Golden Predator Royalty & Development Corp.
TSX VENTURE : GPD

Golden Predator Royalty & Development Corp.

September 28, 2009 17:30 ET

Golden Predator Provides Update on Yukon Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 28, 2009) - Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") is pleased to provide an update on its three drilling projects currently underway in the Yukon Territory. Through its wholly-owned subsidiary, True North Mining Corp., the Company undertook a $2 million diamond drilling campaign this summer, which will continue through the fall. The following update is being given to provide a geologic background for the three projects in anticipation of receipt of a significant amount of assay data over the coming weeks.

Antimony Mountain Project

The Antimony Mountain project is located in the west-central Yukon Territory approximately 65 km east of Dawson City and 25 km north of the Company's Brewery Creek Project, discussed below. The property is underlain by Upper Proterozoic-Lower Cambrian metasedimentary rocks of the Hyland Group. These rocks are intruded by monzonitic rocks of the Antimony Mountain intrusion, which is similar to other mid-Cretaceous Tombstone Plutonic Suite (TPS) rocks associated with gold mineralization at Fort Knox and Pogo in Alaska, at Dublin Gulch in the Yukon, and at the Company's Brewery Creek and Gold Dome projects.

Golden Predator initiated drilling at Antimony Mountain earlier this month from a fly camp location near the AJ vein target. The AJ vein crops out on either side of Cody Creek and comprises a steeply-dipping quartz-arsenopyrite-tourmaline vein cutting meta-greywacke. This exposure is located within approximately 200 m of a contact with the Antimony Mountain stock and is situated within the skarn and hornfels alteration halo of that intrusion. To date, nine short holes totaling approximately 881 m have been completed in an area of the vein, where previous historic drilling and surface sampling identified gold values up to 77.7 g/t gold.

The AJ vein is a high-grade massive quartz-sulphide vein comprising pyrrhotite-arsenopyrite-pyrite-chalcopyrite within coarse-grained quartz (30%) and fine-grained massive tourmaline (20-30%). The vein strikes nominally east-west on the south side of Cody Creek, and dips 75 degrees to the south. On the north side of Cody Creek, the vein changes direction, striking N78degreesW and is truncated to the west by a quartz monzonite intrusive body thought to be the Antimony Mountain stock. To date, every drill hole has intercepted well mineralized vein material with a true thickness varying between 1.0 and 2.5 m and averaging 1.4 m. The vein is open down-dip and to the east and the chlorite and calc-silicate altered rocks adjacent to the vein may also be mineralized.

The AJ vein is only a small part of Golden Predator's significant property position at Antimony Mountain, which also has potential for bulk tonnage gold mineralization, intrusive-hosted Fort Knox style veins, and base metal mineralization. Drilling in 2009 is targeted at locally defining the tenor and distribution of gold within the AJ vein and surrounding rocks, and to allow for an estimate of grade over a short section.

Brewery Creek Project

The Brewery Creek project is located approximately 55 km to the east of Dawson City, Yukon and was the site of a heap leach gold mine which operated from 1996 - 2002. A total of 279,541 ounces of gold were produced during this period. Golden Predator has embarked on a diamond drilling program to both expand the remaining Indicated Resource of 3.98 million tonnes grading 1.135 g/t Au and Inferred Resource of 2.2 million tonnes averaging 2.01 g/t Au (see Technical Report on the Brewery Creek Property by Diment and Simpson, 2009), and to locate sulphide-rich feeder zones interpreted by Company geologists to lie beneath the near-surface oxide ore that was the focus of previous mining activity.

Supracrustal rocks of the Cambrian-Ordovician Rabbitkettle Formation which consist of calcareous phyllite overlain by the Ordovician-Silurian Road River Group volcanic and off shelf sedimentary rocks and Lower Devonian Earn Group siliclastic rocks underlie the property. Cretaceous Tombstone Suite (92.5-90.5 Ma) monzonite and quartz monzonite intrudes Earn Group and Road River Group stratigraphy as a series of semi-conformable sills along a 15 km strike length while biotite monzonite and syenite stock-like bodies occur locally in the south-central part of the property.

Mineralization at Brewery Creek occurs along a 12 km long, east-west trend of oxidized gold deposits known as the Reserve Trend. In the western portion of this trend, altered sedimentary rocks predominate and are the host to gold mineralization whereas along the Reserve Trend progressing towards the east, brecciated and silicified sills become more abundant and are an important gold host. As in many other gold deposits within the Tintina Gold Trend, gold mineralization is associated with anomalous arsenic, bismuth and antimony. Arsenopyrite (arsenic) +/- stibnite (antimony) has been noted in all of the drill holes completed by the Company this season.

To date, eight drill holes have been completed with five drilled at the Pacific zone and three completed in the North Slope area. Underlying the Pacific open pit, drilling by the Company has intersected silicified and brecciated monzonitic sills not previously identified in the Pacific mine workings. Observable within the altered sills are veinlets and wisps of black, fine grained sulphide minerals. The Company views the identification of sulphide-bearing sills as significant as altered monzonite accounted for approximately 85% of the ore mined on the property in previous operations.

Deep drilling in the North Slope area is targeting a quartz breccia zone at depths of about 250-300 m. Initial drilling has identified both quartz veins and quartz-carbonate breccia zones hosted within mineralized volcanic rocks. Drilling in the North Slope area is ongoing.

Gold Dome Project

The Gold Dome project is located apporoximately 25 km to the northwest of Mayo and is host to one of the largest gold, arsenic and bismuth soil anomalies in the Yukon. The project is situated in the western Selwyn Basin, dominated by Late Proterozoic and Middle Palaeozoic basinal clastic sedimentary rocks. Structure is defined by the Jura-Cretaceous Dawson, Tombstone, and Robert Service thrusts all of which are intruded by rocks belonging to the 92.5 to 90.5 Ma Tombstone Plutonic Suite (TPS). Metasedimentary rocks of the Upper Proterozoic-Lower Cambrian Hyland Group, underlie the property and consist of highly foliated phyllite, and quartzite. The Scheelite Dome, Morrison Creek and Minto Lake stocks, comprising medium- to coarse-grained hornblende- and biotite-bearing granodiorite and quartz monzonite also underlie the property. The Company has drilled 18 holes on three targets (Toby, Tom and Hawthorne) for a total of 2,416 m.

The Toby zone is located on the south side of Highet Creek, a long-active placer gold mining center in the area. Trenching in 2006 by Copper Ridge Explorations Inc. on a gold-arsenic-bismuth soil anomaly and coincident near-surface IP anomalies identified gold values up to 14.9 g/t and 8.0 g/t in grab samples from two separate trenches, as well as chip samples as high as 8.9 g/t gold over 1 m. True North, the first to drill this zone, targeted the extension of gold mineralization at depth beneath one of the trenches. Holes GD09-01 and GD09-02 intersected abundant quartz–arsenopyrite veinlets, minor pyrrhotite and an altered monzonitic dyke. However no significant gold values were obtained. The Company intends to re-map and sample the Copper Ridge trenches at the beginning of next field season to gain a deeper insight into the controls to gold mineralization.

The Tom zone is located across Highet Creek from Toby. In 2003 Golden Patriot Mining Inc. drilled five core holes within a large gold-bismuth-arsenic soil anomaly and identified a limey unit in the Hyland Group schists that displays weak skarn alteration and high grade gold values. Diamond drill hole SH03-30 returned the best intercept of 7.09 gm/t over a drilled width of 6.4 m. This gold mineralization was not followed up by drilling or other subsequent exploration until the Company's work this year. True North has drilled a total of six core holes, totaling 1,286 m in an effort to confirm and trace the skarn-hosted gold mineralization encountered in 2003. Assays are pending for this work however in at least four of the drill holes, GD09-004, 005, 006, and 007, variable amounts of semi-massive to massive pyrrhotite and arsenopyrite with minor chalcopyrite were identified. Locally intense pyroxene-amphibole skarn alteration is observable over widths up to 2 m.

The final target to be drill tested this summer by True North is the Hawthorne vein. Exploration by Kennecott Canada Exploration Inc. in 1997 exposed a quartz-arsenopyrite-stibnite-scorodite vein in a long trench which assayed 188 ppb gold over 744 m. Focused on large tonnage, bulk mineable deposits, Kenecott did not pursue any further work on the vein. This year True North completed eight closely spaced shallow drill holes to explore for gold mineralization within the vein and to work out vein geometry for a more extensive drill program next season. The vein has been intersected by at least two of the drill holes with up to 5% arsenopyrite-pyrite and 1% scorodite with narrower quartz-sulphide veinlets also observed in the footwall to the vein. Core logging is ongoing and assays are pending.

Continued Drilling though 2010

Drilling at Brewery Creek is planned to continue through the fall and winter months with a short break for Christmas. The Company anticipates expanding its Yukon operations in 2010 through multi-drill, reverse circulation drilling campaigns, expediting evaluation of its gold projects.

Dr. Art Ettlinger, P.Geo. & President of True North is the Qualified Person for the above projects and is responsible for the technical content of this news release.

About Golden Predator Royalty & Development Corp.

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