Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Vancouver-based Golden Predator Mining’s (TSXV:GPY) stock soared nearly 24% on Tuesday after announcing the company received formal notification from the Yukon government confirming the validity of the existing quartz mining and water licenses providing for the restart of the Brewery Creek gold mine.
The historic mine was closed temporarily in 2002 when gold prices were below $300 per oz.
The territorial government’s decision gives Golden Predator the authorization to restart mining activities that follow the previously assessed mine plans without further review.
The local indigenous community, the Tr’ondëk Hwëch’in, passed a formal council resolution in support of resuming mining and processing under the existing licences. Golden Predator and Tr’ondëk Hwëch’in signed a socio-economic accord for Brewery Creek in 2012.
With both the Tr’ondëk Hwëch’in Nation and the Yukon government supporting the project, Golden Predator is getting closer to reopening the mine, which is 55 km east of Dawson City.
Golden Predator CEO Janet Lee-Sheriff said the company wants to amend the licences and eventually expand the mine.
A preliminary economic assessment was completed in 2014 that had an indicated oxide resources of 14.2 million tonnes averaging 1.27 g/t gold and an inferred oxide resource of 9.3 million tonnes at 0.93 g/t. The oxide resources contain 577,00 oz. of gold in the indicated category and 279,000 oz. in the inferred category.
At market close on Thursday, Golden Predator’s stock was up 23.6% on the TSX Venture Exchange, priced at 37 Canadian cents. The day’s trading volume reached 494,350, over three times the average volume of 135,865. The company has a C$44.7 million market capitalization.
With files from the Canadian Mining Journal
