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Press release from CNW Group

Guyana Goldfields Inc.'s Drilling in the "Golden Square Mile" Confirms Continuity and Extension of Gold Mineralization

Tuesday, May 03, 2011

Guyana Goldfields Inc.'s Drilling in the "Golden Square Mile" Confirms Continuity and Extension of Gold Mineralization07:00 EDT Tuesday, May 03, 2011TORONTO, May 3 /CNW/ -Guyana Goldfields Inc. (TSX: GUY) ("Guyana" or the Company") is pleased to announce that assay results from thirty four (34) new drill holes have been received at the Aurora Gold Project. These drill holes are part of the on-going infill and extension drill program within the "Golden Square Mile", which began at the beginning of 2011 and will be completed at the end of May. The primary aim of the drill program is to upgrade the 1.33 million ounces of inferred resources identified in the last SRK resource estimation to the measured and indicated category and to expand the current known mineralization along strike and dip. Of the 34 drill holes, thirteen (13) are infill drill holes and twenty-one (21) are step-out drill holes. All intervals in this release are down hole depths. There are eight (8) diamond drill rigs currently drilling at Aurora with one (1) additional drill rig to start this month.The complete results for the thirty-four new drill holes are tabulated in the intercept spreadsheet.http://files.newswire.ca/826/Intercept_Spreadsheet.xlsAdditionally, below you will find a link of 3D Aurora images showing the new intercepts within the Golden Square Mile.http://files.newswire.ca/826/Aurora_3D_Images.pdf The results are not included in the recently updated resource estimation completed by SRK (see press release dated February 28, 2011). A revised Resource Estimate, due to be completed in the third quarter of this year, will be used for the Feasibility Study in the fourth quarter.At Rory's Knoll, where known mineralization previously went to a depth of 1,350 metres below surface, partial results for RKD-162 were received. RKD-162, a mother hole for deep drilling, was stopped at 1,566 metres in mineralized tonalite. This confirms the continuity of mineralization at Rory's Knoll and is still open at depth. The new drilling depth extended the mineralization model approximately 200 metres below the known mineralization boundary of the last resource estimation done by SRK for Rory's Knoll (February 2011). RKD-162 partial assay results were received up to 190 metres with a best intercept of:178 metres @ 4.92 g/t Au from 12 metres, including 19.80 metres @ 9.69 g/t Au from 24 metres and 29 metres @ 6.26 g/t Au from 73 metresAt Aleck Hill, two significant step-out drill holes, AHD-169 and AHD-172 have expanded the dip continuity of the Aleck Hill New zone by another 80 metres down dip and 60 metres along strike. Results include:AHD-169 returned 36.15 metres @ 1.02 g/t Au from 602.85 metres including 4.20 metres @ 5.41 g/t Au from 602.85 metresAHD-172 returned 53 metres @ 3.59 g/t Au from 603 metres, including 24 metres @ 6.71 g/t Au from 603 metres and 10 metres @ 10.28 g/t Au from 609 metres.AHD-172 opened the down dip continuity of the Aleck Hill New zone. Other significant step-out drill holes include:AHD-170 returned 49.45 metres @ 1.01 g/t Au from 117 metres, including 4 metres @ 3.81 g/t Au from 129 metres and 4.70 metres @ 4.14 g/t Au from 160.40 metres.AHD-171 returned 92 metres @ 0.90 g/t Au from 319 metres, including 6 metres @ 2.79 g/t Au from 319 metres, 18 metres @ 1.64 g/t Au from 367 metres, and 4 metres @ 2.97 g/t Au from 411 metres.These two holes expanded the dip continuity of the Aleck Hill mineralization by another 120 metres to the west. The continuity of the Aleck Hill mineralization confirmed by the step-out drill holes have opened up new zones especially along dip for follow-up drilling that will further expand the known resource boundary.The remaining infill drill holes confirmed the continuity of the mineralized zone between 25 metre sections. The best intercept from the infill drill holes is from AHD-166 returning 55.50 metres @ 2.23 g/t Au from 396 metres, including 6 metres @ 15.67 g/t Au from 432 metres.At Mad Kiss, MKD-114, a step-out drill hole, significantly expanded the dip continuity of the Mad Kiss Main zone by another 120 metres down dip. MKD-114 returned 27.80 metres @ 3.09 g/t Au from 611.20 metres, including 9.80 metres @ 5.80 g/t Au from 613.20 metres and 2 metres @ 5.10 g/t Au from 631 metres.  The remaining infill drill holes confirmed the known extent and continuity of the mineralized zones. Best intercepts were returned by:MKD-120 returned 10.50 metres @ 26.72 g/t Au from 257.70 metres, including 4 metres @ 47.70 g/t Au from 259.70 metres and 2.40 metres @ 33.50 g/t Au from 265.80 metres.MKD-122 returned 10.05 metres @ 4.89 g/t Au from 390.25 metres, including 4 metres @ 8.65 g/t Au from 394.25 metres.At East Walcott Hill, infill drill holes confirmed continuity of the mineralization between 25 metre sections. The best intercept is from EWD-58 returning 9 metres @ 1.39 g/t Au from 282 metres, including 1.20 metres @ 8.40 g/t Au from 284 metres.A 3D model of the Aurora Gold Project can be viewed on the Company website at http://www.guygold.com/main1.aspx?id=40.Dan Noone, Vice-President, Exploration states, "The extension holes have demonstrated that mineralization is still open at depth across all zones. Our near-term goals in the next six months are to aggressively expand the ore body at depth within the Golden Square Mile and also drill other satellite targets within the Aurora District to ultimately increase resources."The Aurora drilling programs are being carried out under the direction of Mr. Niel Silvio (Aus.IMM), a qualified person within the meaning of National Instrument 43-101. Mr. Silvio has reviewed the contents of this news release. Drill core samples were sent to and prepared at ACME Analytical Laboratories Ltd (ACME Lab) in Georgetown, Guyana, while assaying was done at ACME Lab in Santiago, Chile and Vancouver, Canada using FA-AAS with Fire-Assay gravimetric finish for samples with > 3,000 ppb Au.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 with a current measured and indicated resource of 5.34 million ounces gold (42,171 million tonnes at a grade of 3.94 g/t). An updated resource estimate will be released in August 2011, followed by a Feasibility Study in the fourth quarter of 2011.At the Aranka Properties, currently in advanced staged exploration, drilling of highly prospective targets is ongoing. The Company discovered a gold deposit at Sulphur Rose containing an initial inferred resource of 460,400 oz and plans to release an updated resource estimate in August 2011.  As at the date hereof, the Company has approximately $53 million in cash and short-term bank guaranteed investment certificates and no debt; there are approximately 83 million shares issued and outstanding.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: Guyana Goldfields Inc., Dan Noone, VP, Exploration Tel: (416) 628-5936 Ext. 5925 E-mail: dnoone@guygold.comJacqueline Wagenaar,Vice-President, Corporate Communications Tel: (416) 628-5936 Ext. 2295, Fax: (416) 628-5935, E-mail: jwagenaar@guygold.com, Website: www.guygold.com