Golden Predator Commences Fast Track Feasibility Study at Brewery Creek Mine, Yukon
November 14 2019 - 8:00AM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) today
announced that is has retained Kappes, Cassiday & Associates to
complete a fast-track Feasibility Study (“FS”) for Phase 1 of the
Company’s production plans to reopen it’s 100% owned Brewery Creek
Gold Mine located 45 minutes from Dawson City, Yukon.
Phase One envisions the reprocessing of the
original heap leach pad where historical production records
available to the Company from the former operator indicate that
from 1996 through 2002 approximately 10 Mt of ROM (run-of-mine) ore
was placed on the heap leach pad at an average grade of 1.5 g/t
gold containing approximately 525,094 ounces of gold.
Refinery records state that 277,170 ounces were produced from the
heap leach pad (GPY NR dated August 7, 2019)(1). Phase 2 involves
restarting the mining and processing of new material along the
lines of the full-scale original project while Phase 3 involves the
possible expansion of the project to process additional material
not included in the original project, reflecting Golden Predator’s
exploration successes since 2012.
Following the announcement (July 2019) of the
confirmation of the Quartz Mining License and Water License at
Brewery Creek, the Company has focused intensely on preparing the
former gold producing mine for redevelopment work to commence in
2020. The Company has also undertaken an aggressive exploration
program designed to expand and upgrade current resources.
Janet Lee-Sheriff, Golden Predator’s Chief
Executive Officer, said that “The best way to begin implementing
our three-phase program and create value for our shareholders in
the short term is to complete the Feasibility Study by Q1/20 in
order to commence the reprocessing of the heap leach pad in advance
of mining new material. The Feasibility Study represents a major
step towards commercial production and with the significant
infrastructure left in place, a cost effective means to a restart
of the larger operation. Licenses are in place for Phase 1 and
Phase 2. For Phase 3, we have already begun preparation of
amendments to be filed early in the new year to incorporate
additional resources into the current mine plan through the
assessment and licensing process to extend the anticipated mine
life.”
The FS will be a highly detailed analysis of all
the key parameters involved in reconstructing necessary
infrastructure including the ADR plant and assay lab plus all
projected capital and operating costs, production levels and the
projected economic return. The FS will focus solely on remediating
and reprocessing the heap leach pad as a means of fast tracking
revenue and development of the site for mining.
The Feasibility Study will include a project
implementation schedule, sourcing, and economic cash flow model
sufficiently detailed to move directly into procurement,
development and operations.
To view Brewery Creek property and location maps:
http://www.goldenpredator.com/_resources/news/NR-19-20-FS-Study-BC-Maps.pdf
About Kappes, Cassiday &
Associates
Since 1972, Kappes, Cassiday & Associates
(KCA) has provided process metallurgical services to the
international mining industry. KCA specializes in all aspects of
heap leach and cyanide processing, including laboratory testing,
project feasibility studies, engineering design, construction, and
operations management. While primarily known for its heap leach
expertise, KCA also has experienced professionals with design
capabilities in a wide range of metallurgical processes.
Brewery Creek Mine: Production
History
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 below $300
US per troy ounce. Golden Predator’s team commenced work on the
project starting in 2009. Brewery Creek is now authorized to
restart mining activities as defined in their 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 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.
Brewery Creek Mine:
Resources
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 estimate 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 current production
licenses). 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). Most drilling was historically terminated a short depth below
the oxide mineralization, leaving the sulfide potential largely
untested.
Brewery Creek Mine: Licenses and
Permits
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 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.
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.
For additional information: Janet Lee-Sheriff Chief
Executive Officer (604) 260-8435 info@goldenpredator.com
www.goldenpredator.com
(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 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.
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