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Vancouver, BC - (MetalsNews.com, July 19, 2010) - Golden Predator Corp. (TSX:GPD) (the "Company") 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 km2, 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 km2. 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.
1Soloviev, 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 andGeology 2002, D.S. Emond and L.L. Lewis (eds.), Exploration and Geological Services Division, Yukon Region, Indian and Northern Affairs Canada, p. 285-294 |