Golden Predator Royalty & Development Corp.
TSX VENTURE : GPD

Golden Predator Royalty & Development Corp.

June 08, 2009 08:50 ET

Golden Predator Acquires Brewery Creek Project, YT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) announces that it has signed a Letter of Intent with Alexco Resource Corp. (TSX:AXR)(NYSE Amex:AXU) to acquire up to a 75% interest in the Brewery Creek Project located in the northwestern Yukon Territory, 55 km due east of Dawson City. Brewery Creek produced a total of 278,484 ounces from an open-pit heap-leach operation under Viceroy Resource Corporation until 2002, when low gold prices forced the mine to close.

The acquisition of the Brewery Creek Project presents two immediate targets for potential resource development. Un-mined, near surface oxide gold mineralization remains, and a National Instrument 43-101 resource estimate on the Brewery Creek Project by Ronald Simpson (2005) estimated an indicated resource of 3.98 million tonnes grading 1.135 gm/t Au (145,000 contained ozs) and an inferred resource of 2.2 million tonnes grading 2.01 gm/t Au (142,000 contained ozs), using a cutoff grade of 0.5 gm/t Au. The Simpson (2005) report also reiterates that while the regional structural model for Brewery Creek offers potential for the discovery of higher grade sulphide deposits, the depth of drilling to date has been inadequate in testing this model. Golden Predator, though its Yukon subsidiary True North Mining Corp., intends to initiate a Phase 1 drilling program this field season following the receipt of all necessary permits to begin testing for these deeper and higher grade targets.

About Brewery Creek

The claims comprised in the Brewery Creek Project were initially staked in 1987, and from 1996 through 2002 a total of 278,484 ounces of gold was produced from seven near-surface oxide deposits along the Reserve Trend. More than 175,000 m of trenching and drilling was completed on the Project with much of the exploration drilling completed to depths of 50 m or less and focused on defining the near-surface oxide potential. Approximately 85% of the mined out mineralization was hosted by Cretaceous-aged quartz monzonite sills with stock like bodies of biotite monzonite and syenite belonging to the Tombstone plutonic suite occurring in the south central part of the Project. This suite of coeval granitic rocks is known to be associated with gold mineralization at Dublin Gulch, Clear Creek, Gold Dome (Scheelite Dome) and the Marn skarn as well as at Brewery Creek.

Consideration

Under the terms of the LOI, Golden Predator can earn up to a 75% interest in 793 contiguous quartz mining claims and leases and certain related assets in three stages as well as a 50% interest in certain barite deposits.

To earn a 51% interest in the Project (exclusive of the barite deposits) Golden Predator will incur the following noncumulative exploration expenditures:



----------------------------------------------------------
Exploration and Development
Expenditures Anniversary Date
----------------------------------------------------------
$1,000,000 December 31, 2010
----------------------------------------------------------
$1,300,000 December 31, 2011
----------------------------------------------------------
$1,700,000 December 31, 2012
----------------------------------------------------------


The initial $1,000,000 of exploration expenditures is a firm commitment by Golden Predator.

Golden Predator will have the option to acquire an additional 14% interest in the Project (exclusive of the barite deposits), for a total of 65%, by incurring an additional $1,000,000 (for a total minimum of $5,000,000) exploration expenditures and completing a Preliminary Economic Assessment by December 31, 2013. An additional 10% (for a total of 75% interest) can be reached by Golden Predator completing an additional $1,000,000 in exploration expenditures (for a total minimum of $6,000,000) and delivering a bankable feasibility study by December 31, 2014. Alexco will have a one-time right to buy back the additional 10% interest by paying to Golden Predator 2.5 times all exploration and development expenditures incurred by Golden Predator in excess of $4,000,000.

Golden Predator may also earn a 50% interest in known and future discoveries of deposits of barite on the Project by incurring exploration and development expenditures attributable specifically to the barite of $1,000,000 on or before December 31, 2012 and incurring not less than $3,500,000 of exploration and development expenditures in furtherance of the gold potential on the Project as a whole.

The Brewery Creek Project is subject to two underlying royalty agreements with third parties: a "sliding scale" royalty on the next 21,516 ounces of gold production on the basis of a sliding scale ranging from USD$10 per ounce if the average gold price for the quarter is less than USD$350 per ounce up to USD$40 per ounce if the average gold price for the quarter is greater than USD$450 per ounce; and a 5% net profits royalty (after recapture of pre-production expenditures) on profits from gold production.

About True North Mining Corp.

True North Mining Corp. is a Yukon company wholly-owned by Golden Predator. The company was formed to identify and develop gold deposits similar to those that are demonstrated to exist in the Tintina Gold Trend (see Golden Predator's news releases dated May 4, 2009 and June 5, 2009). The wide geologic provenances of these large deposits attest to the prospectivity of this gold belt, further enhanced by a $900 gold price.

True North's is pleased to also announce that it will be opening its new exploration office in Whitehorse, Yukon Territory which will be headed by its president, Dr. Art Ettlinger, P. Geo. The office is to be staffed with two additional geologists as well as geotechnicians.

Dr. Ettlinger, P.Geo. & President of True North is the Qualified Person for the Brewery Creek Project and is responsible for the technical content of this news release.

About Golden Predator Royalty & Development Corp.

Golden Predator is focused on becoming a mid-tier precious metals producer in Nevada through the strategic use of its Taylor milling facility near Ely, Nevada and through a facilities use agreement at the Springer Facility with its sister company, EMC Metals Corp. Golden Predator is moving forward on several of its gold and silver projects in 2009 with the mandate to identify one or more properties for near term production of small-tonnage high grade ores. In addition, Golden Predator is partially self-financed through its passive royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million at current gold prices for 2009. To augment its Nevada production focus, Golden Predator has launched a wholly owned subsidiary, True North Mining Corp., which is mandated to acquire, explore and develop large intrusive-related gold deposits in the prolific Tintina Gold Trend running through Alaska, the Yukon Territory, and northern British Columbia.

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 of Golden Predator, including but not limited to negotiating & executing binding legal agreement containing the terms and condition of the Letter of Intent. 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, including the inability to finalize a biding option and joint venture agreement, failure to obtain exchange approval or the inability to exercise the options granted for any reason. 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
    (972) 333-2214
    or
    olden Predator Royalty & Development Corp.
    Robert Eadie
    President
    (604) 602-4935
    www.goldenpredator.com
    or
    True North Mining Corp.
    William Sheriff
    Chairman
    (972) 333-2214
    or
    True North Mining Corp.
    Dr. Art Ettlinger
    President
    (867) 335-GOLD (4653)