Golden Predator Reduces Royalty on Brewery Creek Project, Yukon
Vancouver, BC, April 30th, 2019: 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