Golden Predator Acquires Clear Creek Project, Yukon Territory

• Published in: Marketwire
• Format: Trade Publication Article
• Language: English
• Published: Toronto Intrado Digital Media Canada Inc 02.11.2009

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. 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.