Metals sell off after Trump win while oil recoups some losses
Metals bore the brunt of global commodity price losses after a US election win by Donald Trump on Wednesday.
Golden Predator Mining (TSXV: GPY) announced on Monday its formal intention to resume development and production the Brewery Creek mine in Yukon. The formal notice has accepted by the Yukon government, and the company is now authorized to restart mining activities that follow the previously approved mine plans without further assessment.
The Brewery Creek mine was first operated by Viceroy Resource Corp from 1996 to 2002, during which it produced about 280,000 oz of gold from seven oxide deposits along the property trend. The mine was put into temporary closure in 2002 when the price of gold plunged below $300/oz.
Golden Predator later took over work on the project in 2009 and conducted exploration drilling from 2010 to 2013. A preliminary economic assessment completed during that time shows an indicated oxide resource of 577 000 troy ounces of gold in 14.2 million tonnes averaging 1.27 g/t gold, and an inferred oxide resource of 279 000 troy ounces of gold in 9.3 million tonnes averaging 0.93 g/t gold.
Now that gold is trading above $1,500/oz, the company has good reason to reopen the Brewery Creek mine.
Heavy equipment has been mobilized to the mine site, and haul road improvements and clearing of the licensed cells on the heap leach pad have already started. Drilling will be expanded to include a second reverse circulation drill rig and a diamond core rig.
The 180 sqkm property is located 55 km due east of Dawson City, and is accessible year-round by paved gravel roads. There is significant infrastructure in place for a timely restart of the mine, says the company.
Comments
Houston Taylor
Predator. The perfect name for a multi-national mining conglomerate.