Tickers: XTSX:GYA, FRAA:1ZT, PINX:GYNAF
February 21, 2018 / TheNewswire / Vancouver, Canada - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) is pleased to announce its founding membership in the formation of an Ethereum Blockchain Strategic Alliance for Gold and Silver asset backed crypto-tokens (the "Alliance"). Further details are provided below:
Founding Members of the Alliance
The founding members of the Gold and Silver Ethereum Strategic Alliance are as follows:
- Canamex Gold Corp (TSX-V: CSQ)
- Guyana Goldstrike Inc (TSX-V: GYA)
- Cabral Gold Ltd (TSX-V: CBR)
- Arizona Silver Exploration Inc (TSX-V: AZS)
- Altamira Gold Corp (TSX-V: ALTA)
Purpose of the Alliance
The members of the Alliance seek to collaborate for the purposes of future offerings of crypto-tokens and potential future initial token ("ITO") offerings. The offerings may be backed by gold and/or silver forward delivery, using gold and/or silver royalty streaming and other asset backed models, for the purposes of developing future financing models for funding future exploration, feasibility studies, mine development and/or mine expansion, by its member companies. Discussions are also underway with additional parties, who are looking to join the Alliance as members, and updates will be provided as the Alliance membership grows.
The basis of the Alliance is to also increase the trust associated with any future issuance of Ethereum Blockchain Smart Contract Crypto-Tokens for Gold and Silver, as an alternative means of raising capital, potentially without equity dilution. As previously advised, the Company has secured exclusive rights to 6 (Six) Ethereum Crypto-Token domain names, ticker codes, and associated smart contracts, for Gold and Silver commodity backed crypto-tokens. These may be used by the Alliance members, and progressively issued in any future ITO, using the models and associated intellectual property, developed by the Company.
Comments by Peter Berdusco, CEO and President of Guyana Goldstrike Inc
"Guyana Goldstrike is extremely pleased to be a part of the Ethereum Alliance. It potentially provides the company with a new method of funding via an exciting and rapidly emerging crypto-token market. Given the fact that our Marudi Gold Project has an established mining license and recently announced mineral resource estimate, the timing couldn't be more ideal. The Alliance gives us the opportunity to further advance the project in a manner that may minimize shareholder dilution and maximize exposure to new investors in this growing marketplace."
Comments by David Vincent, CEO of Canamex Gold Corp
"The Alliance seeks to utilize innovative gold and/or silver royalty stream funding models, for gold and/or silver asset backed crypto-tokens, trading and clearing on the Ethereum blockchain, for the purposes of funding gold and silver exploration and mine development, for the Alliance members. Interest in the blockchain technology, for secondary market trading and clearing is growing. For example, the Canadian Securities Exchange (CSE) has recently unveiled plans to develop Canada's first platform for clearing and settling securities using blockchain technology".
Comments by Alan Carter, CEO of Cabral Gold Inc
"We are excited to be part of this initiative which offers the potential for a new and exciting means of funding junior resource companies such as ours. This innovative approach has the potential of mitigating the effect of dilution for early stage start up resource companies, and provides investors with a unique crypto-token offering backed by gold and/or silver".
Comments by Michael Bennett, CEO and President Altamira Gold Corp
"Altamira is extremely happy to be a founding member of this alliance, a brilliant initiative which lends well to the future financing for the most advanced of our projects, the Cajueiro Project. Financing of this nature with a crypto-token offering backed by gold, will facilitate acceleration of start-up on mining operations and strengthen junior resource companies by reducing dilution."
Comments by Greg Hahn, CEO and President of Arizona Silver Exploration Inc
"I believe the ability to sell asset-backed tokens will open up new funding opportunities for companies with significant resources in the ground, and allow them to advance those projects to development and production while minimizing dilution to shareholders".
Recently Announced C$3.2 Million Strategic Investment
Gold Mountains Asset Management Limited ("GMA"), a wholly-owned subsidiary of Zijin Mining Group ("Zijin"), has agreed to make a strategic investment in the Company. The investment will be completed by Zijin Global Fund and Zijin Midas Exploration Fund LLC, both managed by GMA.
Zijin is a publicly- listed company that trades on the Shanghai and Hong Kong Stock Exchanges with a current market capitalization of C$18 billion. With extensive interests across a broad range of commodities, it is the largest gold producer in China and one of the most well-capitalized, experienced and successful miners in the world.
Proceeds from the investment will be used to advance the Company's flagship Marudi Gold Project in Guyana, South America. The investment will allow the Company to fund its ongoing multi-phase exploration program at Marudi, involving up to 10,000 metres of diamond drilling and 12,000 metres of trenching.
This strategic investment is completely independent of the Alliance and not connected to it in any manner.
Exploration Program: Phase One - Currently Underway
Phase One of a multi-phase exploration program is currently underway at Marudi. The objectives of this first phase are: 1) expand the exposures of mineralized hard-rock at newly discovered locations, 2) follow and expand zones that were identified in trenches by previous operators, and 3) examine areas where gold is present in saprolitic material and a bedrock source has not been identified. Exploration by trenching and sampling is an important, cost-effective method for identification of drill targets in saprolite terrane.
The area of immediate focus represents less than five percent of the property. The new locations of interest within this area are: Kimberley Ridge, Marudi North (west and east extensions), Marudi Spur Ridge, Toucan North, Pancake Creek, Mariwa and Success Creek.
The work will be conducted under the supervision of Mr. Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company. The on-site geological staff will be supported by the property's fully equipped mining camp which comes with employees and service buildings. Once Phase One is completed, the collected data will be reviewed, analyzed and used in the planning of the Company's diamond drilling program.
About The Marudi Gold Project
The property, located in Guyana, South America, is unique in that it has a mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager. The property has three known gold bearing areas, specifically the alluvial areas, the saprorlite overburden, and the underlying hard-rock. There has been 42,000 metres of historic diamond drilling (141 holes) completed on the Project by prior operators. The Company has recently completed a mineral resource estimate on the Mazoa Hill zone of 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.80 grams/tonne (g/t) and 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 grams/tonne (g/t). There exists excellent exploration upside through the development of previously identified, highly-prospective mineralized targets on the Project. For information concerning the mineral resource estimate and the Project, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate", a technical report prepared for the Company by Global Mineral Resource Services and is available on the Company's website located at (http://www.guyanagoldstrike.com/images/pdf/43-101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf) and under the Company's profile on SEDAR (www.sedar.com).
The Republic of Guyana is located in South America between Venezuela and Suriname. The country is English speaking and under British Common Law with a democratically-elected government. It has an established mining act and a rich history of gold production. In 2016, 690,000 ounces of gold was produced by operators mining in the country. The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin sub-group. The Guiana Shield is the geographic gold-hosting region with over 100 million ounces of gold inventory. * It is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa. In 2016, two mines in Guyana declared the commencement of commercial production: the Aurora deposit (Guyana Goldfields) and the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29, 2016
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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