Robust Guyana Gold Project Unfazed by Cut-Off Grade as Resource Hits 3M oz with More to Come

• G2 Goldfields announced an updated mineral resource estimation of over 3 million ounces of gold at their Guyana project, up from previous estimations of 1 million and 2 million ounces.
• The company's deposits include high-grade zones at OKO Main Zone (over 9 g/t) and lower-grade but substantial tonnage at the Ghanie deposit, with excellent gold recoveries averaging 94-98%.
• Current drilling is focused on expanding high-grade resources along the main OKO shear structure, with promising visual gold observed in recent step-out holes.
• With $37 million in cash, G2 is well-funded for continued exploration without needing to raise additional capital in the near term.
• AngloGold Ashanti holds nearly 15% ownership in G2 Goldfields, with multiple companies under NDAs reviewing the project data, suggesting potential acquisition interest.

G2 Goldfields announced a significant milestone on March 10, 2025, with an updated mineral resource estimation showing combined gold resources of over 3 million ounces at its Oko-Aremu project in Guyana. This represents the company's third resource update, building steadily from just over 1 million ounces in the first estimation to over 2 million in the second, and now exceeding 3 million ounces. Dan Noone, CEO of G2 Goldfields explained, 

"We've been working away all last year. We drilled another 59,000 meters into the Ghanie and OKO Main Zone deposits, mostly the Ghanie deposit. We're very happy with the result." 

The resource update follows intensive drilling that has improved understanding of the deposit's structure. The company has successfully closed gaps between previously separate zones, linking Ghanie South, Ghanie Central, and Ghanie North into a continuous deposit. This unified mineralized shear zone now runs over 2.5 kilometers, with high-grade zones controlled by structural intersections within the main shear.

Deposit Characteristics and Mining Potential

The project features two distinct styles of mineralization: the higher-grade OKO Main Zone and the more disseminated Ghanie deposit. At OKO Main Zone, shears 3, 4, and 5 contain approximately 960,000 ounces averaging about 9 g/t gold. The Ghanie deposit features a high-grade footwall zone averaging about 7 g/t and a disseminated hanging wall zone of approximately 1 g/t.

The current resource was constrained to about 300 meters depth, with the company now targeting higher-grade mineralization at greater depths. Recent drilling has confirmed the continuation of high-grade zones deeper in both the OKO Main Zone and Ghanie deposits.

An important aspect of the project is its robust nature regardless of cut-off grade parameters. Noone noted, 

"The deposit isn't sensitive to cut-off grade... it's a very robust deposit. The ounces always seem to be there; it doesn't really matter what parameters we put in."

The resource appears well-suited to a combined mining approach, with initial open-pit operations for approximately the first two years before transitioning to underground mining at OKO Main Zone to access the high-grade zones that would drive significant value. This approach could potentially deliver mill head grades between 3 and 7 g/t over a projected 10-year mine life.

Metallurgical Performance & Processing Considerations

The project demonstrates excellent metallurgical performance, with gold recoveries averaging 98.5% at OKO Main Zone and 94.2% at Ghanie. This compares favorably with nearby operations south of the border that achieve recoveries of 94.5%.

"It's very simple metallurgy. There isn't any real nasties out here. There's no encapsulated gold, there's no arsenopyrite or mercury. It's a very clean system, and the gold has come in very late and isn't encapsulated in silica or pyrite."

The high-grade nature of portions of the deposit makes it well-suited for gravity recovery methods, which are common in comparable African operations. This approach would likely reduce both capital expenditures on mill size and operating expenses on consumables, positioning the project as a potentially high-margin operation.

Exploration Upside and Current Drilling Program

G2 Goldfields is currently operating two drill rigs, targeting higher-grade zones at OKO Main Zone and Ghanie. The company's exploration model is focusing on the intersection of a shallow south-plunging lineation and a 45-degree north-plunging lineation, where "blowout zones" of high-grade mineralization occur.

Current drilling is concentrated on the Ghanie North area, attempting to extend mineralization to depths similar to those found at Ghanie Central. Additionally, the company is testing extensions along strike toward OKO Main Zone in shear 3, where recent success has been encountered.

"We did a 500-meter step-out between OKO Main Zone and Ghanie last year, and we actually hit visible gold in the hole. So we're starting to have a lot of faith in our model, and we think we can take the high grade down at least to 550 meters across the board." 

Beyond the established resource area, G2 is exploring additional targets including OKO North and an area called Birdcage, where historical mining reportedly produced 40,000 ounces in a single year. Recent drilling in the Ladid Hills area north of Birdcage has encountered what the company believes is the main OKO shear structure, which follows the basin margin and represents the company's primary exploration focus.

Interview with CEO Dan Noone

Project Economics and Development Timeline

While G2 Goldfields has traditionally positioned itself as an exploration company, the maturing resource base is prompting consideration of economic studies. The company has been conducting non-43-101 compliant internal mining scenarios to guide exploration but has avoided formal economic studies to date.

With neighboring G Mining advancing rapidly through the permitting process, G2 may be reconsidering this approach. G Mining submitted environmental studies in December 2024, received an interim environmental permit in January 2025, and is expected to receive their full mining permit in the first half of 2025, demonstrating the efficient permitting framework in Guyana.

G2 has completed approximately 15 months of environmental baseline studies, with a total of 24 months required before a mining permit application can be submitted. After 12 months of baseline work, companies can submit preliminary mining designs to the government. From the decision to proceed with development, G2 estimates it would be approximately 18 months from receiving all necessary mining permits.

Regarding an economic study, Noone indicated that if the company chose to proceed with a Preliminary Economic Assessment (PEA), metallurgical work would be the critical path item, with a potential timeline of four to five months from the decision to proceed.

Corporate Position & Potential M&A Interest

The company is in a strong financial position with approximately $37 million in cash, providing runway for several years of exploration without the need for additional financing. This financial stability removes any pressure for immediate corporate actions.

AngloGold Ashanti holds nearly 15% ownership in G2 Goldfields, leading to speculation about potential acquisition interest. When asked about AngloGold's intentions, Noone deferred:

"That'd be a question for AngloGold. I really can't answer that."

Beyond AngloGold's interest, the company confirmed that multiple mining companies have reviewed their data room under active non-disclosure agreements, suggesting broader interest in the project as a potential acquisition target.

The proximity to G Mining's neighboring project creates potential synergies that could be attractive to acquirers. 

"If you look at it globally, it wasn't my project and I could talk about it. It's obvious to anybody that this is really one big 5-kilometer long deposit to this day, not much different to the Kalgoorlie Super Pit which had three mines on it, or Red Lake, or Kirkland Lake. And so there's obvious synergies here."

The Investment Thesis for G2 Goldfields

• Resource Growth: Three consecutive resource updates demonstrating consistent growth from 1M to 2M to 3M+ ounces of gold, with continued exploration potential both at depth and along strike.
• High-Grade Component: Exceptional grades in portions of the deposit (OKO Main Zone at 9 g/t, Ghanie footwall at 7 g/t) that could drive strong project economics and attract premium valuations.
• Excellent Metallurgy: Gold recoveries of 94-98.5% with simple metallurgical characteristics, suggesting potential for low processing costs and high margins.
• Strong Financial Position: $37 million cash position provides multi-year runway without dilution pressure.
• Strategic Interest: AngloGold Ashanti's 15% ownership and multiple companies under NDAs reviewing project data suggest acquisition potential.
• Favorable Jurisdiction: Guyana offering 3% underground royalty rates, along with demonstrated permitting efficiency as shown by G Mining's rapid progress.
• Exploration Upside: Systematic exploration along a 20-kilometer trend of the same basin margin shear structure that hosts the current 3M ounce resource.
• Potential Synergies: Proximity to G Mining's development project creates obvious operational synergies that could attract larger producers seeking district consolidation.

Macro Thematic Analysis

The gold market has strengthened considerably through 2024-2025, breaking through the $2,000 per ounce level decisively and recently testing $3,000 per ounce. This bullish environment has been driven by a combination of persistent inflation concerns, geopolitical tensions, and central bank purchasing, creating a favorable backdrop for gold development projects.

For developers like G2 Goldfields, this price environment transforms project economics dramatically. At $2,000 gold, high-grade deposits with strong margins are attractive, but at $3,000 gold, they become extraordinarily valuable. This value increase is particularly pronounced for projects with a significant high-grade component like G2's OKO Main Zone, where 960,000 ounces averaging 9 g/t could generate substantial free cash flow in early production years.

The industry is also experiencing a significant shortage of quality development assets following years of underinvestment in exploration. Major producers are increasingly looking to M&A to replace depleting reserves, making advanced high-grade projects like G2's Guyana assets prime acquisition targets. The involvement of AngloGold Ashanti as a 15% shareholder further validates the project's potential.

As CEO Dan Noone stated regarding his 2025 outlook: 

"I'd like to see gold go above $3,000 an ounce and stay there... I'd like to see us make another discovery along the lines of OKO Main Zone or Ghanie along the trend here. I think that'll be extremely exciting." 

Such a discovery, in the current gold price environment, could significantly accelerate corporate development options for G2 Goldfields.