VANCOUVER, Nov. 27, 2012 /PRNewswire/ - Guyana Frontier Mining Corp. ("Guyana Frontier") is pleased to announce that Mulgravian Ventures Corporation ("Mulgravian", a private Canadian exploration company) has begun a diamond drilling program on the Five Star Gold Project ("Five Star"), located in northwest Guyana, South America. The initial drilling program at Five Star is planned for a total of up to 10,000 metres over the next twelve months, with the final drilling meterage total dependent upon results.
A joint venture was formed in April 2012 on Five Star with Mulgravian as operator holding a 51% interest and Guyana Frontier holding a 49% interest (see Guyana Frontier news releases dated April 17 and July 11, 2012). Guyana Frontier previously elected not to contribute to the 2012 Five Star program, and will be subject to standard dilution of its 49% interest in Five Star according to the terms of the joint venture agreement.
The technical work disclosed in this document was supervised, reviewed and approved by Robert Lunceford, M.Sc., CPG, who is a Qualified Person as defined in National Instrument 43-101 ("NI 43-101").
About Five Star
Five Star consists of 17 mining permits and 8 prospecting permits, which cover an area of approximately 25,065 acres (10,144 hectares) near the settlement of Matthew's Ridge, Guyana. Guyana Frontier acquired its 100% interest in Five Star from two separate underlying vendors, Case Development Company Ltd. and Marcel Waaldijk (the "Underlying Vendors"), with each of the Underlying Vendors currently maintaining a 3% net smelter returns royalty ("NSR") on their respective permits. Each NSR is subject to buy-down provisions. Mulgravian earned its 51% working interest in Five Star from Guyana Frontier by incurring minimum exploration expenditures and property acquisition costs of US$2.0 million, and by purchasing Guyana Frontier common shares and exercising Guyana Frontier common share purchase warrants totalling CDN$630,000.
About Guyana Frontier
Guyana Frontier is a TSXV-listed public mineral exploration company focused on the exploration, discovery and development of precious metals deposits in Guyana and Brazil, South America. Guyana Frontier began acquiring interests in Guyanese exploration properties in 2007, and now holds various rights to obtain working interests in approximately 209,824 acres (84,915 hectares) of prospective lands in Guyana.
SOURCE Guyana Frontier Mining Corp.