Advancing Toroparu to Production

Exploration Projects

An Exploration Program with Vast Potential

Sandspring's exploration program is not only aimed at unlocking the geologic potential of its 98,214-hectare concession in western Guyana, it is also aimed at contributing to the realization of the development potential of the entire district. There are three opportunities for realizing this significant exploration upside:

  • The conversion of the Project's resources to reserves;
  • Discovering additional resources at drill-ready targets that surround the Project within the Upper Puruni concessions; and,
  • Finding more deposits regionally within the Puruni volcano-sedimentary sequence that extends northwest to the Venezuelan border.

Potential to discover additional deposits within 25 km to 40 km of Toroparu

Regionally, the Upper Puruni geological model indicates there is a strong potential to discover additional large- and medium-scale deposits along the Puruni volcano-sedimentary belt within a 25 km to 40 km distance of Toroparu. The Toroparu Deposit and its surrounding gold anomalies are located in the Puruni volcano-sedimentary sequence, near a regional structural sigmoidal flexure in the northwest trending Puruni Shear Corridor. Early geochemical and geophysical analysis, as well as drilling, indicates gold mineralization is associated with small, intermediate plutons that lie within the Shear corridor, and Sandspring's goal is to use the Toroparu Project as a platform from which to explore this regional potential.

Geologic setting is conducive to large deposits

On a district scale, the gold potential of the Guiana Shield is vast, but remains untapped. The Guiana Shield is analogous to the West African Shield, with which it shares a common geologic history. More than 30 gold deposits have been discovered in the West African Craton, which has undergone systematic surface exploration over the last decades. There are currently over 30 deposits in production in that region, which have collectively produced millions of ounces of gold in this now famous gold district. In contrast, alluvial miners have discovered most of the existing deposits in the paleo-proterozoic rocks of the Guiana Shield, which stretches northwest across French Guiana, over Suriname and Guyana to Venezuela, and has been exposed to very little systematic exploration. To date, the Guiana Shield has produced only a few multimillion-ounce deposits, suggesting there are numerous possibilities to discover more world-class gold deposits in these mineral districts.

Drill ready targets

Two first priority drill-ready targets, Sona Hill and Makapa, resulted from a 2011 to 2012 regional geochemical survey conducted over 45% of the Upper Puruni concession. Sona Hill contains a strong and continuous gold anomaly over 2 km in a north-south direction located 5 km southeast of the Toroparu deposit. At Makapa, a 1 km north-south trending gold anomaly has been identified on a hill 10 km north-northwest of Toroparu.

Both Sona Hill and Makapa are among a cluster of several gold anomalies located within a large geochemically identified hydrothermal halo that extends for 20 km by 7 km around Toroparu. The size and degree of the halo's polyphased hydrothermal alteration patterns suggest that more economic mineralized systems may be discovered in the area. Initial reverse circulation and core drill results from near surface exploration drilling at the Sona Hill anomaly indicate the presence of gold in saprolite and fresh rock:

Reverse Circulation Drilling

RC Holes From
(m)
To
(m)
Length
(m)
Gold
(g/t)
SOR001 6.10 12.20 6.10 1.90
18.30 24.40 6.10 7.79
SOR012 51.90 97.60 45.70 1.74
SOR014 9.20 27.50 18.30 1.83
48.80 54.90 6.10 2.40
SOR021 64.10 82.40 18.30 1.80
SOR022 27.50 48.80 21.30 1.16
54.90 100.70 45.80 1.33
SOR023 6.10 24.40 18.30 1.09

Diamond Core Drilling

Core Holes From
(m)
To
(m)
Length
(m)
Gold
(g/t)
SOD001 49.00 56.50 7.50 4.35
62.50 65.50 3.00 4.27
SOD002 42.70 49.50 6.80 1.96
SOD004 46.00 50.50 4.50 2.54
54.00 63.00 9.00 1.67
79.50 84.00 4.50 3.48

Additional reverse circulation and core drilling is planned at Sona Hill to confirm the continuity of the grade of mineralization encountered to date. Exploration drilling is also planned for the Makapa anomaly.