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Golden Dawn Minerals to add American past-producer to B.C. holdings

by Greg Klein | June 2, 2017

Geology disregards the 49th Parallel, so Golden Dawn Minerals TSXV:GOM has turned to northern Washington state to expand its southern British Columbia portfolio. Under a non-binding LOI announced June 2, the company would acquire the 234-hectare Lone Star copper-gold property in the U.S. contiguous to its Greenwood claims in B.C.

Golden Dawn Minerals to add American past-producer to B.C. holdings

Golden Dawn hopes to revive the historic silver-gold-polymetallic camp, beginning with the former May Mac, Lexington and Golden Crown mines, all proximal to the company’s gravity-flotation mill with a 200-tpd capacity expandable to 400 tpd.

Another past-producer, Lone Star operated from 1897 to 1918 and from 1977 to 1978. An estimate compiled in 2007, which Golden Dawn considers historic and non-43-101, showed:

  • indicated: 63,000 tonnes averaging 1.28 g/t gold and 2.3% copper for 2,600 ounces gold and 3.19 million pounds copper

  • inferred: 682,000 tonnes averaging 1.46 g/t gold and 2% copper for 32,000 ounces gold and 30.07 million pounds copper

Lexington’s rock types, structure and gold-copper mineralization continue south onto Lone Star, the company stated, “forming a three-kilometre-long prospective exploration trend of past-producing gold-copper mines and prospects, including the Lexington-Grenoble, Lexington, No. 7 and Lone Star mines.”

The new acquisition would cost Golden Dawn $200,000 cash and $200,000 in shares determined at the average price prior to announcing the LOI. A 2.5% NSR applies.

In April the company released silver-gold-lead-zinc assays from underground drilling at May Mac. Metallurgical tests for the past-producer have been conducted at the Greenwood mill, 15 kilometres away.

Golden Crown, meanwhile, has an application pending for surface drilling and preparations are underway for field work at the more recently acquired Kettle River properties.

Golden Dawn plans to reopen May Mac, Lexington, Golden Crown and the mill without de-risking the project at the feasibility level. Prior to filing on Sedar, the company is currently reviewing a recently completed PEA on all its B.C. Greenwood holdings. The report was commissioned to support a short form prospectus.

On June 2 Golden Dawn also closed the final tranche of a private placement totalling $1.76 million. Last February the company received a US$4-million advance on a gold purchase agreement.

Located about 500 kilometres east of Vancouver, the Greenwood properties have nearby highway access.

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