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| | Golden Predator opens the Toronto Stock Exchange for trading on May 5, 2008
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| | Surface drilling at Springer continues in 2008
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| | NI43-101 Technical Report Completed on Fostung Property
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| | Golden Predator Acquires Gold Standard Royalty Corporation and the Lyle Campbell Trust
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| | On December 14, 2007 Golden Predator entered into a binding letter agreement to acquire all of the issued and outstanding shares of Gold Standard Royalty Corporation (Gold Standard). Gold Standard is a private corporation whose principle asset is the option to purchase, through a wholly-owned subsidiary, the Lyle Campbell Trust for a purchase price of US$3.72 million. In exchange for acquiring all of the shares of Gold Standard, Golden Predator will loan to Gold Standard, US$4 million, of which $3.72 million is for the purchase of the Trust, and upon the successful completion of due diligence, issue 2.05 million of its own shares valued at $2.00 per share and forgive the loan. In the event that Golden Predator decides not to close the transaction as a result of its due diligence, Gold Standard will have 24 months to repay the loan at an interest rate of 7%.
The Lyle Campbell Trust is comprised of production royalties from 21 mineral properties in Nevada. The royalties vary from 1% to 5% GSR (gross smelter return royalty) with many escalating based on the gold price. Annual advanced royalty payments now stand at approximately $800,000 per year in 2008 based on a current gold price of $800/oz and escalate to approximately $1 million per year by 2012 at this price.
The royalty properties consist of 3,564 lode mining claims covering approximately 71,280 acres in some of Nevada's most prospective mineral trends. Most notable of the properties include Midway Gold Corp's Pan Project in the Battle Mt.-Eureka Trend and US Gold Corp's Tonkin Project in the Cortez Trend.
Pan Project
The Pan property is located 22 miles southeast of Eureka, NV and is underlain by Paleozoic carbonate and clastic sedimentary rocks. The most important of these, the Pilot Shale, also hosts the gold deposits at Alligator Ridge and Bald Mt. In the North Pan area of the property, gold mineralization occurs in silicified and argillized rocks along the Pan fault as well as within high-angle NW and NE-trending structural zones and within calcareous Pilot Shale beds; whereas in the South Pan area, gold is hosted by both the Pilot shale and Devil's Gate limestone along the Pan fault zone.
No less than 10 Nevada exploration companies have worked on the Pan property and drilling through 2004 has resulted in the calculation of a Measured and Indicate resource. At a cutoff grade of 0.01 oz/t Au, the Measured and Indicated resource consists of 19.0 million tons grading 0.019 oz/t Au containing 361,400 ounces of Au. Inferred resources for the Pan deposit were calculated to be 8.3 million tons grading 0.017 oz/t Au containing an additional 140,600 ounces of gold.
Recently, Midway Gold announced the extension of the Boulder gold zone, approximately 1,000 feet to the north of the North Pan deposit with an intercept of 0.016 oz/t Au over 95 feet. This demonstrates that the North Pan deposit continues along the Pan fault to the north beneath younger volcanic cover and opens up this area for further discovery.
Tonkin Project
Tonkin (also referred to as Tonkin Springs) is located within the Cortez Trend immediately to the south of the Barrick Gold - Rio Tinto Joint Venture that covers lands which collectively have past production, mineral reserves and mineralized material of 33 million ounces of gold. This area has seen an enormous extension of land positions by senior and junior mining companies since the 2003 when Placer Dome announced the discovery of Cortez Hills, demonstrating the deep Carlin potential of the trend.
In a May 2004 Technical Report, Micon International Ltd. estimated a total oxide and sulfide Measured and Indicated Resource of 29,672,000 tons grading 0.043 oz/t Au for a total of 1.27 million ounces of gold at a cutoff grade of 0.018 oz/t Au. Micon states that from 1966 through 2001, 2,778 holes have been drilled at Tonkin (over 614,000 feet). Micon used this historic data and previous metallurgical test work, which demonstrated the general refractory nature of the Tonkin mineralization, to arrive at a preliminary economic assessment based on surface mining five different areas of mineralization. Using an open pit "reserve" of 10,657,000 tons grading 0.061 oz/t Au (sulfide & Oxide) Micon estimated a capital cost of $37.6 M, a cash operating cost of $238/oz with an IRR of 19% based on a $00/oz gold price.
Exploration at Tonkin is now focused on locating the more calcareous Lower Plate rocks which are deemed to be more favorable for hosting Carlin type deposits. Recently, US Gold announced the completion of drilling three areas of the property. The best intercepts came from the Southern Area and include 0.147 oz/ton Au over 55.0 feet (hole T-148) and 0.37 oz/t Au over 67.0 feet (hole T-146) with numerous intercepts in the range of 0.1-0.25 oz/t Au and a high of 0.639 oz/t Au encountered in the 13 holes reported. |
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