VANCOUVER, British Columbia, Nov. 30, 2017 (GLOBE NEWSWIRE) -- Golden Predator Mining Corp. (TSX.V:GPY) (OTCQX:NTGSF) (the “Company” or “Golden Predator”) is pleased to announce that it has entered into property purchase agreements with each of Alexco Exploration Canada Corp. (Alexco) and Newmont Canada Corporation (Newmont) to acquire a 100% interest in the Sprogge claims located in the southeast Yukon, adjacent to the 3 Aces Project claims. The agreements supersede a prior option agreement entered into between the parties in 2011.
“Golden Predator thanks Alexco and Newmont for their cooperation in a lengthy negotiation that has resulted in more beneficial terms to advance the property under full ownership by Golden Predator,” said Janet Lee-Sheriff, Chief Executive Officer. “With the Agreement concluded for 100% ownership we will expand our 2018 work plan to include work on the Sprogge project. We are currently developing the work plan for 2018 and reviewing the historical information on the Sprogge project which shows great promise under our orogenic model.”
The Sprogge Property
The Sprogge property was discovered in 1996 by Hemlo Gold Mines in while conducting regional exploration in southeastern Yukon targeting intrusion related gold systems. The property is contiguous with the 3 Aces property located immediately to the north. The property was explored with soil sampling, prospecting and mapping, and a four-hole 776 m drill program by various operators including Viceroy Exploration, NovaGold Resources and Newmont Canada from 1997 to 2000. The property did not see any further work until 2011 and 2012 when Northern Tiger Resources acquired the property and conducted additional soil sampling, mapping and prospecting programs. Significant mineralization consisting of gold bearing quartz veins within large areas of anomalous gold in soils occur on the property.
Recent exploration by Golden Predator has significantly increased the understanding of the lithological and structural controls on mineralization on the 3 Aces Project. This understanding can be directly applied to the Sprogge property and considerably Sprogge’s potential.
The property is underlain by the same prospective sedimentary strata of the Hyland Group which hosts the known mineral occurrences on 3 Aces property. Recognition of this region to host orogenic gold targets was first suggested by Hart el al in 2005 after the majority of exploration work conducted by the previous operators. Historical work in 2011 and 2012 by Northern Tiger confirmed the potential of the property to host significant orogenic style mineralization highlighted by trench results from the Meadows Zone returning a result of 8.5 g/t gold over 6.8 m including 40.5 g/t gold over 1.0 m in a northeast striking fault zone. Along strike to the southeast the Matilda vein has returned values to 23.8 g/t gold. The Ridge East and Ridge West zones also contain significant gold bearing quartz mineralization in shear zones which returned values of 7.6 g/t gold over 2.5 m in trenching and 7.1 g/t gold in a grab sample respectively.
Pursuant to the property purchase agreements, Golden Predator will pay a total of $114,500 CAD in cash, issue 300,000 units, and grant net smelter returns royalties of 2.33% in the aggregate to acquire the Sprogge project, with buy-back provisions for up to 50% of the royalty. The units will be comprised of a share and a warrant, with each warrant being exercisable to acquire a further share at a price of $1.00 for 37 months.
The acquisition is subject to exchange approval. The securities issuable pursuant to the acquisition will be subject to a four month hold period.
3 Aces Project, Yukon
The 3 Aces Project is a high grade orogenic gold project consisting of 1,734 claims covering 357 km² (35,700 hectares) in southeast Yukon. At the 3 Aces Project, the exploration has been focused on the 13.5 km2 Central Core Area, a broad gold-in-soil anomaly, where numerous orogenic gold-bearing quartz veins have been discovered through geological mapping and sampling, trenching, roadwork and drilling. These orogenic-type veins are found across many well-mineralized zones and over 762 m (2,500 feet) of elevation change within the Central Core area which represents ~3% of the property.
Exploration work by Golden Predator, beginning in 2015, has included mapping, sampling, trenching, metallurgical studies, rotary air blast (RAB) drilling, RC drilling, diamond drilling and bulk sampling, all focused on establishing reproducible gold grades and continuity of the numerous gold in quartz veins discovered on the property. Extensive drilling in the Spades and Hearts Zones has returned high grade vein intercepts such as 13.1 m of 16.75 g/t gold1 and 13.75 m of 65.31 g/t gold; 16.2 m of 20.5 g/t gold and 8 m of 50.4 g/t gold2. Additional new discoveries have been announced in the Clubs and Diamonds Zones and the Company’s drill program focused on the Central Core Area.
The Project is located along the all-season Nahanni Range Road that was recently announced as being a part of the $360 million Federally and Yukon funded, Yukon Resource Gateway Project. Golden Predator operates under an Exploration Agreement with the Kaska Nation, as represented by the Ross River Dena Council and the Liard First Nation, and a Class 4 Mining Land Use Permit issued by the Yukon Government.
The technical content of this news release has been reviewed and approved by Mark Shutty, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company.
Golden Predator Mining Corp.
Golden Predator Mining Corp. is a well-financed gold exploration company focused on its high-grade orogenic gold-in-quartz 3 Aces Project in Canada’s Yukon. The 357km2 land package includes numerous mineralized areas, all located within and along favorable stratigraphic and structural zones that extend over 35 km along trend. The 2017 drill program focused on the year-round road and bridge accessible 13.5 km2 Central Core Area, host to numerous high-grade gold in quartz veins.
The Company also holds 100% of the advanced Brewery Creek Project in Yukon, Canada. With proven management and an experienced technical team, the Company is well positioned for growth.