Saturday 20th January 2018

Resource Clips


Posts tagged ‘Golden Dawn Minerals Inc (GOM)’

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

January 15th, 2018

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.

Golden Dawn Minerals adds another gold-silver property to its portfolio of advanced B.C. assets

December 19th, 2017

by Greg Klein | December 19, 2017

Part of a strategy to gather advanced-stage to near-production properties, Golden Dawn Minerals TSXV:GOM has picked up another British Columbia project. Situated 35 kilometres north of Revelstoke and 600 kilometres east of Vancouver, the 3,052-hectare J&L gold-silver-base metals property will function separately from the company’s Greenwood mining camp revival in southern B.C.

Golden Dawn Minerals adds another gold-silver property to its portfolio of advanced B.C. assets

J&L’s infrastructure includes a 40-person camp.

J&L comes with historic resources for three zones, paved highway and forestry road access, a rail siding and loading facility in Revelstoke, a 40-person camp, maintenance buildings, workshops and a fleet of underground mining equipment.

As part of a 2012 preliminary economic assessment, Huakan International Mining compiled a resource that Golden Dawn considers historic and non-43-101:

Main zone

  • measured and indicated: 3.95 million tonnes averaging 5.68 g/t gold and 56.5 g/t silver for 722,000 ounces gold and 7.18 million ounces silver

  • inferred: 4.34 million tonnes averaging 4.16 g/t gold and 57.8 g/t silver for 580,200 ounces gold and 8.06 million ounces silver

The company also reported M&I grades of 1.94% lead and 3.56% zinc, for a gold-equivalent grade of 8.56 g/t. The inferred category shows 1.82% lead and 2.72% zinc, for 6.76 g/t gold-equivalent.

Footwall zone

  • inferred: 363,000 tonnes averaging 3.65 g/t gold and 25.4 g/t silver for 42,500 ounces gold and 296,000 ounces silver

With 0.55% lead and 0.51% zinc, the gold-equivalent grade comes to 4.49 g/t.

Yellowjacket zone

  • indicated: 1 million tonnes averaging 0.21 g/t gold and 64.1 g/t silver for 6,900 ounces gold and 2.07 million ounces silver

  • inferred: 35,000 tonnes averaging 0.35 g/t gold and 81.9 g/t silver for 400 ounces gold and 91,000 ounces silver

The indicated category also showed 2.77% lead and 9.08% zinc, while base metals inferred grades came to 3.18% lead and 6.26% zinc.

The mineralized zones have been drilled up to 1.5 kilometres along strike and as much as 850 metres down-dip, remaining open.

A three-option agreement outlines several steps of cash payments and share issues to the vendor, as well as spending and work requirements to earn an initial 51% interest and subsequently full ownership of the project.

Golden Dawn Minerals adds another gold-silver property to its portfolio of advanced B.C. assets

Underground rehab readies the
Lexington past-producer for trial mining.

Golden Dawn plans to update the 2012 PEA and, given positive results, conduct further work including underground drilling, decline and drift development and metallurgical tests to move towards pre-feasibility.

Meanwhile work continues at the Greenwood camp 500 kilometres east of Vancouver, where Golden Dawn hopes to re-start a number of former mines within 15 to 20 kilometres’ radius of the company’s 212-tpd mill. Earlier this month Golden Dawn released another batch of gold-copper assays from the Golden Crown past-producer. The nearby Lexington gold-copper past-producer has dewatering and underground rehab underway, part of a plan to begin trial mining. Given the infrastructure in place, Golden Dawn proposes to re-start the former mines without de-risking at the feasibility level.

The company also announced three personnel additions this month. Geological consultant Peter Cooper’s 41-year career includes work as chief geologist and operations manager for Kinross Gold’s (TSX:K) Kettle River operations, about 40 kilometres south of the Greenwood camp. He’s helped put three gold mines into operation, including Kinross’ Buckhorn mine, 20 kilometres from Lexington.

Another consulting geologist, Serguei Soloviev has worked on a number of B.C. and Yukon gold and copper projects as well as serving as Rio Tinto Exploration’s chief geologist for Russian operations from 2010 to 2016. Soloviev has written over 50 technical papers for peer-reviewed journals.

Diana Mark joins the team as VP of corporate affairs. With over 25 years’ experience in corporate and regulatory compliance, she’s been providing consulting services to the company since January.

In September Golden Dawn closed private placements totalling $2.3 million, followed by another $2.36 million last month.

Read more about Golden Dawn Minerals.

Golden Dawn’s Golden Crown gives up 27.2 g/t gold over 0.57 metres, 7.21 g/t over 0.73 metres in southern B.C.

December 5th, 2017

by Greg Klein | December 5, 2017

Another batch of assays shows more high grades from Golden Crown, one of the Greenwood camp past-producers Golden Dawn Minerals TSXV:GOM hopes to revive in southern British Columbia. This program has so far sunk 31 holes totalling 2,954 metres, as drilling continues. Including nine holes released in October, results for 18 reported holes show consistency with previously released intercepts, the company stated. Near-surface drilling targeted massive sulphide veins and adjacent wall rocks, with the most recent highlights including:

Hole GC17-12, King zone

  • 4.99 g/t gold and 0.12% copper over 1.5 metres, starting at 64.38 metres in downhole depth
Golden Dawn’s Golden Crown gives up 27.2 g/t gold over 0.57 metres, 7.21 g/t over 0.73 metres in southern B.C.

A key aspect of Golden Dawn’s plan to
revive Greenwood’s former mines is a
nearby 212-tpd processing facility.

GC17-14, Portal zone

  • 27.2 g/t gold and 0.11% copper over 0.57 metres, starting at 33.88 metres

  • 4.29 g/t gold and 0.07% copper over 1.3 metres, starting at 37.17 metres

GC17-16, Portal zone

  • 7.21 g/t gold and 0.24% copper over 0.73 metres, starting at 27 metres

  • 5.11 g/t gold over 2 metres, starting at 49.5 metres

GC17-18, Southwest zone

  • 41.4 g/t gold, 0.17% copper and 5.9 g/t silver over 0.3 metres, starting at 31.25 metres

True widths weren’t provided.

“The deposit now appears to consist of a field of multiple veins and veinlets, with the main vein structures selected as targets for underground development,” Golden Dawn stated.

Using a 3.5 g/t gold-equivalent cutoff, the 2016 resource shows:

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

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

Next year’s plans include increasing and upgrading the resource.

Drilling continues at the project, while the newly acquired JD zone and the three-kilometre trend extending to Golden Crown will see additional drilling next year. One-width intervals of chip samples from JD released in October assayed up to 15.8 g/t gold and averaged 7.4 g/t.

Other 2018 plans for Golden Crown include metallurgical studies as well as permitting for underground mine development and bulk sampling, part of a plan to enter production without de-risking through a feasibility study.

At the nearby Lexington past-producer, meanwhile, Golden Dawn has de-watering nearly complete, with trial mining scheduled to follow next year. That would coincide with wet commissioning at the company’s 212-tpd Greenwood mill, three kilometres from Golden Crown and 17 klicks from Lexington.

Last month Golden Dawn closed an over-subscribed private placement of $2.36 million that followed private placements totalling another $2.3 million that closed in September. Also in November, the company announced negotiations to pick up additional properties.

The current Greenwood portfolio sits about 500 kilometres by highway east of Vancouver.

Read more about Golden Dawn Minerals.

Gold-copper grades complement Golden Dawn Minerals’ revival of B.C. past-producers

October 31st, 2017

by Greg Klein | October 31, 2017

As drilling continues, Golden Dawn Minerals TSXV:GOM released assays from Golden Crown, one of the projects included in the company’s plan to revive southern British Columbia’s historic Greenwood mining camp.

Gold-copper grades complement Golden Dawn Minerals’ revival of B.C. past-producers

So far the current Golden Crown program has sunk 1,488 metres in 21 surface holes. Results show significant gold and copper in massive sulphide zones or veins and adjacent wall rock, with mineralization in the host rock diorite and serpentinite, Golden Dawn stated. “This style of mineralization was not previously recognized and was not systematically tested in the historic drill holes,” the company added.

Some highlights from the project’s King and Winnipeg zones show:

Hole GC17-02:

  • 3.53 g/t gold and 0.11% copper over 12.3 metres, starting at 9.24 metres in downhole depth
  • (including 7.66 g/t gold and 0.13% copper over 4.6 metres)

GC17-05

  • 5.14 g/t gold and 1.18% copper over 7 metres, starting at 14.65 metres
  • (including 12.27 g/t gold and 1.96% copper over 2.7 metres)

  • 12.6 g/t gold, 2.9 g/t silver and 0.26% copper over 0.56 metres, starting at 79.96 metres

GC17-08

  • 7.55 g/t gold 2.4 g/t silver and 0.23% copper over 0.7 metres, starting at 80.52 metres

True widths weren’t available.

Golden Dawn stated the initial results remain consistent with previously reported assays for the project. At a 3.5 g/t gold-equivalent cutoff, Golden Crown’s 2016 resource shows:

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

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

Plans call for infill drilling to upgrade the inferred category and for rehab of the historic underground workings prior to bulk sampling and trial mining expected for next year. Released in June, Greenwood’s PEA also recommended further mine planning, along with metallurgical, geotechnical and environmental studies for Golden Crown.

Meanwhile de-watering continues at the former Lexington mine, another focal point in Golden Dawn’s Greenwood portfolio. The company plans to begin wet commissioning of its Greenwood plant once trial mining begins. The Greenwood projects all sit within an approximately 15-kilometre radius of the company’s processing facility, with a 212-tpd capacity expandable to 400 tpd.

Two weeks ago Golden Dawn released high gold grades, along with silver and base metals results, from sampling on some more recently acquired properties in its regional portfolio.

The June PEA focused on the Golden Crown, Lexington and Mae Mac past-producers, along with the plant. With existing infrastructure, Golden Dawn hopes to put the projects back into production without de-risking at the feasibility level.

In September the company closed the final tranche of a private placement totalling $2.3 million.

Read more about Golden Dawn Minerals.

High-grade sampling adds interest to Golden Dawn Minerals’ Greenwood revival

October 19th, 2017

by Greg Klein | October 19, 2017

A company hoping to restart former mines in southern British Columbia’s historic Greenwood camp, Golden Dawn Minerals TSXV:GOM announced high-grade sample results from new acquisitions. The news comes as the company drills one of its properties and prepares for trial mining on another of the past-producers in a group of nearby assets that includes a 212-tpd mill.

High-grade sampling adds interest to Golden Dawn Minerals’ Greenwood revival

The Phoenix open pit lies among a group of
prospects that includes the sampling area.

Focusing on properties acquired late last year, some 86 samples were taken, most of them chip samples from outcrop. Among the highlights was a 0.4-metre interval showing 85.9 g/t gold, 29.8 g/t silver and 0.01% copper from the Summit area. The Minnie Moore area came through with 2.68 g/t gold, 1,700 g/t silver, 0.07% copper, 0.41% lead and 0.22% zinc over one metre.

Three one-metre widths from the Silvester K prospect showed:

  • 4.68 g/t gold, 3.1 g/t silver and 0.11% copper

  • 25.5 g/t gold, 7.5 g/t silver, 0.14% copper and 0.01% zinc

  • 10.9 g/t gold, 5.1 g/t silver and 0.02% copper

The most numerous high-grade gold results came from the JD area, where one-metre intervals graded as high as 15.8 g/t, 14.9 g/t, 14.3 g/t, 8.26 g/t, 5.59 g/t and 4.59 g/t gold, along with silver, copper and some lead-zinc.

A grab sample from the Bay area showed 45.1 g/t gold, 7.7 g/t silver and 0.16% copper. An interesting polymetallic chip sample from the Mavis prospect graded 3.79 g/t gold, 503 g/t silver, 0.01% copper, 17.5% lead and 0.18% zinc over one metre.

Overall, the results call for additional exploration and surface drilling on six areas covered by the program, Golden Dawn stated. Meanwhile the company has dewatering underway at Lexington, a nearby past-producer that’s slated for rehab and trial mining. Having given up 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper from April to December 2008, the mine shows potential for new production without de-risking at the feasibility stage, Golden Dawn believes. The company plans to start wet commissioning of the mill as trial mining begins.

A concurrent drill program on the Golden Crown property has sunk 19 holes totalling 1,358 metres so far, with results pending.

Last month the company closed the final tranche of a private placement totalling $2.3 million.

Read more about Golden Dawn Minerals.

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

September 28th, 2017

by Greg Klein | September 28, 2017

Slated to begin imminently, a dewatering and rehab program could help Golden Dawn Minerals TSXV:GOM bring new life to a southern British Columbia past producer. Under a previous operator the former Lexington mine produced 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper from April to December 2008. Processing took place about 17 kilometres away at the Greenwood mill. With a 212-tpd capacity expandable to 400 tpd, the mill now comprises an important asset in Golden Dawn’s portfolio of nearby former mines.

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

Built in 2007 only to be shuttered months later by the downturn,
the Greenwood mill holds a key position in Golden Dawn’s plans.

Lexington’s rehab will focus on two declines prior to installing electrical service and ventilation. The agenda then calls for mapping, sampling and definition drilling to support test mining.

A 2016 resource used a base case 3.5 g/t gold-equivalent cutoff, giving Lexington:

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

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

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

Although Lexington remains the company’s current priority, surface drilling continues on the company’s Golden Crown property, host to the Greenwood mill. Fifteen holes have been completed so far, with a plan to further delineate and extend the project’s 2016 resource. Using a 3.5 g/t gold-equivalent cutoff, the estimate shows:

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

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

Another summer drill program at May Mac, another past producer, wrapped up with eight surface holes totalling 1,886 metres. One interval found 1.13 g/t gold, 23 g/t silver and 0.7% lead over 0.36 metres starting at 204.34 metres in downhole depth. Another intersection revealed previously unknown copper, grading 0.24% over 0.79 metres starting at 45 metres in depth.

Following up on a spring campaign, the program showed May Mac’s Skomac vein system extending at least 215 metres beyond the former mine’s workings. Golden Dawn now has permitting underway for underground drilling to avoid the topographical challenges encountered over the extension.

As for the mill, contractors agree the 2007-built facility “is in excellent shape,” Golden Dawn stated. Estimates call for about $270,000 and three to five weeks to put the plant back into operation. The company anticipates that happening as feed becomes available from the Lexington mine.

Golden Dawn also spent the summer prospecting additional former mine sites and mineral showings on other holdings within an approximately 15-kilometre radius of the mill.

Given the portfolio’s existing resources, infrastructure and potential, Golden Dawn hopes to enter production without de-risking at the feasibility level. The properties lie approximately 500 kilometres by highway east of Vancouver.

Earlier this month the company closed a $2-million private placement first tranche. Subject to approvals, Golden Dawn expects to close an additional $640,000.

Read more about Golden Dawn Minerals.

Golden Dawn Minerals prepares for B.C. underground trial mining this year

August 22nd, 2017

by Greg Klein | August 22, 2017

With a dewatering permit now in place, Golden Dawn Minerals TSXV:GOM moves closer to trial mining at Lexington, one of its Greenwood holdings in southern British Columbia. A previous company operated the mine from April to December 2008, extracting 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper, all of which was processed about 17 kilometres northeast at the Greenwood mill, now a key Golden Dawn asset.

Golden Dawn Minerals prepares for B.C. underground trial mining this year

The Greenwood flotation plant and gold gravity circuit play a
key role in Golden Dawn’s plans to revive nearby former mines.

As dewatering takes place, the company plans to rehabilitate the mine’s two ramps and surface infrastructure. Further rehab, definition drilling, mapping and sampling would follow completion of dewatering. With new data in hand, the company intends to compile a test mine program for zones between the 1,210-metre and 1,175-metre elevations without the additional derisking of a feasibility study.

Production methods under consideration include longhole open stoping, jumbo mining and jackleg/slusher mining.

Crushing equipment and the mill, with a 200-tonne-per-day capacity expandable to 400 tpd, are slated for minor upgrades and refurbishing to prepare them for run-of-mine gold-copper feed expected from Lexington by about mid-November.

The company estimates costs between $3 million and $3.5 million to rehabilitate the mine, extract 5,000 tonnes of feed and refurbish the mill.

The 2,020-hectare property has a 2016 resource that uses a 3.5 g/t gold-equivalent cutoff to show:

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

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

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

Lexington comprises one of several former mines in Golden Dawn’s extensive Greenwood portfolio, all proximal to the company’s mill about 500 kilometres east of Vancouver. Golden Dawn’s other nearby past-producing priorities include Golden Crown, with a 2016 gold-copper resource, and the May Mac silver-gold-polymetallic project.

Read more about Golden Dawn Minerals.

Golden Dawn Minerals adviser George Sookochoff studies historical records and new exploration results to shed light on the company’s B.C. package of former mines

August 3rd, 2017

…Read more

The Greenwood renaissance

June 23rd, 2017

Golden Dawn Minerals moves to revive the historic B.C. mining camp

by Greg Klein

It’s a case of one bold decision leading to another. Among the companies that saw opportunity during the downturn, Golden Dawn Minerals TSXV:GOM began picking up past-producers, assembling a cluster of properties radiating around a mill in south-central British Columbia’s fabled Greenwood mining district. Now, with a recently released PEA and some of the permits in place, the company’s ready to boldly venture into trial mining sans feasibility.

Company adviser George Sookochoff credits president/CEO Wolf Wiese with being “very aggressive in making deals, acquiring properties and putting together this fantastic package. Now that markets are looking better, he’s already got his projects and financing lined up.”

Golden Dawn Minerals moves to revive the historic B.C. mining camp

Golden Dawn’s mill plays a vital role in the
company’s plans to re-activate the past-producing mines.

So extensive is Golden Dawn’s portfolio that it reads more like a catalogue. But the initial focal points constitute a mill with three nearby past-producers: the Lexington-Grenoble gold-copper, Golden Crown gold-copper and May Mac gold-silver-lead-zinc mines. The company’s crushing-grinding-gravity-flotation mill and tailings facility has a 212-tpd capacity expandable to 400 tpd. Built in 2007, it’s been on care and maintenance since the end of 2008.

“The mill is key to the potential success of this economic model,” Sookochoff explains. “It enables us to mine and process smaller deposits. We’ll find bigger deposits if they’re there but we could keep feeding the mill with these smaller deposits. All these projects are within 15 kilometres of the mill.”

With the advantages of refurbishable infrastructure straddling a highway 500 kilometres east of Vancouver, the PEA calculates a very high after-tax IRR of 103.4% and NPV of $19.7 million. Capex would come to $27.2 million, including pre-production costs of $3.4 million spent over six months. Payback would come in 1.4 years, while the life of mine would be 4.6 years.

The limited lifespan, of course, highlights the importance of resource expansion, Sookochoff emphasizes.

This week the company announced provincial approval to re-activate Lexington and the mill. The 2,020-hectare Lexington property had its underground infrastructure expanded by a previous operator that mined the project from April to December 2008, producing 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper that was processed at the Greenwood mill. Using a 3.5 g/t gold-equivalent cutoff, Lexington has a 2016 resource showing:

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

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

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

At Golden Crown, meanwhile, permitting is in process for surface drilling to upgrade the resource and test for extensions. The 1,017-hectare property underwent small-scale underground gold-copper mining early last century and extensive exploration on and off since then. Using a 3.5 g/t gold-equivalent cutoff, Golden Crown’s 2016 resource shows:

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

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

May Mac also has permit applications under review, these ones for underground drifting, drilling and bulk sampling. A previous round of underground drilling wrapped up in spring, resulting in high-grade silver-gold-base metals assays. Surface drilling continues.

But Golden Dawn’s very extensive assets—again, all proximal to the mill—offer additional potential to keep the facility busy beyond the PEA’s timespan. Among them are 29 former mines covering 11,000 hectares that came with the January acquisition of Kettle River Resources. One focus is the former Phoenix mine that reportedly gave up around 500 million pounds of copper and nearly one million ounces of gold. Sookochoff, a database specialist, has been poring over something like a century’s worth of files including approximately 3,000 maps and 500 reports.

In the last few years especially, junior companies have been able to acquire so much data that it’s a challenge to handle it efficiently.—George Sookochoff
Golden Dawn Minerals adviser

“In the last few years especially, junior companies have been able to acquire so much data that it’s a challenge to handle it efficiently,” he says. Nevertheless, after compiling the archives and incorporating new exploration data, he hopes to see some “deeper-seated feeder systems” underlying the shallow former mines.

Phoenix has deep-penetration airborne VTEM planned for September, he says. “If we get a strong anomaly coincident with a former mine, we’ll know that’s a mineralized geophysical signature and we’ll look for similar signatures around the property. This should be extremely valuable to identify larger systems deeper down, or even smaller ones closer to surface.”

Additional potential, not covered by the PEA, could come from Washington state. Earlier this month Golden Dawn announced an LOI for the Lone Star copper-gold property just across the border and contiguous with Lexington. With “material that looks very suitable to our mill,” the 234-hectare property would come with a 2007 estimate that the company considers non-43-101:

  • 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

Big plans notwithstanding, Golden Dawn’s not immune to the typical junior hope that a senior might come knocking. The Greenwood camp’s largest landholder is Kinross Gold TSX:K. As the company’s Buckhorn mine close to the B.C. border in Washington state nears depletion, Kinross might look for other convenient assets to keep its Kettle River mill in operation, Sookochoff suggests. That might make some of Golden Dawn’s primarily gold assets attractive, although the high-grade copper projects would be more suitable for the Greenwood mill, he says.

As a native of Grand Forks, about a half-hour drive east, Sookochoff says the region shows strong community support for mining. A packed open house held in December went very well, he adds, and the company enjoys “very positive relations with the Osoyoos Indian Band. They’re very supportive, very pro-business.”

Earlier this month Golden Dawn closed the final tranche of a private placement totalling $1.76 million. In February the company closed a gold purchase agreement that brought in US$4 million. That same month the company received a US$1-million increase in a convertible security that began the previous August at US$2.4 million. Even with the caveat that the company intends to proceed without feasibility-level de-risking, the PEA allows Golden Dawn to return to the market “with a stronger story now,” says Sookochoff.

 

Update: On October 20, 2017, Golden Dawn announced that George Sookochoff resigned from the company for personal reasons: “The directors, management and staff would like to thank Mr. Sookochoff for his valuable contribution. We wish him all the best in his future endeavours.”

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

June 2nd, 2017

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.