Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company” or “Golden Predator”) is pleased to announce the Company has provided formal notice to the Yukon Government (Yukon) to move the Brewery Creek Mine into the production phase from temporary closure status. The notice formally advises Yukon of the commencement of development/production activities on the Brewery Creek site and has been accepted by Yukon. The Company now has all the necessary licenses, permits and authorizations to commence mineral development activities and mineral production activities as permitted in the Quartz Mining License and Water License. The Brewery Creek Mine, in Canada’s Yukon, is a fully licensed past producing gold mine with existing infrastructure and established resources allowing for a timely restart of mining activities.
- In addition to the formal restart notice as required under the Quartz Mining Act, the Company has provided the Government of Yukon with its Reactivation Plan outlining development activities licensed under the current Quartz Mining License and Water Licence;
- The Lee Creek Bridge on the Brewery Creek Mine access road (North Fork Road) has been upgraded to a steel span bridge by the Government of Yukon. Work is completed and the new bridge is operational;
- Heavy equipment has mobilized to the Brewery Creek Mine site and has commenced with haul road improvements and clearing of the licensed cells on the heap leach pad; and
- Exploration and development drilling has expanded to include a 2nd reverse circulation drill rig and a diamond core rig.
All notices and plans are provided in advance to the Tr’ondëk Hwëch’in First Nation in keeping with the Company’s efforts to meet and exceed industry standards for engagement, information sharing and its Socio Economic Accord for the Brewery Creek Mine.
Brewery Creek Mine, Yukon: Resources and Past Production
The Brewery Creek Mine is a licensed brownfields heap leach gold mine that was operated by Viceroy Minerals Corporation from 1996 to 2002. Brewery Creek was put into Temporary Closure in 2002 following a collapse of the gold price to below $300 US per troy ounce. Golden Predator commenced work on the project starting in 2009. Brewery Creek is now authorized to restart mining activities that follow the previously assessed and approved mine plans without further assessment and review as defined in the Quartz Mining License and Water License. The Company intends to resume mining and processing of licensed deposits while the Company works with Tr’ondëk Hwëch’in and Yukon Government to expand the licensed mining area to include new discoveries made since 2011.
The 180 km2 property is located 55 km due east of Dawson City and is accessible year round by paved and improved gravel roads. Significant infrastructure remains in place, allowing for a timely restart schedule under existing licenses.
The Company conducted exploration drilling on the Brewery Creek project from 2010 to 2013 and increased the resource 5 fold and completed a Preliminary Economic Assessment (PEA) resource estimation including an Indicated oxide resource of 577,000 troy ounces of gold in 14.2 million tonnes averaging 1.27 g/t gold and an Inferred oxide resources of 279,000 troy ounces of gold in 9.3 million tonnes averaging 0.93 g/t gold (includes resource areas located within and outside of production licenses as shown on map). In addition, the resource estimate contains Indicated sulfide resources of 142,000 troy ounces of gold in 3.5 million tonnes at 1.28 g/t gold and Inferred sulfide resources totaling 546,000 troy ounces of gold in 12.4 million tonnes at 1.37 g/t gold (1), although most drilling was historically terminated a short depth below the oxide mineralization, leaving sulfide potential largely untested.
The Company has a Socio Economic Accord with Tr’ondëk Hwëch’in for the Brewery Creek Mine and is licensed to resume mining activities under the current Water License and Quartz Mining Licenses. The project also has a Class IV Mining Land Use Permit to conduct additional exploration.
The technical content of this news release has been reviewed and approved by Jeff Cary, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company.
Golden Predator Mining Corp.
Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its valid Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading over 1.0 g/t Gold and low capex to production in a safe first world jurisdiction, Brewery Creek has a clear path to production as an economically and environmentally known project. Optimization studies are progressing to enhance the already positive multi-phase project economics described in the 2014 Preliminary Economic Assessment. Drilling continues to expand the open-ended resources and untested targets across the 186 km2brownfield property.
At the 3 Aces project, Golden Predator continues to expand on discoveries of native gold in quartz veins while ongoing bulk sampling and processing at the 50 tpd Company-owned processing plant has demonstrated gold recoveries of over 85% using a chemical-free process. This green gold provides the gold for the mintage of .9999 gold coins from the Yukon Mint™, a wholly owned subsidiary of Golden Predator.
|(1)||NI 43-101 Technical Report “Preliminary Economic Assessment for the Brewery Creek Property Yukon Territory, Canada” Release Date of November 19, 2014.|
|(2)||Brewery Creek Technical Report, Richard Diment, PGeo May 18, 2003|
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements express or implied regarding completion of the transactions described herein, the upcoming season at 3 Aces project, and projected grades and gold and silver recoveries from the 2018 and proposed 2019 bulk sample program, Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.