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Adelaide Property
The Adelaide property is optioned in conjunction with the Tuscarora Project as part of an Asset Exchange Agreement with Newmont Mining Corporation and Canyon Resources. Under this agreement, we are required to spend a total of $3.0 million on both projects over five years to earn our interest in the properties, including a $250,000 firm commitment in the first year. Newmont retains a one time venture option at either property to enter into a joint venture with us, whereby Newmont would hold 51% and Canyon a 49% interest. If Newmont exercises its venture option after we complete a positive feasibility study on either property, Newmont must spend a minimum of 250% of Canyon's (now Golden Predator's) expenditures to earn their 51% interest. If Newmont chooses to exercise their venture option prior to completion of a feasibility study, then Newmont must expend an amount equal to 400% of Canyon's expenditures to earn their 51% interest. In the event that Newmont elects not to exercise its venture option on either property, then Newmont would only retain up to a 3% NSR royalty on the property. Location The Adelaide property, part of the Gold Run Mining District which has been active since the late 1870's, is located in northeastern Humboldt County, Nevada, about 18 miles south-east of Winnemucca. Golden Predator controls over 92,000 acres covering 3.6 miles of strike along the mineralized Adelaide structure. The property comprises 90 unpatented claims and 75 leased unpatented claims. Approximately 220 percussion and reverse circulation holes and 18 core holes have been drilled in several areas by previous operators, including the Adelaide-Crown, Margarite-Recovery veins, and the Robbers Knob area. Each of these prospects in the district has various non NI43-101 compliant historic resources and reserves announced on them. The property is located at the projected intersection of the Getchell and Battle Mountain-Eureka gold trends. The rock units underlying the property consists primarily of Cambrian Preble formation and the Ordovician Valmy formation which are separated by the Adelaide fault. The Adelaide property has been the focus of exploration over the last 30 years by a number of companies including Newmont. Current Work Program Golden Predator has initiated a 44 drill hole drill program testing various targets along 1.6 miles of strike on the mineralized Adelaide Fault zone. This program is planned to consist of 32 reverse circulation holes and 12 diamond core holes. Drilling is primarily testing extensions of historic underground and surface mining. The reverse circulation portion of the program was initiated in early June and completed in mid-July, 2008 and totaled 16,145 feet of drilling. Assays are still pending for many of these drill holes. Please refer to the recent press releases at http://www.goldenpredator.com/s/NewsReleases.asp for current results. The diamond core drilling program was initiated in early July, 2008 and is anticipated to continue into the fall. Photos
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