposits in the Guiana Shield of Guyana. The company has three primary assets in the country, namely the Oko-Aremu project and its 100% owned and past-producing gold mines, the Peters and Jubilee Mines in the Puruni district.

The Oko-Aremu project of the company is located in the south-eastern Cuyuni Mining District, approximately 120 km west-southwest of Guyana’s capital city, Georgetown. G2 Goldfields Inc. holds various option agreements with local Guyanese mid-scale miners, that entitle the company to conduct exploration as well as acquire a 100% interest in the project.

Merlin Marr-Johnson sat down with Dan Noone the CEO and Boaz Wade, the VP of Exploration for G2 Goldfields Inc. (TSX-V:GTWO) to have a technical discussion regarding the company’s assets. 

Company Overview

The company is currently underway with an exploration drilling program at its Oko-Aremu project which has seen the company complete 127 drill holes totalling 30,224 m of drilling. The majority of the exploration program has been focused on the Oko Main Zone (OMZ) deposit and has been aimed at expanding the high-grade gold mineralisation of the deposit. The company recently mobilised a third and larger diamond drill rig which will be implemented in its exploration campaign in the Oko district. The larger drill rig will be able to reach depths of 1500 m and will assist in expanding the deposit to depth.

The company announced a maiden underground mineral resource estimate (MRE) of the Oko Main Zone (OMZ) recently, which shows 974,000 ounces of gold in the inferred category, and 220,000 ounces of gold in the indicated category.

The company plans to continue with its exploration initiatives in the coming year, in hopes to make a similar discovery as the mineralisation of the OMZ as well as expanding the resource base of the project.   

Management

The management team of the company can boast of having discovered more than 7 million ounces of gold in Guyana as well as being responsible for the financing and development of the Aurora Gold Mine, Guyana’s largest gold mine.

The team is led by Dan Noone who serves as the CEO and director of the company. Noone holds a degree in geology from Ballarat University and an MBA from Melbourne University. He is a member of the Institute of Australian Geoscientists (AIG), and has over 30 years of experience in mineral exploration and development in the international mining sector. He has been involved in various phases of a project’s life cycle, including the implementation of grassroots programs through to feasibility studies. He has previously served as the executive Director and Vice President (VP) of Exploration at Guyana Goldfields, as well as the vice president for the Peruvian operations of Aquiline Resources Inc. and the President and CEO of Absolut Resources Inc. Noone is currently also the Chairman of GPM Metals Inc.

Patrick Sheridan is the Executive Chairman of the company’s board and brings with him over 25 years of experience working in Guyana. Sheridan has raised over USD$ 400 million for exploration and development projects in Guyana throughout his career and is credited with the discovery, financing, and development of the Aurora Gold Project.

Carmelo Marrelli is the Chief Financial Officer (CFO) of the company and is the principal of the Marrelli Group of Companies. Marrelli is a Chartered Professional Accountant as well as a member of the Chartered Governance Institute of Canada. He also serves as Chief Financial Officer (CFO) for various other companies that are listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange, and Canadian Securities Exchange (CSE).

Violet Smith serves as the Guyana Country Manager for G2 Goldfields Inc. and has more than 20 years of experience in operations management within the mining sector. Smith holds degrees in geology from Carleton University and Laurentian University and is also the founder of AVA Management and Consultancy Services. She previously served as the Country Manager of Guyana Goldfields, a role in which she oversaw all operations and logistics in Guyana as well as the community, media and public relations for the company.

Boaz Wade is the Vice President of Exploration in the Guiana Shield of the company. Wade has been involved in the management of various stages of project exploration across Guyana and was prior to G2 Goldfields Inc. tasked with leading the Mine Exploration Geology team at Guyana Goldfields Inc.

Stephen Stow and Bruce E. Rosenberg both serve as directors for G2 Goldfields Inc. Stow holds a Master’s degree in jurisprudence from Wadham College at Oxford University, and has been an adviser, investor, and executive in the resource sector for over 30 years. He has served as the director of Corporate Finance in Asia for the National Westminster Bank and is currently also a director of Lumina Gold Corp. Rosenberg has been practising law in Ontario since 1980 and has extensive experience as a corporate lawyer and commercial litigator. He has been legal counsel to several TSX-listed junior mining companies and also serves on the board of various Canadian charitable foundations.

Guiana Shield

The Guiana Shield is a 1.7-billion-year-old geological formation along the northern coast of South America. It contains orogenic gold as well as conglomerate-hosted gold mineralisation.  A large part of the Guiana Shield is underexplored, due to various factors including the lack of rock outcrops, dense tropical forest, and sparse population.  The Oko-Aremu project as well as the Peters and Jubilee Mines of the company are located in the heart of the Guiana Shield, in the country of Guyana.

Oko-Aremu project

The Oko-Aremu project of the company is a 27,608-acre land package located in the south-eastern portion of the Cuyuni Mining District, approximately 120 km west-southwest of Guyana’s capital city, Georgetown. The project is accessed through a combination of boat and truck routes which cross the Mazaruni river as well as runs through various logging roads. The project is host to high-grade orogenic gold mineralization within the Cuyuni Basin Sediments and the underlying Barama volcanics. The mineralization of the project is found within fold hinges, parallel shear zones, and breccias along with lithological contacts within a sequence of metamorphosed carbonaceous sediments and volcanics.

The project hosts seven targets, namely the Oko North-west, Tracy, Aremu mine area, Ghanie, Oko East, Oko northeast and Aremu East.

Puruni district projects

The Puruni district projects of the company are located to the southeast of the company’s Oko-Aremu project and consist of the past-producing Peters and Jubilee mines. The Peters mine was the first gold mine in Guyana and was discovered in 1903, with production initiated in 1905. The mine produced 41,000 ounces of gold between 1905 and 1910, with a mill head grade of more than 1 ounce of gold per ton (oz/ton). The mine was primarily operated to a depth of 200 feet, which leads it to possess the potential for high-grade mineralisation at increased depths.

The Jubilee mine is located approximately 4 km southeast of the Peters mine. The mine has a vertical shaft with more than 1000 ft of lateral workings recorded. The operation however has no recorded evidence of production but has in the past shown high-grade gold mineralisation of up to 9.3 oz/ton of gold. The operation is currently mined by small-scale miners, whose presence shows the potential of the project to host economic grades of mineralisation.

Exploration initiatives

The company released an exploration update in April 2022 regarding its ongoing exploration program, conducted at the Oko-Aremu project. The company has completed 30,224 m of exploration drilling at the project, which consists of 127 drill holes. The majority of the exploration drilling program has been conducted at the Oko Main Zone of the project. The Oko Main Zone (OMZ) is a 19,200-acre area of the Oko-Aremu project and has shown mineralisation such as 52.7 g/t of gold over 7.4 m, from a depth of 297.3 m as well as 64.7 g/t of gold over 2.6 m from a depth of 116.8 m.

The company has also conducted 1,426 m of reconnaissance drilling consisting of 11 drill holes at the Oko North-West target. The assay results of the reconnaissance drilling program are pending. The company further plans to conduct a 4-hole exploration drilling program at the western end of the Aremu mineralisation vein which has shown mineralisation similar to that of the Oko Main Zone.

G2 Goldfields Inc. also announced the addition of a third drill rig to its exploration program. The third larger diamond drill rig will be implemented towards deeper exploration at the project and will have the capability of reaching depths of up to 1500 m. The company further believes that the third drill rig will be able to expand the Oko Main Zone (OMZ) to depth.

Mineral resource estimate

The ongoing exploration drilling program has enabled G2 Goldfields Inc. to recently publish the maiden underground mineral resource estimate (MRE) of the Oko Main Zone (OMZ). The NI 43-101 compliant mineral resource estimate is based on 98 intersecting drill holes, hosted by three primary shear zones of the OMZ. The shear zones vary in length between 350 m and 750 m and have been explored to a maximum depth of approximately 350 m, where the mineralisation remains open.

The maiden underground mineral resource estimate boasts 974,000 ounces of gold in the inferred category, consisting of 3,274,000 tons of mineralisation at an average grade of 9.25 g/t of gold and 220,000 ounces of gold in the indicated category consisting of 793,000 tons of mineralisation at an average grade of 8.63 g/t gold.

Future

G2 Goldfields Inc. is currently underway with a geophysical analysis program at the Ghanie zone of the Oko-Aremu project, which is aimed at identifying drill targets for the near future. The company will further continue with the exploration of the Oko North-West target which will include mapping and geophysical analysis. The Aremu and Oko northeast targets will also be explored in the coming year.

G2 Goldfields Inc. will also pursue further exploration at its Puruni district projects. The company plans to complete a 6-hole drill program at the project which will be designed to test the project’s geological and mineralization model. The exploration drilling will be conducted to a depth of 500 m and will be implemented at a later stage towards the creation of a district mineralisation model as well as the generation of additional drill targets. The company will also conduct a 6-hole maiden drill program at the Jubilee project which will be aimed at identifying high-grade mineralisation vein systems. The previous grab samples taken at the Jubilee mine has shown mineralisation of up to 23 g/t of gold.

To find out more, go to the G2 Goldfields website