Canadian miner Golden Predator Mining has received formal notification from the Yukon government confirming the validity of the existing quartz mining licence and water licence, allowing for the restart of the Brewery Creek mine, which was put into temporary closure in 2002 following a gold price collapse.

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.

Low gold prices prompted Viceroy to put the mine into temporary closure.

Golden is authorised to restart mining activities in line with the previously assessed mine plans without further assessment and review.

Additionally, the company received notice that the Tr’ondëk Hwëch’in First Nation has passed a formal council resolution in support of resuming mining and processing activities under the existing licences.  

Golden has already reconstituted a joint advisory committee with the Tr’ondëk Hwëch’in and says it looks forward to working closely with the First Nation, as well as the Yukon government in its efforts to return Brewery Creek to production.

Tr’ondëk Hwëch’in chief Roberta Joseph on Tuesday said the Council remained committed to past agreements, commenting that, “we look forward to working closely with Golden Predator to ensure the operation of the project remains sustainable and ensure that important values of Tr’ondëk Hwëch’in continue to be reflected through the re-establishment of the advisory committee.”

In 2012, Tr’ondëk Hwëch’in and Golden Predator signed a socioeconomic accord for the Brewery Creek project and this, combined with the “demonstrated support” of the Yukon government to resume mining activities, would provide Golden with a clear path to restart the Brewery Creek mine in a timely manner that benefits its shareholders, the First Nation, the community of Dawson and the entire Yukon, Golden CEO Janet Lee-Sheriff said in a statement.

“We acknowledge and appreciate the collective efforts of Tr’ondëk Hwëch’in and the Yukon government in strongly supporting the authorizsd restart and look forward to working together over the coming years as we submit proposed amendments to the original plan for eventual expansion of the mine,” Lee-Sheriff stated, adding that the company would “aggressively” increase its activities at Brewery Creek this quarter.

Golden intends to resume mining and processing of the permitted areas while working with Tr’ondëk Hwëch’in and the Yukon government to seek amendments for expanding activities for those resources lying outside of the existing licences.

To that end, Golden will accelerate its exploration and development drilling across the 180 km² property during the quarter.

The Brewery Creek project is a brownfield heap leach operation with a 2014 preliminary economic assessment (PEA) resource estimation with an indicated oxide resource of 14.2-million tonnes averaging 1.27 g/t producing around 577 000 oz, and an inferred oxide resources of 9.3-million tonnes averaging 0.93 g/t producing around 279 000 oz.

The PEA estimate also includes an indicated sulphide resource of 3.5-million tonnes grading 1.28 g/t for 142 000 oz and an inferred sulphide resource totaling 12.4-million tonnes at 1.37 g/t for 546 000 gold oz.

Brewery Creek already has a “sizeable” openpit oxide resource of “superior grade” and the potential for making significant near-surface additions at a very low cost, Lee-Sheriff noted.

Optimisation studies are progressing to enhance the positive multiphase project economics described in the 2014 PEA.