Nov 2 2010
G4G Resources Ltd. (TSX VENTURE:GXG) announced today that G4G will conduct a targeted sampling program over an off-shore area of approximately three hundred square kilometers.
This follows the recent extension by the Director General Mining of the Ministry of Energy and Mining in Guatemala of G4G's Off-Shore Reconnaissance License ("OSRL"). The OSRL covers 2500 square kilometers along Guatemala's entire Pacific coastline. G4G's earlier reconnaissance work in the area has highlighted several highly prospective locations with higher concentrations of magnetite. These areas will now be explored further under the sampling program.
The sampling program will begin in November with the goal of providing G4G with sufficient data to conclude XRF analysis, which is an extremely robust technique for major and minor elemental analysis in complex mineralization and offers highly precise and accurate results for iron ore samples and Davis Tube yield tests, which is used to determine the magnetic content of the iron ore and can be used to help forecast potential commercial recovery. The prime objective of the work program is to produce an inferred resource estimate. The main geological targets will be paleo rivers and paleo beach heads formed when sea levels were much lower.
"G4G Resources is extraordinarily well placed to help meet the expected global shortage of quality iron ore," said Basil Botha, President and CEO of G4G. "Iron sands mining operations have been shown globally to be among the lowest cash costs per tonne of iron ore mining operations and we want to take advantage of this. The fact that we are on the Pacific Ocean also means transport logistics suffer none of the constraints and costs faced by many of the inland hard rock miners."
"It is anticipated that the iron sands extraction will be a simple operation using an off-shore dredge combined with an off-shore beneficiation plant. Iron sands will be dredged, processed and dewatered in the beneficiation plant and then loaded onto vessels off-shore, for direct shipment to Asia. We expect that virtually no additional on-shore infrastructure will be needed to bring this project into production."
Mr. Botha also said; "G4G's management team is extremely well qualified in the mining arena and has specific industry experience in iron ore. The potential also exists to develop an integrated steel mill using local iron sands as feedstock. This is an exciting opportunity to make a valuable contribution to the development of Guatemala's natural resources asset base."
G4G is committed to conducting all its activities in a safe and environmentally sustainable manner and engaging proactively with local communities and authorities with respect to all relevant economic, environmental and social issues.
Guatemala's iron sands span the entire western coastline, from El Salvador in the east to Mexico in the west. Guatemala's 33 inland volcanoes (3 active, the others inactive) have deposited iron rich residue on the surrounding area, from where it is continuously carried down to the coastal plains into the ocean by the river systems.
The sampling program will be conducted under the supervision of Raul Sanabria, P.Geo., who is the Qualified Person for G4G Resources Ltd. under NI 43-101.