Vancouver-based聽Golden Predator Mining鈥檚 (TSXV:GPY) stock soared nearly 24% on Tuesday the company received formal notification from the Yukon government confirming the validity of the existing quartz mining and water licenses providing for the restart of the Brewery Creek gold mine.
The historic mine was closed temporarily in 2002 when gold prices were below $300 per oz.
The territorial government鈥檚 decision gives Golden Predator the authorization to restart mining activities that follow the previously assessed mine plans without further review.
The local indigenous community, the Tr鈥檕nd毛k Hw毛ch鈥檌n, passed a formal council resolution in support of resuming mining and processing under the existing licences. Golden Predator and Tr鈥檕nd毛k Hw毛ch鈥檌n signed a socio-economic accord for Brewery Creek in 2012.
With both the Tr鈥檕nd毛k Hw毛ch鈥檌n Nation and the Yukon government supporting the project, Golden Predator is getting closer to reopening the mine, which is 55 km east of Dawson City.
Golden Predator CEO Janet Lee-Sheriff said the company wants to amend the licences and eventually expand the mine.
A preliminary economic assessment was completed in 2014 that聽 had an indicated oxide resources of 14.2 million tonnes averaging 1.27 g/t gold and an inferred oxide resource of 9.3 million tonnes at 0.93 g/t. The oxide resources contain 577,00 oz. of gold in the indicated category and 279,000 oz. in the inferred category.
At market close on Thursday, Golden Predator鈥檚 stock was up 23.6% on the TSX Venture Exchange, priced at 37 Canadian cents. The day鈥檚 trading volume reached 494,350, over three times the average volume of 135,865. The company has a C$44.7 million market capitalization.
With files from the聽