Vancouver, BC - January 28, 2009 - Golden Predator Mines Inc. (TSX:GP) ("the Company")announces initiation of drill permitting for the Tuscarora project, an early stage property located in Elko County, NV. The objective is to test various targets generated from compilation of historical data. Several historic drill intercepts encountered by past operators contain greater than 1.0 ounce per ton (oz/t) gold, and merit additional drilling to test for size potential of interest to the Company. Examples of such historical intercepts that have had data verification are given in the table below:
Newcrest Resources 1997-1998 Historic Drill Highlights (Robert McCusker, 1998)
Navajo South Zone
Eastern Structural Zone
The Tuscarora mining district is located approximately 38 miles northwest of Elko in the Tuscarora Mountains in northeastern Nevada. It sits between the Carlin trend 22 miles to the south, Midas 30 miles to the west, and the Jerritt Canyon district 12 miles to the northeast. The project covers approximately 8 square miles lying proximal to the margin of the Mount Blitzen Caldera and is held under agreement with Canyon Resources subject to an underlying agreement with Newmont Mining Corporation.
Several other gold-silver epithermal vein targets remain un-tested within the property position, including the East Pediment, where Newcrest intersected the Eastern Structural Zone in 3 of 9 drill holes with results up to 1.53 oz/t gold over a 5 ft interval (See table above). Most of the pediment, about half of the property position, remains to be evaluated for these targets. A substantial database of drill hole and geologic information exists for this property which displays mineralized zones that may have either open pit or underground potential. Golden Predator's principal targets are multiple pods of high grade ore with each pod subject to a 50,000 ounce minimum gold equivalent. It is believed that Golden Predator is the first company to look for small tonnage high grade deposits which could be shipped to a central processing facility in this district.
All assay numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths. Travis Schwertfeger P. Geo., Exploration Manager-Gold, is the Qualified Person as defined under National Instrument 43-101, overseeing the company's gold exploration programs in Nevada, and has completed the data verification on the historical information presented in this news release. Protocols of the Newcrest sampling and assaying procedures have been reviewed and are considered to follow best practices, with field sampling protocols for the 1998 drilling program outlined by statistician Francis Pitard. Laboratory Analysis was comprised of a 30 gram fire assay, followed by a 1,000 gram screen analysis on a 150 mesh screen for all samples exceeding 1 gram per tonne (gm/t) gold results in the initial fire assay. The Newcrest program consisted of approximately 9% QaQc samples submitted to the lab in a combination of field duplicates and certified reference material, followed by 15% lab duplicate analysis on returned sample material.
The Company has granted 2,033,100 incentive stock options to its directors, officers and employees at an exercise price of $0.30 per share and expiry of January 22, 2014. The stock options vest as to 25% immediately, and 25% each six months thereafter.
About Golden Predator
Golden Predator is a tungsten and gold mining company focused on mineral development in Nevada and surrounding states. The Company recently announced the proposed segregation of its two main business components into separately listed public companies by spin-out of its gold and sliver focused, precious metals portfolio to a new company ("New GoldCo") by means of a plan of arrangement. The objective of the spin-out is to maximize shareholder value by allowing the market to independently value two very different businesses. The spin-out will result in a separate, revenue generating, Nevada focused gold company, in addition to allowing the existing company ("Specialty MetalsCo") to re-focus its efforts as a specialty metals and alloys company working in tungsten, molybdenum, vanadium and uranium. Management is confident that having two separate operating businesses will accelerate the advancement and development of existing projects with a higher degree of certainty, and improved efficiency.
Further information on Golden Predator Mines Inc. is available on the SEDAR web site at www.sedar.com and on the company's web site at www.goldenpredator.com, or contact us as follows:
Golden Predator Mines Inc.
William M. Sheriff, CEO: (778) 855-7230
Steve Vanry, President: (604) 648-4660
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Certain disclosures in this release, including management's assessment of Golden Predator's plans and projects and intentions with respect to a proposed spin-out, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Golden Predator's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects and the receipts of all necessary approvals and consents for the proposed spin-out. Readers are cautioned not to place undue reliance on forward-looking statements. Golden Predator expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Completion of the transaction is subject to a number of conditions, including regulatory approval, shareholder approvals, and approval of the British Columbia Supreme Court. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the transaction, any information released or received with respect to the spin-off may not be accurate or complete and should not be relied upon. Trading in the securities of exploration and development stage resource companies should be considered highly speculative.