by Greg Klein | September 28, 2016
A September 28 progress report shows Golden Dawn Minerals TSXV:GOM advancing plans to re-open three former mines and a mill in southern British Columbia. The company’s Greenwood precious metals project consists of the May Mac, Lexington and Golden Crown past-producers, all within 15 kilometres of the project’s 200-tpd Greenwood mill. Golden Dawn closed the acquisition of Lexington, Golden Crown and the gravity-flotation plant earlier this month.
Work has begun on the mill’s transition from eight years of care and maintenance to active service, with plans calling for bulk samples from May Mac, a former silver-gold mine, to be processed early next year. Should all go to schedule, trial mining would begin at Lexington in Q2 or Q3 next year and Golden Crown would re-open in Q2 2018. Both were gold-copper operations.
The company has a permit application pending to de-water Lexington. Rehab has begun on three adits at May Mac, prior to underground drilling. Surface drilling will also test May Mac’s historic Skomac vein system. On completion of surface and underground exploration, May Mac bulk sampling would begin in Q1.
At the company’s Amigo past-producer about a kilometre south of May Mac, drilling has been underway since the beginning of September, with assays pending. Those two mines should undergo around 2,500 metres by year-end.
The company expects to close a gold streaming deal for the Lexington and Golden Crown mines in late October. Under terms announced in a July LOI, the agreement would bring Golden Dawn US$3 million on signing and another US$1 million on reaching a production target.
Two weeks ago the company closed a private placement first tranche of $696,324. Earlier this month Golden Dawn announced a convertible security would net the company $2.4 million to help finance the project acquisition.
The assets are located near the town of Greenwood, about 500 kilometres east of Vancouver.