Golden Predator Provides Update on Brewery Creek Mine Restart Study
17 June 2020 - 10:00PM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) today
provides an update on the status of the Brewery Creek Restart
Study-Phase One, expected to be complete in Q3/2020. The
study considers the feasibility of reprocessing the leach pad
material as the initial phase of restarting the past-producing and
licensed Brewery Creek Mine project, located 55 km by road from
Dawson City in Canada’s Yukon.
Golden Predator contracted Kappes, Cassiday
& Associates of Reno, Nevada in November 2019 to develop an
engineering design and construction budget for re-processing of the
former heap leach material as a proposed restart plan. The study
includes detailed heap inventory, re-processing design, plan and
operational schedule, operating cost estimates, site layout,
capital cost estimates and an economic model. The study will
include a project implementation schedule, sourcing needs, and an
economic cash flow model sufficiently detailed to move directly
into procurement, development and construction if economically
warranted. The overall engineering report is approximately 70%
complete with individual sections from 60 to 95% complete. Any
production decisions would be dependent on the outcome of a study
demonstrating positive technical and economic viability. A
Phase Two study is planned to include the feasibility of mining
operations in permitted pit areas with current resources to augment
and further enhance project longevity and economics.
Janet Lee-Sheriff, Chief Executive Officer,
notes: “The Restart Study has been progressing extremely well,
especially in light of some expected delays due to Covid-19
work-from-home protocols and self-isolation. Golden Predator looks
forward to the study expected in Q3/2020 along with our new Mineral
Resource Estimate which will supersede the Resource Estimate
published in November of 2019 and include more than 135 new drill
holes. We are making steady and consistent progress in our
efforts to compile all the necessary information for good
decision-making surrounding a potential restart of the Brewery
Creek Mine. Our timing is ideal as gold prices remain strong,
resource potential continues to expand and we have the ability to
provide positive impacts on much-needed employment, business
development and resource revenue to the Canadian, Yukon and First
Nation governments in a rural community with a long standing
history in the gold mining industry.”
Restart Plan: Testing the Reprocessing of Leach Pad
Material
A key consideration of the current reprocessing
study by Kappes Cassiday is to determine the optimal crushing size
to most efficiently recover the maximum amount of gold from the
existing uncrushed run-of-mine material on the leach pad. A
series of column leach tests were begun at McClelland Laboratories
Inc. of Reno, Nevada over two months ago with individual columns
containing crushed heap material from the 2019 auger drilling
program with particle sizes ranging from 9.5mm to 25mm
(approximately 3/8 inch to 1 inch). These column test will
determine the impact of crush size on gold recovery and reagent
consumption. Preliminary data indicates there may be no significant
difference in recovery for the larger crush sizes which would be
expected to have a positive impact on economics. In addition,
recoveries have not tailed off over time as expected, another
potential positive, so the duration of the test leach cycles has
been extended, delaying the conclusion of the study so that this
key information can be incorporated into the study. Should
the final results confirm the preliminary data, a larger crush size
may be feasible for re-processing resulting in reduced capital
requirements for a crushing circuit and reduced operating
costs.
Additional Metallurgical Testing of
Current Unmined Resources
In 2016, Golden Predator conducted column leach
tests on PQ core samples from the Kokanee-Golden-Lucky deposits at
a nominal crush size of 9.5mm demonstrating acceptable gold
recoveries. As the 2020 column leach tests currently underway
on the former heap leach material indicate similar recoveries at
coarser crush sizes, the Company anticipates completing an
additional PQ core drill program to obtain samples for similar
metallurgical testing to optimize crush size from the
Fosters-Kokanee-Golden-Lucky unmined resource areas. The
samples will be sent to McClelland labs to conduct further column
leach tests on material crushed to 19 mm. The 2020 column
tests would provide comparative data for recovery information and
reagent consumption on fresh rock material crushed to 19 mm versus
the 2016 data on material crushed to 9.5 mm. This program is
being tentatively planned for H2/2020 and will be conducted to
optimize the crush size for gold recovery from material potentially
mined from these areas.
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. 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 conducted exploration drilling on
the Brewery Creek project from 2010 to 2013 which increased the
resource significantly. The project has a 2019 Mineral Resource
Estimate:
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.
An updated Mineral Resource Estimate is
currently underway to incorporate the successful 2019 drill
program, which included more than 135 in-fill and step out
holes.
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.
1. 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.
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