• Snapshot
  • Asset Highlights
  • Reports
  • Asset Overview
  • Mineral Resources
  • Geology and Mineralization
  • Processing and Metallurgy
  • Historical Exploration
  • Maps
  • Photos
  • References
  • Operator:

    Golden Predator Mining Corp.

  • Location:

    55km east of Dawson in the northwestern region of the Yukon

  • Target:

    Intrusion related gold deposit

  • Commodity:

    Gold

  • Last Updated:

    January 2015

Asset Highlights

Positive Preliminary Economic Assessment (PEA) at $1250/oz. gold

  • Pre-tax NPV at 5% ranged from $18.1 million at $1150/oz. gold to $114.5 million at $1500/oz. gold with IRRs ranging from 12% to 45% with corresponding gold prices.
  • Mine life of 9 years with seasonal mining and crushing scheduled for 230 days per year at 7,500 tonnes per day and year round leaching
  • Open pit heap leach operation in combination of reprocessing former heap leach material
  • Recover 372,000 ounces of gold from eight open pits and old heap leach material
  • Metallurgical recoveries for the open pits range from 70% to 82.9% and averaged 45% for the former heap leach material
  • Life of Mine capital costs of $89.4 million including contingency
  • Cash cost of $788/oz. gold
  • Permits and licenses include a Type A Water License and a Quartz Mining License, both with an expiry date of December 31, 2021. A Class IV Mining Land Use Permit which expires on July 5, 2022.
  • 2012 Socio Economic Accord with the Tr'ondek Hwech'in First Nation in place
  • Year-round access

Asset Overview

Preliminary Economic Assessment (PEA) Summary

The Preliminary Economic Assessment (PEA) evaluated the potential viability of resuming mining at Brewery Creek through a combination of open pit mining and reprocessing former heap leach material. The report was prepared in accordance with National Instrument 43-101 (NI 43-101). The base case for the PEA utilized a gold price of $1250/oz. and assumed owner leasing of all mining equipment. The PEA targeted 10.2 million tonnes of open pit material from eight deposits at an average grade of 1.35 grams per tonne and reprocessing of 4.1 million tonnes of material from the old heap leach pad at an average grade of 0.77 grams per tonne. Mining and crushing would occur on a seasonal basis with an average operating time of 230 days per year. All leach feed material would be crushed in three stages to 80% passing 9.5 mm. The existing heap leach pad would have the last three original designed cells built. Recent geotechnical studies indicate the pad can safely accommodate an increase in stacking height from 30 to 40 meters providing more capacity on the pad. Solutions would be circulated and gold recovered year round through a carbon Adsorption Desorption Recovery (ADR) plant to produce doré on site. For further details, please read the supporting PEA which follows NI 43-101 guidelines and has been filed on SEDAR.

  • Pre-tax NPV at 5% ranged from $18.1 million at $1150/oz. gold to $114.5 million at $1500/oz. gold with IRRs ranging from 12% to 45% with corresponding gold prices.
  • Mine life of 9 years with seasonal mining and crushing scheduled for 230 days per year at 7,500 tonnes per day and year round leaching
  • Open pit heap leach operation in combination of reprocessing former heap leach material
  • Recover 372,000 ounces of gold from eight open pits and old heap leach material
  • Metallurgical recoveries for the open pits range from 70% to 82.9% and averaged 45% for the former heap leach material
  • Life of Mine capital costs of $89.4 million including contingency

The current study identified a number of opportunities to enhance the economics of the project and resources in the modeled pits remain open in various directions. Recent exploration work in the southern part of the property has identified new styles of gold mineralization including higher grade skarn mineralization. Further exploration in the southern area could identify additional oxide material for leach feed at higher grades.

Tetra Tech EBA Inc. of Vancouver, BC was the lead firm in producing the PEA in cooperation with Tetra Tech Inc. of Tucson, AZ; SGS-E&S Engineering Solutions Inc. of Tucson, AZ; Resource Modeling Inc. of Stites, ID; Gustavson and Associates of Denver, CO and Access Consulting Group of Whitehorse, YT.

The reader is advised that the PEA is intended to provide only an initial, high-level review of the potential of the project. The PEA is preliminary in nature and includes Inferred resources that are considered too speculative to be used in an economic analysis except as allowed for by Canadian Securities Administrator's National Instrument 43-101 in PEA studies. There is no guarantee that the Inferred mineral resources can be converted to Measured or Indicated mineral resources, and as such, there is no guarantee the project economics described in this report will be achieved.

The Brewery Creek Project is a past producing heap leach gold mining operation with a total of about 280,000 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 Highways.

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 on a project proposal submission to the Executive Committee of the Yukon Environmental and Socio-economic Assessment Board for their review which will lead to an updated Quartz Mining and Water Licenses for renewed mining and processing at Brewery Creek. During this period Golden Predator is actively seeking a qualified operator as a joint venture partner. 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 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 the Company for the development of this project.

Mineral Resources

Indicated and inferred resource estimates have been produced for fourteen deposits plus the former heap leach pile. Resources are reported for both oxide and sulfide material. Indicated oxide resources (including historical heap leach pad) total 577,000 troy ounces of contained gold in 14,152,000 tonnes of material at 1.27 g/t Au. Inferred oxide resources (including historical heap leach pad) total 279,000 troy ounces of contained gold in 9,309,000 tonnes of material at 0.93 g/t Au. Indicated sulfide resources total 142,000 troy ounces of contained gold in 3,459,000 tonnes of material at 1.28 g/t Au. Inferred sulfide resources total 546,000 troy ounces of contained gold in 12,408,000 tonnes of material at 1.37 g/t Au(1).

Oxide Mineral Resources for the Kokanee, Golden, Pacific, Blue, Lucky, Bohemian, Schooner, Lower Fosters, West Big Rock, and East Big Rock deposits are based on Indicated and Inferred Resources which are located inside of conceptual pits. Table 1 summarizes the parameters that were used to generate the conceptual oxide pits (no value was attributed to sulfide material). Both Indicated and Inferred Resources were used to generate the pits. Oxide cutoff grades for resource declaration were established using the parameters shown in Table 1.

All mineral resource estimates are summarized the tables below.

Resource chart

Resource chart

Brewery Creek Map

Brewery Creek Map

Geology and Mineralization

At the Brewery Creek Project, Tombstone Suite Cretaceous monzonite and quartz monzonite intrudes lower Paleozoic Earn Group and Road River Group stratigraphy as a series of semi-conformable sills. Cretaceous biotite monzonite and syenite stock-like bodies occur locally in the south-central part of the Project. This suite of coeval granitic rocks is known to be associated with gold mineralization at Fort Knox in Alaska and Dublin Gulch, Clear Creek and Gold Dome (Scheelite Dome) in Yukon. Intrusive rocks of a similar age host much of the mineralization at the world class Donlin Creek deposit in Alaska.

At Brewery Creek, fracture-controlled gold mineralization is hosted within porphyritic monzonite, quartz monzonite, biotite monzonite and interbedded fine-grained, siliciclastic sedimentary strata. Local replacement mineralization is also hosted within calcareous siltstones. Major ore-controlling structures in intrusive rocks are related to a post Tombstone age, NNW compressional event that produced ESE and NE striking conjugate shears and ENE listric normal faulting localized along graphitic argillite/intrusive sill contacts. Approximately 85% of the mined ore was hosted by the various Cretaceous-aged quartz monzonite sills with the balance contained in silicified and brecciated Earn Group sediments.

Bohemian-Schooner Zone
The Bohemian-Schooner zone represents the furthest known mineralization to the east within the Reserve Trend. A sill complex, extending for more than 1 km along an east-west orientation, hosts the majority of mineralization. The resource area is open at depth and to the east which remains highly prospective. Exploration efforts by previous operators did not thoroughly explore east of Bohemian due to low gold prices. Golden Predator Corp. discovered the Schooner Zone extending east of Bohemian in 2011.

Big Rock Zone
The Big Rock zone, including West and East Big Rock, is the furthest known mineralization to the west and has a drill-defined strike length of approximately 1.5 km. First discovered in 1991, the initial resource definition occurred between 1994 and 1998. Golden Predator Corp. expanded this mineralization along strike, laterally and down dip including oxide mineralization at depths greater than 100 m. The Big Rock zone remains open to expansion at depth and to the southwest.

Classic Zone
The Classic Resource area is a near surface bulk tonnage target that lies approximately 3 km south of the Reserve Trend and, together with the newly discovered Lonestar Zone, demonstrates the discovery potential of the entire southern portion of the large Brewery Creek Property. A large alklakic syenite intrusion hosts gold mineralization primarily in sheeted quartz/carbonate/pyrite+\-arsenopyrite veins and as fine-grained disseminations associated with pyrite.

Mineralization is truncated to the east by the Classic fault, and by the boundary of the intrusion to the north and south. Down dip and to the west, mineralization remains untested and open. Drilling by Golden Predator Corp. in 2012 indicates the continuation of mineralization in this direction.

Significant intercept examples:(2)

  • BCRC 11-2354 with 200.0 m of 0.38 g/t gold from surface including 10.0 m of 1.10 g/t gold and 38.0 m of 0.90 g/t gold;
  • BCRC 11-2348 with 148.0 m of 0.32 g/t gold from a depth of 2.0 m; and
  • BCRC11-2349 with 134.0 m of 0.34 g/t gold from surface, including 22.0 m of 0.80 g/t gold

Lonestar
The Lonestar Zone lies approximately 5 km south of the main Reserve Trend, and confirms the potential for additional discoveries in the entire southern portion of the large Brewery Creek Project. The Lonestar zone is a target initially defined by a large gold in soil anomaly that occurs about 2.2 km southeast of the Classic zone and across the Classic fault, indicating that the Lonestar zone maybe an offset of the Classic zone. The Classic zone is on the west side of the fault and the Lonestar zone is on the east side of the fault. Drilling by Golden Predator Corp. in 2012 intersected multiple mineralization types including disseminated gold and sheeted quartz/carbonate/pyrite+\-arsenopyrite veins both hosted in syenitic intrusive stocks and sills. The 2012 drill program also discovered gold bearing calc-silicate skarn mineralization in carbonate rocks on the periphery to the syenitic intrusive.

The gold mineralization has been drilled with widely spaced holes in an area approximately 1 km by 300 m, and is open at depth and both directions along strike but is apparently cut off to the west by the northwest trending Classic fault.

Significant intercept examples:(3)

  • BCRC12-2519 with 32.0 m of 0.81 g/t gold from a depth of 172.2 m;
  • BCRC12-2522 with 157.0 m of 0.27 g/t gold from a depth of 44.2 m;
  • BCRC12-2523 with 10.7 m of 1.14 g/t gold from a depth of 25.9 m, and 21.3 m of 2.24 g/t gold from 166.1 m;
  • BCRC12-2528 with 27.4 m of 1.24 g/t gold from a depth of 1.5 m; and
  • BCRC12-2529 with 93.0 m 0.27 g/t gold from the surface.

Fosters-Canadian Zone
The Fosters-Canadian zone covers the Upper and Lower Fosters and Canadian deposits. The Upper Fosters and Canadian deposits have seen mining while the Lower Fosters area has not. A large sill complex extends for more than 1.2 km throughout the Fosters-Canadian zone and hosts most of the known mineralization. Existing resources remain open to expansion at depth.

North Slope Zone
The North Slope Zone lies approximately 1 km north of the Reserve Trend. The current drilled extent of the structure and sill complex at North Slope is 640 metres along strike and approximately 500 metres down dip, with mineralization intersected at up to 700 metres down dip. The mineralized sills and structural zones remain open along strike in both directions. Golden Predator Corp. drilled 109 holes to establish the current resource and identify areas for likely expansion.

Significant intercept examples:

  • BC11-329 with 16.0 m of 3.20 g/t gold from a depth of 41.0 m;(4) and
  • RC11-2364 with 34.0 m of 1.31 g/t gold from a depth of 106.0 m.(5)

Sleeman Zone
The Sleeman zone is located to the southeast of the Reserve Trend and has a known strike length of 400 m and is open along strike in both directions and at depth. Mineralization at the Sleeman zone is located in the midst of a 4 km geochemical and geophysical anomaly. This major anomaly appears to be associated with a significant structure oriented approximately 330º that intersects the Reserve Trend. The style of veining and alteration at Sleeman is similar to other resource areas, however the Sleeman deposit has higher base metals and potentially economic silver concentrations. The Sleeman deposit is also less oxidized compared to the other resource areas.

Significant intercept examples:

  • BC11-361 with 40.9 m of 1.81 g/t gold and 19.7 g/t silver at a starting depth of 173.0 m;(6)
  • BC11-321 with 34.4 m of 2.92 g/t gold and 19.5 g/t silver from a depth of 45.8 m;(7) and
  • BC11-311 with 30.1 m of 2.21 g/t gold from a depth of 49.9 m.(7)

Processing and Metallurgy

The process plant flow sheet for the PEA was developed by SGS and is designed to crush and stack heap leach feed material approximately 230 days per year and to recover gold from the heap leach solutions 365 days per year. The flow sheet used a daily feed rate of 7,500 tonnes per day or an annual feed rate of 1.7 million tonnes.

Material will be delivered to the crushing area and reduced to a nominal 80% passing 9.5 mm after tertiary crushing with modular crushing units. Feed material from the Fosters deposit and re-processed material from the old heap are planned to be agglomerated. The crushed material will be stacked on the leach pad by truck. Gold recovery for the leach solutions is done through an ADR plant.

Estimates for gold recovery and consumption rates of regent are based on recent metallurgical testing for five of the deposits and the old heap leach material. Recoveries and consumption rates for three of the deposits, Lucky, Golden and Kokanee, which were previously mined by Viceroy are based on historical data. The data and test results were from Viceroy operational reports from 1997 to 2002, McClelland Labs test work from 2011 including 4 column leach tests on sonic drill samples from the old heap leach material and McClelland Labs test work from 2012 including 32 column leach tests from PQ core on the in-situ deposits.

Leach chart

Historical Exploration

The claims comprising the Brewery Creek Project were initially staked in 1987 by Noranda Exploration Limited, and most of the mineralized zones that have been mined to date were identified by 1989 through detailed geochemical surveys. Since 1989 more than 200,000 meters of drilling has been completed in addition to comprehensive soil sampling and trenching programs.

In 2011, Golden Predator Corp. drilled approximately 55,000 meters resulting in the delineation of the Schooner, Sleeman and Classic deposits, as well as increasing confidence in existing resources. In 2012, Golden Predator Corp. drilled approximately 27,000 meters and discovered the Lone Star deposit, which were incorporated into the 2013 updated resource estimate. All existing resource zones remain open in one or more directions.

To view a table of past drilling results please click below:
2012 Drill Results
2011 Drill Results

References

  1. NI 43-101 Technical Report "Preliminary Economic Assessment For The Brewery Creek Property Yukon Territory, Canada" Release Date of November 19, 2014.
  2. Golden Predator News Release dated March 5, 2012.
  3. Golden Predator News Release dated October 11, 2012.
  4. Golden Predator News Release dated January 5, 2012.
  5. Golden Predator News Release dated November 18, 2011.
  6. Golden Predator News Release dated March 22, 2012.
  7. Golden Predator News Release dated November 10, 2011.

Mike Burke, P. Geo, a Qualified Person as defined by National Instrument 43-101 and Chief Geologist for the Company has reviewed and verified the information presented on the Company's Brewery Creek Project.