Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) reports the Company remains committed to a restart of the Brewery Creek Mine and reports that leaching of column test work commenced this week at McLelland Labs in order to advance the Feasibility Study. This important test work provides critical optimization data for crush size, compaction and percolation for the reprocessing of the heap leach material.
The Company also reports it has appointed Scott Davis as the Company’s Chief Financial Officer effective immediately.
Mr. Scott Davis, CPA, CGA
Chief Financial Officer
Mr. Davis is a partner of Cross Davis & Company LLP Chartered Professional Accountants, a firm focused on providing accounting and management services for publicly-listed companies. Mr. Davis has served as the Chief Financial Officer of several companies listed on the TSX Venture Exchange and his past experience consists of senior management positions, including four years at Appleby as an Assistant Financial Controller. Prior to that, he spent two years at Davidson & Company LLP Chartered Accountants as an Auditor and five years with Pacific Opportunity Capital Ltd. as an Accounting Manager.
The Company announces Scott Davis has replaced Greg Hayes as Chief Financial Officer. The Company thanks Mr Hayes for his years of service and wishes him great success in the future
COVID-19 Update
In response to the COVID-19 virus the Company has postponed field activities and implemented a work from home policy to ensure the health and safety of Yukon communities, our employees and contractors. The travel restrictions will result in a delay in the completion of the Feasibility Study. Additionally, the Company has initiated a number of cost reduction measures in order to reduce non-core expenditures. The Company will provide additional updates on the impacts of the ongoing COVID-19 as further information becomes available.
Brewery Creek Project Overview
Heap Leach Reprocessing Study: Phase 1
Kappes Cassiday is currently conducting a feasibility level study to determine the parameters for the phase 1 plan to reprocess and recover gold from material on the heap leach pad. The study will include detailed analysis of all the key parameters involved in reconstructing or adding necessary infrastructure including a crushing plant, ADR plant, and assay lab. The study will estimate all projected capital and operating costs, production levels and will estimate projected economic returns. The study is focusing on remediating and reprocessing the heap leach pad as a means of fast-tracking re-development of the site. The study will include a project implementation schedule, sourcing, and economic cash flow model sufficiently detailed to move directly into procurement, development and construction if economically warranted. Any production decisions would be dependent on the outcome of this feasibility level study demonstrating positive technical and economic viability.
Recommencement of Mining in Former Pits: Phase 2 Study
A Phase 2 study will be commissioned upon completion of the Phase 1 study and will develop a transition plan of the mining operations from reprocessing the old heap to recommencing mining of the remaining gold mineralization at pits previously mined by Viceroy from 1996-2000. Viceroy ceased mining the pits in 2000 as a result of falling gold prices, below $400/oz, and resultant unsustainable economics of the operation.
The current resources that will be contemplated for mining in the study are based on the combination of historic drilling and recent drilling which has expanded the historic resource as disclosed in the January 13, 2020 updated Technical Report. Drilled defined mineralization at the pits continues along strike and down dip from the historic modeled resources and is well within the permitted and licensed area. The Phase 2 study will include mine design and scheduling to develop additional operating profit at current gold prices and operating costs to provide a shortened payback period and de-risk financing. Capital costs associated with mining the former pits are reduced as the former haul roads exist and require minimal rehabilitation.
Brewery Creek Mine: Resources
The Company conducted exploration drilling on the Brewery Creek project from 2010 to 2013 which increased the resource significantly. The project has an Indicated oxide resource of 21,140,00 tonnes at 1.125 g/t Gold containing 765,000 ounces, plus an Inferred oxide resource of 14,120,000 tonnes at 0.967 g/t Gold containing 440,000 ounces. In addition, resources include 8,570,000 tonnes of Inferred sulfide resource at 0.985 g/t Gold containing 270,000 ounces. Materials on the heap leach pad were not included in the resource update. The resource incorporates drill results through 2014. There are 200 additional exploration drill holes to be included in an anticipated resource update.
The current NI 43-101 Technical Report is now available on SEDAR and the Company’s website. The updated report replaces the technical report dated November 19, 2014.
Brewery Creek Mine: Licenses, Permits and NI 43-101 Disclosure
The Company has a Socio-Economic Accord with Tr’ondëk Hwëch’in for the Brewery Creek Mine and is licensed to resume mining activities as permitted 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 is employed by the Company as its Senior Project Geologist.
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 a feasibility level study currently underway by Kappes Cassiday considering the economics of a restart of heap leach operations at the Brewery Creek Mine, 2020 proves to be a pivotal year for the Company. Drilling continues to expand the open-ended resources and untested targets across the 180 km2 brownfield property located 55 km by road from Dawson City, Yukon. The Company has a Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation.
For additional information: Janet Lee-Sheriff Chief Executive Officer (604) 260-8435 info@goldenpredator.com www.goldenpredator.com
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 based on current expectations that the private placement will complete as described herein, that the Project will advance through permitting and feasibility. 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.