Wednesday 28th June 2017

Resource Clips


Posts tagged ‘lead’

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.

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.

Mountain Boy Minerals increases B.C. Golden Triangle presence with two 100% options

June 2nd, 2017

by Greg Klein | June 2, 2017

Mountain Boy Minerals increases B.C. Golden Triangle presence with two 100% options

Home to major deposits as well as earlier-stage exploration, the rugged
terrain of B.C.’s Golden Triangle has Mountain Boy Minerals intrigued.

Encouraging results have prompted Mountain Boy Minerals TSXV:MTB to up its stake in two northwestern British Columbia projects from 50% to 100% options. The company signed the agreement with Great Bear Resources TSXV:GBR, up to then a 50/50 JV partner on both properties, Surprise Creek and BA.

Together, the two nearby projects have undergone over $12 million of exploration spending over the last decade.

As project operator in February, Mountain Boy announced a major base metal-silver-barite zone at Surprise Creek, where one hole on the 7,472-hectare property revealed these intercepts:

  • 0.12 g/t gold, 28 g/t silver, 1.21% zinc, 0.03% lead, 0.31% copper and 46.73% barite over 18.94 metres, starting at 58.26 metres in downhole depth

  • (including 0.11 g/t gold, 44.75 g/t silver, 4.31% zinc, 0.05% lead, 0.33% copper and 67% BaSo4 over 4.58 metres)

  • (which includes 0.09 g/t gold, 70.7 g/t silver, 6.49% zinc, 0.09% lead, 0.56% copper and 60.48% BaSo4 over 2.14 metres)

True widths weren’t provided.

Sample results released in January from the 9,489-hectare BA VMS project showed:

  • 14.3% lead and 1,080 g/t silver
  • 32.4% lead and 417 g/t silver
  • 20.3% zinc, 6.73% lead, 255 g/t silver and 100 ppb gold
  • 33.1% zinc, 1.57% lead and 192 g/t silver
  • 4.41% copper and 142 ppb gold

Subject to approvals, the option lets Mountain Boy take Great Bear’s 50% of both projects by paying $1.3 million and issuing 10 million shares in stages by August 20, 2020. On achieving certain milestones, additional cash payments to Great Bear could total $3.7 million should both properties go into production.

Mountain Boy’s Golden Triangle portfolio includes a 20% stake in the Silver Coin gold-silver-base metals project with a resource estimate, the American Creek and Bear Valley silver-base metals projects, as well as copper-gold claims.

Read more about Mountain Boy Minerals.

See an infographic about B.C.’s Golden Triangle.

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.

Mountain Boy advances B.C. polymetallic, industrial minerals projects

March 30th, 2017

by Greg Klein | March 30, 2017

Among other plans announced March 30, Mountain Boy Minerals TSXV:MTB intends to conduct metallurgical studies for its Surprise Creek joint venture in northwestern British Columbia. Tests will evaluate one interval of drill core reported in February that shows barite, silver, copper and zinc. Barite is mainly used as an ingredient in drilling mud for oil and gas exploration.

Metallurgical results will guide further Surprise Creek exploration, expected to include surface sampling and drilling. Mountain Boy acts as operator on the 7,472-hectare property in a 50/50 JV with Great Bear Resources TSXV:GBR.

Mountain Boy advances B.C. polymetallic, industrial minerals projects

Rugged terrain and high grades
characterize the former Montrose mine.

In southern B.C., Mountain Boy has begun discussions with the Lower Similkameen Indian Band prior to PEA studies on the Manuel Creek zeolite project acquired last December. With numerous agricultural uses for the commodity, this 1,062-hectare project holds the advantage of location in the Okanagan farming region.

Back in the province’s northwest, two companies have surface sampling and drilling planned this year for Red Cliff, held 35% by Mountain Boy and 65% by Decade Resources TSXV:DEC. Amid mountainous terrain, plans call for a drone and climbers to locate a 1988 drill collar to sample the zone and confirm previous results from the former gold-copper mine.

Underground drilling will test above and below the property’s 1,000 mine level, which has previously revealed several high-grade intercepts. Some examples include:

  • 37.26 g/t gold and 6.07% copper over 0.91 metres

  • 21.94 g/t gold and 0.76% copper over 4.42 metres

  • 29.93 g/t gold and 1.57% copper over 1.9 metres.

Additional drilling will help define the property’s Montrose zone. Even higher values have been found here:

  • 5.18 g/t gold and 0.43% copper over 12.65 metres

  • 43.91 g/t gold and 1.46 % copper over 7.47 metres

  • 14.53 g/t gold and 0.27% copper over 30.64 metres

Metallurgical studies will also take place.

From 1939 to 1941, mining at Montrose extracted 65 tons averaging 2.45 ounces per ton gold, 2.95 ounces per ton silver, 0.91% copper, 3.5% lead and 4.41% zinc.

Mountain Boy and Great Bear also share the nearby BA VMS project, from where they reported high-grade polymetallic samples in January.

Along with 80% partner Jayden Resources TSXV:JDN, Mountain Boy holds a 20% interest in another property in B.C.’s Golden Triangle, Silver Coin. Using a 0.3 g/t gold cutoff, the project’s 2011 resource shows a measured and indicated total of 842,416 ounces gold, 4.46 million ounces silver and 91.17 million pounds zinc. The inferred category comes to 813,273 ounces gold, 6.69 million ounces silver and 128 million pounds zinc.

Mountain Boy’s regional portfolio also includes the MB project, with historic, non-43-101 estimates for copper, lead, zinc, silver and barite. Grab samples from last year assayed as high as 31,192 g/t silver. The company additionally holds a 50% stake in the George property, which has historic, non-43-101 estimates for copper, silver and gold.

In mid-March the company closed a private placement totalling $231,619.

Emerita Resources signs LOI for Spanish zinc project

March 20th, 2017

by Greg Klein | March 20, 2017

Set to resume trading on March 22, Emerita Resources TSXV:EMO has due diligence planned for a VMS property in an infrastructure-rich region of southern Spain. The non-binding letter of intent concerns the 1,400-hectare Masa Valverde zinc project in Andalusia’s Iberian pyrite belt.

Emerita Resources signs LOI for Spanish zinc project

The property “hosts a classic, polymetallic, volcanogenic massive sulphide deposit that is locally enriched in gold and contains zinc-rich massive sulphide zones and a copper-rich zone as is characteristic for VMS deposits,” Emerita stated. “Drilling to date has outlined a sulphide body that is greater than 1,200 metres long and greater than 200 metres wide.” Mineralization remains open, the company added.

Subject to approvals and a 60-day due diligence period, the property would cost Emerita €4.5 million over two years plus a 2.5% NSR. The vendor also retains an offtake option.

Located in a region active in base metals mining, local infrastructure includes paved roads, rail, power, water and ports.

Following a March 10 halt, Emerita resumes trading on March 22.

The company also reiterated its commitment to another Andalusian project, the Aznalcollar zinc-lead-copper project. Emerita’s acquisition of the asset was confirmed in an October court ruling.

Additionally, the company holds the Sierra Alta gold project in northwestern Spain, Las Morras gold project in western Spain and the Falcon Litio MG lithium project in Brazil.

Golden Dawn Minerals reports May Mac assays as underground drilling continues

March 6th, 2017

by Greg Klein | March 6, 2017

Golden Dawn Minerals TSXV:GOM released the last of 19 holes drilled so far this winter at its May Mac mine in southern British Columbia’s historic Greenwood camp. Following assays reported last month, the results show silver-polymetallic mineralization on the Skomac vein system beyond, above and below the former mine’s #7 adit.

Some highlights from hole MU17-10 include:

  • 81.1 g/t silver, 0.06 g/t gold, 2.1% lead and 0.6% zinc over 5.25 metres, starting at 188.82 metres in downhole depth
  • (including 121.4 g/t silver, 0.07 g/t gold, 3.5% lead and 1% zinc over 2.7 metres)

  • 86 g/t silver, 0.01 g/t gold, 5.3% lead and 1.6% zinc over 1 metre, starting at 195.78 metres

  • 174.3 g/t silver, 8.2 g/t gold, 3.7% lead, 2.6% zinc and 0.01% copper over 1.2 metres, starting at 211.6 metres
  • (including 228 g/t silver, 19.65 g/t gold, 8.8% lead, 6.2% zinc and 0.2% copper over 0.5 metres)

  • 98 g/t silver, 0.01 g/t gold, 0.5% lead, 0.9% zinc and 0.1% copper over 1.5 metres, starting at 218.37 metres

  • 18.33 g/t silver, 3.11 g/t gold, 1.2% lead, 3.5% zinc and 0.1% copper over 1.97 metres, starting at 221.89 metres

  • 37.5 g/t silver, 6.76 g/t gold, 1.4% lead, 2.2% zinc and 0.1% copper over 1.32 metres, starting at 226.4 metres
Golden Dawn Minerals reports May Mac assays as underground drilling continues

True widths weren’t available.

The program found veining concentrated in four zones ranging from 1.2 metres to 19.43 metres in extent, with significant mineralization in the first three zones.

Drilling continues at the underground drill station, prior to moving the rig to two other stations. Golden Dawn also has permitting underway to extend the #7 drift for a bulk sample of up to 10,000 tonnes. Samples have already been taken for metallurgical tests at the company’s Greenwood mill, 15 kilometres southeast. Golden Dawn holds an extensive portfolio of former mines proximal to the 200-tpd mill, which the company hopes to restart this year.

Last month the company announced a US$4-million advance on a streaming agreement for its past-producing Lexington and Golden Crown gold mines. Lexington has trial mining anticipated for Q3, while Golden Crown has a permit application for infill drilling. Trial mining at Golden Crown could begin in Q2 2018, following successful permitting, adit refurbishment and underground exploration.

The company also has field work planned for its Phoenix and Tam O’Shanter properties, part of a 11,000-hectare, 29-property acquisition that closed in January.

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

Golden Dawn Minerals releases silver-gold-polymetallic assays from historic Greenwood camp

February 24th, 2017

by Greg Klein | February 24, 2017

Underground drilling delivered the highest silver and gold assays so far from the Skomac vein system at the former May Mac mine, Golden Dawn Minerals TSXV:GOM reported February 23. With noteworthy lead and zinc numbers as well, the results come from one of the past-producers the company intends to revive at its Greenwood portfolio in southern British Columbia. The assays reflect nine of this year’s 10 May Mac holes totalling 1,320 metres, while results are pending for the tenth hole. Along with nine holes sunk late last year and released in mid-January, the work currently totals 2,125 metres.

All 19 holes hit the Skomac vein system, showing mineralization continues along the principal vein from the #6 level, passing the #7 level. Parallel veins also revealed mineralization. Some highlights include:

Hole MU17-01

  • 235 g/t silver, 2.07 g/t gold, 0.8% lead, 1.4% zinc and 0.2% copper over 1.56 metres, starting at 32.05 metres in downhole depth

MU17-02

  • 231.2 g/t silver, 0.51 g/t gold, 5.9% lead, 6.4% zinc and 0.3% copper over 1.92 metres, starting at 59.44 metres
Golden Dawn Minerals releases silver-gold-polymetallic assays from historic Greenwood camp

Golden Dawn plans additional underground
drilling and a bulk sample at the former May Mac mine.

MU17-05

  • 177 g/t silver, 7.91 g/t gold, 0.5% lead, 0.4% zinc and 0.1% copper over 1.05 metres, starting at 32.67 metres

MU17-06

  • 35.1 g/t silver, 6.32 g/t gold, 0.3% lead, 0.6% zinc and 0.1% copper over 1.36 metres, starting at 224.82 metres
  • (including 79.5 g/t silver, 14.55 g/t gold, 0.6% lead, 0.3% zinc and 0.1% copper over 0.46 metres)

MU17-07

  • 371 g/t silver, 8.86 g/t gold, 0.7% lead and 0.2% copper over 0.5 metres, starting at 62.7 metres

MU17-08

  • 559.4 g/t silver, 1.27 g/t gold, 0.2% lead, 2.1% zinc and 0.1% copper over 2.06 metres, starting at 52.8 metres
  • (including 1,935 g/t silver, 4.21 g/t gold, 0.7% lead, 7.1% zinc and 0.2% copper over 0.54 metres)

True widths weren’t available.

With more holes scheduled for this drill station, Golden Dawn plans additional underground work at two other drill stations. The company also has permitting underway to extend the #7 drift for drilling and bulk sampling up to 10,000 tonnes. Processing would take place at Golden Dawn’s Greenwood mill, 15 kilometres southeast.

Looking at another of the company’s Greenwood properties, Golden Dawn has applied for a surface drilling permit for its Golden Crown property, which has a 2016 resource estimating 62,500 gold-equivalent ounces indicated and 13,100 ounces inferred.

Other plans include field work on an acquisition of 29 former Greenwood mines that closed last week.

On February 24 the company announced closing of a US$1-million convertible security increase with Lind Asset Management VI. Earlier this month Golden Dawn reported receiving an initial US$3 million of a US$4-million streaming deal from RIVI Capital.

With an extensive portfolio of former mines proximal to its 200-tpd mill, Golden Dawn hopes to revive the historic Greenwood camp, about six hours’ drive east of Vancouver.

Mountain Boy Minerals reports barite-polymetallic results from NW B.C.

February 2nd, 2017

by Greg Klein | February 2, 2017

An explorer with extensive assets in northwestern British Columbia’s Golden Triangle, Mountain Boy Minerals TSXV:MTB announced a “major base metal-silver-barite zone” at the Surprise Creek property. The company acts as project operator on the 50/50 JV with Great Bear Resources TSXV:GBR.

Of two holes sunk late last year, one missed a polymetallic VMS-related occurrence called the Ataman zone. But DDH-SC-2 returned the following intercepts, announced February 2:

  • 0.12 g/t gold, 28 g/t silver, 1.21% zinc, 0.03% lead, 0.31% copper and 46.73% barite over 18.94 metres, starting at 58.26 metres in downhole depth

  • (including 0.11 g/t gold, 44.75 g/t silver, 4.31% zinc, 0.05% lead, 0.33% copper and 67% BaSo4 over 4.58 metres)

  • (which includes 0.09 g/t gold, 70.7 g/t silver, 6.49% zinc, 0.09% lead, 0.56% copper and 60.48% BaSo4 over 2.14 metres)
Mountain Boy Minerals reports barite-polymetallic results from NW B.C.

A helicopter lands at the BA project,
part of the same JV with Surprise Creek.

True widths weren’t available. The hole appeared to end in mineralization but drilling stopped due to weather.

Further work this year “will target this extensive barite horizon,” Mountain Boy stated. The Ataman zone has been traced across approximately 1.2 kilometres of strike. The 7,472-hectare Surprise Creek property sits immediately north of a highway.

Barite is used as a drilling mud in the oil and gas industry. Imports to Canada and the U.S. come to about 400,000 tonnes of industrial-grade barite and 3.6 million tonnes of oilfield barite, the company stated.

The JV also covers the nearby BA VMS project. Some highlights from samples reported last month from a three-by-two-kilometre area of the Big Red target showed:

  • 14.3% lead and 1,080 g/t silver
  • 32.4% lead and 417 g/t silver
  • 20.3% zinc, 6.73% lead, 255 g/t silver and 100 ppb gold
  • 33.1% zinc, 1.57% lead and 192 g/t silver
  • 4.41% copper and 142 ppb gold

Big Red has additional exploration planned this year, but the BA property’s eponymous BA zone remains the project’s primary focus. In December Mountain Boy released channel sample results from the zone, with some highlights showing:

  • 3.84% zinc, 1.25% lead and 107.65 g/t silver over 15 metres
  • (including 5.31% zinc, 1.97% lead and 132.44 g/t silver over 7.5 metres)

  • 2.42% zinc, 0.55% lead and 99.41 g/t silver over 12 metres
  • (including 3.2% zinc, 0.72% lead and 119.68 g/t silver over 6 metres)
  • (which includes 5.12% zinc, 0.83% lead and 102.85 g/t silver over 3 metres)
Mountain Boy Minerals reports barite-polymetallic results from NW B.C.

An aerial view of the MB project.

Another Mountain Boy asset in B.C.’s Golden Triangle is the MB project. Grab samples taken last year from the property’s High Grade zone assayed as high as 31,192 g/t silver, with averages of 4,795.16 g/t silver, 3.35% zinc, 0.837% lead and 1.38% copper.

Sampling from MB’s Mann zone averaged 750.48 g/t silver, 9.02% zinc, 2.61% lead and 0.303% copper.

MB has an historic, non-43-101 indicated estimate for three veins totalling 105,555 tonnes averaging 0.064% copper, 0.69% lead, 2.01% zinc, 208.9 g/t silver and 13.59% barite.

The company’s portfolio includes a 20% interest in the Silver Coin project, in which Jayden Resources TSXV:JDN holds the remainder. A 2011 resource gave the project a measured and indicated total of 842,416 ounces gold, 4.46 million ounces silver and 91.17 million pounds zinc. The inferred category came to 813,273 ounces gold, 6.69 million ounces silver and 128 million pounds zinc. Further drilling is planned this year.

Mountain Boy also holds a 35% interest in Decade Resources’ (TSXV:DEC) Red Cliff project, which has modelling and additional drilling slated for 2017.

Just west of the BA project, Mountain Boy’s 50%-held George property has historic, non-43-101 estimates for copper, silver and gold.

In December Mountain Boy announced the purchase of the 1,062-hectare Manuel Creek zeolite and pozzolan property in southern B.C.’s Okanagan region, where work on a resource estimate should start in early spring. The company noted that zeolite is used in applications such as soil amendments and hydroponics, water filtration, livestock feed enhancement and waste management.

The company offered a private placement of up to $1.2 million in December.