Golden Predator Royalty & Development Corp.
TSX VENTURE : GPD

Golden Predator Royalty & Development Corp.

October 01, 2009 12:30 ET

Golden Predator Intercepts 5 ft Assaying 2.92 opt Au and 15 ft Averaging 0.913 opt Au at Golden Ridge Project, NE California; Exercises Option on Gold Dome Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2009) - Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") is pleased to release assay results on an additional five holes from the 2009 reverse circulation drilling program at the Golden Ridge Project, located in the High Grade district in northeastern Modoc County, California. Several high grade gold intercepts were encountered in hole GPGR-29 in the Alturas Mine area including five ft (1.5 m) averaging 2.919 ounces per ton (100.07 grams per tonne) from 52.5 to 57.5 ft (16 to 17.5 m) and fifteen ft (4.6 m) averaging 0.913 opt (31.306 gpt) from 132.5 to 147.5 ft (40.4 to 45 m). A total of 4,180 ft (1,290 m) of angled RC holes were drilled to explore epithermal bonanza gold vein targets in the central and eastern portions of the district in September. These drill holes included tests of the Lodgepole, Moonlight, Klondike, Modoc and Alturas veins.



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Golden Ridge Significant Intercepts Greater Than 1.0 gpt Gold
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Drill Hole # From ft To ft Interval ft Gold gpt Gold opt
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GPGR-23 95.0 110.0 15 (4.6 m) 1.92 .056
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including 97.5 102.5 5 (1.5 m) 3.05 .089
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GPGR-24 50 52.5 2.5 (0.76 m) 2.43 .071
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GPGR-24 92.5 95 2.5 (0.76 m) 5.28 .154
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GPGR-27 57.5 112.5 55 (16.5 m) 2.16 .063
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including 60 72.5 12.5 (3.8 m) 3.38 .099
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57.5 62.5 5 (1.5 m) 3.93 .115
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70 75 5 (1.5 m) 5.13 .150
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70 72.5 2.5 (0.76 m) 9.22 .269
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GPGR-27 87.5 90 2.5 (0.76 m) 9.04 .264
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GPGR-27 105 112.5 7.5 (1.97 m) 4.52 .132
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GPGR-29 52.5 57.5 5 (1.5 m) 100.07 2.919
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including 52.5 55 2.5 (0.76 m) 187.5 5.469
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GPGR-29 132.5 147.5 15 (4.6 m) 31.306 .913
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including 132.5 137.5 5 (1.5 m) 57.95 1.69
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145 147.5 2.5 (0.76 m) 62.9 1.835
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Five holes were drilled across the Alturas vein system in the west central portion of the Project, adjacent to an area of previous drilling conducted in the 1980's and 1990's. These prior holes include GPHX-2 completed by Golden Phoenix in 1998 which returned five ft (1.5 m) at 0.453 opt Au (15.53 gpt) in a wider zone that averaged 0.103 opt Au (3.53 gpt) from 10 to 65 ft (3 to 19.8 m). GPGR-27 and GPGR-29 represent two of the five holes the Company has drilled in the Alturas area.

Hole GPGR-29 (-50, N5W, 250' TD) was drilled 600 ft (183 m) to the southwest of the Golden Phoenix hole along strike of the NE trending Alturas shear zone. The host rocks in the area include a highly silicified rhyolite breccia of the Klondike formation overlying argillized and locally silicified Mineral Springs tuff adjacent to a latite flow dome to the east. Hole GPGR-29 intercepted two high grade gold bearing quartz adularia veins separated by a block of silicified and pyritized rhyolite located just east of the intersection between the Alturas vein zone and a major north-south fault. The upper quartz-adularia vein was within the silicified rhyolite breccia and assayed 2.919 opt Au (100.07 gpt) from 50 to 55 ft (15.2 to 16.8 m), including 2.5 ft (0.76 m) from 50 to 52.5 ft (15.2 to 16 m) that assayed 5.469 opt Au (187.5 gpt).

The second vein in GPGR-29 was intercepted between 132.5 and 147.5 ft (40.4 to 45 m) at the contact with a dark gray silicified flow unit and averaged 0.913 opt (31.306 gpt) across fifteen ft (4.6 m). The upper five ft (1.5 m) of the vein zone averaged 1.69 opt Au (57.95 gpt) while the lower vein contact assayed 2.5 ft (0.76 m) at 1.835 opt Au (62.9 gpt).

Drill hole GPGR-27 (-75, N30W, 580' TD) was drilled across the Alturas vein zone approximately 550 ft (168 m) northwest of GPGR-029. The hole intercepted a 55 foot (16.8 m) thick section of silicified and quartz vein stockworked rhyolite breccia of the Klondike formation, including several quartz adularia veins. The 55 foot (16.8 m) section from 57.5 to 112.5 ft (17.5 to 34.3 m) averaged 0.063 opt Au (2.16 gpt) and included 12.5 ft (3.8 m) from 60 to 72.5 ft (18.3 to 22.1 m) that averaged 0.099 opt Au (3.38 gpt), five ft (1.5 m) from 70 to 75 ft (21.3 to 22.9 m) that ran 0.150 opt Au (5.13 gpt) and 7.5 ft (1.97 m) from 105 to 112.5 (32 to 34.3 m) that assayed 0.132 opt Au (4.52 gpt). Holes GPGR-26 and GPGR-28 were drilled adjacent to hole GPGR-027 and are pending final analysis.

Hole GPGR-22 (-75, S40W, 520'TD) was drilled across the northern Lodgepole vein zone beneath a series of short adits and tunnels on the structure. No significant gold was intercepted in the hole, although there was moderate to strong argillic alteration with iron and manganese oxides along the brecciated fault zone.

Drill hole GPGR-23 (-60, N50W, 300' TD) was drilled across the Modoc vein adjacent to the Modoc mine shaft as an offset to the high grade gold intercepts in GPGR-21 (please refer to the Company's news release dated August 27, 2009). Hole GPGR-23 intersected fifteen ft (4.6 m) from 95 to 110 ft (29 to 33.5 m) in depth that assayed 0.056 opt Au (1.92 gpt) including five ft (1.5 m) averaging 0.089 opt Au (3.05 gpt) from 97.5 to 102.5 ft (29.7 to 31.25 m). The main Modoc vein was not mineralized in the hole, but was marked by an iron oxide stained clay seam.

Hole GPGR-24 (-60, N 50W, 300' TD) was a test of the central Moonlight vein target, which has not previously been drilled. The hole was collared between the underground workings of the Moonlight adit and the more recent Moonlight shaft and went through over two hundred ft of strongly silicified and brecciated rhyolite cut by several quartz adularia veins. The best intervals in the hole were from 50 to 52.5 ft (15.2 to 16 m) assaying 0.071 opt Au (2.43 gpt) and from 92.5 to 95 ft (28.2 to 29 m), assaying 0.154 opt Au (5.28 gpt).

Hole GPGR-25 (-55, N50W, 780') was drilled across the northwestern Klondike vein system to test the veins just north of their intersection with the major east-west Klondike fault. The hole encountered significant clay alteration and the hole survey showed a marked flattening of the hole and drift to the south. No anomalous gold mineralization was encountered in the target area, although there was strong hydrothermal alteration and iron oxide staining in the sheared rhyolite.

Golden Predator has consolidated the largest land position in the High Grade district ever held by a single gold exploration company. Anomalous gold covers an area over three miles in length and one mile wide which contains over 14 historic mines in the district including the Sunshine, Modoc, Moonlight, Alturas and Klondike mines. The Company's drilling program is making the first drill tests on several of the outcropping quartz-adularia vein targets. The Golden Ridge Project represents a district-scale discovery opportunity with the potential for several underground mineable bonanza-grade gold deposits.

Additional information, including the August 27, 2009 press release with assay values for the initial 2009 drilling results, along with property photos and location map may be viewed on the Company's website (http://www.goldenpredator.com).

Laboratory Analysis and QA/QC

ALS CHEMEX of Reno, NV and Elko, NV performed all primary lab analyses. Samples received in the lab were first logged-in and assigned a barcode. The samples were then rotary split prior to crushing to retain a coarse sample for metallurgical work. The remainder was fine crushed to 70% less than 2 mm then split with a riffle splitter with one split pulverized to 85% less than 75 microns. Gold was analyzed by fire assay and AAS using a nominal 30 gm sample weight. For samples exceeding 10 ppm, values were analyzed by fire assay with a gravimetric finish. Silver was analyzed by aqua regia digestion and ICP-AES or AAS. Levels of detection for gold and silver are, 0.005 ppm and 1 ppm, respectively. Assay results for gold and silver are reported by the lab in ppm units. In public disclosure, ounce per imperial ton (opt) and gram per metric tonne (gpt) is used, where 34.285 ppm is equivalent to 1 opt and 1 ppm is equivalent to 1 gpt.

QA/QC procedures followed for the reverse circulation drilling include submittal of chip samples for analysis with a duplicate sample for every twenty samples and also a combination of blank and reference samples submitted for every twenty samples submitted.

All assay numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths. David R. Hembree, P.Geo., is the Qualified Person as defined under National Instrument 43-101 overseeing the Company's U.S. exploration programs outside Nevada, and has reviewed & verified the information presented on QA/QC procedures and technical aspects of the drilling results in this press release.

Exercise of Gold Dome Option

The Company also announces that, further to its news release of July 9, 2009, True North Mining Corp., the Company's wholly-owned Yukon subsidiary has exercised its option to acquire a 100% interest in the Gold Dome Property (formerly Scheelite Dome) located in the Mayo Mining District in the Yukon Territory from Copper Ridge Explorations Inc. (TSX.V: KRX). As consideration for the exercise, the Company has issued 575,000 units to Copper Ridge, each unit consisting of one share of the Company and one non-transferable warrant exercisable for one share of the Company for a period of two years at a price of $0.75 for the first six months and $0.90 for the remaining 18 months.

The Gold Dome property is subject to a 2% NSR payable to International Royalty Corporation on the mineral claims and an additional 2% NSR on certain of the mineral claims. Should the Property become the subject of a positive bankable feasibility study ("BFS") prior to December 31, 2011, the Company will issue an additional 500,000 shares of to Copper Ridge, subject to a $1,000,000 cap in value. The cap will be raised to $1,500,000 if a BFS is delivered from January 1, 2012 through December 31, 2013, to $2,000,000 if a BFS is delivered from January 1, 2014 through December 31, 2015, and to $2,500,000 thereafter.

About Golden Predator Royalty & Development Corp.

Golden Predator's corporate mandate is to establish a self-funded precious metal exploration company with an immediate focus on exploring for and developing world class gold deposits in the Tintina Gold Belt and the Rocky Mountain Alkalic Gold Province. The Company seeks internal revenue generation from early high grade precious metals production in Nevada augmented by increasing revenues from its royalty portfolio.

The Company is aggressively exploring its three Yukon properties, Gold Dome, Brewery Creek, and Antimony Mountain, in the prolific Tintina Gold Belt through its wholly owned subsidiary True North Mining Corp. Brewery Creek has a current Type A water license and a production license.

In Nevada and adjacent states, Golden Predator is drilling a number of its properties with bonanza-style gold mineralization in 2009 with the intent of identifying one or more properties for near term production of small-tonnage high grade ores. The Company intends, through strategic use of its Taylor Mill near Ely, Nevada and a facilities use agreement at EMC Metals Corp.'s Springer Facility in Pershing County, Nevada, to become a mid-tier precious metals producer.

Golden Predator is partially self-financed through its passive pre-production royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million during 2009. The Company owns royalties on several known deposits including a portion of the Barrick Bald Mountain property, the Pan deposit of Midway Gold, significant portions of US Gold's Tonkin Springs deposit and Evolving Gold's Rattlesnake project.

This press release contains projections and 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 involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. 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, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Golden Predator Royalty & Development Corp.
    William Sheriff
    Chairman
    (867) 335-5000
    or
    Golden Predator Royalty & Development Corp.
    Robert Eadie
    President
    (604) 602-4935
    www.goldenpredator.com