- Asset Highlights
- Asset Overview
- Mineral Resources
- Geology and Mineralization
- Historical Exploration
- A past producing open pit/heap leach mine, temporarily suspended in 2002 due to gold price falling below $300/ounce
- Quartz Mining License, Water License and Mining Land Use Permit for further exploration
- Socio Economic Accord and Council Resolution with Tr’ondek Hwech’in supporting resumption of production
- Year-round road access/air service 55 km from Dawson City, 17 km from grid power
- Three years of drilling (2009-2012) has added total combined 1mm ounces of oxide Gold; 80% exploration success rate(1)
- 180 km2 property with many exploration targets remaining open or untested
- Proposed work to be completed in 2020 includes completion of a feasibility study to evaluate reprocessing of historic heap leach material, an updated mineral resource estimate and additional metallurgical and geotechnical testing(8)(9)
|2019 Brewery Creek Mineral Resource Estimate(1)|
Golden Predator is focused on a restart of the Brewery Creek Mine in Canada’s Yukon. This past producing heap leach gold mining operation produced from seven near-surface oxide deposits along the property's Reserve Trend from 1996 through 2002, when the mine went into temporary closure due to low gold prices. The 180 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 and hosts a 43-101 compliant resource. The Brewery Creek Project holds a Type A Water License and a Quartz Mining License (QML). The Company has a Socio-Economic Accord with the Tr'ondek Hwech'in with respect to the Brewery Creek Mine.
Brewery Creek has NI 43-101 Indicated mineral resources of 765,000 oxide gold ounces contained in 21.14 million tonnes of material with an average grade of 1.13 g/t, and Inferred mineral resources of 440,000 oxide gold ounces contained in 14.12 million tonnes with an average grade of 0.97 g/t. Indicated and inferred resource estimates have been produced for sixteen deposits, which are located inside of conceptual pits.
|2019 Brewery Creek Mineral Resource Estimate(1)|
Mineral resources are not mineral reserves and do not demonstrate economic viability. The quantity and grade of inferred resources reported herein are uncertain in nature and exploration completed to date is insufficient to define these Mineral Resources as indicated or measured. There is no guarantee that further exploration will result in the inferred Mineral Resources being upgraded to an indicated or measured mineral resource category. There is no certainty that all or any part of the mineral resource will be converted to mineral reserves. Mineral Resources are not mineral reserves and may be materially affected by environmental, permitting, legal, socio-economic, marketing, political, or other factors. Quantity and grade are estimates and are rounded to reflect the fact that the resource estimate is an approximation. The effective date of this Mineral Resources Report is October 1st, 2019.
The Brewery Creek Project has been drilled by several companies, with a total of approximately 3,213 unique drill holes and approximately 240,048 meters of drilling. A total of 708 drill holes totaling 98,010 meters have been drilled since 2009. The drillhole database for the current NI 43-101 Technical Report contains 3,199 drillholes with assay values that fall within all of the model areas as well as ongoing exploration areas. An additional 137 drill holes totaling 15,623 meters were completed in 2019 and will be included in the updated resource estimate.
Gustavson constructed a 3D block model for each resource area in MicroModel® modeling software. Domains were created for each resource area initially based on lithology. The overall lithology was condensed into three main groups; monzonites/volcanic intrusives, sediments, and altered. Drillholes were composited at nominal 3-meter down-hole intervals honoring lithologic contacts. Thus, composites are as close to 3 meters as possible, but always end at a lithologic contact. Partial intervals less than 3 meters length were merged with neighboring intervals. The 3-meter composite length was chosen with the 5 meters x 5 meters x 3 meters block size to model the (mostly) shallowly dipping deposits.
Oxide blocks were reported inside a $1600 Au LG pit, and the reporting cutoff was based on $1325/oz Au, corresponding to the 2-year trailing average gold price, and below the current spot price. The parameters for pit construction are listed in Table 14-7. Oxidation generally conforms to surface topography but penetrates deeper along structures into altered intrusive rocks and is also noted deeper in pyritized sedimentary rocks at or near intrusive contacts. A probabilistic indicator oxide model was constructed to completely capture the complex occurrence of oxide material. All sulfide blocks located within the pits were classified as Inferred.
Table 14-7 Oxide Pit Parameters
|Resource Area||Mining ($/tonne)||G&A
|Mining Differential||Processing ($/tonne leached)||LG Processing ($/tonne leached)||Au Recovery||Au Cutoff (g/t)*|
|West Big Rock||$2.92||$2.65||$0.14||$9.41||$12.06||83%||0.420|
|East Big Rock||$2.92||$ 2.65||$0.14||$9.41||$12.06||77%||0.453|
* The internal cutoff grade used for reporting mineral resources includes processing, G&A, and the differential haul for ore from different pits.
Table 14-8 Summary of Total Mineral Resources
|Resource Area||Au Cutoff (g/t)||Indicated Oxide Resources||Inferred Oxide Resources||Inferred Sulfide Resources|
|Tonnes (000's)||Au (g/t)||Au Ozs (000's)||Tonnes (000's)||Au (g/t)||Au Ozs (000's)||Tonnes (000's)||Au (g/t)||Au Ozs (000's)|
|East Big Rock||0.453||1,333||0.848||36.34||604||0.886||17.21||399||0.802||10.29|
|West Big Rock||0.420||1,867||1.025||61.53||3,476||0.967||108.02||989||0.970||30.84|
Geology and Mineralization
The Brewery Creek Project resources exhibit characteristics of both epithermal type and intrusive-related gold systems. It is generally considered to be an alkalic intrusion-associated gold deposit, as most of the mineralization is concentrated within or proximal to the monzonites. Gold mineralization consists of fracture-controlled quartz stockwork in both siliciclastic and intrusive rocks along an east-northeast striking, moderately south dipping structural trend known as the Brewery Creek Reserve Trend.
Altered intrusive rocks are typically the preferred host for gold mineralization, however gold mineralization at the Pacific deposit exhibits a strong preference for a siltstone host, and in other deposits into adjacent intrusives. 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.
Throughout the property, Tombstone Suite (91 Ma) Cretaceous monzonite and quartz monzonite intrudes Paleozoic Earn and Road River Groups lithologies as a series of semi-comformable sills along a 15km strike length. Younger, Tombstone Suite syenite and biotite monzonite occur locally in the south-central portion of the property. All compositional phases of the Tombstone Suite intrusives are known to host gold mineralization. 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 slightly younger age (70 Ma) host most of the gold mineralization at the world class Donlin Creek deposit in Alaska.
Sill emplacement is primarily controlled by a tectonized, graphitic argillite at the contact between the Earn and Road River Groups. This contact is also the locus of NNE-directed thrust faulting that has placed thin (<150 m thick) sequences of Silurian siltstone against Devonian siliciclastic rocks. The age of faulting is probably related to earlier Mesozoic compression along the Dawson, Tombstone and Robert Service Thrust Faults and the closing of the Selwyn Basin.
West and East Big Rock Zones
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 definition drilling 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 West Big Rock zone is ~600 m in length, ~30 m wide, and ~220 m down dip. The East Big Rock zone is ~600 m in length, ~30 m wide and ~180 m down dip. The Big Rock zones remain open to expansion at depth and to the southwest.
The Pacific deposit was mined by Viceroy; the pit was not backfilled and remains in its fully mined state. Pacific zone lies along the Brewery Creek Reserve Trend, immediately east of the Classic Fault. The deposit is defined by 17 core holes and 80 RC holes, totaling 6,966 m. The zone is ~500 m in length, ~50 m wide, and ~300 m down dip.
Pacific is the only zone in the district that is hosted primarily by Paleozoic siltstone. Mineralization is generally tabular and follows a combination of shallow south dipping bedding and high-angle Brewery Creek Reserve Trend parallel faults. The resource has been segmented by several post-mineralization northwest-trending dextral faults.
The Blue deposit was mined by Viceroy, and the pit was partially backfilled. The Blue zone lies directly east of the Pacific zone along the Brewery Creek Reserve Trend. A fault separates the two resources; one possible restoration of displacement suggests that the two resources may have been a single mineralizing system. The resource is defined by 26 core holes and 113 RC holes, totaling 8,149 m. The resource is ~500 m in length, ~45 m wide, and ~200 m down dip.
Blue is hosted primarily by Cretaceous quartz monzonite and subordinately by Paleozoic siltstone. Mineralization is generally tabular and follows the strike and dip of the sill complex. Like Pacific, the primary strike of the resource lies along a series of northwest-trending faults.
The Fosters mineralized zone includes only the un-mined Lower Fosters zone which lies approximately 3.5 km from the current heap leach pad. The Lower Fosters zone is ~450 m in length, ~30 m wide, and ~260 m down dip. A large sill complex extends throughout the Canadian-Fosters area and hosts most of the known mineralization. It has a strike length of at least 1.2 km and a down-dip extent of at least 500 m. It strikes 070° azimuth and dips approximately 20° southeast.
North Slope Zone
The North Slope zone lies approximately 1 km north of the Brewery Creek Reserve Trend. The current drilled extent of the structure and sill complex at North Slope is 750 m along strike and approximately 450 m down dip, with mineralization intersected at up to 700 m down dip. The mineralization is ~40 m wide. It strikes 070° azimuth and dips approximately 40° southeasterly. The mineralized sills and structural zone remain unconfined along both strike directions.
The Kokanee deposit was mined by Viceroy from four pits; all pits were partially backfilled. The southern two pits remain mostly open while the northern two are almost entirely backfilled and reclaimed. The deposit is centrally located along the Brewery Creek Reserve Trend and formed in the thickest and most extensive part of the Cretaceous quartz monzonite sill complex. The resource is defined by 31 core holes and 506 RC holes, totaling 29,654 m. The zone is ~1100 m in length, ~40 m wide, and ~190 m down dip.
Mineralized material at Kokanee occurs primarily in the quartz monzonite sill complex and subordinately in siltstone and argillite. Observations of mineralized material exposed in pit walls shows millimeter-scale veinlets with iron-oxide ± quartz fillings. The mineralized quartz monzonite typically contains several percent of evenly disseminated oxidized pyrite.
The Golden deposit lies immediately east of Kokanee and may be a faulted offset of Kokanee. It was mined by Viceroy from 4 pits; three were backfilled and reclaimed, the lowest and farthest south pit was not backfilled and remains in its fully mined state. The resource is defined by 19 core holes and 363 RC holes, totaling 21,251 m. The zone is ~950 m in length, ~30 m wide, and ~150 m down dip.
Golden, like Kokanee, is hosted by the thickest and most extensive part of the Cretaceous quartz monzonite sill complex. It is a nearly identical system structurally, and the styles of alteration identical. Both of these resource areas show a bidirectionality to the strike direction of the highest-grade material, one northeast and the other northwest trending, forming a conjugate pattern.
The Lucky deposit was mined by Viceroy and partially backfilled. It is situated immediately west of the Bohemian-Schooner zones and northeast of the Golden zone. The Lucky zone is defined by 169 RC drillholes and 3 diamond drillholes, totaling 11,240 m. The deposit is ~550 m in length, ~50 m wide, and ~360 m down dip.
Altered Cretaceous quartz monzonite that intrudes lower Earn Group sedimentary rocks host mineralized material at Lucky, similar to that at Bohemian-Schooner.
The Bohemian-Schooner zone and surrounding mineralized area was originally discovered by soil sampling, trenching and drilling in the 1990’s by Viceroy. The area remains unmined and is defined by 129 RC drillholes and 122 core drillholes, totaling 23,385 m. A linear distance of approximately 7 km separates the zone from the old heap leach pad. The Bohemian deposit is ~520 m in length, ~50 m wide, and ~160 m down dip. The Schooner deposit is ~450 m in length, ~50 m wide, and ~160 m down dip.
A sill complex at Bohemian/Schooner hosts the majority of mineralization. It intrudes a section of siltstones of the Steele Formation and interleaved, structurally dismembered carbonaceous argillite of unknown affinity. The composite strike length of the sill complex is over 1 km oriented east-west, dipping 5° to 10° to the south. A prominent high-angle east-west striking structural zone traverses the entire length of the area. Sills occur on both sides of the structure and are displaced down to the north across it. The sills are thickest along the structure, indicating that it may have localized the intrusions. Higher grade parts of the deposit also align along this structure.
The Sleeman zone is located to the southeast of the Reserve Trend and is ~500 m in length, ~25 m wide, and ~220 m down dip. 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 zone has higher base metal content and potentially economic silver concentrations. The Sleeman resource is also less oxidized compared to the other mineralized zones.
The Classic zone is located approximately 3 km south of the main Brewery Creek Reserve Trend, 7 km west of the Sleeman resource and 4 km south of the old heap leach pad. Discovered originally in 1991 (Hemlo Gold Mines Inc.-Loki Gold Corporation) through a southern soil grid expansion, the Classic zone was then being classified as an isolated, arsenic gold anomaly. To date, the Classic zone remains poorly understood with current interpretations based on the underlying pluton and faulting. The zone is currently defined by 52 RC drill holes and 17 core drill holes, totaling 13,478 m. The currently identified mineralization lies entirely on the southwest side of the Classic Fault. The zone is ~1400 m in length, ~30 m wide, and ~240 m down dip.
The Classic zone is a near surface bulk tonnage target that lies approximately 3 km south of the Brewery Creek Reserve Trend and, together with the newly discovered Lone Star zone, demonstrates the discovery potential of the entire southern portion of the large Brewery Creek Property. A large alkalic syenite intrusion hosts gold mineralization primarily in sheeted quartz/carbonate/pyrite+\-arsenopyrite veins and as fine-grained disseminations associated with pyrite.
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
Lone Star Zone
The Lone Star mineralized area lies approximately 5 km south of the main Reserve Trend along the northeast side of the Classic Fault, southeast of and adjacent to the Classic zone. Surface mineralization was first recognized by soil sampling in the 1990’s but the area remained untested until 2012. Drilling in 2012 consists of 17 core drill holes and 12 reverse circulation drill holes, totaling 6,147 m. The zone is ~1100 m in length, ~20 m wide, and ~220 m down dip.
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. Three styles of mineralization occur at Lone Star; elevated Au associated with skarns, disseminations in syenite, and auriferous sheeted quartz veins. The geometry of the system is poorly understood; it remains open in both strike directions and at depth.
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.
Detailed Overview of the 2019 Work Program
The 2019 work program at Brewery Creek consisted of 15,623m (137 holes) of reverse circulation development drilling, 678m (9 holes) of core metallurgical drilling and 343m (31 holes) of auger development drilling. Reverse circulation development and core metallurgical drilling focused on the permitted portion of the Reserve Trend to continue expanding the oxide gold resource over a 3.5 km strike length. The auger development drilling was located on the historic heap leach pad which was operated by Viceroy Gold from 1996 through 2002. Previous work by Golden Predator has established that a significant portion of the material on the heap leach pad contains substantial gold content; a concept that was well known during the operation of the heap leach operation by Viceroy. Much of the material on the heap leach pad was un-crushed, run-of-mine materials which didn’t leach as originally planned and the residual stacked material contains gold which is currently being evaluated for re-processing.
The 2019 development reverse circulation drill program focused on two structural zones which were on strike with known gold mineralization but had not been drill tested effectively. The two zones didn’t have strong gold in soil geochemical signatures, as compared to adjacent zones and were likely relegated to lower priority targets in most drill programs. Work this year showed that both of these zones have a veneer of Quaternary wind deposited loess which explains the poor geochemical response from the soils. These two zones located between historic resource/mine areas, were named the Fosters Gap (between Fosters and Kokanee) and the Golden Gap (between Golden and Lucky) and were the focus of the 2019 drilling. The results from both zones were better than expected with mineralized intercept in more than 80% of the 137 drill holes. Late season weather didn’t allow for development drilling to follow up the initial first pass of drilling and additional infill development drilling will be completed in the 2020 work season.
A summary of the 2019 drilling by areas is outlined below moving from east to west. A total of 4,650m of drilling was completed in 39 drill holes in the Lucky Zone, and 7,854m of drill was completed in the Golden Zone in 65 drill holes which included drilling in the newly identified Golden Gap area. A total of 2,732m of drilling was completed in 26 drill holes in the Foster/Kokanee Zone which included the newly identified Fosters Gap area, and 387m of drilling was completed in the Camp zone in 7 drill holes. A total of 10,233 samples were submitted for fire assay analysis with 265 (2.6%) samples returning values greater than 1.0 g/t gold and 900 (8.8%) samples returning values greater than 0.25 g/t gold. A total of 118 drill hole encountered gold mineralization in excess of 0.25 g/t Au over 1.52m.
Significant drill intercepts from each zone included 36m of 1.7 g/t gold in drill hole RC19-2673 from the Lucky Zone, 12.2m of 2.60 g/t gold in drill hole RC19-2624 from the Golden Zone, 27.4m of 3.21 g/t gold in drill hole RC19-2573 from the Fosters Zone and 24.4m of 0.61 g/t gold in drill hole RC19-2553 from the Camp Zone.
The company expects to encounter similar grades and thicknesses of gold mineralization as we continue to infill drill along strike within these zones and follow them down dip. Given the uncertain nature of work in the Yukon this summer due to the COVID 19 pandemic with regards to travel restrictions and quarantine guidelines the proposed work would begin at the earliest in August 2020.
Proposed drilling will be concentrated in the permitted mine area to establish the drill hole density necessary to allow resource estimation throughout the permitted mine area at an Indicated level of confidence. The proposed development program wouldrequire a total of 13,500m of reverse circulation and 2,500m of core drilling in approximately 120 drill holes to bring the drill hole density in both of the “gap” zones to 30m spacing. The proposed drilling program is approximately evenly divided between the two “gap” zones which were successfully identified and drilled in 2019 with some additional infill drilling below the historic Kokanee and Golden pits where necessary to complete delineation of the near-surface resource. Core drilling will be used to validate reverse circulation drill results, to refine the structural controls on mineralization within the area and to obtain additional material for metallurgical testing.
The revised Technical Report for Brewery Creek, dated October 2019, expanded the oxide gold resource by over 50% using current economic parameters. This Technical Report defined a much larger, continuous body of gold mineralization, over 3.5 km in length, between the Fosters area on the west and the Lucky area on the east. An additional 137 drill holes completed by the Company in 2019 are currently being incorporated into a revised resource estimate by Gustavson and Associates. The addition of these results are expected tol continue to expand the oxide gold resource within the permitted mine area. This new, updated resource estimate would provide the basis for a mining feasibility study within the permitted mine area.
Potential drill programs are outlined to continue building the oxide gold mineral resources in the Big Rocks, Bohemian and Schooner areas which are a part of the Reverse Trend. These three zones, which would be next in line to permit, currently contain cumulative oxide gold resources of 204,000 Indicated ounces and 170,000 Inferred ounces and would be the focus of Phase 3 work. Potential work is also planned in the Classic/Lonestar area, south of the Reserve Trend, to develop a significant oxide gold resource. Additional geostatistics and resource modeling of the current Classic/Lonestar drill hole database is required to establish the drill hole density necessary to develop an Indicated/Inferred resource model for the area. Brownfields exploration work will continue to develop drilling targets along strike from known resources areas in the Reserve and North Thrust Trends and the Classic/Lonestar Trend.
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 295,000 meters of drilling have been completed in addition to comprehensive soil sampling and trenching programs.
Golden Predator Corp. drilled approximately 55,000 meters in 2011 resulting in the delineation of the Schooner and Sleeman resources, and Classic zone, as well as increasing confidence in existing resources. In 2012, Golden Predator Corp. drilled approximately 31,800 meters and discovered the Lone Star mineralized zone.
In 2019, Golden Predator drilled approximately 16,000 meters within the Reserve Trend that connects mineralization over a 3.5 km strike length through the Fosters, Kokanee, Golden and Lucky resource areas. This trend remains open for resource expansion along strike and at depth along the entire Reserve Trend.
Brewery Creek Property
|Brewery Creek Mineral Resource||January 24, 2020|
|Brewery Creek Idealized Structures||January 24, 2020|
|Brewery Creek Idealized Structures and Soil Sampling||January 24, 2020|
|Yukon, Canada – Regional Overview with Brewery Creek||January 13, 2017|
|Regional Location Map||October 13, 2014|
- NI 43-101 Technical Report "NI 43-101 Technical Report on Resources, Brewery Creek Project, Yukon, Canada" Effective Date of October 1, 2019.
- Golden Predator News Release dated March 5, 2012.
- Golden Predator News Release dated October 11, 2012.
- Golden Predator News Release dated January 5, 2012.
- Golden Predator News Release dated November 18, 2011.
- Golden Predator News Release dated March 22, 2012.
- Golden Predator News Release dated November 10, 2011.
- Golden Predator News Release dated November 14, 2019.
- Golden Predator News Release dated November 18, 2019.
The technical content of this website has been reviewed and approved by Jeff Cary, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company.