TSX-V-listed Golden Predator Mining on Monday announced its formal intention to reopen the Brewery Creek mine, in Yukon, with the company set to resume mining and processing of licensed deposits, while it works with the Tr’ondëk Hwëch’in First Nation and government to also include new discoveries made since 2011.

From 1996 to 2002, the mine – then operated by the Viceroy Resource Corporation – produced about 280 000 oz of gold from seven near-surface oxide deposits along the property's reserve trend. Viceroy closed the mine in 2002, when the gold price was at $300/oz.

Gold is currently trading above $1 500/oz.

In addition to the formal restart notice as required under the Quartz Mining Act, Golden Predator said it had also provided the Yukon government with its reactivation plan outlining development activities licensed under the current quartz mining licence and water licence.

Heavy equipment has mobilised to the Brewery Creek mine site and has started with haul road improvements and clearing of the licensed cells on the heap leach pad; and exploration and development drilling has expanded to include a second reverse circulation drill rig and a diamond core rig.

The 180 km² property is located 55 km due east of Dawson City and is accessible year round by paved and improved gravel roads. Significant infrastructure remains in place, allowing for a timely restart schedule under existing licences.

The company conducted exploration drilling on the Brewery Creek project from 2010 to 2013 and increased the resource fivefold and completed a preliminary economic assessment resource estimation including 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 resources of 279 000 troy ounces of gold in 9.3-million tonnes averaging 0.93 g/t gold.

In addition, the resource estimate contains indicated sulphide resources of 142 000 troy ounces of gold in 3.5-million tonnes at 1.28 g/t gold and inferred sulphide resources totalling 546 000 troy ounces of gold in 12.4-million tonnes at 1.37 g/t gold, although most drilling was historically terminated a short depth below the oxide mineralisation, leaving sulfide potential largely untested.