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Press release from CNW Group

Guyana Goldfields Announces Initial Mineral Resource Estimate at Sulphur Rose

Friday, December 31, 2010

Guyana Goldfields Announces Initial Mineral Resource Estimate at Sulphur Rose07:30 EST Friday, December 31, 2010TORONTO, Dec. 31 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("Guyana" or the Company") is pleased to announce the completion of an initial Mineral Resource Estimate for the Company's wholly owned Sulphur Rose property at its Aranka group of properties in Guyana, approximately 35 kms away (by road) from the Aurora Gold project.HighlightsResource estimate includes 460,400 ounces of inferred resources.Infill drilling with the objective of upgrading inferred resources to measured and indicated will commence in the New Year.Potential for further resource additions in nearby areas considered excellent.Exploration potential remains open at depth and along strike. The reported resource contains 6,853,000 tonnes with an average grade of 2.09 grams per tonne Au ("g/t") for a total of 460,400 contained ounces of gold in the inferred category, as set out in the table below. The base case resource was estimated assuming a long term gold price of US$1,000 per ounce.  Open pittable mineral resources were determined from a conceptual pit, designed using Whittle software, metallurgical test results from Sulphur Rose mineralization and operating costs estimated for the nearby Aurora project. Potentially mineable underground mineral resources were determined from the remaining mineral resource below the pit bottom using mining costs determined for the Aurora project and Sulphur Rose metallurgical recovery results, after leaving a 30 m thick crown pillar.Sulphur Rose Inferred Mineral Resource TonnesAu Grade(g/t)Contained Au(ounces)Open Pit16,366,0001.99407,300Underground2487,0003.3953,100Total6,853,0002.09460,400Note:  Table may not add precisely due to rounding errors.1 - Determined using the following assumptions: $1.45/t mining, $10.02/t processing, $10/t G&A and 91.9% recovery.2 - Determined using the following assumptions: $75.70/t mining, processing and operating costs and 91.9% recovery.The mineral resources above were determined using the "CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines" as adopted by CIM Council on December 11, 2005.  The estimate's effective date is December 29, 2010.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  At this time the mineral resources are not understood to be materially affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.Patrick Sheridan, CEO of Guyana Goldfields, commented: "The initial resource estimate at Sulphur Rose highlights the robust nature of this project with attractive grades and good widths.  This initial resource estimate represents a strong starting point as we continue to advance the deposit forward with our expectation that significant potential exists to add ounces both at Sulphur Rose and at other nearby prospective properties within Aranka."The reported open pittable mineral resource extends from surface to a vertical depth of approximately 215 metres.  The underground portion of the resource was determined from a block model which extends to 630 metres below surface, with the deposit remaining open to depth.The initial Resource Estimate for Sulphur Rose will be evaluated for possible inclusion in the Aurora Feasibility Study.  The Aurora revised Resource Estimate is due to be completed in Q3 2011 with the final NI 43-101 Technical Report due in Q4 2011.The Company expects to be able to complete an updated resource estimate at Sulphur Rose by the end of the second quarter in 2011.The Company has significantly allocated more drills and funds to the exploration program at Sulphur Rose and at its other Aranka properties, currently known as Wynamu, North Ridge, Pakira Hills and Kopang.  A total budget of up to ~$10million will be spent for 2011 with up to 6 drill rigs to support the extensive exploration efforts.  Guyana Goldfields will continuously report on the drilling success of these properties as the programs progress.Micon International Limited employee, B. Terrence Hennessey, P.Geo. was the independent "Qualified Person" for this estimate for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, executing the NI43-101 Technical Report and he confirms that he has reviewed the information contained within this release.Micon International Limited has provided consulting services to the international mining industry since 1988, with particular focus upon mineral resource estimations, metallurgical services, mine design and production scheduling, preparation of pre-feasibility and feasibility studies, independent reviews of mining and mineral properties, project monitoring, independent engineer roles, financial analysis and litigation support.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 $63 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.For further information: GuyanaGoldfields Inc., Dan Noone, VP, Exploration Jacqueline Wagenaar, Vice President, Corporate Communications Tel: (416) 628-5936 Ext. 2295, Fax: (416) 628-5935, E-mail: jwagenaar@guygold.com, Website: www.guygold.com