Golden Predator is advancing the past-producing Brewery Creek Gold Mine towards a timely resumption of mining activities, under its valid Quartz Mining and Water Licenses, in Canada’s Yukon. With established resources grading more than 1.0 g/t Gold and low capex to production in a safe first world jurisdiction, the turnkey Brewery Creek Mine has a clear path to production as an economically and environmentally proven project. Optimization studies are progressing to enhance the already positive multi-phase project economics described in the 2014 Preliminary Economic Assessment. Drilling continues to expand the numerous open ended resources and untested targets across the 186 km2 brownfield property.
At 3 Aces, Golden Predator continues to expand on discoveries of native gold in quartz veins while ongoing bulk sampling and processing at our 50 tpd Company-owned processing plant has demonstrated gold recoveries of over 85% using a chemical-free process. This green gold provides the gold for the mintage of .9999 gold coins from the Yukon Mint™, a wholly-owned subsidiary of Golden Predator.
The Brewery Creek Project is a past producing heap leach gold mining operation, operated by Viceroy Resource Corporation from 1996 to 2002, temporarily closed due to low gold prices. The 181 km2 property is located 55 km east of Dawson City, Yukon. Brewery Creek has NI43-101 Indicated mineral resources of 577,000 oxide gold ounces contained in 14.15 million tonnes of material with an average grade of 1.27 g/t, and Inferred mineral resources of 279,000 oxide gold ounces contained in 9.3 million tonnes with an average grade of 0.93 g/t.1 The Brewery Creek Project has a Socio Economic Accord with the Tr’ondek Hwech’in.
The 3 Aces Project is an orogenic gold target consisting of 1,734 claims covering 357 km2 (35,700 ha) in southeast Yukon. The Company has to date focused exploration on the 13.5 km2 Central Core Area, a broad gold-in-soil anomaly, where numerous orogenic gold bearing quartz veins have been discovered. Exploration over the past two years has systematically advanced the project by establishing: (1) high gold grades can be reliably sampled; (2) gold mineralization is in predictable stratigraphic structural locations; and (3) gold grades have robust continuity within the recognized controlling features.
Programs of close-spaced drilling followed-up by bulk sampling are an integral part of the Company’s commitment to continuously evaluate the quality of drill hole assays, optimal drill spacing for resource delineation and optimal metallurgical recovery. Golden Predator’s decision to begin bulk sampling at 3 Aces in the early stages of exploration was greatly influenced by the high-grade, nuggety nature of the gold mineralization found on the property. Known as “the nugget effect,” gold occurring in this manner is not distributed evenly throughout the deposit but is accumulated in clumps within the vein corridors. Initial independent metallurgical testing indicated gold recovery of over 80% with simple gravity and mechanical methods without the use of chemicals.
Bulk sampling is an underutilized tool that provides critical technical information that establishes the amenability of any given type of mineralization to various recovery methods and also provides unique three dimensional insight into the structure, mineralization, and geometry of a mineral deposit that is not available through any other technique.
The Company-owned Pilot Processing Plant, the first of its kind in the Yukon, processes the permitted bulk sampling program. The plant consists of a closed system, without any water discharge, and a gravity circuit using water and no chemicals. The plant is located off-site and has been connected to the electric grid. It is managed by a team skilled in engineering, metallurgy and operations. A Company-owned, Yukon-based pilot processing plant provides the ability to test recovery methods, cost controls, better manage actual recovery while benefiting local communities and retaining knowledge and technical skills.
The wholly-owned subsidiary, the Yukon MintTM, The Yukon Mint™ is focused on creating gold coins that will be Yukon in almost every aspect, from raw material to design. The Yukon Mint™ works to ensure local communities benefit from Yukon mining and exploration projects. The gold used to create the coins is from the Golden Predator’s 3 Aces Project bulk sampling program processed using water and gravity only, without the use of chemicals.
The Company also holds the Grew Creek Project, Gold Dome Project and Marg Project, Yukon, which has a 2013 NI 43-101 Indicated Resource of 3.96 million tonnes of 1.57% copper, 1.92% lead, 3.90% zinc, 49.40 g/t silver, and 0.79 g/t gold and an Inferred Resource of 7.78 million tonnes of 1.12% copper, 1.36% lead, 2.89% zinc, 34.88 g/t silver, and 0.52 g/t gold filed on SEDAR (Burgoyne, 2011).