Golden Predator Royalty & Development Corp.

Golden Predator Royalty & Development Corp.

August 25, 2009 11:00 ET

Golden Predator Commences Drilling on St. Elmo Project, Nevada; Graduates to TSX-V Tier 1

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2009) - Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") announces that it has commenced drilling on the St. Elmo Project located 100 km north of Elko, NV. The St. Elmo Project was recently acquired under an option agreement with Nevoro Nevada Inc., a wholly owned subsidiary of Nevoro Inc. (TSX:NVR), and an aggressive exploration program has been initiated on several drill-ready targets on the Project.

Drilling at the St. Elmo Project is targeting bonanza style vein mineralization, with drilling initiating on the St. Elmo vein hosted in quartzite of the Cambrian Prospect Mountain Formation. The drill program will test 1,200 ft of strike up to 500 ft below surface with 5,600 ft of reverse circulation and 1,800 ft of diamond drilling in 16 drill-holes. The St. Elmo vein prospect has 6 historic drill holes from two separate drill campaigns, with best intercepts in diamond hole GC-01, containing 8.5 ft of 0.155 opt gold from 399.67 ft and 6.25 ft @ 0.50 opt gold from 432.75 ft as reported in Golden Hope Mines Limited's August 23, 1999 news release.

An additional 3 to 4 reverse circulation drill-holes will also be completed on previously untested vein targets with gold anomalism at surface.

The St. Elmo Project is an exciting opportunity to generate near-term operations for the Company. Metallurgical work completed by past operators is favourable for Golden Predator's planned modular milling facilities in Nevada. Hazen Research reported a head grade of 2.36 oz/t gold and 1.15 oz/t silver on a 360 kg bulk sample collected from existing stockpiles. The bulk sample was prepared for metallurgical assessment by Harrison Western Mining and collected in underground operations as recently as 1990.

Assay figures from previous operators have not been verified and are reported as un-cut, and all intercepts are reported as drilled width and are not to be interpreted as true widths.

Travis Schwertfeger, BSc, MAIG and Exploration Manager for Golden Predator Mines US Inc., the Company's wholly-owned Nevada subsidiary, is the Qualified Person for the St. Elmo Property and is responsible for the technical content of this news release.

Graduation to Tier 1

The Company is also pleased to announce that it has graduated to Tier 1 status on the TSX Venture Exchange. Tier 1 is reserved for the TSX Venture Exchange's most advanced issuers with the most significant financial resources, and the benefits of Tier 1 status include decreased filing requirements and improved service standards.

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.

In the Yukon, in 2009 the Company is aggressively exploring its three Yukon properties, Gold Dome, Brewery Creek and Antimony Mountain, in the prolific Tintina Gold Trend through its wholly owned subsidiary True North Mining Corp. Brewery Creek currently is authorized under mining leases, a Type A water license and a production license.

In Nevada, Golden Predator is planning to drill 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
    (867) 335-5000
    Golden Predator Royalty & Development Corp.
    Robert Eadie
    (604) 602-4935