Golden Predator Mines Inc.
TSX : GP

Golden Predator Mines Inc.

August 15, 2008 20:47 ET

Golden Predator Clarifies Previous Disclosure Following Technical Disclosure Review by BCSC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2008) - As a result of a review by the British Columbia Securities Commission, Golden Predator Mines Inc. (TSX:GP) ("Golden Predator or the "Company") is issuing the following press release to clarify its disclosure.

In June, 2008 the company prepared a document entitled "Golden Predator - Moving Forward" (the "Document") which was distributed to attendees of a Vancouver conference. A version of that Document was posted on Company's website from June 17, 2008 to August 6, 2008. The Document and the Company's website contained the following information:

- an economic analysis based on historical estimates for tungsten at the Springer facility disclosing an open pit and underground mine plan with production rates, feed grade and value, costs, revenue and cash flow

- an economic analysis supporting the construction of a standalone gold mill at the Springer facility

- an economic analysis of the Taylor Silver Project based on current mineral resources including inferred mineral resources. The economic analysis included production rates, feed grade and value, project costs, mine life, revenue and cash flow

- a historic, non-NI43-101 compliant, resource estimate for Treasure Hill (referred to as Treasure Mountain in the Document) of 15 million ounces of Silver

- a historic, non-NI43-101 compliant, resource estimate on the Emerson-Tempiute property

- historic, non-NI43-101 compliant, resource estimates for the Copper King, Lewis and High Grade properties

- a global resource statement regarding Golden Predator properties of over 700,000 ounces of historic gold resources and 15 million ounces of historic silver

- a historic MoS2 grade for the Fostung mineral deposit

- an estimated range of tonnage and grade for the exploration target at Quartz Mountain

- information regarding a non NI43-101 compliant resource that is excluded from Golden Predator's interest at Quartz Mountain

- information indicating that the Company has a dominant position in the domestic tungsten business and references to the Company's ability to supply tungsten to the market

While Golden Predator dedicated significant internal resources to verify the information contained above, the disclosure to the public through the website and delivery of certain information in the Document was not in compliance with National Instrument 43-101 ("NI 43-101").

The Company wishes to clarify this information as follows:

- Content of the Document and the website were not approved by a Qualified Person as defined by NI43-101. Going forward, all website content and materials distributed to the public will be under the supervision of a QP.

- the economic analysis for the tungsten portion of the Springer facility was used for internal guidance only and should not have been disclosed to the public. A qualified person has not completed sufficient work in order to classify the historical resource estimate. There is no current estimate to support the economic analysis of the tungsten deposit. The historical estimates are too speculative geologically to disclose an economic analysis. The Company retracts its disclosure of this economic analysis and must complete additional work prior to estimating a current mineral resource.

- the Company has made a decision to rehabilitate and re-start the tungsten mill at the Springer facility without a current mineral resource which would support a feasibility study. The Company confirms that no other tungsten mills are currently operational in North America.

- the economic analysis for the construction of the Springer gold mill is not based on specific gold resources on properties owned by the Company. The Company based its analysis on an assessment of gold properties within a 200 mile radius of the proposed facility.

- the economic analysis for the Taylor Silver Project was used for internal guidance only and should not have been disclosed to the public. The Taylor Silver Project is owned by Fury Explorations Inc. which is the subject of a business combination with the Company as announced on May 30, 2008. There is no preliminary assessment or pre-feasibility study to support the economic analysis of the silver deposit. The Company retracts its disclosure and must complete additional work prior to completing this economic analysis.

- the historic resource estimate for Treasure Hill should have been accompanied by certain explanatory information and should not have been released to the public as described in the Document. The Company is reporting a historical "ore reserve" for the Treasure Hill area. The correct historical "ore reserve", as calculated by Lopez (1983) for the F. W. Lewis Company is as follows:



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Historical Resource Estimate - Treasure Hill
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Tons Grade Ounces Ag Cutoff Grade
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9,564,744 1.44 13,744,810 Unknown
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The above historical "ore reserve" does not use the resource and reserve categories as identified in NI43-101. As such it should not be relied upon as a reserve or a resource and while it may not be reliable, the presence of a silver mineralized body at Treasure Hill is considered relevant. The historical "ore reserve" is based on a lower level of certainty and non-specified QA/QC procedures and as such, the Company does not rely upon these figures. At this time, the Company does not have sufficient information for a qualified person to determine if the historical classification is comparable to a current inferred resource estimate or an other resource classification.

- The Company wishes to clarify that it has not yet acquired the Emerson-Tempiute property. This property is the subject of a letter agreement dated May 22, 2008. While an asset purchase agreement is being prepared, there is no guarantee that this transaction will be finalized. Any information released by the Company with respect to the Emerson-Tempiute property is premature and should not have been disclosed to the public.

- The Company retracts the historic resource cited for the Copper King property. The Company referenced Nevada Bureau of Mines and Geology Bulletin 105 by Stager and Tingley (1988) but has been unable to locate the original resource estimate.

- The Company does not have a NI 43-101 compliant resource estimate or preliminary assessment to support a production forecast or a statement regarding the Company's ability to supply tungsten to the market.

- The Lewis Project contains a historic "mining ore reserve", as calculated by Moss et al. (1998) for Battle Mountain Gold as follows:



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Historical Resource Estimate - Lewis
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Cutoff
Tons Grade, Au Grade, Ag Ounces Au Ounces Ag Grade, Au
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2,158,000 0.08 oz/t 0.62 oz/t 172,600 1,338,000 0.025 oz/t
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The above "mining ore reserve" does not use the resource and reserve categories as identified in NI43-101. As such it should not be relied upon as a reserve or a resource and while it may not be reliable, the presence of a former mine and remaining gold-silver mineralized body at Lewis is considered relevant. At this time, the Company does not have sufficient information for a qualified person to determine if the historical classification is comparable to a current inferred resource estimate or an other resource classification.

- The High Grade project contains a historic "mineral resource", as calculated by Taylor (1998) for Golden Phoenix Minerals Inc., as follows:



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Historical Resource Estimate - High Grade
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Tons Grade, Au Ounces Au Cutoff Grade, Au
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2,894,800 0.034 oz/t 99,330 0.010 oz/t
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The above "mineral resource" does not use the resource and reserve categories as identified in NI43-101. As such it should not be relied upon as a reserve or a resource and while it may not be reliable, the presence of a gold mineralized body at High Grade is considered relevant. At this time, the Company does not have sufficient information for a qualified person to determine if the historical classification is comparable to a current inferred resource estimate or an other resource classification.

- the global resource statement regarding Golden Predator properties grouped historic, non-NI 43-101 compliant resources. As the resource categories are unknown for these deposits, and some may include inferred resources under current guidelines, the global resources should not have been publicly disclosed. The global gold-silver resource statement regarding the Company's properties was not approved by a qualified person and grouped historic, non NI 43-101 compliant resources. Comparable resource categories are unknown for some of these deposits and some may or may not be comparable to inferred resources. The Company retracts its disclosure regarding global gold-silver ounces.

- The Company disclosed a historic MoS2 grade of 0.16% at Fostung in error. The Stryhas (2007) report by SRK Consulting, prepared for Golden Predator, reports a grade of 0.009% MoS2. The Company currently does not have sufficient information to disclose an MoS2 resource at Fostung.

- The Company does not consider Quartz Mountain to be a material property as that term is referred to in NI 43-101 and does not have any plans to perform work on the property in 2008. Golden Predator currently plans to seek an extension from Seabridge Gold Corporation beyond October 15, 2008 in order to perform work and maintain the agreement in good standing. The Company provided target tonnage and grade estimates for Quartz Mountain which relates to Golden Predator's mandate to explore for bonanza quartz gold veins and does not relate to a specific body of mineralized rock at Quartz Mountain. The Company filed a technical report dated January 2, 2007 on Quartz Mountain in connection with a proposed listing on the TSX Venture Exchange. Since the property is not material to the Company and the report was not finalized, it should not be relied upon.

Qualified Person and Caution Respecting Forward-looking Statements

Mr. Art Ettlinger, Ph.D., P.Geo., Chief Technical Officer of the company and a Qualified Person under NI 43-101 has approved the technical content of this news release.

This press release contains forward-looking statements, including statements, which relate to the intent, belief and current expectations of the company and its management. Investors are cautioned that any such forward-looking statements do not guarantee future performance as mineral exploration and development involves risks and uncertainties. Actual results could therefore differ materially from those indicated by such forward-looking statements.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

Contact Information

  • Golden Predator Mines Inc.
    Bill Sheriff
    President and CEO
    (972) 333-2214
    or
    Golden Predator Mines Inc.
    Art Ettlinger
    CTO
    (604) 685-1964
    or
    Golden Predator Mines Inc.
    David Pollack
    Corporate Communications
    (604) 648-4668
    Website: www.goldenpredator.com