Drilling starts next year on controversial Marudi mining project

Dec 29, 2011 News

Drilling will begin next year on a large scale mining project which Amerindians in

Young Amerindians search for gold in a tunnel in Marudi Mountain.

South Guyana feared could disturb their livelihood and the natural environment.
Guyana Frontier Mining, which has permit over 13, 502 acres in the Marudi mining district in south Guyana, says it will begin drilling during next year.
The company has signed an agreement with Versa Drilling to conduct the diamond drilling and mobilization is expected to begin next week.
The Guyana Geology and Mines Commission (GGMC), and mining company, Romanex Guyana Exploration Limited, had signed a licence for the company to mine at Marudi Mountain, but Amerindians who depend on the headwaters of the mountain and the surrounding area for their daily food sustenance claim their right to free, prior and informed consent was violated.
Traditionally, farming, fishing, hunting and cattle rearing are the main activities of the Amerindians of the area, but a draft Environmental and Social Impact Assessment (ESIA) document notes that the operation of the mine at Marudi may restrict access to the area for hunting and fishing and “this may result in loss of revenue/livelihood for the members of the communities who use these areas.”
French company, Rexma Participacions (REXMA), was slated to operate the mine on the property held by Romanex Guyana Exploration Limited. Shoreham Resources Limited, a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in South America and Canada, had the right to earn a 75 per cent working interest in the Marudi Mountain property by exercising an option to acquire 75 per cent of the shares of Romanex (holder of 100 per cent of the project).
Romanex is owned by Infiniti Gold Corporation, previously Vanessa Ventures Incorporated.
In March 2007 Guyana Frontier signed an agreement with a predecessor company of Infinito Gold Corp. (“Infinito”) to earn up to 75% of the shares of Romanex in order to acquire up to a 75% working interest in the Marudi Mountain Project and the adjoining Paint Mountain Project, which were held 100% by Romanex.
Guyana Frontier earned an initial 50% interest through qualified exploration and development expenditures in the cumulative amount of US$2,000,000 prior to March 2010. To earn an additional 25% interest (for a 75% total interest), Guyana Frontier was required to complete an additional US$2,000,000 (for a total of US$4,000,000) of qualified expenditures prior to March 6, 2011.
On December 23, 2010, Guyana Frontier and Infinito announced the completion and execution of the Infinito Agreement, whereby Guyana Frontier will acquire 100% of the outstanding shares of the Infinito
Gold has been known to occur in the Marudi Area since 1934, when Government geologists became aware of artisanal mining in the district. The deposit has been exploited more or less continuously by local artisans since that time. Production from the concession area is unknown but estimates inferred from the size of old workings and the observed grades of material range to over 100,000 ounces of gold.
“In Region Nine, the extensive mining expansion proposals of Shoreham Resources Ltd. and Infinito Gold Ltd. around Marit-tao (Marudi Mountain – sic) will directly impact on the traditional lands of Wapichan communities, yet the Environmental and Social Impact Assessment document and information on potential adverse impacts have not been subject to culturally appropriate prior consultation, and in no place respects the collective right to free, prior and informed consent of affected communities,” the Amerindian People’s Association (APA) had claimed.
The mining will take place about 50 kilometres from the nearest indigenous Wapichan community of Aishalton, where an estimated 1, 200 people live.
But the other Wapichan communities in the South Rupununi such as Krowdar, Lumedpaw, Achuwib, Marunawa, Waruwaunawa, Shea and Kuiwini, could also suffer the impacts. Combined, an estimated 4, 000 people live in these communities.

3 thoughts on “Drilling starts next year on controversial Marudi mining project”

capone_allstar December 29, 2011 at 10:46 am

Amerindians benefit from mining in all communities, infact they depend on mining even so that they are engaged in mining
Guyana Analyst December 29, 2011 at 4:22 pm

Lets see…the livelihood of 4000 Indigenous Guyanese VS the interest of transnational mining companies with the PPP/C gov’t as referee. Ah wonda who gan win de gold belt?
Monica Benjamin December 30, 2011 at 12:05 am

by right guyanese people inherit the land eapecially the interior why foriners have to come from no where and make such decision how much share they must have. This is our country we call the shot you think we could go in another man country and tell them how to make the law to sute we no way 51% or nothing it’s time the Government stop selling the country to foriner