Peters Mine

The Property consists of approximately 8,358 acres located approximately 160 kilometers southwest of Georgetown, the capital of in Guyana, South America. It is currently under option to WSR Gold Inc. to earn 50% interest.

The Peters Mine was the first significant gold producer in Guyana. Based on a review of historical government data and old company reports filed in the Guyana Geological and Mines Commission (GGMC) archive, Guyana Goldfields Inc. has determined that the Peter’s Mine was put into production by a New York syndicate in 1904 and operated until 1909. The main workings of Peter’s Mine consist of a 300-foot shaft with levels at 100, 200 and 300 feet below the collar, and an open pit whose floor is approximately at the 100-foot level. Mining widths underground varied from five to twenty seven (27) feet and all of the production came from interlacing quartz veins, with mill-head grades of approximately 41g/t Au. (1.19 oz/ton) As mining progressed, primary ore recoveries dropped significantly and the mine was forced to
close in 1909 after producing approximately 40,000 ounces of gold (1371.2kg)

In the late 1960’s, the United Nations, as part of a program to attract foreign investment to the newly independent country of Guyana, drilled seven diamond drill holes in the vicinity of the main shaft area. The United State Geological Survey (A.E. Weissenborn, 1966) reported that Hole UN-2 was successful in “intersecting the Peter’s Mine structure at a high angle and traversed the entire known mineralized area. An extensive zone of quartz veins was cut between 539 and 591 ft (52ft), correlating with the downward projection of the West Branch vein, shows some encouraging assays. Some intercept samples from 539 to 544 ft and from 544 to 549 ft assayed 6.95 and 4.36 ounces per short ton respectively or an average of 5.66 ounces over a 10 ft. length.”

Subsequent to the work done by the United Nations, Lion’s Mines Limited of Vancouver acquired the Property and dewatered and rehabilitated the underground workings. A mining license was applied for, however a dispute with the government led to the abandonment of the project in the early 1970’s.

The Property was then subject to a brief exploration program in the late 1980’s by Homestake International Minerals Ltd.

Guyana Goldfields Inc. acquired the project in 1996 and conducted a limited diamond drilling campaign in the main shaft area over the next four years. Encouraging mineralized intercepts in this area included the following:

In 2005, the Property was subject to a detailed airborne geophysical survey consisting of radiometrics, electro-magnetic, and magnetometer surveys. This survey identified and outlined the primary mineralized control structure target as a major deformation zone with widths of 150 to 250 meters wide running north to south for a distance of 8 kilometers through the Property.

This structure marks the contact between the granodiorite intrusive in the east and me-volcanics in the west. This finding was further reinforced by results of geochemical work and ground mapping of historical as well as present artisanal workings. Throughout this trend, old shafts, adits and recent workings by itinerant miners suggest that the historical Peters mine was a relatively small part of much larger regional structure.

Early in the 20th century the Peters mine produced 39,810 ounces of gold from 54,548 tons of ore (0.73 ounces/ton recovered) with a shaft of approximately 90m depth. The company has acquired a 100% interest in the project and has spent CDN$3.5 million on drill programs resulting in 32 deep holes (300m) and 46 shallow holes (25m). Drilling has indicated significant gold values over mineable widths in both oxidized and primary mineralized zones. The underground potential of the Peters mine project is characterized by "Goldcorp-type" high grade zones.