Golden Predator up 21% after downing Brewery Creek
Golden Predator Corp. (TSX:GPD) jumped by as much as 21% on Thursday on more than five times usual trading volumes, after announcing that it has secured a $35 million loan to complete the Brewery Creek acquisition in Canada's Yukon province and to bring the past-producing mine back to full production.
By lunchtime the explorer – with holdings in excess of 1.0 million acres in the Yukon – was trading up 20% at $0.42 on the Toronto big board, close to its highest for the day.
Around 1.7 million million shares in the $55 million company had changed hands by 12:30 pm EST on Wednesday compared to the daily average of 300,000. Like many gold juniors the counter is still showing losses for 2012 – it is down 29% year to date.
The Vancouver-based company said it is committed to moving aggressively to a near term production decision while expanding the existing NI 43-101-compliant resource at Brewery Creek. The project's 2009 report shows an indicated Resource of 3.98 million tonnes grading 1.135 gpt Au (145,000 contained ounces) and an inferred resource of 2.2 million tonnes grading 2.01 gpt Au (142,000 contained ounces), using a cutoff grade of 0.5 gpt Au.
Brewery Creek is a past producing heap leach gold mining operation located in the northwestern region of the Yukon. A total of 278,484 oz Au was produced from seven near-surface oxide deposits from 1996 through 2002, when the mine (then operating under Viceroy Resource Corporation) was shut down due to low gold prices.