Silver Predator Options Illinois Creek Silver-Gold Property in Alaska
VANCOUVER, June 20, 2011 /PRNewswire/ – Silver Predator Corp. TSX: SPD (the “Company”) is pleased to announce that it has signed an option to acquire a 100%-interest in 125 State of Alaska mining claims comprising the Illinois Creek silver-gold district located in west-central Alaska.
The past-producing Illinois Creek Mine lies in the southern Kaiyuh Mountains in west-central Alaska about 30 kilometers east of the Yukon River and the small village of Kaltag and 90 kilometers south of the town of Galena. Between 1997 and 2004, approximately 144,000 oz of gold and 755,000 oz of silver(1) was produced at a seasonal, run-of-mine heap leach operation constructed by USMX/Dakota Mining. The mine-site is supported by air with an airstrip capable of accommodating Hercules-sized aircraft. The Illinois Creek operation proper has been reclaimed to State of Alaska standards. A 60- person camp remains onsite.
Over 500 drill holes have defined precious metal mineralization along a 10 km x 2 km structural corridor developed in a metamorphosed Ordovician-age sedimentary package. Ongoing compilation of the +20 years of exploration and development data within the district highlights the potential for significant polymetallic (silver-gold-lead-zinc-copper) replacement mineralization as well as porphyry copper-gold mineralization.
As consideration for the option, the Company will pay to the optionor US$25,000 and issue 25,000 common shares. To exercise the option, the Company will, in stages, pay and issue an additional US$750,000 and 375,000 common shares, and incur exploration expenditures of US$3,400,000, by December 31, 2015.
The Property will be subject to a 2.0% NSR royalty on precious metals and a 1.0% NSR royalty on base metals in favor of the optionor. One percent of the 2.0% precious metals royalty can be purchased by the Company for US$3,000,000.
Beginning in 2016, the agreement calls for annual advance royalty payments of US$100,000 to the optionor, until commercial production is reached; these payments will be credited against the royalty, provided the average price of gold (calculated using the London PM Fix) for the 364 calendar days preceding the date on which an advance royalty payment is due is more than US$700.00.
The technical content contained in this news release has been reviewed and approved by Farrell Andersen, PGeo, the Company’s Senior Geologist and a Qualified Person as defined by National Instrument 43-101.
(1) Alaska’s Mineral Industry 2009 Special Report 64 (published 12/2010). Division of Geological & Geophysical Surveys
About Silver Predator Corp.
Silver Predator Corp.’s corporate mandate is to explore and develop commercially viable silver resources in the leading silver districts of Yukon, Canada and Nevada, USA. The Company controls the Taylor silver deposit in Ely, Nevada, which hosts a NI 43-101 compliant mineral resource estimate, as well as the highly prospective Plata project in Yukon. Working within stable geopolitical jurisdictions, Silver Predator is focused on silver-dominant bulk tonnage and/or high grade opportunities. Proven management plus access to unparalleled geological talent in the Yukon and extensive experience in Nevada provide the ability to maximize shareholder value from the quality asset base.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Silver Predator’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Silver Predator assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
SOURCE Silver Predator Corp.