Golden Predator Acquires Priority Drill Project: The Cynthia Gold Property, Yukon Territory
TSX: GPD
VANCOUVER, July 19 /PRNewswire-FirstCall/ - Golden Predator Corp. (TSX:GPD) (the "Company") is pleased to announce that it has signed an option agreement to acquire a 100% interest in 219 quartz mineral claims known as the Cynthia Property, located in east central Yukon, Canada.
Cynthia Property
The Cynthia Property covers approximately 45 km(2), and is located 170 km northeast of Ross River, and 60 km west of the Mactung Deposit, in east central Yukon.
The property encompasses a large (greater than 2x2 km) area of gold mineralization associated with a Cretaceous Tombstone Suite quartz monzonite intrusion in contact with a gossanous limestone, in the Northeast portion of the Tintina Gold Province.(1)
The gold mineralization at the Cynthia Property is structurally controlled and is concentrated along district-scale faults zones. These northwest striking structures host abundant gold-bearing massive and drusy quartz veins with zones of intense stockwork and strong brecciation, as well as numerous mineralized felsic dykes. Rock-chip samples from the mineralized structures have given gold grades in the range of 200 ppb to 2.0-3.0 gpt Au, with higher (up to 16 gpt Au) values attributed to the fault intersection areas. Gold mineralization is associated with sulphide minerals including pyrite and arsenopyrite and often have elevated As, Bi, and Ag values associated with the higher gold values.(1)
A later mineralizing episode produced sulphide mineral-bearing chalcedony and drusy quartz veins, with gold concentrations accompanied by elevated Sb, Hg, Ag and Pb values, suggesting the probability of epithermal style gold mineralization as well as intrusion-related gold mineralization.
The Company currently has technical personnel on the Property and intends to initiate a core drilling program as quickly as mobilization can be accomplished.
Transaction Terms
As consideration for the option, the Company will pay to 18526 Yukon Inc. (Ron Berdahl) $20,000 and issue 50,000 common shares. To exercise the Option, the Company will, in stages, pay and issue an additional $780,000 and 950,000 shares (800,000 of which are subject to a value cap of $1,350,000) by June 7, 2017 and incur exploration expenditures of $2,500,000 by December 31, 2014.
The Property will be subject to a 3% NSR in favor of 18526 Yukon Inc., and the Company has the right to repurchase 1% of the NSR for $1,000,000. Of the $780,000 to be paid in cash, $465,000 is an advance royalty payment which will be deducted from payments due under the NSR.
In addition to the upfront cash and share payments, the Company has committed to paying an additional $50,000 in cash on the first anniversary of the agreement and incurring $300,000 of exploration expenditures before December 31, 2011. All other payments, expenditures and issuances are optional.
Technical information has been reviewed by Corwin (Cor) Coe, A.Sc.T., B.Sc., P.Geo., the Company's Vice-President, Exploration (Canada) and a Qualified Person as defined by National Instrument 43-101.
About Golden Predator Corp.
Golden Predator has combined an aggressive advanced project acquisition strategy with a strong technical team, dedicated and progressive First Nations relations, committed and active community involvement, and proven management in its quest to play a leading role in the exploration and development of the last frontier in North American gold exploration, the Yukon.
The Company has an extensive Yukon property position with an industry leading seven advanced exploration gold projects comprising over 800 km(2). Drill programs have commenced on the Company's Clear Creek, Gold Dome, Brewery Creek and Eureka projects with plans to commence drilling at Antimony Mountain and Cynthia in August, 2010.
Golden Predator benefits from its royalty stream, presently generating in excess of $1.0 MM annually. Golden Predator also continues to advance its significant US gold projects and is working to create Silver Predator Corp. to monetize its substantial Nevada-based silver assets.
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.
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(1) Soloviev, S.G., Schulze, C.M. and Baklyukov, O.E., 2003. Structural
settings and geochemistry of the Cynthia gold prospect, Tintina Gold
Belt, Hess River area (105O/6), Yukon. In: Yukon Exploration
and Geology 2002, D.S. Emond and L.L. Lewis (eds.), Exploration and
Geological Services Division, Yukon Region, Indian and Northern
Affairs Canada, p. 285-294
SOURCE Golden Predator Corp.
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