Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) provides
clarification of certain disclosure in its news release of November
14, 2019 at the request of IIROC. In the November 14
news release the Company announced that it had retained Kappes,
Cassiday & Associates to complete a fast-track Feasibility
Study (“Feasibility Study” or “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.
The Company clarifies that as noted in its
August 19, 2019 news release, any production decision will be based
on a review of a Feasibility Study, including any production from
the Phase One reprocessing of the original heap leach
pad.
The Company also clarifies that there are no
current mineral reserves as defined in NI 43-101 on the
property. Viceroy Minerals Corporation operated the mine at
Brewery Creek for the period of approximately 1996 through
2002. Based on a review by the Company of historical
production records from Viceroy’s operations, Viceroy placed 10.43
million tonnes of uncrushed Run of Mine (ROM) broken rock 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, which
based solely on those historical records would result in 247,924
contained ounces in the existing heap leach pad. Note that
the above estimates, including estimates of tonnage and grade from
prior operations, are considered historical estimates.
Historical information has not been classified as a current mineral
resource. A qualified person has not done sufficient
work to classify the historical estimate as a current mineral
resource or mineral reserve. The above historical data
contrasts with a 2011 mineral resource estimate of material on the
heap leach pad (see news release of August 19, 2019 for a full
discussion on the 2011 mineral resource estimate). In order
to verify historical information and potentially upgrade the 2011
mineral resource estimate, additional testing of the heap leach pad
is required, including drilling and bulk sampling, in addition to
further analysis of available data from past operations, is
required in order to reconcile limitations of the 2011 mineral
resource estimate and historical estimates of grade and
tonnage. The issuer is not treating the historical estimate
as a current mineral resources or mineral reserves. Data was
provided in extensive historic mining, ADR recovery and refinery
reports available to the Company and are believed to be relevant
and reliable.
As noted in the November 14, 2019 news release,
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; subject to positive analysis of the Feasibility Study.. 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 Feasibility Study 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 if economically warranted.
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. The PEA is preliminary in nature, it includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and
there is no certainty that the preliminary economic assessment will
be realized.
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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