Recent Corporate and Financial News from Golden Dawn Minerals Inc. (TSX-V: GOM) (OTC: GDMRF):
In the beginning of the month the company announced that, “Golden Dawn Minerals Inc. has executed the metal purchase agreement with Rivi Capital LLC, as published in a news release dated Sept. 28, 2016.
The company will receive $4-million (U.S.), or approximately $5.2-million. Golden Dawn has paid $3-million (U.S.) into escrow, with release to the company upon transfer of security, consisting of the Greenwood mill, Lexington mine and Golden Crown mine. The remaining $1.3-million will be paid no later than Feb. 21, 2017. The company is obligated to deliver 13.5 per cent of the gold production limited to the Lexington and Golden Crown mines for $400 (U.S.) per ounce to a total of 15,000 ounces. After delivery of 15,000 ounces at $400 (U.S.) per ounce, the percentage of production from the Lexington and Golden Crown mines to be delivered to Rivi will be reduced to 6.75 per cent, and the price per ounce of gold paid by Rivi to the company will increase to $650 (U.S.) per ounce. The funds advanced by Rivi will be utilized to repay a bridge loan, for working capital and to complete the acquisition of New Nadina’s subsidiary, Kettle River Resources Ltd.
The company is evaluating an extensive library assembled by Kettle River dating back to the beginning of the Greenwood mining district in the late 19th century. This property consists of approximately 12,000 hectares of mostly contiguous land covering 70 showings including 30 historic mines. The company is compiling a National Instrument 43-101 report on this package, based on a review of the invaluable data gleaned from the Kettle River library. This NI 43-101 report is expected to be completed by the third week of January, 2017.
The company will resume underground diamond drilling by Jan. 19, 2017, at the 100-per-cent-owned May-Mac mine. Concurrently, a notice of work (permit application) has been submitted Nov. 19, 2016, to extend the level 7 drift to the northwest beyond its termination to access intercepts obtained from the recent surface and underground drilling on the Skomac multiple vein system. Upon permit receipt, a bulk sample of up to 10,000 tonnes will be extracted from the adit and mineralized zones above the No. 7 adit. This bulk sample will be processed in the company’s Greenwood mill, 15 kilometres southeast of the May Mac mine.
In addition, a mining plan is being submitted upon completion to reopen the Lexington mine. Following receipt of a dewatering permit and the dewatering process, the company will commence production from the Lexington mine based on the current measured and indicated resource of 372,000 tonnes grading 6.47 grams per tonne gold and 1.05 per cent copper (8.05 grams per tonne gold equivalent). A notice of work application has been submitted for a substantial surface diamond drilling program on the Golden Crown mine property to upgrade the current indicated resource of 163,000 tonnes grading 11.09 grams per tonne gold and 0.56 per cent copper (11.93 grams per tonne gold equivalent) and inferred resource of 42,000 tonnes grading 9.04 grams per tonne gold and 0.43 per cent copper (9.68 grams per tonne gold equivalent). Technical disclosure in this news release has been approved by Dr. Mathew Ball, PGeo, a qualified person as defined by NI 43-101 and chief operating officer of the company.
Then on December 12, 2016 announces that, “Golden Dawn Minerals Inc., (TSX-V: GOM; FRANKFURT: 3G8A) (the “Company” or “Golden Dawn”) reports the first round of analytical results from the Amigo, Glory Hole, May Mac and Sylvester K mines, part of the Greenwood Precious Metal Project, comprising a mostly contiguous land package of 16,000 ha., near the City of Greenwood in the historic Greenwood Mining District, of South-Central B.C., 500 km east of Vancouver on BC Hwy. #3.
View video and images at: http://www.goldendawnminerals.com/may-mac-gallery/
May Mac Mine – Surface Drilling
The surface diamond drilling on the May-Mac Skomac vein system commenced in late November after drilling finished on the Amigo and Glory Hole mines, which lie 1000 meters south of the May Mac mine. Three drill holes (550 metres) were completed northeast of the historic mine workings on the Skomac vein system.
These holes were drilled at different angles from the same collar location to test the upper Skomac vein. Hole BF16-26 intersected a quartz vein containing a well mineralized section of coarse-grained massive sulphides including pyrite, galena, sphalerite and chalcopyrite. The vein was intersected between 177.47 and 183.54 metres (6.07 metres core length). This intercept is located 13 metres below the elevation of the # 7 adit, and 100 meters northeast of the end of that level. The significance of this is (A) the mineralization that was historically mined from levels 4, 5 and 6 continues vertically down another 75 meters to below the elevation of the #7 adit, and is open to depth (hole BF15-06 also encountered mineralization at depth 118 meters below # 7 Level on a new zone, now named “Rose Vein”, see news release dated Dec. 16, 2015. (B) the mineralization continues along strike to the northeast of the historic mine and is open in that direction. The intercept in Hole 26 provides a target for extending 7 level 100 meters northeast. Further surface drill testing will continue to determine the extent of the north-easterly trend of the Skomac Vein system in early 2017.
Significant assay results are:
Hole BF16-26: 177.47-183.54 (6.07 metres), 79.6 g/t silver, 0.57 g/t gold, 1.9% lead, 1.4% zinc
Including: 177.94-178.90 (0.96 metres), 281.6 g/t silver, 1.42g/t gold, 7.2% lead, 4.9% zinc
Hole BF16-26: 184.20-184.66 (0.47 metres), 49.4 g/t silver, 2.15 g/t gold, 0.7% lead, 2.7% zinc
(g/t = grams per tonne)
Drill holes BF16-25 and 27 missed the Skomac vein and did not produce significant results.
May Mac Mine – Underground
The No. 6 and 7 levels have been rehabilitated and excavation of three diamond drill stations on the No. 7 Level was completed. One test hole was drilled with a jackleg drill from the end of the No. 7 drift to locate the Skomac vein. While drilling this hole, the cuttings sludge was sampled every 1.2 meters. Significant results were obtained for two consecutive samples from the hole, penetrating the highly mineralized Skomac vein system, as follows:
Percussion Test Hole at End of No. 7 Drift: Drilled at Azimuth 060, inclination +40 degrees
Note that information gained from this method of drilling and sampling produces an approximate measure of the vein location and grade. The results indicate the vein was penetrated and .substantial mineralization is present within 5 meters from the termination of adit #7. The results are not suitable for accurate grade estimation because the drilling and sampling method is susceptible to material loss.
Underground diamond drilling commenced November 20th, 2016 on #7 level and a total of 805 metres was cored in 9 drill holes. The first hole was drilled horizontally from the end of #7 adit to see how far the drift must be extended to intersect the vein. The remaining holes were collared in drill Station # 3, 35 meters from terminus of the #7 adit, to intersect the vein above and below the level. Analytical results are available for the first hole:
MU16-01: 17.45-19.78 (2.33 metres), 131.3 g/t silver, 2.34 g/t gold, 0.59% lead, and 0.42% zinc,
Including: 18.68-19.78 (1.10 metres), 250 g/t silver, 4.96g/t gold, 1.2% lead, 0.89% zinc;
(g/t = grams per tonne)
Samples for the remaining 8 underground holes have been submitted to the lab; significant results will be published upon the receipt of analyses.
Drilling has ceased for the 2016 holidays until mid-January, 2017. Further drilling of 20-25 underground holes will be done from drill stations #1, #2 and #3 upon resumption of the program in January. A Notice of Work permit application was submitted in late Nov. 2016 to extend Adit #7 and to extract a 10,000 tonne bulk sample. The Company intends to process bulk sample material in the Company owned Greenwood Mill, located 15 km southeast of the May-Mac Mine.
2016 Drill Program on the Amigo and Glory Hole Mines
The Amigo and Glory Hole historic mine workings are located 1 km south of the May Mac Mine on different vein systems than the May Mac mine. A total of 904 metres was cored in 16 surface diamond drill holes at the Amigo Tunnel No. 1 and Glory Hole mines. Holes BF16-09 to 18 were drilled at the Tunnel No 1 and Holes BF16-19 to 24 were drilled at the Glory Hole. The holes were drilled to test for extensions of known veins and most of the holes intersected quartz veins, quartz stringer zones or prominent alteration. The table below presents the significant results for the Amigo and Glory Hole areas.
The results confirm the presence of anomalous gold and silver in veins around the No. 1 Tunnel and Glory Hole areas. Potentially economic mineralized zones have yet to be discovered.
In late Oct. 2016, the company executed a letter of intent to Purchase the 14,000 ha substantial land package from Kettle River Resources, a subsidiary of New Nadina (see N.R. of Oct. 31, 2016). This contiguous land package hosts 30 historic mines and significant showings, including the famous Phoenix mine, ranging from 2-20 km from the Company’s 100 % owned 200-400 t/d processing facility. This suite of properties was consolidated in the early 1980’s by Kettle River Resources from numerous Crown Grants and mineral titles held by many individuals since the pioneering days of the Greenwood Mining District. The combination of acquiring the KRR assets, the Greenwood Mill, the Lexington and Golden Crown mines, and the Company’s May -Mac mine, present the company with a rare opportunity to revive the historic Greenwood Mining District.
As part of the due diligence on the KRR land package, 7 channel samples were taken from the Sylvester “K” mine, located 3 km north of the company’s 200-400 t/d processing facility. Of these, the latter 6 samples were collected in a continuous line across the width of the massive sulphide zone and footwall quartz-pyrite veinlet stockwork (network). The average grade of this line of samples is 9.92 g/t gold over a true width of 15.2 metres. Sample results are listed below.
Table of surface channel sample results from Sylvester K
|Description||Sample No.||Length (m)||Gold (g/t)|
Note: the widths of zones reported above for the drill holes are intercept lengths, which may be greater than true widths. There is insufficient information at this time to accurately estimate the true width of the zones.
Samples reported above were collected under the supervision of Dr. Mathew Ball, P.Geo. and delivered for analysis to Activation Laboratories (Actlabs) in Kamloops, B.C. Actlabs is an independent commercial laboratory that is ISO 9001 certified and ISO 17025 accredited. Analyses for gold were by the fire assay method using 30 gram samples with an ICP-OES finish. Silver and other elements were analyzed by ICP-OES using a near total, four acid digestion. Results above 100 g/t silver were re-analyzed for ore grade concentrations by the Fire Assay method using a 30 gram sample. Quality control was monitored using certified reference and blank samples inserted into the sample sequence at regular intervals.
Technical disclosure in this news release has been approved by Dr. Mathew Ball, P.Geo., a Qualified Person as defined by National Instrument 43-101, and Chief Operating Officer of the Company.
For more details, please see the NI 43-101 Technical Reports on the Company’s website at www.goldendawnminerals.com.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Chief Executive Officer