G2 Goldfields advances spin-out of Guyana assets

G2 Goldfields’ Oko Main gold project in Guyana. Credit: G2 GoldfieldsG2 Goldfields (TSX: GTWO) plans to seek shareholder approval to spin out its non-core Guyanese assets into a new company, G3 Goldfields, as an updated resource for its main Oko project is expected in weeks. It will hold a vote at a meeting on Jan. 28.The spin-out includes five properties, covering 242.8 sq. km, such as the Peters mine and Tiger Creek properties, G2 said Friday. The move aims to repackage the assets into a new company to attract better market valuations for them, while allowing G2 to hone its focus on its flagship Oko-Aremu project in Guyana’s Guiana Shield.The spin-out’s centrepiece, the Peters mine property, is Guyana’s highest-grade historical gold producer, yielding 41,000 oz. at over 28-plus grams gold per tonne between 1905 and 1910.G2 holds C$43 million in cash and benefits from a 15% equity stake by AngloGold Ashanti (NYSE: AU). These resources position the company to advance Oko while also exploring opportunities for a sale or merger.The company aims to release an updated resource estimate by year-end. It will incorporate results from the ongoing 75,000-metre Oko drilling campaign.G2 shares gained 2.3% to C$2.15 apiece in Toronto on Friday, and are up 168.8% over the past 12 months, having ranged between C$0.57 and C$2.39. It has a market capitalization of C$488.2 million.In the spin-out, shareholders of record, as of Dec. 17, will receive one G3 share for every two G2 shares they own under a scheme first floated in October last year.Sizeable opportunityThe Guiana Shield’s underexplored geology, which hosts Oko, has attracted significant interest and activity this year. In April, G Mining Ventures (TSX: GMIN) agreed to buy Reunion Gold (TSXV: RGD) for C$875 million.The Oko-Aremu project hosts a combined gold resource of 2 million oz. gold. The Oko Main Zone contains 2.4 million indicated tonnes grading 9.03 grams gold per tonne for 686,000 oz. and 2.4 million inferred tonnes at 6.38 grams for 495,000 ounces. Next to Oko Main, the Ghanie Zone holds 3.3 million indicated tonnes at 2.2 grams gold for 236,000 oz. and 12.2 million inferred tonnes at 1.54 grams gold for 604,000 ounces.This year’s drilling program focuses on extending near-surface resources at Oko Northwest and Ghanie. At Ghanie North, recent drilling cut 24.5 metres at 5.3 grams of gold. It included a higher-grade section of 4.5 metres at 25.2 grams. This shows the potential to expand resources.At the Peters property, G3 plans to build on earlier work. The company aims to find a multi-million-ounce resource using modern knowledge of mineral systems, it said. They have not given a timeframe.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com