Guyana Goldfields Inc

completed

Guyana Goldfields (or the company) is a publicly listed junior mining company whose objective is exploration and development of properties for the mining of precious and base metals in Guyana. It holds 100% of the mineral exploration rights to the Peter’s (8,358 acres) and Aurora (14,000 acres) properties in Guyana. It acquired prospecting licenses for these properties from 1996-1998.The company has been active in Guyana for about ten years, and it commenced a 10,000 meter drilling in early 2004. In June 2004 it discovered a very highly mineralized deposit at Rory’s Knoll, part of the Aurora Complex of deposits. The company now has three drill rigs operating continuously. It is starting to model the resource and expects to have a prefeasibility-quality resource by the end of 2006. Mine development is not expected to start for another 24 months as the Bankable Feasibility Study (BFS) progresses. The company has identified gold resources in the Peters concession but at this time it is focusing efforts on Aurora.Guyana Goldfields is committed to IFC objectives on environmental, social, and governance issues and will comply with IFC Policies & guidelines. It values the resources and expertise IFC brings to help it develop. The company has committed to these objectives in a Corporate Policy Document. Deposits:The Aurora property is located on the Cuyuni River, 175 km of Georgetown. The Company has built a camp at Aurora that currently has 40 full-time workers focused on exploration and drilling activity. There is a medic on sight that treats workers and occasional drop-in patients (free of charge). The largest and best-defined deposits are in an area called the Golden Mile, which is approximately one square mile in area. Drilling commenced at the Rory’s Knoll deposit in June 2004, and the first hole was a big success – 5.82 gpt Au at 47m. This was followed by other successful hits: 4.06 gpt Au at 74m, 2.87 gpt Au at 171m, and 5.62 gpt Au at 106m. There are several defined deposits in the Golden Mile, and current indications suggest an open pit mine of about 2 million oz. at 2.5 gpt.