The resource report prepared by Gustavson & Associates using a cut-off grade of 0.37 grams per tonne gold, at US$1,500/oz, within a pit shell calculated at $2,000/oz, suggests Brewery Creek hosts an indicated leachable resource of 22.2 million tonnes at 1.11g/t for 789,000oz, plus an inferred resource of 16.8Mt at 0.92g/t for 497,000oz.
The report also estimated a further 30.6Mt of inferred sulphide resource at 0.84g/t for 828,000oz - triple the previous total thanks to a maiden resource on the Camp Zone.
An October 2019 statement had the indicated oxide resource at 21.14Mt at 1.125g/t for 765,000oz gold, plus an inferred oxide resource of 14.12Mt at 0.967g/t for 440,000oz. That report also contained an inferred sulphide resource of 8.57Mt at 0.985g/t for 270,000oz.
Golden Predator said the resource estimate applied 3m-by-3m blocks in its leach recovery model to provide a highly detailed and defined methodology for mine modelling as it worked towards completing a bankable feasibility study.
Notably, the resource update confirmed that 2019 drilling succeeded in connecting the Fosters, Canadian, Kokanee and Golden deposits into one large, elongated pit shell extending about 3.5km in length, and renamed the ‘Keg'.
Gustavson recommended a modest 3,000m follow-up drilling programme to in-fill high potential areas to add more leachable resources in time for inclusion in the BFS. Drilling in 2019 indicated the 400m gap between Keg and the Lucky deposit was well mineralised and oxidised and required increased drill density to calculate a resource incorporating the gap and the Lucky deposit into the greater Keg pit shell.
The Bohemain and Schooner resource areas were also constrained into a larger single-pit shell. The updated estimate does not include material on the heap leach pad which will be reported separately within the restart study being prepared by Kappes, Cassiday.
The first component of the restart plan hinges on the 9.5Mt of material left on the leach pad, providing production revenue in the early stages of a restart.
Golden Predator plans to publish a BFS by year-end.
Shares in the company (TSX:GPY) gained more than 4% on the news to C$37.5c, before settling at 36.5c, which capitalises it at $61 million (US$47 million).