Posted in | Gold | Mining Business

Golden Predator Restarts Brewery Creek Gold Mine at Yukon

Golden Predator Mining Corp. stated that it has received formal notification from the Yukon Government confirming the legitimacy of the current Quartz Mining License and Water License providing for the restart of the Brewery Creek mine which was put into Temporary Closure in 2002 after a drop in the gold price to below $300 US per troy ounce.

(Image credit: Golden Predator Mining Corp)

Golden Predator is sanctioned to restart mining operations that follow the formerly evaluated mine plans without additional assessment and review. Furthermore, the company has received notice that the Tr’ondek Hwech’in has passed an official Council Resolution in favor of resumed mining and processing at the Brewery Creek Mine under the current licenses. The company has already gotten together its Joint Advisory Committee with the Tr’ondek Hwech’in and looks forward to partnering closely with the First Nation as well as the Yukon Government in its efforts to return Brewery Creek to production.

“Tr’ondek Hwech’in Council remains committed to the agreements and efforts developed in the past; we look forward to working closely with Golden Predator to ensure the operation of the project remains sustainable and ensure that important values of Tr’ondek Hwech’in continue to be reflected through the re-establishment of the Advisory Committee,” said Chief Roberta Joseph.

In 2012, Tr’ondek Hwech’in and Golden Predator signed a Socio-Economic Accord for the Brewery Creek project and have established a strong and respectful working relationship. Combining this with the demonstrated support of the Yukon Government to resume mining activities, without re-entering the permitting process, will provide the Company a clear path forward to restart the Brewery Creek mine in a timely manner that benefits our shareholders, the First Nation, the community of Dawson, and the entire Yukon.

Janet Lee-Sheriff, Chief Executive Officer, Golden Predator Mining Corp

She added, “We acknowledge and appreciate the collective efforts of  Tr’ondek Hwech’in and the Yukon Government in strongly supporting the authorized restart and look forward to working together over the coming years as we submit proposed amendments to the original plan for eventual expansion of the mine. With these exciting and game changing developments the Company will be aggressively increasing its activities at Brewery Creek this summer. It is an exciting time for Golden Predator and we are proud to work in the Yukon and in the traditional territory of the Tr’ondëk Hwëch’in.”

The present mine plan allows for mining operations in the permitted area as stipulated in the Quartz Mining License and Water License. With defined resources remaining within the currently licensed area, Golden Predator plans to resume mining and processing of these permitted areas while the company works with Tr’ondek Hwech’in and Yukon Government under an optimal schedule to pursue amendments for expansion of activities for those resources found beyond the existing licenses.

This summer, the company will speed up its very fruitful exploration and development drilling across the 180 km2 property, as a number of targets remain untested or open.

Brewery Creek Project, Yukon

The Brewery Creek Project is a brownfields heap leach gold mining operation with a 2014 Preliminary Economic Assessment (PEA) resource estimation including an indicated oxide resource of 577,000 troy oz. of gold in 14.2 million tons averaging 1.27 g/t gold and an inferred oxide resources of 279,000 troy oz. of gold in 9.3 million tons averaging 0.93 g/t gold (comprises resource areas situated within and outside of production licenses as marked on map).

Moreover, the resource estimate includes indicated sulfide resources of 142,000 troy oz. of gold in 3.5 million tons at 1.28 g/t gold and inferred sulfide resources totaling 546,000 troy oz. of gold in 12.4 million tons at 1.37 g/t gold, although the majority of drilling was historically ended a short depth below the oxide mineralization, leaving sulfide potential mostly untested.

The Brewery Creek Project holds a Type A Water License, a Quartz Mining License (QML) and a Socio-Economic Accord with Tr’ondek Hwech’in and is permitted to restart mining operations under the existing licenses. The project also has a Class IV Mining Land Use Permit to perform more exploration.

To sum up, Brewery Creek already has a sizeable open pit oxide resource of superior grade and the potential for making significant near surface additions at a very low cost.

Janet Lee-Sheriff, Chief Executive Officer, Golden Predator Mining Corp

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 (worked by Viceroy Resource Corporation) entered Temporary Closure in 2002 because of low gold prices (less than $300 per troy ounce) with the provision to restart mining and processing activities when gold prices grew to reasonable levels. The 186 km2 property is situated 55 km due east of Dawson City and is accessible all through the year by paved and improved gravel roads.

The technical content of this press release has been appraised 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 Gold Mine towards an opportune resumption of mining operations, under its valid Quartz Mining and Water Licenses, in Canada’s Yukon. With proven resources grading more than 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 established project. Optimization studies are continuing to improve the already positive multi-phase project economics expressed in the 2014 Preliminary Economic Assessment. Drilling continues to expand the many open-ended resources and untested targets across the 186 km2 brownfield property.

At 3 Aces, Golden Predator carries on expansion activities on discoveries of native gold in quartz veins while continuing bulk sampling and processing at its 50 tpd company-owned processing plant has shown gold recoveries of more than 85% using a chemical-free process. This green gold gives the gold for the mintage of .9999 gold coins from the Yukon Mint™, a wholly-owned subsidiary of Golden Predator.

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