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Golden Dawn Minerals sets B.C. gold-copper trial mining for Q2

by Greg Klein | January 15, 2018

With dewatering now complete, Golden Dawn Minerals TSXV:GOM plans to re-start a southern British Columbia past-producer within months, moving to full production in the latter half of the year. The company pronounced the former Lexington mine’s underground workings, east portal and decline to be in excellent condition, where a previous operator extracted 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper between April and December 2008.

Golden Dawn Minerals sets B.C. gold-copper trial mining for Q2

With underground workings in “excellent condition,”
Golden Dawn prepares to restart the Lexington gold-copper mine.

Service buildings have been renovated. Still on the checklist is new timber for the mine’s west portal, a new ladderway for the fresh air raise and installation of compressed air and water, along with electrical and ventilation services.

Lexington’s rehab coincides with that of the Greenwood plant, about 17 kilometres away. A 212-tpd mill that’s expandable to 400-tpd, it’s central to Golden Dawn’s 15,400-hectare portfolio of 31 historic mines, three of which the company hopes to re-start without de-risking at the feasibility level. Lexington’s remaining start-up costs are pegged at about $2 million.

While consultants now have a mine plan in progress, underground mapping and sampling are planned for later this month. The former mine has a 2016 resource with a base case cutoff of 3.5 g/t gold-equivalent:

  • measured: 58,000 tonnes averaging 6.98 g/t gold and 1.1% copper (8.63 g/t gold-equivalent) for 16,100 gold-equivalent ounces

  • indicated: 314,000 tonnes averaging 6.38 g/t gold and 1.04% copper (7.94 g/t gold-equivalent) for 80,200 gold-equivalent ounces

  • inferred: 12,000 tonnes averaging 4.42 g/t gold and 1.03% copper (5.96 g/t gold-equivalent) for 2,300 gold-equivalent ounces

Meanwhile the company awaits 14 holes of assays from the nearby Golden Crown drill program that wrapped up last month. That past-producer also hosts a 2016 resource with a 3.5 g/t gold-equivalent cutoff:

  • indicated: 163,000 tonnes averaging 11.09 g/t gold and 0.56% copper (11.93 g/t gold-equivalent) for 62,500 gold-equivalent ounces

  • inferred: 42,000 tonnes averaging 9.04 g/t gold and 0.43% copper (9.68 g/t gold-equivalent) for 13,100 gold-equivalent ounces

Further drilling is planned northwest, along a three-kilometre mineralized zone onto the JD property, from where the company reported high-grade gold samples last October.

The former May Mac silver-gold mine constitutes a third past-producing priority with another 2017 drill program.

Golden Dawn’s property package sits about 500 kilometres by highway east of Vancouver.

The company also reported a private placement that closed on $337,500 that came entirely from Quorum Capital Inc, wholly owned by Golden Dawn president Wolf Wiese.

Read more about Golden Dawn Minerals.

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