Golden Predator Announces Barrick Gold Royalty Annual Reserve Estimate
WHITEHORSE, Nov. 15, 2012 /PRNewswire/ - Golden Predator Corp. (TSX: GPD) (the "Company") is pleased to announce receipt of the Annual Reserve Estimate from Barrick Gold Corp.'s Bald Mountain Mine in Elko County, Nevada for the period ending December 31, 2011. The report covers only those resources and reserves that are attributable to the deeded royalty in and around the Bald Mountain Mine as detailed in the November 11, 1993 agreement between Placer Dome U.S. Inc. as the purchaser and the Lyle F. Campbell Trust (LFCT) as the seller. This deeded royalty, applicable to an area of approximately 30 square miles along a north-south corridor extending from south of the Alligator Ridge mine to the Bald Mountain mine along the Carlin Trend, provides for a 1.0% Gross Sales Royalty payable to the seller in cash or kind at the sole election of the seller. The LFCT was subsequently acquired by Gold Standard Royalty Corp. (GSR), further consolidated into Gold Standard Royalty (Nevada) Inc., a wholly owned subsidiary of Golden Predator Corp.
This particular royalty referred to as the Bald Mountain-Alligator Ridge Area is shown by the yellow outline on the map below. This reserve statement does not include the Duke-Trapper-Royale property to the north (shaded green) where GSR holds a 4% Gross Sales Royalty under a separate lease from Barrick's Bald Mountain Mine. A 43-101 resource estimate for the Duke-Trapper-Royale lease and royalty is being independently commissioned by the Company with an anticipated completion date of Q2-2013.
Annual Reserve Estimate for Bald Mountain-Alligator Ridge Area as
prepared by Bald Mountain Mine1
The proven and probable reserves as stated in the table below total 45,336,228 tons at an average grade of 0.014 troy ounces per ton of gold containing a total of 652,161 troy ounces of gold. These reserve amounts are included in the resource estimate which also includes measured and indicated resources. The total measured and indicated resource including reserves is 73,023,584 tons at an average grade of 0.013 troy ounces per ton of gold containing a total of 978,690 troy ounces of gold. Bald Mountain proven and probable reserves have been calculated at a gold price of $1200 per ounce. Barrick Gold Corp.'s definition of resources and reserves is as follows:
Mineral resource: The mineral occurrence in such form and quantity and grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, continuity and geological characteristics are known, and are estimated and interpreted from specific geological knowledge and evidence.
Mineral reserve: The mineral reserve is the economically mineable portion of the mineral resource demonstrated at least by a preliminary economic feasibility study that includes information on mining, processing, metallurgy, economic and other relevant factors which demonstrate that, at the time of reporting, economic extraction can be justified. The reserve includes allowances for dilution and other losses that may occur during mining.
Proven and Probable reserves are as follows, as of December 31, 2011;
reserves are reported as a subset of the resources. All reserves are
oxide, open pitable and to be processed by heap leach.
|Proven & Probable Reserve||
|Total Proven & Probable||45,336,228||0.014||
Measured and Indicated resources are as follows, as of December 31,
2011; resources include reserves reported above. Mineral resources
that are not mineral reserves do not have demonstrated economic
|Measured & Indicated Resource||Bida||5,976||0.072||433|
|Total Measured and Indicated||73,023,584||0.013||978,690|
1-Letter to GSR from Bald Mountain Mine reporting annual reserve estimate as of December 31, 2011
Barrick Gold Bald Mountain Royalty and Project
Golden Predator Corp's wholly owned subsidiary, GSR, owns a deeded 1% Gross Sales Royalty on approximately 30 square miles (Bald Mountain-Alligator Ridge Area) along with a separate parcel (Duke-Trapper-Royale) containing unpatented mining claims under lease to Barrick Gold Corp. providing GSR with a 4% Gross Sales Royalty. These two properties are part of Barrick's Bald Mountain Mine project. Both of these properties were part of the Lyle F. Campbell Trust which was acquired by Golden Predator's wholly owned subsidiary, GSR, in 2007. Lyle Campbell was an acknowledged early day Carlin Trend prospector who is credited with a number of important gold discoveries.
Golden Predator Royalty Portfolio
Golden Predator Corp. controls a royalty package of 32 North America properties including several deeded royalties totaling over 100,000 acres in Nevada, Wyoming, Oregon and Mexico including Midway Gold Corp.'s Pan and Gold Rock deposits. These properties are predominantly leased out to mineral production, development and exploration companies to provide royalty revenue to Golden Predator Corp. In 2012, the royalty packages generated $799,762 in revenue and this is expected to increase in 2013, with the bulk of the current revenue due annually each January. Subsequent royalty revenue is anticipated to experience acceleration as early as 2014 as several of these projects begin to advance.
Golden Predator Corp.'s royalty portfolio remains unique in the mineral development industry due to the nature of the Gross Production Royalties which were acquired from the LFCT that cover specific projects moving towards production, the ability to receive payment in gold or cash and the absence of buy-back provisions affecting any of the royalties.
Technical information in this news release has been approved by Mark J. Abrams CPG, a qualified person under NI 43-101, and an employee of Golden Predator Mines US Inc. The reserve and resource estimates in this news release are based on information provided by Barrick, and underlying data has not been verified by Mark J. Abrams CPG.
Location maps can be found on the Company's website at:
About Golden Predator Corp.
Golden Predator Corp., Yukon's Gold Company, is mandated to become the Yukon's next gold producer by advancing its 100% owned Brewery Creek Project with a production goal of 2014. The Company has an extensive royalty portfolio based in Nevada including Midway Gold's Pan Deposit, Midway Gold's Gold Rock Deposit and portions of Barrick's Bald Mountain Mine which are expected to yield significant cash flows within the next few years. Golden Predator has one of the largest controlled land positions in the Yukon, with exploration holdings in excess of 1 million acres, and is committed to strong relationships with First Nations and local communities.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
The mineral resource estimates referenced in this news release use the terms "Measured Mineral Resources" and "Indicated Mineral Resources." U.S. readers are cautioned that these terms are defined in and required by Canadian regulations, however these terms are not defined terms under guidelines prescribed by the U.S. Securities and Exchange Commission ("SEC"). The SEC normally only permits issuers to report mineralization that does not constitute SEC compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these resource categories will ever be converted into reserves, or that reserves reported in this news release equate to reserves as defined in SEC guidelines.
SOURCE Golden Predator Corp.