VANCOUVER, BRITISH COLUMBIA, Nov. 2, 2009 (Marketwire) -- Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") announces that it has signed a letter agreement with Victoria Gold Corp (TSX:VIT) pursuant to which the Company may acquire a 100% interest in the Clear Creek Project, comprising 77 Quartz claims located 110 kilometers east-southeast of Dawson City, Yukon.
"The Clear Creek Project presents the Company with an important advanced exploration project in the Tintina Gold Belt. The Project's specific geology and known mineralization, its location between our Brewery Creek and Gold (Scheelite) Dome Projects, and its accessibility make Clear Creek especially attractive to Golden Predator" said William M. Sheriff, Chairman and CEO. "The addition of a fourth project in the Yukon demonstrates the focus of our exploration efforts in, and our commitment to, the unparalleled opportunity presented by the Tintina Gold Belt, which hosts several significant gold deposits as well as numerous recent discoveries."
"Victoria Gold is very pleased to enter into a business relationship with Golden Predator," said Chad Williams, CEO of Victoria Gold. "This property transaction is part of our ongoing efforts towards unlocking value from our suite of gold assets."
Golden Predator, though its Yukon subsidiary True North Mining Corp., intends to compile the existing databases on the Project area and identify priority drill targets during the winter. Field work is planned to commence in the second quarter of 2010.
History and Geology
The Clear Creek placer mining area produced approximately 129,000 ounces of placer gold from the Project area since 1941, with prior placer operations known to exist as early as 1900. A source for this placer gold has yet to be determined.
The local geology at Clear Creek, including the presence of mid-Cretaceous aged Tombstone plutonic suite rocks and active placers indicates the Project has the potential to host one or more low grade, bulk mineable intrusive hosted gold deposits, similar to the Fort Knox deposit near Fairbanks, Alaska or the Dublin Gulch deposit near Mayo, Yukon.
Much of the Project remains unexplored and shows significant potential, including the Bear Paw Breccia zone, which yielded 2.3 gpt Au over 31.8 m in historic drilling. Other under-explored areas include several intrusive stocks in the Rhosgobel, Steiner, Pukelman, Saddle, Eiger, and Barney zones with the mineralization in the Bear Paw Breccia zone appearing to contain a differing style of gold mineralization from the other locations on the Project. Previous operators on the property include Kennecott Canada Inc. and Ivanhoe Goldfields Ltd. Based on 1,971 m (27 holes) of reverse circulation drilling, soil sampling and 320 m of bulldozer trenching by Kennecott in 1995, mineralization associated with the Rhosgobel stock has a potential target size of from 35-45 Mt of greater than 300 ppb Au, with a higher grade core zone of approximately 1.5-2.0 Mt grading from 0.75-1.25 gpt Au (modified from Coombes 1995, AR 093372 for Kennecott Canada Inc). These target size estimates are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. StrataGold Corporation (now a subsidiary of Victoria Gold) conducted a detailed trenching and soil sampling program in 2006 in the Bear Paw Breccia, Contact and Barney zones. In addition, infill sampling was conducted to follow up on geophysical and historical gold anomalies.
The property is accessible by road and trails which are maintained by existing seasonal placer operations when in operation.
As consideration for the Option the Company will pay $50,000 and issue 300,000 common shares. To exercise the Option, the Company will, in stages, issue an additional 750,000 shares (400,000 of which are subject to a value cap of $900,000) by December 31, 2011, incur exploration expenditures of $3,000,000 by December 31, 2012, and pay a total of $1,000,000 before the fifth anniversary of the option agreement (of which $500,000 is an advance royalty recoverable by the Company). The Project will be subject to a 3% NSR in favor of Victoria Gold, and the Company has the right to repurchase 1% of the NSR for $1,000,000. In addition to the $50,000 cash payment and 300,000 shares due upon execution of the Option Agreement, the Company has committed to paying an additional $75,000 cash on the first anniversary of the option agreement and incurring $500,000 of exploration expenditures before December 31, 2010. All other payments, expenditures and issuances are optional. The agreement is subject to several conditions, including a satisfactory due diligence review by Golden Predator and all required regulatory approvals.
In addition, the Company has acquired an option to acquire a 100% interest in 55 contiguous Quartz claims abutting the Clear Creek Project to the north, subject to a 3% NSR. The Company has paid $25,000 to acquire the option, and is required to pay an additional $225,000 over five years (of which $15,000 is a firm commitment) to exercise the option. The Company has the right to repurchase up to 2% of the NSR, in 1/2% increments, by paying $375,000 per 1/2% increment.
Dr. Art Ettlinger, P.Geo. & President of True North is the Qualified Person for the above projects and is responsible for the technical content of this news release.
About Golden Predator Royalty & Development Corp.
Golden Predator's corporate mandate is to establish a self-funded precious metals exploration company with an immediate focus on exploring for and developing world class gold deposits in the Yukon's Tintina Gold Belt, where the Company is aggressively exploring its Gold (Scheelite) Dome, Antimony Mountain and Brewery Creek Projects. Brewery Creek, a former producer, hosts an indicated resource of 3.98 million tonnes grading 1.135 gpt Au (145,000 ozs) and an inferred resource of 2.2 million tonnes grading 2.01 gpt Au (143,000 ozs) using a cutoff grade of 0.5 gpt Au (Simpson, 2009).
The Company's Yukon operations are supported by four divisions: The Royalty Division partially self-finances the Company's exploration activities through its passive royalty stream, holding 29 properties. The Advanced Assets Division includes the Taylor Mine and Mill which hosts a 43-101 resource, as well as the Company's Alkalic Gold program in Wyoming and the Lewis-Phoenix and Bonterra joint ventures. The Nevada Division is drilling a number of its properties with bonanza-style gold mineralization, including Angel's Camp, Adelaide and Golden Ridge, to identify one or more targets for the 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 mid-tier precious metals producer. The Non-Core Assets Division is responsible for disposing of the numerous non-core properties.
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.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.