G2 Goldfields Poised on Rising Gold Price with Resource Growth & District-Scale Potential in Guyana

• G2 Goldfields recently updated their gold resource in Guyana to over 2 million ounces at high grades
• Marketing interest is increasing from retail investors and some generalist funds, but gold funds are still seeing redemptions
• G2 is focused on expanding the resource through drilling at OKO Northwest, Tracy, and Aremu along trend from the main deposits
• The company aims to demonstrate the district-scale potential to make the project attractive for a larger acquirer
• A three-way merger or acquisition of the whole district by a major is possible in the future

G2 Goldfields (TSXV:GTWO) is an exploration company focused on advancing its high-grade gold project in Guyana. The company recently updated its resource to over 2 million ounces of gold at impressive grades. As CEO Dan Noone explains in this interview, G2 aims to expand the resource and demonstrate the district-scale potential of the project to attract a major acquirer.

Updated Resource & Growth Focus

In April, G2 Goldfields released an updated Mineral Resource Estimate (MRE) within the company's 27,719 OKO project in Guyana. The updated MRE includes a discrete high-grade resource for the Oko Main Zone (OMZ) and a disseminated bulk mineable resource for the Ghanie Zone. The total contained gold in the updated MRE has increased by an impressive 69% to 2.0 million ounces.

Oko Main Zone (OMZ) Resource

The total combined open pit and underground Resource reported in the MRE for the OMZ includes:

• Indicated Resource: 686,000 ounces (oz) of gold (Au) contained within 2.36 million tonnes (Mt) grading 9.03 grams per tonne (g/t) Au
• Inferred Resource: 495,000 oz of gold contained within 2.41 Mt grading 6.38 g/t Au

The Indicated Resource for the OMZ has increased by an impressive 320% to 922,000 ounces of gold.

Ghanie Zone Resource

The total combined open pit and underground Resource reported in the MRE for the Ghanie Zone includes:

• Indicated Resource: 236,000 ounces (oz) of gold (Au) contained within 3.34 million tonnes (Mt) grading 2.20 grams per tonne (g/t) Au
• Inferred Resource: 604,000 oz of gold contained within 12.22 Mt grading 1.54 g/t Au

Noone emphasizes that G2 remains "very much in the exploration phase" and is focused on growing the resource rather than infill drilling or economic studies at this stage. "We really are focused on expanding the resource," he states. "If it ever gets to [infill drilling], it's a long way down the road and I don't think that really should be us. I think the district should come together and be built by someone else rather than just us."

Interview with Chief Executive Officer, Dan Noone

Increasing Market Interest

While gold funds continue to see redemptions, Noone notes growing interest in G2 Goldfields from retail investors and some generalist funds.

"People who have been watching for a while, people who would naturally invest in this sector are starting to come back in," he says. "Generalist funds are starting to make calls and enter the market, but it hasn't been a rush yet."

However, Noone believes many North American investors remain skeptical that this is a genuine bull market in gold, in contrast to investors in Europe and Asia. "I think the North Americans are lagging a bit on this one, just in disbelief that it's a real bull market for gold," Noone observes.

Exploration Potential Along Trend

Much of G2's exploration efforts are concentrated along the trend extending from the OKO Main and Ghanie zones to the north through OKO Northwest, Tracy, and Aremu. Noone sees potential to define significant near-surface ounces in these areas.

"The real value-add is near surface ounces along trend, because they change the scope of what someone's going to build and makes it more attractive for the end buyer who can put a bigger number on the value," Noone explains. "We have to show OKO Northwest, we have to pull that together, and Tracy and Aremu. You start to see you've got these long zones of mineralization at surface and down to hundreds of meters depth."

G2 plans to drill 75,000 meters this year with a budget of approximately $1 million per month to fund five rigs. While most drilling will focus along the main mineralized trend, Noone says the company will allocate some drilling to test targets further afield.

Priming for Potential Acquisition

Noone candidly discusses the prospect of G2 Goldfields being acquired as part of a roll-up of the district. He believes G2's southern neighbour, Reunion Gold, is more likely to be acquired first given their more advanced stage.

"Reunion is fairly advanced on us. They're going to a PEA in the middle of the year, so they're on that track," Noone points out. "We're still very much in the exploration phase. Obviously Reunion is the one who would need to do something prior to us. They're probably the ones who will jump first and when that happens, it'll kick the whole thing into play. We're ready for it, but we're not going to be the ones kicking that game off."

To make the project as attractive as possible to a potential acquirer, G2 Goldfields is undertaking several initiatives beyond drilling. These include launching a two-year environmental baseline study, a metallurgical test program, and storing core and rejects on site. The aim is to minimize the timeline to production for the eventual buyer.

"We're trying to shorten that timeline to production," Noone affirms. "We think that whole process is a 30-month process and we're probably 5 months into it. Timeline wise, we need to keep shrinking that so the acquirer can say: 'I put the money down today and I can start mining in X months.' When they're calculating their IRRs, they're going to pay us more - that's the logic behind it."

Conclusion

G2 Goldfields presents an attractive opportunity for investors to gain exposure to a high-grade, district-scale gold project in mining-friendly Guyana. The company's recent resource update and ongoing exploration along trend bode well for further resource growth. At the same time, G2 is taking steps to streamline the path to production for an eventual acquirer.  As the gold market strengthens, G2 Goldfields appears well-positioned to benefit from increasing investor interest and the potential for a major to consolidate the district.

The Investment Thesis for G2 Goldfields

• High-grade resource base of over 2 million ounces with strong expansion potential
• Exploration upside along mineralized trend and regionally
• Potential for district consolidation and acquisition by a major
• Mining-friendly jurisdiction of Guyana attracting greater attention
• Initiatives underway to maximize project value and appeal to acquirers
• Exposure to rising gold price with growing investor interest in sector

The interview with G2 Goldfields CEO Dan Noone highlights the company's attractive high-grade resource base, exploration upside, and position in an emerging district-scale gold play in Guyana. G2 is taking strategic steps to grow its resource and prepare the project for an eventual takeover. As investor sentiment towards gold improves, G2 Goldfields offers a compelling opportunity to gain leveraged exposure to a strengthening gold price.

Macro Thematic Analysis

The gold sector appears to be in the early stages of a new bull market. While North American generalist investors remain skeptical, interest is building, particularly from retail investors and European and Asian funds. This bodes well for junior gold explorers like G2 Goldfields.

As Noone points out, "People are saying [an influx of investment] is coming. They see that gold is a good place to be. There's a lot more inquiries about it." This suggests the ingredients are in place for a broad-based gold rally that could see capital flow down to high-quality exploration and development stories.

A key quote from Noone underscores the opportunity: "Certainly in Europe and more so in Asia they believe this is the start of a real bull run in gold and they want to get into it." As this sentiment spreads, companies with large, high-grade resources in attractive jurisdictions like Guyana are well-positioned to outperform.