VANCOUVER, July 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 351 quartz mineral claims covering the Grew Creek Deposit, located in central Yukon, Canada.
Grew Creek Property
The Grew Creek Gold Property covers approximately 7,335 ha located in central Yukon Territory mid-way between the towns of Faro and Ross River. The property is adjacent and partly straddles the Robert Campbell Highway for a distance of 30 km. The property is readily accessible by a network of roads and trails from the highway year-round, and power lines cross the project area.
Gold mineralization occurs as quartz-vein and vein stock-work within permeable felsic pyroclastic tuffs contained within a graben structure formed by the Tintina Fault System(1). The mineralization is typically epithermal within a strongly developed alteration system. Past exploration at the Main Zone has outlined both high-grade veins and vein stock-work mineralization (including 17.0 m of 28.6 gpt Au in drill hole GC-96-196 drilled by YGC Resources in 1996(2)) and wide, lower-grade mineralization (such as 21.0 m of 4.13 gpt Au in drill hole GC-96-197 drilled by YGC Resources in 1996(2)). The Main Zone mineralization is structurally complex occurring within an area of approximately 300 m long and 100 m wide. Drilling has been shallow (less than 100 m vertical depth) with several holes below 100 m depth that intersected low-grade gold mineralization. Drilling to date has been concentrated in the immediate Grew Creek area with only limited drilling in the outlying areas.
(1) Stroshein, R.W., May 2008. Technical Report Using British Columbia
Securities Commission National Instruments 43-101 Guidelines; Summary
Geological Report On the Grew Creek Property, Yukon Territory, Canada.
(2) Stroshein, R.W., March 1997. 1996 Diamond Drilling report on the Grew
Creek Gold Project, Grew Creek Area. Assessment Report No. 093627, Yukon
Energy, Mines and Resources.
The Main Zone mineralization was discovered in outcrop and expanded by diamond drilling. Geochemical and geophysical surveys have been carried over portions of the property. Irregular glacial till cover has hindered past interpretation of exploration data. Golden Predator is currently compiling and analyzing all of the historical data in order to develop a comprehensive structural model for the Grew Creek Deposit and surrounding area, which the Company plans to use to advance the project towards a resource estimate.
Golden Predator is currently compiling and analyzing all of the historical data in order to develop a comprehensive structural model for the Grew Creek Deposit and surrounding area, which the Company plans to use to advance the project towards a resource estimate.
As consideration for the Option the Company will pay $50,000 and issue 100,000 common shares. To exercise the Option, the Company will, in stages, incur exploration expenditures of $3,000,000 by December 31, 2014, issue an additional 250,000 shares by the third anniversary of the option agreement, and pay a total of $400,000 before the fourth anniversary of the option agreement. In addition to the $50,000 cash payment and 100,000 shares due upon execution of the Option Agreement, the Company has committed to paying an additional $100,000 cash, issuing 100,000 shares and incurring exploration expenditures of $400,000 before December 31, 2011. All other payments, expenditures and issuances are optional.
Upon the exercise of the option by the Company the property will be subject to a 4% NSR in favor of the underlying property owner, which the Company has the right to repurchase 1% of for $1,000,000. Provided that the average gold price for the preceding year is over USD$700/oz, the Company will pay a $25,000 annual advance royalty payment beginning December 31, 2015 until payments commence under the NSR. All advance royalty payments are recoverable from payments under the NSR.
The agreement is subject to several conditions, including all required regulatory approvals.
Technical information has been reviewed by Gilles R. Dessureau, M.Sc. P.Geo, a Qualified Person for the purposes of National Instrument 43-101. Mr. Dessureau is a Professional Geologist employed with Golden Predator Corp.
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 an industry leading five advanced exploration gold projects comprising over 600 km(2). Drill programs have commenced on the Company's Brewery Creek and Eureka projects with plans to commence drilling at Gold Dome and Clear Creek projects in July 2010. Drilling at Antimony Mountain is scheduled for August, 2010. Golden Predator benefits from its royalty stream, presently generating in excess of $1.0 MM annually. Golden Predator also continues to advance its significant US gold projects and is working to create Silver Predator Corp. to monetize its substantial Nevada-based silver assets.
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 Americas Bullion Royalty Corp.
For further information: For further information: Golden Predator Corp., Investor Relations, (604) 648-GOLD (4653)