GUYANA Goldfields Inc.(GGI), the Canadian mining company which recently obtained a Mineral Agreement to build and operate the Aurora Gold Project in the Cuyuni, has reported encouraging results in its exploration activities at another mine site fifty-five miles from Aurora.
The company disclosed that an updated Mineral Resource Estimate for the location, known as Sulphur Rose, shows it contains some 277,580 ounces of gold in the indicated category, including 275,550 ounces in the open pit.
A total of 289,250 ounces of gold have been identified in the inferred category, with a cut-off grade of 0.28 grammes of gold for every tonne of material excavated (0.28g/t Au) being used for the open pit, and 1.83 g/t Au for the underground.
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.
“This resource estimate significantly increases the overall understanding and confidence of the Mineral Resource (Estimate), and has identified additional nearby areas of potential extension along strike, and at depth within the deposit,” the company disclosed in a report on its 2011 drilling programme at Sulphur Rose and its environs. 
The 2011 drilling programme was concentrated on infill drilling, or drilling between established holes, in order to increase the confidence level of the initial ore resource identified in 2010. 
The company expects to complete another updated Resource Estimate at Sulphur Rose, following additional drilling, in late 2012.
It said that, 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 samplings have shown favourable results.
The exploration potential for further resource additions found within a five-kilometre radius of Sulphur Rose is considered excellent, due to preliminary results, and will be further explored in the New Year.
The company has allocated significant funds and drills to the exploration programme at Sulphur Rose and at its other Aranka properties for 2012, apart from Aurora.
A total budget of up to US$7million will be spent for 2012, with two drill rigs to support the exploration efforts.
The GGI had in November last received a Mineral Agreement for its property at Aurora.
Significant among the terms are:
* Mining royalty of 5% on gold sales at a price of gold of US $1,000/oz or less
* Mining royalty of 8% on gold sales at a price of gold over US $1,000/oz
* Corporate income tax rate of 30%, and no withholding tax on interest payments to lenders; and
* Duty and value added tax exemptions on all imports of equipment and materials for all continuing operations at the Aurora Gold Project, including the construction and operation of a planned port facility, road and power improvements, and the construction and operation of the mine.