Golden Predator Acquires McConnell Property, Yukon


VANCOUVER, Jan. 6 /CNW/ - Golden Predator Corp. (TSX: GPD) (the "Company") is pleased to announce that it has signed an option agreement to acquire a 100% interest in 125 quartz mineral claims known as the McConnell Property, located in the Mayo Mining District approximately 85 kilometres north of the Village of Mayo, Yukon, Canada.

McConnell Property

The 2500 Ha McConnell Project is located immediately to the east of the Victoria Gold Dublin Gulch-Shamrock claim block and adjacent to the Alexco Keno Hill claim block to the south. The project area covers a mid Cretaceous intrusive that was classified in 2003 by Gordey and Makepeace of the Geological Survey of Canada. Gordey and Makepeace extrapolated Roots geological mapping to produce their geological compilation of the occurrence area. According to their compilation, the area is underlain by Middle to Late Devonian Earn Group carbonaceous metasediments and felsic metavolcanics which have been intruded by a mid-Cretaceous granitic intrusion assigned to the 92 million year old Tombstone Suite (MINFILENo.: 106D 055) . This intrusive is mapped as the same plutonic suite as the Dublin Gulch intrusive immediately to the west of the McConnell property that hosts the Eagle Gold deposit, with an indicated gold resource of 2.7 million ounces (Victoria Gold website: ).

The target model for the McConnell property is a reduced intrusion-related gold system. Reduced intrusion-related gold systems (RIRGS) as defined by Hart (Hart, C.J.R., 2007, Reduced intrusion-related gold systems) are characterized by widespread arrays of sheeted auriferous quartz veins that preferentially form in the brittle carapace at the top of small plutons, where they form bulk-tonnage, low-grade Au deposits characterized by a Au-Bi-Te-W metal assemblage, such as the Fort Knox (3.7 million ounces gold, proven and probable; and Dublin Gulch (2.7 million ounces gold, indicated ; ) deposits.

Sheeted vein zones cut both the intrusive and the country rock at the McConnell property. The sheeted veins have been sampled by the vendor with 10 of 28 select rock chip samples returning anomalous values in one or more of the following elements: Tungsten, Antimony, Arsenic, Bismuth, Gold and Silver. These samples are reported below:

                           Select Rock Chip Samples
       Sample       Ag       As       Bi       Pb       Sb        W       Au
    Designation    ppm      ppm      ppm      ppm      ppm      ppm      ppb
                                           (less    (less
      MJR-009      1.2       32        6  than) 2  than) 5      145        6
      MJR-012      1.4       35        5        9       13       77        6
                                                    (less    (less
      MJR-013      1.4      766        6       15  than) 5  than)10        7
                                           (less    (less
      MJR-014      1.7      453        5  than) 2  than) 5       11        6
                                           (less            (less
      MJR-019      1.5     1409        6  than) 2       10  than)10      121
                                  (less    (less   (less
      MJR-022      1.4      100  than) 2  than) 2  than) 5     1144       11
                                  (less    (less   (less
      MJR-023      1.2       91  than) 2  than) 2  than) 5     1274        9
      MJR-024     29.9     3722       98      246       17       14      159
      MJR-025      2.2      355        8        5       10      401       11
      MJR-026      3.9      178        6  than) 2        9      513       17

The project has not been drilled and has only seen very limited ineffective soil sampling programs dating to the 1960s before the current program. Golden Predator plans on systematic mapping and sampling during 2011 to identify priority drill targets.

Transaction Terms

As consideration for the option, the Company paid $20,000 and issued 38,177 common shares. To exercise the Option, the Company will, in stages, pay an additional $425,000, issue up to $225,000 worth of shares (valued at the date of issuance), and incur exploration expenditures of $1,425,000 on or before November 4, 2015. Alternatively the Company can exercise the option by making a one-time cash payment of $1,000,000 at any time before November 4, 2015.

The Property will be subject to a 2.5% NSR, which the Company has the right to repurchase, in 1/2% increments, by paying $500,000 for each 1/2%. Provided that the average gold price for the preceding year is over USD$700/oz, the Company will be required to make annual advance royalty payments of $150,000 beginning on November 4, 2016 until commencement of commercial production from the Property. All advance royalty payments, as well as $175,000 of the $425,000 in cash payments described above, are creditable against amounts due under the NSR. In the event that the Company exercises the option by making the one-time cash payment, the annual advance royalty payments shall be $25,000.

The technical content of this news release has been reviewed and approved by Corwin (Cor) Coe, A.Sc.T., B.Sc., P.Geo., the Company's Vice-President, Exploration (Canada) and a Qualified Person as defined by National Instrument 43-101.

About Golden Predator Corp.

Golden Predator Corp.'s corporate mandate is to be the leading gold property explorer and developer in Yukon, Canada. The Company has an extensive Yukon property position with three advanced gold projects and a pipeline of 6 prospects as well as an extensive exploration land holding comprising approximately 1,800 km(2). Winter drilling will commence during February 2011 on Grew Creek and Brewery Creek. In 2011, the Company will continue aggressive drill programs and work towards completing initial 43-101 resources for Grew Creek and Clear Creek and updating the existing 43-101 resource for Brewery Creek.

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., Investor Relations, (604) 648-GOLD (4653)

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