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Press release from CNW Group

Guyana Goldfields Issues an Updated Mineral Resource Estimate at Sulphur Rose

Wednesday, December 14, 2011

Guyana Goldfields Issues an Updated Mineral Resource Estimate at Sulphur Rose17:48 EST Wednesday, December 14, 2011TORONTO, Dec. 14, 2011 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI" or the Company") announces the completion of an updated Mineral Resource Estimate for the Company's wholly owned Sulphur Rose property at its Aranka group of properties in Guyana, approximately 55 kms away (by road) from the Aurora Gold project. The 2011 drilling program was concentrated on infill drilling in order to increase the confidence level of the initial ore resource identified in 2010. (See press release dated December 31, 2010).The reported resource contains 277,580 oz of Au in the indicated category, including 275,550 oz of Au for the open pit. A total of 289,250 oz of Au have been identified in the inferred category (see resource table below). A cut-off grade of 0.28 g/t Au was used for the open pit and 1.83 g/t Au was used for the underground.Sulphur Rose Indicated and Inferred Mineral Resource Quantity (Tonnes)Au Grade (g/t)Contained Au(ounces)Indicated    Open Pit8,250,0001.04275,550 Underground     30,0002.10    2,030Total8,280,0001.04277,580Inferred    Open Pit5,120,0001.14187,710 Underground1,210,0002.61101,540Total6,330,0001.42289,250Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issuesOpen pit resources were estimated from a pit shell which was optimized using Whittle software and the following assumptions: gold price: US$1,200/oz, mining costs in saprolite: US$1.30/t, in fresh rock: US$2.00/t, milling cost: US$10.00/t, G&A: US$4.50/t, mill recovery: 91.9% and pit slope angles in saprolite: 28°, in fresh rock: 45°.  Open pit resources were reported within the Whittle pit shell using a cut-off grade which met the marginal cost of milling at the pit rim, making allowances for metallurgical recovery.Underground resources were reported from the remaining resource below the pit after a 30-metre thick notional crown pillar was left behind. The cut-off grade for reporting underground resources used the factors noted above and preliminary underground mining costs estimated for the Aurora project feasibility study of US$50.26/t.This resource estimate significantly increases the overall understanding and confidence of the mineral resource and has identified additional nearby areas of potential extensions along strike and at depth within the deposit. The reported open pit mineral resource extends from surface to a vertical depth of approximately 255 metres. The underground portion of the resource was determined from a block model which extends to 640 metres below surface, with the deposit remaining open to depth (see Figures 1 and 2 for a 3D isometric view of the block model and a surface plan view of the three zones of mineralization at Sulphur Rose).To View Figure 1 please click here.To View Figure 2 please click here.The Company expects to complete another updated resource estimate at Sulphur Rose, following additional drilling, in late 2012.Sulphur Rose will not be included with the Aurora Gold Project due to its difference in grade, stage of development of the discovery, and the distance between the two sites. GGI expects to grow Sulphur Rose and potentially combine it with other nearby discoveries within the Aranka properties.In addition, drilling and trenching are currently being conducted on the S-1 Target located 2.6 kilometres east of Sulphur Rose where previous soil sampling have shown favourable results (See Figure 3). The exploration potential for further resource additions found within a 5-kilometre radius of Sulphur Rose are considered excellent due to preliminary results and will be further explored in the New Year.To View Figure 3 please click here.The Company has allocated significant funds and drills to the exploration program at Sulphur Rose and at its other Aranka properties for 2012. A total budget of up to ~$7million will be spent for 2012 with 2 drill rigs to support the exploration efforts. Guyana Goldfields will regularly report on the drilling success of these properties as the programs progress.Dan Noone, VP Exploration of Guyana Goldfields, commented: "The updated resource estimate at Sulphur Rose has improved the confidence of the mineral resources and we still have yet to determine the limits of mineralization. Our plan for 2012 is to continue to advance the delineation of the deposit with our expectation that significant potential exists to add ounces both at Sulphur Rose, and at other nearby prospective properties within Aranka. We have currently outlined various targets within a 5-kilometre radius of Sulphur Rose that will be systematically explored in the New Year with the expectation of adding to our resource base."GGI would also like to report that the updated Resource Estimate for the Aurora Gold Project which was previously due to be completed by mid-December 2011 (see press release dated November 11, 2011) is now expected to be issued by the end of the first quarter in 2012 due to a lack of sufficient data as a result of a backlog of assays. This will not affect the completion of the Feasibility Study, due in January 2012, which is based upon pre-May 31, 2010 resource data.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, and confirm that they have 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.Analytical testing and reporting of assays was conducted by Acme Analytical Laboratories Ltd. ("AcmeLabs") based in Georgetown, Guyana and Santiago, Chile. This news release and its contents have been reviewed by Mr. Augusto Flores IV (P.Geo), a qualified person within the meaning of National Instrument 43-101.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.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 5.71 million ounces gold (47.040 million tonnes at a grade of 3.83 g/t). The completion of a Feasibility Study is expected in mid-January 2012 followed by a revised resource estimate by the end of the first quarter in 2012.At the Aranka Properties, the Company has discovered a gold deposit at Sulphur Rose and other highly prospective targets have been identified for drill testing. As at the date hereof, the Company has approximately $36 million in cash and short-term bank guaranteed investment certificates and no debt; there are approximately 83 million shares issued and outstanding.    For further information: Guyana Goldfields 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