Golden Predator: Riding High on Gold Exploration

Precious Metals

Golden Predator’s has caught the attention of many in the resource sector this year, including Eric Sprott and Rob McEwen. Here’s a look at the company’s 3 Aces project.

Many gold stocks have gained thus far in 2016 on the back of a rising gold price, but some juniors are beating the crowd by a long shot. Shares of Golden Predator Mining (TSXV:GPY) are up over 700 percent since the start of the year, currently trading at $1.09, as the company has continued to advance its 3 Aces discovery in Canada’s Yukon.
The Investing News Network had the chance to check out the discovery during a media tour of mining and exploration projects in the territory. Located in southeastern Yukon near the border with the Northwest Territories, the 3 Aces property covers 225 square kilometers, of which less than five percent has been explored to date.
Exploration work at 3 Aces has been dormant for a few years due to the downturn, but Golden Predator picked things up again with a bulk sample program this past winter. Ahead of the program, rotary air blast (RAB) drilling intersected 4.64 ounces per tonne of gold over 7.5 feet, and metallurgical test results of the sample showed gold recoveries of 93.5 to 98.3 percent.
That hasn’t escaped the notice of prominent investors in the space either—Rob McEwen’s McEwen Mining (TSX:MUX,NYSE:MUX) owns a stake in the company (he talks about what drew him to Golden Predator here), and Eric Sprott recently invested C$7.3 million in the company.

At the airstrip before heading up to the 3 Aces property via helicopter.

We flew in to the exploration site via helicopter, but the property is located along the all-season Nahanni Range Road. Exploration by the site’s previous owner was supported exclusively by helicopter, due to issues with an existing river crossing. Golden Predator kept costs down by conducting its bulk sampling program during the winter, when it had the use of an ice bridge. Moving forward, the company intends to build a bridge to allow for year-round road access to the site.
The 3 Aces property has a number of features typical of Orogenic gold deposits, including multiple quartz veins containing free gold. We were able to see some visible gold ourselves at the project, and James Kwantes of Resource Opportunities continued to chip away at the Aces of Spades vein (Previously the Sleeping Giant vein) in search of more.

Looking for visible gold at the Ace of Spades vein at 3 Aces.

Visible gold!

Golden Predator recently commenced a C$4 million work program which will include the installation of the bridge mentioned above, road construction, geophysical work, structural mapping, trenching, exploration drilling and bulk sampling.
Four quartz veins with coarse visible gold had been discovered at the property’s core area as of the start of the program, but already, Golden Predator is finding more gold at 3 Aces. On August 15, the company announced the discovery of the Jack of Spades vein, 100 meters east of the Ace of Spades.
Meanwhile, the company was able to pour its first doré bar from material processed as part of the winter bulk sample program from 3 Aces.

Golden Predator’s Chief Geologist Mike Burke standing in front of the Mesa outcrop area, another vein up the hill from the Ace of Spades vein.

Of course, 3 Aces is still a very early stage exploration project, and there’s plenty of work to be done. But Chairman Bill Sheriff believes that the area has district-scale potential.
Meanwhile, Golden Predator is also working on advancing its Brewery Creek project, located 55 kilometers east of Dawson in Northwestern Yukon. The Brewery Creek mine last operated in the 1990’s, but a preliminary economic assessment was completed in 2014 to assess the viability of bringing the mine back online. The study indicated a 9 year mine life for a 7,500 tonne per day, 230 day per year operation.
In July, Golden Predator announced a 1,600 meter drill program to obtain material for metallurgical testing.
In any case, it will certainly be interesting to watch for more results from the 3 Aces project.

View from above the Sleeping Giant vein at Three Aces.

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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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