Golden Predator Accelerates Plans at Brewery Creek Mine
July 14 2020 - 08:30AM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) announced
today that due to the positive progress realized during the Phase 1
work to restart the Brewery Creek Mine from reprocessing of
existing heap leach material, the Company has decided to accelerate
work on the Phase 2 plan. The Phase 2 study will evaluate
resumption of the mining of new material from oxide resources
contained in the Company’s Mineral Resource Estimate(1). The
current Mineral Resource Estimate from late 2019 is being updated
by Gustavson & Associates and is well advanced with completion
expected within the next 30 days.
Phase 2 work will begin with Feasibility level
mine planning incorporating new data from the forthcoming updated
resource estimate. The results of these studies will
integrate Phase 1 reprocessing of existing heap leach material and
Phase 2 mining of new oxide material from licensed areas into a
single comprehensive Feasibility Study for the Company’s 100%-owned
Brewery Creek gold project in Canada’s Yukon. This definitive
comprehensive Feasibility Study is expected by year end.
Tetra Tech, Inc. of Golden, Colorado, a leading
provider of consulting and engineering services to the mineral
extraction sector, has been commissioned to complete the Phase 2
Feasibility work which includes detailed mine planning and
operations scheduling within the currently permitted area.
This scheduling will include operational plans and scheduling for
freshly mined material as well as the reprocessed material to be
placed on the active heap leach pad. The combination of Phases 1
and 2 is expected to evaluate the economic factors necessary to
achieve significantly accelerated cash flow from increased early
production. Any production decisions would be dependent on the
outcome of a study demonstrating positive technical and economic
viability.
The Phase 1 Restart Study, by Kappes Cassiday
& Associates (“Kappes”), now 90% complete, evaluates the
economic viability of reprocessing the approximately 10 million
tonnes of run of mine material left by the previous operator on the
project’s heap leach pad with an originally calculated mined grade
of 1.5 g/t gold(2). Gold recovery from the run of mine ore by
Viceroy was not as anticipated (less than 58% according to
production records) and the work to date by Kappes confirms the
prospects of further gold recoveries from this material after
crushing and restacking.
“As Phase 1 restart work has progressed, it has
become evident that Phase 1 and 2 should proceed together to take
advantage of emerging synergies and higher gold prices to generate
enhanced cash flow. Since most of the project’s CAPEX is
required for startup in Phase 1, combining the added potential of
higher-grade new material should produce significantly more ounces
and a better economic return. Both reprocessing and newly mined
material will use the same crushing circuit, heap leach pad, ADR
plant, power supply equipment, assay lab, machine shop, warehouse,
office, camp facilities and other assets.” said Janet Lee-Sheriff,
CEO. “Key to this evolved strategy is the Phase 1 assessment that
the original heap leach pad is in excellent condition for early
reuse.”
The Company is providing a corporate update,
with a question and answer segment via a GoToWebinar on July 14th,
2020 at 11 AM PDT. To join the webinar please use the following
link:
https://attendee.gotowebinar.com/register/8630155135445050637.
To view the Brewery Creek project maps:
http://www.goldenpredator.com/_resources/news/BC-Property-Maps-2020.pdf
Brewery Creek Mine: Production
HistoryThe Brewery Creek Mine is a licensed brownfields
heap leach gold mine that was operated by Viceroy Minerals
Corporation from 1996 to 2002. The Brewery Creek Mine 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 authorized
to restart mining activities as defined within the Quartz Mining
License and Water License. The Company intends to resume mining and
processing of licensed deposits when supported by an independent
study that outlines technical and economic viability. The Company
is also working with Tr’ondëk Hwëch’in and Yukon Government to
expand the licensed mining to include new discoveries and mining
activities contemplated for an expansion of mining beyond the
existing license.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:
Resources1
The Company anticipates the release of a new
Mineral Resource Estimate within the next few weeks which will
fully integrate all drilling to date. This will supersede the 2019
Mineral Resource Estimate below:
2019 Brewery Creek Mineral Resource
Estimate(1) |
Oxide |
Tonnes |
g/t |
Gold Oz. |
Indicated |
21,140,000 |
1.13 |
765,000 |
Inferred |
14,120,000 |
0.97 |
440,000 |
|
|
|
|
Sulfide |
Tonnes |
g/t |
Gold Oz. |
Inferred |
8,570,000 |
0.99 |
270,000 |
2019 drilling results and materials on the heap
leach pad were not included in the resource update.
The technical content of this news release has
been reviewed and approved by Michael Maslowski, CPG, a Qualified
Person as defined by National Instrument 43-101 and is employed by
the Company as its Chief Operating Officer.
About Golden Predator Mining Corp.
Golden Predator is advancing the past-producing
Brewery Creek Mine towards a timely resumption of mining
activities, under its Quartz Mining and Water Licenses, in Canada’s
Yukon. The Brewery Creek Mine project has established resources
grading over 1.0 g/t Gold and a study currently underway by Kappes
Cassiday to consider the feasibility of reprocessing the existing
heap leach material. Drilling continues to expand the open-ended
mineralized areas 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 Brewery Creek will advance to an
early production decision, or the extent of any additional mineral
resource that could result from incorporating 2019 exploration
drilling. 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.
- The 2019 Mineral Resource Estimate was conducted in accordance
with CIM guidelines and is reported in a NI 43-101 Technical Report
available on SEDAR and the Company’s website.
- Grade of 1.5 grams per tonne gold is based on Viceroy internal
reports from 1996-2000.
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