VANCOUVER, June 3 /PRNewswire-FirstCall/ - Golden Predator Corp. (TSX:GPD) (the "Company") is pleased to announce that Midway Gold Corp. ("Midway") has updated its developments plans for the Pan Project and announced their goal to be an operating gold mine in 2013. The Pan Project is owned by Golden Predator, and leased to Midway under a Mineral Lease Agreement. The terms and conditions of the Mineral Lease Agreement include annual advance royalty payments which are indexed to the price of gold, and a sliding scale gross production royalty set at 4% where the gold price is greater than USD$450.00 per ounce.
Midway stated in its press release dated May 19, 2010:
"... the Pan project hosts a Measured and Indicated mineral resource estimate of 608,700 ounces of gold contained in 34.65 million tons at an average grade of 0.018 ounces per ton (opt), with an additional Inferred resource of 26,500 ounces of gold contained in 1.6 million tons at an average grade of 0.017 opt, determined at a 0.006 opt gold cut-off grade and a $750 per ounce gold price in a Lerchs-Grossman shell on December 1, 2009. Midway's efforts under Mr. Branham's guidance have notably increased both the size and quality of the project, which remains open for expansion. Under Mr. Brunk's management, Midway plans to undertake condemnation drilling, the initiation of permitting, and the completion of a preliminary economic assessment including an updated independent NI 43-101 compliant resource in 2010, leading toward the goal of the Pan becoming an operating gold mine by 2013."
In addition to current pre-production royalties, the Company is also receiving production royalty from Barrick Gold Corporation on the Saga Pit at the Bald Mountain Project. The Pan Project will increase that annual production royalty income stream once it comes on line in 2013. Further increases in actual royalty production are expected in the future from the Company's 4% gross royalty on its various landholdings leased to Barrick at the Bald Mountain Project.
The Company owns a portfolio of gold exploration properties located in the State of Nevada and leases formerly owned by the Lyle Campbell Trust. The portfolio includes the claims and royalty positions on the Pan Property and the deeded royalty interest and leased interest covering significant portions of the Bald Mountain property of Barrick described above, as well as a 5% gross royalty on the Tonkin Springs property leased to US Gold Corporation. The portfolio contains a total of 21 property interests and 2 deeded royalty interests, which collectively currently generate an annual income stream in excess of $1 million. The portfolio is fully leveraged to the price of gold. The Company is currently commissioning an independent third party evaluation of its royalty interests to assist management in its long term planning.
About Golden Predator Corp.
Golden Predator Corp.'s corporate mandate is to establish a self-funded gold company focused on exploring for and developing world class gold opportunities in Yukon, Canada. The Company has an extensive Yukon property position with an industry leading five advanced exploration gold projects comprising over 600 km(2). Drill programs will commence during June and July 2010 on the Company's Brewery Creek, Gold Dome, Eureka, Clear Creek and Antimony Mountain projects.
Golden Predator intends, through strategic use of planned modular mills at its Taylor and Humboldt mill sites in Nevada, to become a gold producer capable of internally funding its Yukon exploration program by 2012. In addition, Golden Predator benefits from its royalty stream, presently generating in excess of $1.0 MM annually, and is working to create Silver Predator 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.
SOURCE Golden Predator Corp.