Australian-Barrick partnership eyes substantial gold upside in Guyana
An Australian company which has teamed up with the largest gold company in the world to exploit a corner of Latin America’s untapped mineral riches, says the bulk of Guyana’s gold production has only “just scratched the surface”.
Addressing the opening day today of the sixth Paydirt Latin America Downunder conference in Perth, Alicanto Minerals Limited’s Managing Director, Mr Travis Schwertfeger, said Guyana continues to represent a genuine emerging greenstone gold belt in South America.
“More than nine million ounces of gold has been produced out of Guyana in the past 25 years but more than 60% of this has come from artisanal mining,” Mr Schwertfeger said.
“Large-scale mining in the country where gold is its biggest export, has been disproportional due to limited modern exploration investment, creating opportunity,” he said.
“The footprint of artisanal workings has continuously expanded in the past 20 years with steadily increasing gold output from near surface workings.
“We therefore have a window where Guyana’s gold endowment from systematic exploration is yet to be recognised.”
Alicanto has two major gold projects in the country – Arakaka and Ianna – with some US$2.5 million to be spent on a 7,500 metre drilling program on Arakaka this calendar year.
Toronto-based Barrick has a US$10 million four year deal with Alicanto to acquire a 65% stake in Arakaka, with the Australian partner remaining the project operator.
Alicanto will be paid an additional US$2.0 million at completion of Barrick’s earn-in expenditure as part of the four year deal.
Drilling on Arakaka has already confirmed mineralised structures extending for 10 kilometre strike length up to 1.5 kilometres wide and unveiled the potential for more than 30 kilometres of strike extent across the project’s targets.