VANCOUVER, Jan. 21 /PRNewswire-FirstCall/ - Golden Predator Royalty & Development Corp. (TSX:GPD) (the "Company") is pleased to announce that it has signed Property Option Agreements with ATAC Resources Ltd. (TSX-V:ATC) and Strategic Metals Ltd. (TSX-V:SMD) under which the Company can acquire a 100% interest in five Yukon properties totalling 508 claims, including the Eureka and Panorama projects.
"We are extremely pleased to add these high quality projects to our industry leading gold property position in the Yukon" said William M. Sheriff, Chairman & CEO. "Previous work on these projects was primarily conducted by Archer, Cathro & Associates (1981) Limited, which has operated in the Yukon since 1965 and has amassed considerable expertise in the geology and ore deposits of the Territory. With this acquisition we are firmly established in the White Gold camp with a leading drill-ready property which is uniquely road-accessible. The previous work done on the property has outlined an extensive gold in soil anomaly that will be the focus on a significant drill program early in the 2010 season."
Eureka is a large road-accessible project located in the South Klondike gold district about 50 km north of the White Gold discovery of Underworld Resources Ltd. (TSX-V:UW). Gold is hosted in a series of gently to moderately dipping breccia zones developed in Paleozoic schists and gneisses within the hangingwall of a large thrust fault. Moderate to strong gold-in-soil geochemical values have been obtained from a 6 km long by up to 2 km wide anomaly. Excavator trenching and shallow reverse circulation drilling in a 700 m by 150 m area within the soil anomaly have intersected several subparallel zones that are each 2 to 20 m wide and typically graded between 0.3 and 2.0 gpt gold. Creeks draining the Eureka property are prolific placer gold producers.
The Panorama property is located 15 km east of the Company's Brewery Creek Project. Mineralization is spatially and temporally related to a quartz monzonite intrusion that belongs to the same intrusive suite as dykes and sills associated with the deposits at Brewery Creek. Arsenopyrite, pyrite, pyrrhotite and stibnite occur in quartz veins and fractures found in the intrusion and adjacent cherty metasediments of the Ordovician-Silurian Road River Group. Various surveys done between 1988 and 2006 have outlined strong soil geochemical anomalies for gold, arsenic, bismuth and antimony as well as chargeability anomalies and magnetic features, which collectively define targets for future exploration. Limited backhoe trenches and shallow percussion drill holes yielded generally encouraging results including 11,971 ppb gold from a 1 m chip sample collected from a trench, and 4,800 ppb gold over a 1.5 m length from a percussion hole.
In addition, the Company has consolidated and added to its existing property position at Antimony Mountain and added the Idaho and Airstrip properties in the Dawson Range to its exploration portfolio.
Technical information in this news release has been reviewed by William A. Wengzynowski, P.Eng., a qualified person for the purposes of National Instrument 43-101.
As consideration for the options, the Company is paying an aggregate of $150,000 and issuing an aggregate of 300,000 common shares. To exercise all of the options, the Company will pay an additional $2,248,000 and issue up to an additional 2,700,000 common shares, of which $250,000 is a firm commitment. The properties are subject to NSR royalties ranging between 2% and 3 1/2%, for which the Company has certain repurchase rights. In addition, of the $2,398,000 in cash payments, $1,998,000 is an advance royalty recoverable against production from the projects. The agreements are subject to several conditions precedent, including regulatory approval.
About Golden Predator Royalty & Development Corp.
Golden Predator's corporate mandate is to establish a self-funded gold company focused on the Yukon, Canada.
The Company is focused on exploring for and developing world class gold deposits in the Yukon's Tintina Gold Belt, where the Company is aggressively exploring the Eureka, Gold (Scheelite) Dome, Antimony Mountain, Clear Creek and Brewery Creek projects.
The Company is advancing its Adelaide project in Nevada with underground drilling and bulk sampling planned. In addition, further drilling is planned at Golden Ridge, and Lantern to potentially provide near term production of small-tonnage high grade ores. The Company intends, through its strategic use of modular mills at its Taylor and Humboldt mill sites, to become a gold producer capable of funding its Yukon program. In addition, the Company currently receives in excess of $1.0 M per year from its royalty stream.
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.
SOURCE Golden Predator Royalty & Development Corp.