Potaro-Maple Creek
Pursuant to an agreement in March 2007 with Vannessa Ventures Ltd. (now Infinito), Guyana Frontier obtained an option to acquire 100% of Vanarde Mining Inc. and Vannessa Guyana Inc. The assets of Vanarde Mining Inc. and Vannessa Guyana Inc. include, but are not limited to, approximately 40,000 acres of exploration licences in the Potaro River area of Guyana. This property includes a previously-operated 400 cubic metres per day alluvial diamond production and recovery equipment on site. Two of the largest gem diamonds recovered in Guyana (56.75 and 25.67 carats) were found on the Potaro-Maple Creek property.
On October 31, 2007, the Company issued 200,000 common shares (valued at $48,000) of Guyana Frontier to an arm's-length independent third party as a finder's fee. The agreement requires US$250,000 in qualified exploration expenditures to be made by Guyana Frontier prior to March 7, 2008 (completed), cash payments totaling US$200,000 (paid) and cash or share payment totaling US$1,000,000 over four years. The transaction to purchase assets formerly held by subsidiary companies of Infinito Gold Inc., namely Marudi Mountain, Paint Mountain, and Potaro-Maple Creek, which closed in February 2011, has superseded the option payments that were due March 6, 2009 and March 6, 2010.
During late 2007 and early 2008, Guyana Frontier undertook extensive soil, panned concentrates, rock, stream and sediment sampling over the project lands. Approximately 22% of the property has now been covered by this systematic geochemical and geological study.
A total of 2,901 samples have been taken consisting of 2,223 soil samples, 278 panned concentrates, 123 rock samples, and 277 stream sediment samples. Four anomalies were tested during late 2008 by drilling 118 TRADO (mechanized auger drill) holes to depths varying from 1 to 6 meters in depth. A total of 252 samples of soils and panned concentrates each were analyzed for gold from the TRADO holes. This type of sampling has been used to provide reliable samples beneath the extensive "white sands" which cover a large portion of the property. A limited amount of hand trenching was also undertaken. Seven significant gold anomalies have been identified from the program that merit further investigation.
The North Queen of Diamonds grid hosts an anomalous area approximately 250 meters wide by 600 meters long overlying an intrusive body. The association between the pronounced northeast linear features and the Pepper Creek, Maple Creek South and Little Uewang anomalies is pronounced, and the Maple Creek North anomaly is clearly associated with a discrete magnetic body.
Under the terms of the purchase and sale agreement with Infinito, which closed on February 23, 2011, Guyana Frontier purchased all of the shares of Vanarde Mining Inc. and Vannessa Guyana Inc., which gives Guyana Frontier a 100% interest in the Potaro-Maple Creek project. Guyana Frontier granted Infinito the right to receive a 2% NSR for all future mineral production from the Potaro-Maple Creek Project, to a maximum of US$2,000,000 in royalty payments.
