The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Golden Predator Mining Corp. Nov. 30 announced that it has cut deals with Alexco Exploration Canada Corp. and Newmont Canada Corp. to buy full ownership of Sprogge, a large gold property adjacent to the company's 3 Aces project in southeastern Yukon.
The gold potential at Sprogge was first identified during a 1996 regional exploration program carried out by Hemlo Gold Mines.
Over the next four years, early stage exploration was carried out on the property by Viceroy Exploration, Novagold Resources and Newmont Canada.
In 2011, Northern Tiger Resources, which was later acquired by Golden Predator, cut a deal for Sprogge and conducted additional soil sampling, mapping and prospecting programs. This work confirmed the potential of the property to host significant orogenic style mineralization.
Trenching carried out at Sprogge by Northern Tiger encountered 6.8 meters of 8.5 grams per metric ton gold at the Meadows zone, including 1 meter of 40.5 g/t gold in a northeast striking fault zone.
Sampling of the Matilda vein, which is southeast of Meadows, returned assays of up to 23.8 g/t gold.
Two other zones, Ridge East and Ridge West, returned values of 7.6 g/t gold over 2.5 meters in trenching and 7.1 g/t gold in a grab sample respectively.
The gold bearing quartz veins identified at Sprogge are located within large areas of anomalous gold in soils occur on the property.
Golden Predator said its greater understanding of the lithological and structural controls on mineralization at the neighboring 3 Aces project can be applied to Sprogge and considerably increases that property's potential.
To gain full ownership of Sprogge, Golden Predator will pay C$114,500 in cash, issue 300,000 units, consisting of one Golden Predator share and one warrant exercisable to acquire an additional share for C$1; and grant 2.33 percent in net smelter returns royalties, with provisions for Golden Predator to buy back up to half of the royalty.
"Golden Predator thanks Alexco and Newmont for their cooperation in a lengthy negotiation that has resulted in more beneficial terms to advance the property under full ownership by Golden Predator," said Golden Predator CEO Janet Lee-Sheriff. "With the agreement concluded for 100 percent ownership we will expand our 2018 work plan to include work on the Sprogge project. We are currently developing the work plan for 2018 and reviewing the historical information on the Sprogge project which shows great promise under our orogenic model."
-SHANE LASLEY
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