Golden Predator Reduces Royalty on Brewery Creek Project, Yukon
TSX VENTURE: GPY
VANCOUVER, British Columbia, April 30, 2019 (GLOBE NEWSWIRE) -- Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company” or “Golden Predator”) is pleased to announce the Company, in its efforts to enhance project economics and move Brewery Creek towards production, has come to an agreement with Franco Nevada Corporation to eliminate its Net Smelter Royalty (NSR). The NSR held by Franco Nevada Corporation, capped at approximately $1.2 MM USD, will be retired in exchange for 600,000 Class A Common Shares (the “Shares”) of Golden Predator.
“Reducing the royalty burden on the Brewery Creek project is a strategic move to enhance the long-term economic viability of the project. It was important to retire this royalty as a first step as the payment of the royalty was due entirely in the first year of production,” said Janet Lee-Sheriff, Chief Executive Officer. “Golden Predator continues to advance the Brewery Creek project towards production and a restart of the original mine plan under its current and valid Quartz Mining License and Water License.”
The issuance of the Shares is subject to final approval of the TSX Venture Exchange.
Brewery Creek Project, Yukon
The Brewery Creek Project is a past producing heap leach gold mining operation with a 2014 Preliminary Economic Assessment (PEA) resource estimation including Indicated oxide resources of 577,000 troy ounces of gold in 14.2 million tonnes at 1.27 g/t gold and Inferred oxide resources of 279,000 troy ounces of gold in 9.3 million tonnes at 0.93 g/t gold. 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).
The Brewery Creek Project holds a Type A Water License and a Quartz Mining License (QML) and a Socio Economic Accord with the Tr’ondek Hwech’in. The project also has a Class IV Mining Land Use Permit to conduct additional exploration.
From 1996 to 2002 approximately 280,000 oz Gold was produced from seven near-surface oxide deposits along the property's Reserve Trend. The mine (operated by Viceroy Resource Corporation) shut down primarily due to low gold prices. The 186 km2 property is located 55 km due east of Dawson City and is accessible by road.
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.
With a growing resource at the past-producing Brewery Creek project and an exciting high-grade gold exploration project advancing at its 3 Aces project, Golden Predator boasts good infrastructure, large land positions, strong community support and excellent growth prospects. At Brewery Creek exploration drilling continues to expand resources while optimization studies are progressing to enhance the already positive project economics. We continue to expand on discoveries of native gold in quartz veins at the 3 Aces project, while bulk sampling and processing at our 50 tpd Company-owned processing plant has demonstrated gold recoveries of over 85% using a chemical-free process. This green gold provides for the mintage of .9999 gold coins from the Yukon Mint, a wholly-owned subsidiary of Golden Predator.
For additional information:
Chief Executive Officer
(1) NI 43-101 Technical Report "Preliminary Economic Assessment for the Brewery Creek Property Yukon Territory, Canada" Release Date of November 19, 2014.
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.