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Press release from CNW Group

Guyana Goldfields announces Aurora Gold Project Update and Expanded 2011 Drilling Programs

Thursday, November 11, 2010

Guyana Goldfields announces Aurora Gold Project Update and Expanded 2011 Drilling Programs06:00 EST Thursday, November 11, 2010TORONTO, Nov. 11 /CNW/ - The Board of Directors of Guyana Goldfields Inc. (TSX: GUY) ("Guyana" or the "Company") is pleased to announce that, due to the identification of several additional mineralized zones at Aurora and the nearby Sulphur Rose discovery (Aranka), the Feasibility Study which was scheduled for completion by year-end will be deferred. These discoveries are sufficiently significant that their integration into the Feasibility Study may have a materially positive impact and must be evaluated. Accordingly, the planned 2011 drilling programs will be significantly expanded.Since March 24, 2010, the definitive Feasibility Study drill cut-off date, an additional 36,748 metres of drilling has been completed at Aurora, enabling significant growth of the three (3) newest zones identified within the Golden Square Mile (see press releases dated April 20, 2010 and August 18, 2010). These zones have been tested with forty-three (43) drill holes and remain open along strike and at depth. The discovery and further confirmation of these zones significantly increases known gold mineralization within the bounds of the Aurora Gold Project area. Furthermore, with the upcoming release of the initial resource estimate at Sulphur Rose (Aranka District) by year end, and given the proximity (35km by road) of this new discovery to the Aurora Gold Project, additional drilling and assessment are warranted to explore the possibility of including Sulphur Rose and its new resource ounces in the Aurora Feasibility Study. Patrick Sheridan Jr., CEO, commented, "Mineralization encountered at the new zones within the Golden Square Mile have increasingly become material to the Aurora resource calculation and now warrants inclusion in the definitive Feasibility Study.  Not only will these new zones add to the robust nature of the Aurora Gold Project but will be included as part of the underground operation in the early years of mine life. Given the recent discoveries and ongoing geological modeling and understanding, we believe more mineralized zones will be discovered and must be appropriately tested."AURORA PROJECTThe definitive Feasibility Study will be modified to include the following:Infill drilling within the Golden Square Mile completed from March 24, 2010 (the current Feasibility Study cut-off date), to the end of June 2011 (the new Feasibility Study cut-off date), will be included in a new resource estimate to be completed by the end of August 2011A mine plan to include the three zones mentioned above plus assessment of any additional new zones discovered before the end of June 2011Assessment of the Sulphur Rose discoveryFeasibility Study Completed in Q4 2011 (calendar year)Additionally, the Company will continue to carry out civil and infrastructure works that are critical to an expanded exploration effort and mine construction. Below are some of the key objectives and milestones for the remainder of 2010 and 2011:Completion of the access tote road to the Aurora siteCompletion of key Buckhall facilitiesRelocation and expansion of current camp and related facilitiesConstruction of a larger permanent airstripAdditional site road construction for site preparationExamine merits of early construction of an underground portal and access ramp to allow for earlier underground access and additional underground exploration drillingComplete the Hydropower Feasibility Study and assess its potential inclusion in the overall Feasibility StudyComplete negotiations with the government on the Mineral Agreement and obtain the Mining License for the Aurora Gold ProjectDRILLING PROGRAMS Expanded future drilling plans at Aurora and Aranka for 2011 have been designed to significantly increase potential local and regional mineralization along trend and expand newly discovered zones. Guyana Goldfields is dedicating an estimated $25-30 million for exploration in 2011 to advance both programs at Aurora and Aranka. Ten (10) drill rigs will be operational at Aurora and will complete approximately 70,000 metres of drilling through June 2011 dedicated to further resource conversion from Inferred to Measured and Indicated as well as exploration drilling for a total combined budget of $15-20 million.Up to Six (6) drill rigs with a budget of $10 million will be operational at Aranka with the potential to increase based on success. Further details are listed below on 2011 drilling activities at both properties.Aurora (over 110,000 acres)Within Golden Square MileEstablished ZonesAdditional infill drilling will be completed on specific targeted areas of the eight (8) known and delineated zones.New Aleck Hill (1) and Mad Kiss Zones (2)Further infill and delineation drilling will be carried out on these three (3) new zones.Underground Exploration and Rory's Knoll Deep DrillingContinue drilling at depth below all Aleck Hill and Mad Kiss zones which remain unexplored to date below 500 metres. A deep drill has also been contracted for Rory's Knoll in the first half of 2011 to test for additional mineralization at depth below 1,000 metres. Previous deep drilling completed to date in this area indicates continued mineralization.Outside Golden Square MileIn 2010, the Company re-evaluated a geophysical survey over a five (5) km radius outside the Golden Square Mile and has identified forty-three (43) geophysical targets that resemble mineralization at Rory's Knoll through a specific potassium signature. These targets will be systematically drilled to identify gold mineralization outside the Golden Square Mile at Aurora.Aranka District (over 307,000 acres)Sulphur RoseAssay results have been received from a total of sixty-two (62) holes aggregating 22,819 metres (as of October 31, 2010). The Company has so far delineated a northwest trending gold zone of significant mineralization measuring ~500m strike length by 200m width and approximately to a depth of 500m. An initial resource is being completed by Micon International Limited ("Micon"); an independent mining consultant company based in Toronto, Ontario, and is expected to be completed by the end of 2010. Targeted diamond drilling with two (2) rigs will continue to test mineralization laterally and at depth.North RidgeNorth Ridge is located approximately 5 kilometres north from the current area of drilling at Sulphur Rose. Mapping and sampling has demonstrated additional gold mineralization. A drilling program with one (1) rig has been initiated and assays are pending. Further drilling is expected to continue in 2011.WynamuWynamu is located approximately 35 kilometres north of Sulphur Rose and has been delineated by a 5km by 2km airborne radiometric potassium anomaly, with anomalous gold in stream sediments. Reconnaissance work and stream sediment sampling at the Wynamu prospect has continued to demonstrate very high assays. Several new areas have been selected for detailed grid soil sampling. One (1) drill rig will be mobilized to this highly prospective area in the first half of 2011.Pakira HillsPakira Hills is located approximately 20 kilometres north of Sulphur Rose and is an area of anomalous gold in stream sediments. Reconnaissance drill programs are being contemplated.Patrick Sheridan Jr. further commented, "We are extremely excited by the results of recent drilling and how, with additional work, it will further enhance the Aurora Gold Project.  We look forward to bringing the country and people of Guyana a truly world-class gold mine. This next step forward will allow us to unlock the full potential of the Golden Square Mile, Sulphur Rose and our vast exploration portfolio."International Investor Conference CallClaude Lemasson, President & COO and Dan Noone, VP Exploration of the Company will be hosting a conference call to coincide with the release.Date:  Thursday, November 11, 2010Time:  08:30 am ESTDial-In Information:International: + 1-647-723-3981North America: + 1-800-747-5150Access Code (for both International and North America): 6285936For anyone not able to participate in the call, submit any questions to jwagenaar@guygold.com and you will receive a prompt response.About Guyana Goldfields Inc.Guyana Goldfields Inc. is a Canadian based mineral exploration company primarily focused on the exploration and development of gold deposits in Guyana, South America where the Company has operated since 1996. The Company is currently undertaking drilling and studies to advance and develop the Aurora Gold Project in Guyana.At the Aranka Properties, currently in advanced staged exploration, drilling of highly prospective targets in an ongoing program and recently discovered a new gold zone at Sulphur Rose with plans of an initial resource by the end of 2010. As at the date hereof, the Company has approximately $67 million in cash and short-term bank guaranteed investment certificates and no debt and 80,785,593 shares issued and outstanding.All scientific and technical information contained in this press release has been prepared under the supervision of Mr. Niel Silvio (AusIMM/AIG), a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Guyana, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.%SEDAR: 00022477EFor further information: GuyanaGoldfields Inc., Claude Lemasson, President & COO, Director Jacqueline Wagenaar, Director of Investor Relations, Tel: (416) 628-5936 Ext. 2295, Fax: (416) 628-5935, E-mail: jwagenaar@guygold.com, Website: www.guygold.com