Sunday 19th November 2017

Resource Clips


Posts tagged ‘Golden Dawn Minerals Inc (GOM)’

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.

Golden Dawn Minerals reports up to 246 g/t silver, 2.69 g/t gold over 3.71 metres at B.C.’s Greenwood camp

April 26th, 2017

by Greg Klein | April 26, 2017

Once again confirming mineralization beyond the former May Mac mine’s #7 level, Golden Dawn Minerals TSXV:GOM boasts silver and gold 70 metres northwest, 20 metres above and up to 120 metres below the adit. Assays released April 26 follow a batch released in early March, part of 31 underground holes totalling 3,834 metres sunk since late last year to test the Skomac and parallel veins.

Golden Dawn Minerals reports assays from B.C.’s Greenwood camp

Located 15 kilometres from May Mac, Golden Dawn’s Greenwood
gravity-flotation mill has a 200-tpd capacity expandable to 400 tpd.

May Mac comprises one of several southern British Columbia past-producers that Golden Dawn hopes to resurrect, all within range of the company’s Greenwood mill. Golden Dawn has a 43-101 technical report underway on the entire portfolio, including an updated PEA for its Lexington and Golden Crown projects.

Some standout assays from May Mac’s current crop include:

Hole MU 17-12

  • 335 g/t silver, 7.53 g/t gold, 0.2% lead and 0.5% zinc over 0.46 metres, starting at 30.93 metres

MU 17-14

  • 252.6 g/t silver, 0.93 g/t gold, 9.9% lead, 4.3% zinc and 0.1% copper over 2.57 metres, starting at 105.92 metres
  • (including 494.5 g/t silver, 1.21 g/t gold, 19.6% lead, 8% zinc and 0.1% copper over 1.29 metres)

  • 49.5 g/t silver, 12.55 g/t gold, 1.4% lead, 2% zinc and 0.1% copper over 0.56 metres, starting at 129 metres

MU 17-16

  • 246 g/t silver, 2.69 g/t gold, 1.3% lead, 0.9% zinc and 0.1% copper over 3.71 metres, starting at 70.76 metres
  • (including 472 g/t silver, 4.42 g/t gold, 11.3% lead, 4.7% zinc and 0.1% copper over 0.35 metres)
  • (and including 911 g/t silver, 9.53 g/t gold, 1.1% lead, 1% zinc and 0.2% copper over 0.55 metres)

MU 17-21

  • 58.8 g/t silver, 16.17 g/t gold, 2.3% lead, 3.3% zinc and 0.1% copper over 0.56 metres, starting at 15.84 metres
  • (including 90.5 g/t silver, 23.7 g/t gold, 3.7% lead, 5.5% zinc and 0.1% copper over 0.31 metres)

True widths weren’t available.

Having transferred the rig from underground drill station #3 to #2, work continues before moving to station #1. Subject of focus are the Skomac, Rose and West veins in a campaign expected to finish next month.

Other May Mac work awaits permit approvals. One application concerns additional surface drilling northwest along strike of the mine, where the company sees potential for mineralization up to another kilometre on the Skomac and parallel structures. The company also seeks approval to extend the #7 level northwest for additional drilling and a bulk sample of up to 10,000 tonnes.

Metallurgical tests have taken place on a May Mac composite core sample, with additional tests of tailings now underway to support processing at the mill, 15 kilometres from the mine.

Also proximal to the mill is Golden Dawn’s Golden Crown property, which has an application pending for surface drilling up to 10,000 metres. The company has preparations underway for field work at the recent Kettle River acquisition, which hosts 70 showings including 29 historic mines.

Golden Dawn also plans to begin dewatering its Lexington mine once spring weather allows.

Along with the mill, the former May Mac, Golden Crown and Lexington mines constitute the focal points of Golden Dawn’s Greenwood portfolio. Given the infrastructure in place, the company might decide to undertake trial mining and processing without the de-risking of a feasibility study.

In February Golden Dawn received a US$4-million advance on a gold purchase agreement.

Golden Dawn Minerals expands property, prepares for trial mining at B.C.’s Greenwood camp

April 5th, 2017

by Greg Klein | April 5, 2017

As the company anticipates near-term underground test mining at its nearby Lexington project, a new acquisition expands Golden Dawn Minerals’ (TSXV:GOM) Amigo property and complements the contiguous Boundary Falls turf. Boundary Falls hosts the past-producing May Mac mine—along with Lexington, Golden Crown and the Greenwood mill, one of the focal points of the company’s plan to revive the historic southern British Columbia camp. Subject to approvals, the 487-hectare addition brings Amigo to 656 hectares, costing Golden Dawn 100,000 shares.

May Mac reportedly produced 4,228 tonnes averaging 5.35 g/t gold and 227 g/t silver between 1903 and 1983. The mine also produced lead, zinc and copper.

Golden Dawn Minerals expands property, prepares for trial mining at B.C.’s Greenwood camp

A haul truck remains from the Greenwood
camp’s former mining and milling operations.

Since 2015 Golden Dawn has sunk 904 metres of surface drilling on Amigo, along with 6,155 metres of surface and underground work on May Mac’s Skomac vein system.

More assays are pending following a batch released early last month. Meanwhile the project undergoes permitting for surface drilling, underground drilling, drifting and bulk sampling. Should results for the three historic mines prove fortuitous, May Mac feed would complement that of the Lexington and Golden Crown past-producers. Processing would take place at Golden Dawn’s Greenwood mill, a 200-tpd facility expandable to 400-tpd located 15 kilometres east.

Last month the company released initial metallurgical test results for May Mac showing recoveries of 98% for gold and 97.7% for silver.

Last week Golden Dawn announced a “milestone” in receiving a dewatering permit for Lexington, which allows underground test mining to assess the project’s viability. Dewatering’s expected to begin in late April or early May.

The previous operator shut down Lexington and the Greenwood mill in December 2008 after eight months of operation, apparently because of the financial crisis, start-up problems and debt, Golden Dawn stated. Having bought the assets at a substantial discount, the company declares itself “optimistic that all or most of the start-up issues experienced by the former operator will be avoided.”

Golden Dawn doesn’t plan a feasibility study but has commissioned a technical report to consolidate four properties into one project. Over the last few months the company received US$4 million from RIVI Capital LLC as an advance payment for future gold production from Lexington and Golden Crown.

Proximal to Highway #3, the Greenwood portfolio sits about 500 kilometres east of Vancouver.

Golden Dawn Minerals reports positive gold-silver metallurgy from B.C.’s Greenwood camp

March 15th, 2017

by Greg Klein | March 15, 2017

Initial metallurgical results support Golden Dawn Minerals’ (TSXV:GOM) plan to put a southeastern British Columbia mine and mill back into production. A 16-kilogram composite sample from the May Mac mine underwent gravity and flotation at the company’s Greenwood mill, 15 kilometres away, with 98% recovery for gold and 97.7% for silver. Preliminary results suggest no major modifications to the mill would be necessary to process May Mac feed.

The past producer comprises one of several former mines proximal to the mill that Golden Dawn endeavours to re-open.

Golden Dawn Minerals reports positive gold-silver metallurgy from B.C.’s Greenwood camp

Sitting amidst Golden Dawn’s portfolio of former mines,
the Greenwood mill has a 200-tpd capacity expandable to 400 tpd.

“Flotation cleaning will now be tested in order to make a higher-grade concentrate for sale,” the company stated. “Optionally, cyanide leaching results after 48 hours’ retention indicate approximately half the silver was recovered, and with a gold recovery of 90%.”

Meanwhile underground drilling continues at May Mac, with surface drilling planned for next month. The company has permitting underway to extend the mine’s #7 level for a bulk sample of up to 10,000 tonnes for processing at the Greenwood mill. Plans also call for a maiden resource this year. Earlier this month the company released the last of 19 holes from last winter’s program.

With a de-watering permit now in process for the nearby Lexington project, Golden Dawn hopes to begin trial mining in Q3 or Q4. The past producer has 96,300 gold-equivalent ounces measured and indicated, along with 2,300 ounces inferred at a 3.5 g/t gold-equivalent cutoff.

Included in the 2017 agenda is surface drilling at Golden Crown, which currently hosts 62,500 gold-equivalent ounces indicated and 13,100 ounces inferred, also using a 3.5 g/t gold-equivalent cutoff.

Golden Dawn has a modest program of geophysics in store for the KRR property, an 11,000-hectare package of 29 historic mines and 40 significant showings. The company announced a 43-101 on the recent acquisition in January.

With a final tranche of US$1 million now in hand, the company has collected the full US$4-million advance from a gold purchase agreement with RIVI Capital LLC.

Golden Dawn’s Greenwood camp portfolio lies about 500 kilometres east of Vancouver.