WHITEHORSE, YT, Feb. 19, 2013 /CNW/ - Golden Predator Corp. (TSX: GPD) (the "Company") and Tr'ondek Hwech'in ("TH") announce that late on
February 14th the Company was advised that the Yukon Environment & Socio Economic
Assessment Board's ("YESAB") Dawson City Designated Office determined
it does not have the jurisdiction to assess the project proposal and
the reactivation of Brewery Creek's licensed brownfields project is to
be reviewed by the YESAB Executive Committee.
In late October, 2012, before filing its project application in the
Designated Office, Golden Predator sought a determination from YESAB as
to the level of assessment it would require. In discussions with YESAB
through the late fall and prior to January, Golden Predator understood
from YESAB that a Designated Office assessment would be considered
appropriate. TH participated in these discussions and supported this
level of assessment.
Golden Predator filed its project application in the Designated Office
in January 2013 and underwent an adequacy review through mid-February
2013 in which TH and all key regulatory agencies participated. On
February 14, 2013, after almost one month of adequacy review and
contributions on the question of adequacy from all interested
parties, the Designated Office YESAB Assessor, contrary to previous
indications from YESAB that it would consider a Designated Office
review, issued a decision that the Designated Office does not have
jurisdiction to assess this project and that the project would need to
undergo review by the Executive Committee of YESAB.
An Executive Committee assessment would unnecessarily extend the period
of review thus adding significant (currently unfunded) costs to the
review and permitting process.
This decision has come as a surprise to Golden Predator and Tr'ondek
Hwech'in and is extremely disappointing. As the decision stands, Golden
Predator may substantially delay any further development of the project
which will in turn mean that the local community and the region will
not see the significant benefits that have been anticipated from this
Golden Predator and Tr'ondek Hwech'in disagree with YESAB's basis for
the decision, including for the reason that other relatively recent
similar Yukon mining projects have proceeded by way of a Designated
Office evaluation and have not been subject to an Executive Committee
review. Golden Predator is considering its array of options with
respect to the YESAB assessor's decision and is working closely with
Tr'ondek Hwech'in in relation to all aspects of the Brewery Creek
project, including this YESAB decision.
Brewery Creek Project
The Brewery Creek Project is a past producing heap leach gold mining
operation with a total of 278,484 oz Au produced from seven
near-surface oxide deposits along the property's Reserve Trend from
1996 through 2002, when the mine (operated by Viceroy Resource
Corporation) shut down primarily due to low gold prices. The 200 km2 property is located 55 km due east of Dawson City, accessible by paved
and gravel roads from the junction of the North Klondike and Dempster
The Project is in receipt of all necessary permits required to conduct
additional exploration. The Brewery Creek Project holds a Type A Water
License with an expiry date of December 31, 2021, subject to the
restrictions and conditions contained in the Yukon Water Act and
Regulations. The Project also holds a Quartz Mining License (QML) with
an expiry date of December 31, 2021. The Company is working to amend
the Water License and the QML to incorporate current mine planning and
design studies which are currently underway. In addition, a restated
and amended Socio-Economic Accord with Tr'ondek Hwech'in First Nation
with respect to the Brewery Creek Project is in place.
Brewery Creek hosts a NI 43-101 compliant resources of 581,000 indicated
gold ounces in 20.417 million tonnes at 0.89 g/t and 346,000 inferred
gold ounces in 12.990 million tonnes at 0.83 g/t (Barr, 2012; GPD NR
12-20 June 18, 2012). The Company anticipates publishing an updated
resource estimate incorporating the 2012 drilling program in Q1, 2013.
The Brewery Creek Project historically has the support of the community
of Dawson City and the Tr'ondek Hwech'in because the Company remains
committed to advancing the project in a socially and environmentally
responsible manner, rehabilitating a previously operational gold mine
bringing social and economic benefits to the region and, particularly
to the Tr'ondek Hwech'in who have partnered with Golden Predator for
the development of this project.
The technical content of this news release has been reviewed and
approved by Michael Maslowski Bsc, CPG, the Company's Chief Operating
Officer and a Qualified Person as defined by National Instrument
About Golden Predator Corp.
Golden Predator Corp. announced on January 18, 2013 a planned change of
name in order to focus entirely on royalty and streaming by building on
its existing portfolio of 34 projects. Golden Predator Canada Corp.
intended to advance the Brewery Creek Project as a separate entity to
be divested to shareholders by spin-out or similar transaction. As a
result of the YESAB decision the timing of said transaction is not
Americas Bullion Royalty Corp. will focus on royalty and streaming
assets providing revenue as well as lower risk exposure to shareholders
through project diversity in first world jurisdictions. The Company's
existing portfolio is highlighted by Gross in-kind Royalties on Midway
Gold's Pan and Gold Rock deposits, as well as 2 separate projects
encompassing more than 34 square miles at Barrick's Bald Mountain
project in Nevada.
The Company holds additional royalties including a Net Smelter Royalty
on the Taylor Silver project and a portion of the Tonkin Springs
project also in Nevada. The entire package comprises more than 100,000
acres located primarily in Nevada, with 7 of the projects located in
Wyoming, Oregon, California and Mexico. Current royalty revenue is
anticipated to experience acceleration as early as 2014 as several of
these projects begin to advance. As Americas Bullion Royalty Corp., the
Company's royalty portfolio is unique in the mineral development
industry due to its ability to receive the majority of projected
revenues in-kind (gold bullion as opposed to cash), its possession of gross royalties
with no exposure to operator cost, as well as it security of title with
no buyback or buyout provisions.
For the current time, Golden Predator Canada Corp. will remain a
subsidiary of Americas Bullion Royalty Corp following the name change.
The Company has curtailed all exploration and development expenditures
as it executes its business plan to build on its significant
Nevada-based royalty portfolio through further royalty acquisition and
creation. Only minimal expenditures necessary to advance permitting
and continue care and maintenance of the Company's significant mineral
holdings including advanced road-accessible assets at Brewery Creek,
Clear Creek, Grew Creek and Gold Dome as well as the Cache Creek and
Rogue projects in the Selwyn Basin. The Company plans to spin-out all
exploration and development projects to its shareholders at some point
in the future but has delayed setting a date for any such spin-out,
which will ultimately require shareholder approval. Market conditions
and status of permitting will dictate the eventual timing of any such
spin-out. The Company's line of credit shall remain unaffected until
such time as the spin-out details may be finalized. Golden Predator is
proud of its demonstrated commitment to strong relationships with First
Nations and local communities.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. 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.
SOURCE: Golden Predator Corp.
For further information:
Golden Predator Corp.
William M. Sheriff, Chairman & Chief Executive Officer