Golden Predator Mining has agreed to an amendment accelerating its option to purchase 100% of the Reef Project from Precipitate Gold consolidating 100% ownership of the 3 Aces District.
The Reef Project lies immediately north of the Company’s 3 Aces Project located in southeast Yukon and has been part of the overall 3 Aces Project since the original option agreement was signed in 2017. The purchase agreement provides the Company a savings of $450,000 in cash and approximately $400,000 in the Company’s shares and warrants resulting from amendments to the original agreement.
Although most of the Company’s work to date has been concentrated on its Central Core Area, district-wide reconnaissance has determined that the geology and style of mineralization underlying the Reef property are remarkably similar to what occurs within the Central Core Area.
“With this purchase of 100% of the Reef Project, the last piece of the puzzle, at the consolidated 3 Aces Project, we have a great savings to the company with reduced dilution for shareholders. We are also working towards our restart of the 2019 season at the company owned bulk sample processing plant and we look forward to our internally funded 2019 exploration and development season,” said Janet Lee-Sheriff, Chief Executive Officer.
“After 2 ½ years of extensive exploration and discovery on the Central Core Area we have developed, and successfully tested, a geologic model for gold deposition at the 3 Aces Project. District scale reconnaissance along the over 30 km strike length of the project, through two field seasons, suggests the Reef project has lithological, structural, and geochemical characteristics comparable to the Central Core on our 3 Aces Project,” said Jeff Cary, 3 Aces Project Manager.
Terms of the Agreement
In order to exercise the option in full, the Company has agreed to (i) issue, by April 1, 2019, 950,000 common shares and 450,000 warrants exercisable for a period of four years at a price of $0.40 per share, and (ii) pay $50,000 in cash by June 30, 2019, to Precipitate Gold. These obligations replace the second and third year cash payments and securities issuances as disclosed in the Company’s initial news release announcing the option. All other material terms of the option remain unchanged and the amendments to the option agreement, remain subject to TSX Venture Exchange approval. The securities issued pursuant to this transaction will be subject to a four-month hold period in accordance with applicable securities laws.
The Reef Property
The Reef Property consists of 418 claims (8,490 ha or 84.9km2) and is strategically located directly north of the Company’s original 3 Aces property. A similar structural framework and stratigraphic package are present throughout the consolidated project area which hosts a large area of anomalous gold (>25 ppb) in soil geochemistry in several clusters along a 3.2 km north-northeast trend the largest which now covers 2.4 km of the trend with values ranging up to 774 ppb gold. Rock samples on the property range from below detection to a high of 2.24 g/t gold. The Company’s work of the last two years has confirmed historical exploration on the properties and extended the soil geochemical anomalies by 1,000 m along strike with similar metal signatures to the 3 Aces Central Core area and similar mineralization found at the 3 Aces property.
3 Aces Project, Yukon
The 3 Aces Project is a 316 km2 orogenic gold project in southeast Yukon. The Company has to date focused exploration on the 13.5 km2 Central Core Area, a broad gold-in-soil anomaly, where numerous orogenic gold-bearing quartz veins have been discovered. Exploration over the past two years has systematically advanced the project by establishing: (1) high gold grades can be reliably sampled; (2) gold mineralization is in predictable stratigraphic structural locations; (3) gold grades have robust continuity within the recognized controlling features; and (4) most of the gold is free-milling and readily recoverable by gravity concentration. Results from the Central Core Area support a stratigraphic structural model that predicts extensive lateral and vertical continuity of the 3 Aces mineral system. The Company is developing targeted drilling programs to establish continuity between the Central Core Area and other mineralized zones along the over 30 km strike of the 3 Aces property. Orogenic gold deposits are among the world’s largest and richest such as the California Mother Lode Belt and the Juneau Gold Belt.