Saturday 10th December 2016

Resource Clips


Posts tagged ‘Golden Dawn Minerals Inc (GOM)’

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

October 18th, 2016

by Greg Klein | October 18, 2016

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

Several former mines dot southern B.C.’s Greenwood camp.

 

Another 10,400 hectares with former mines would increase Golden Dawn Minerals’ (TSXV:GOM) presence in southern British Columbia’s historic Greenwood mining camp. Under a binding letter of intent announced October 18, the company would acquire Kettle River Resources, a subsidiary of New Nadina Explorations TSXV:NNA. Golden Dawn already has a portfolio of former mines within a 15-kilometre radius of its 200-tpd Greenwood mill, about 500 kilometres east of Vancouver.

The new acquisition would include the Tam O’Shanter project, the Sylvester K zone, some tailings sites, the former Phoenix mine and the Bluebell/Oro Denoro Eholt properties.

Golden Dawn has previously explored Tam O’Shanter along with a contiguous property, identifying an inferred resource for both.

Phoenix was mined between 1900 and 1978, producing over a million ounces of gold, 18 million ounces of silver and 575 million pounds of copper. Golden Dawn sees potential for new copper-gold finds.

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

Golden Dawn’s current portfolio includes the Greenwood mill.

The Sylvester K zone has a strike length of about 150 metres, with thickness up to 12 metres. Mining in 1989 extracted a reported 5,090 tonnes of material averaging 5.1 g/t gold.

Three tailings sites are associated with Phoenix. Metallurgical studies suggest re-grinding and cleaner flotation might offer potential for a copper-gold concentrate.

The Bluebell/Oro Denoro Eholt property has undergone exploration and mining since the 1890s, with a number of recent showings. Among the results, trenching at the Minnie Moore area in 2007 found silver grading 414 g/t over 8.5 metres, 1,044 g/t over 6.2 metres and 432 g/t over 5.8 metres. A drill core assay showed 77.3 g/t silver over 5.3 metres.

The properties come with a database representing 120 years of mining and exploration records.

Subject to a 90-day due diligence period and approvals, the package would cost Golden Dawn a non-refundable $80,000 on signing and another $15,000 by November 26. Those deposits would form part of a $1-million payment due on closing. New Nadina would also get $600,000 in Golden Dawn shares and a 1% NSR, half of which may be bought back. The companies expect to consummate by about January 31.

Late last month Golden Dawn issued a progress report on its work to reactivate the former May Mac, Lexington and Golden Crown mines, along with the nearby Greenwood mill. Trial mining could begin at Lexington in Q2 or Q3 next year, the company reported. Golden Crown, another gold-copper past-producer, could re-open in Q2 2018.

Golden Dawn has also been drilling May Mac and the Amigo past-producer about a kilometre south. The company expects to close a metals streaming deal this month.

Golden Dawn Minerals updates program to revive historic B.C. camp

September 28th, 2016

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.

Golden Dawn Minerals updates program to revive historic B.C. camp

Golden Dawn hopes to begin trial mining
at the Lexington past-producer next year.

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.

Update: Golden Dawn closes mines/mill acquisition, resumes drilling for B.C. gold

September 7th, 2016

Update: On September 7 Golden Dawn Minerals announced it closed the acquisition of the former Lexington and Golden Crown mines and a 200-tpd gravity-flotation plant from Huakan International Mining. The two mines, as well as Golden Dawn’s Boundary Falls project and past-producing May Mac mine, lie within a 15-kilometre radius of the mill.

by Greg Klein | September 6, 2016

Active in a number of fronts in southern British Columbia’s historic Greenwood district, Golden Dawn Minerals TSXV:GOM moves closer to its goal of re-opening former mines. Last week the company signed a definitive agreement to help finance a 100% option on Greenwood project assets that include the former Lexington and Golden Crown mines as well as a mill. The company has also resumed drilling its nearby Boundary Falls project and plans drilling on the May Mac claims immediately north.

Golden Dawn finances option, resumes drilling for B.C. gold

The historic Glory Hole adit on the Boundary Falls property.

A convertible security from Lind Asset Management VI comes with a face value of US$2.4 million, which would bring net proceeds of C$2.4 million. Golden Dawn would use the money plus additional cash on hand to exercise its 100% option with Huakan International Mining. That would cost Golden Dawn C$3.35 million, including a remedial bond of C$450,000.

Boundary Falls drilling will initially test gold-silver quartz veins shown by historic workings on the property’s Amigo area, including the Glory Hole and #1 Tunnel. At May Mac, Golden Dawn has received a permit to build underground drill stations and drill the former mine’s #7 Adit.

In July the company closed the final tranche of a private placement totalling $425,000. Around the same time Golden Dawn signed a metal streaming LOI with RIVI Capital for the Lexington and Golden Crown projects.

Read more about Golden Dawn Minerals.

Metals stream LOI brings Golden Dawn Minerals closer to B.C. gold-copper production

July 21st, 2016

by Greg Klein | July 21, 2016

A metal purchase agreement could help Golden Dawn Minerals TSXV:GOM re-open two gold-copper mines at the Greenwood project, 500 kilometres east of Vancouver. Under a letter of intent announced July 21, RIVI Capital would get 12% of production from the Greenwood’s Lexington and Golden Crown mines for $400 per gold-equivalent ounce for the project’s life. (All figures are in U.S. dollars, except where noted.)

Metals stream brings Golden Dawn Minerals closer to B.C. gold-copper production

The Golden Crown mill would serve both Greenwood mines.

The metal stream would cost RIVI $3 million on signing the final agreement and another $1 million within four months of Greenwood reaching 85% of its production target of 200 tonnes per day. Golden Dawn would pay 10% interest on the first $3 million until the company achieves 85% production.

The Greenwood project consists of a flotation mill with 220 to 400 tonnes per day capacity, as well as the Lexington and Golden Crown mines. Not included in the LOI are Golden Dawn’s May Mac silver-gold mine, mill and tailings pond 15 kilometres away.

Golden Dawn retains the right to reduce the stream from 12% to 6% and increase the payment from $400 to $650 after delivering 15,000 ounces, provided gold’s one-year average price stays above $1,200. RIVI retains the right to maintain a member on Golden Dawn’s board.

Break fees would come to $50,000 for RIVI or $100,000 for Golden Dawn. The parties expect to close within 60 days.

The deal would have minimal effect on Greenwood’s PEA, Golden Dawn stated. Released in April, the study calculated an after-tax NPV of C$23.2 million and IRR of 61.5%. With the advantage of existing infrastructure, a six-month pre-production period would require a capex of C$9.7 million for a mine lasting five years.

Greenwood’s Lexington-Grenoble past-producer has measured and indicated resources of 96,300 gold-equivalent ounces and an inferred 2,300 gold-equivalent ounces. The Golden Crown mine currently holds 62,500 gold-equivalent ounces indicated and another 13,100 inferred.

The company hopes to restart Lexington first, using the Golden Crown mill. The plan would have Golden Crown mining follow, with May Mac coming later.

Golden Dawn holds a 100% option on Greenwood. Last month the company offered secured debentures, endeavouring to raise a minimum of $3 million. This week Golden Dawn closed the final tranche of a private placement totalling C$425,000. Another placement brought C$200,000 in May.

Golden Dawn reports BC Results including 0.18 g/t Gold over 241.3m

November 17th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGolden Dawn Minerals Inc TSXV:GOM announced assays from its Deadwood Gold-Copper Deposit in the Greenwood Mining District of BC. Results include

0.18 g/t gold and 0.04% copper over 241.3 metres
0.29 g/t gold, 2.95 g/t silver and 0.02% copper over 120 metres
0.21 g/t gold and 0.02% copper over 157 metres
0.19 g/t gold and 0.02% copper over 162.3 metres
0.51 g/t gold and 0.09% copper over 47.5 metres
0.44 g/t gold and 0.04% copper over 45 metres
(including 0.62 g/t gold and 0.03% copper over 27.2 metres)

The project has a July 2011 resource estimate of 19.4 million tonnes grading 0.45 g/t gold for 279,300 gold ounces using a 0.3 g/t cutoff.

View Company Profile

Contact:
Mike Poulin
Investor Relations
604.630.6793

by Greg Klein