Golden Predator Mining has announced that it’s ramping up its Brewery Creek operation in preparation to recommence production.
The company has received confirmation from the Yukon government that it can proceed under the terms of its existing water licence and Quartz Mining Licence.
The Brewery Creek gold mine was in production from 1996 to 2002 when the falling price of gold forced the former owner, Viceroy Minerals Corp., to suspend operations.
Golden Predator purchased the open pit mine in 2009 and has conducted additional exploration drilling.
But there was some question over the years about whether the company could move forward with its plans and recommence the operation under the existing licences.
“Site development work is underway following the receipt of formal notification from the Yukon Government confirming the validity of the current Quartz Mining License and Water License which permits the immediate start of work to reactivate the Brewery Creek Mine,” says a company press release issued last Tuesday.
The release outlines several steps Golden Predator needs to undertake to get the mine site ready to recommence production. It also needs to update the feasibility study.
If that study proves positive, the company will proceed to production, says the release.
It notes there is one exploration drill on site and another two will be added later this month.
“In addition, the Company is mobilizing heavy equipment to commence pre-construction work in preparation for mine reconstruction which is expected to begin in earnest in 2020.”
Golden Predator CEO Janet Lee-Sheriff emphasized in the release the mine shut down because of gold prices, not the lack of gold resources nor any technical issues with the operation.
“With the recent resurgence of the gold price and the lack of licensed projects in North America, we believe we can create significant new value by adding resources and working towards a near-term start-up of a relatively high grade heap leach project that has extensive economic and environmental information to support a viable operation,” Lee-Sheriff said.