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Report #10

Underground drilling at the end of Adit #7 in the May Mac Mine.

Today, Golden Dawn Minerals Inc. has started to announce assay results from sampling and drilling programs at 5 different locations on its 16,000 hectares Greenwood Project in the historic Greenwood Mining District of British Columbia, Canada.

In late October, the company executed a letter of intent to acquire the substantial land package (14,000 hectares) from Kettle River Resources (“KRR”), which included several historic mines. As part of the ongoing due diligence on this acquition, Golden Dawn recently took channel samples at the historic Sylvester K Mine, located just 3 km north of the company’s 200-400 t/d Greenwood processing facility. 6 of the 7 surface channel samples were collected in a continous line across the width of a massive sulphide zone, discovering an average of 9.92 g/t gold over a true width of 15.2 m. That’s unmined high-grade gold over significant widths right at surface, i.e. potentially a relatively easy to mine feedstock for processing 3 km down the road at its own Greenwood Mill.

Underground drilling at the end of the #7 Adit of the historic May Mac Mine started with a fortunate surprise when, after less than 5 m of drilling, the highly mineralized Skomac Vein System was intersected with 3 g/t gold, 156 g/t silver, 2.9% lead, 1.1% zinc and 0.33% copper. In the following 1.2 m long interval, gold grades increased to 7.95 g/t. If the historic miners had continued drifting into Level #7 just a few more meters, they might have been rewarded generously. This now marks a significant discovery for Golden Dawn as bulk sampling could start relatively fast. Surface drilling at May Mac intersected high-grade zinc (4.9%) and lead (7.2%) mineralization with significant gold and silver credits. Surface drilling at the Amigo Tunnel #1 intersected 6 g/t gold over 0.75 m.

May Mac Mine: Underground Drilling

The #6 and #7 Levels have been rehabilitated and excavation of 3 drill stations on the #7 Level was completed. A test hole was then drilled with a jackleg drill from the end of the #7 drift to locate the Skomac Vein. While drilling this hole, the cuttings sludge was sampled every 1.2 m. Significant results were obtained for 2 consecutive samples from the hole, penetrating the highly mineralized Skomac Vein System, as follows:

From 4.9-6.1m:
1.2 m @ 3.04 g/t gold, 156 g/t silver, 2.91% lead, 1.1% zinc and 0.33% copper;
and from 6.1-7.3 m:
1.2 m @ 7.95 g/t gold, 135 g/t silver, 0.6% lead, 1.3% zinc and 0.08% copper

Underground drilling started on November 20 in the #7 Level and a total of 805 m was drilled with 9 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.

As of today, analytical results are available for the first hole (MU16-01):

From 17.45-19.78 m:
2.33 m @ 131.3 g/t silver, 2.34 g/t gold, 0.59% lead and 0.42% zinc
including (from 18.68-19.78 m):
1.10 m @ 250 g/t silver, 4.96 g/t gold, 1.2% lead and 0.89% zinc

The remaining 8 holes were collared in drill Station #3 (35 m from terminus of the #7 Adit) to intersect the vein above and below the level. Samples from these 8 holes have been submitted to the lab; significant results will be published upon the receipt of results.

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 November 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 from May Mac.

New video about May Mac: 

 

May Mac Mine: Surface Drilling

3 drill holes (550 m) were completed northeast of the historic mine workings and were drilled at different angles from the same collar location to test the Upper Skomac Vein. Holes BF16-25 and 27 missed the 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 with assays reported as follows:

Hole BF16-26 (177.47-183.54 m):
6.07 m @ 79.6 g/t silver, 0.57 g/t gold, 1.9% lead, 1.4% zinc
including (177.94-178.9 m):
0.96 m @ 281.6 g/t silver, 1.42 g/t gold, 7.2% lead, 4.9% zinc
and (184.2-184.66 m):
0.47 m @ 49.4 g/t silver, 2.15 g/t gold, 0.7% lead, 2.7% zinc

This intercept is located 13 m below the elevation of the #7 adit, and 100 m northeast of the end of that level.

Significance of May Mac Surface Drill Results:

(1) The mineralization that was historically mined from Levels #4, #5 and #6 continues vertically down another 75 m to below the elevation of the #7 adit, and is open to depth (Hole BF15-06 also encountered mineralization at depth 118 m below #7 Level on a new zone, now named “Rose Vein”, see news release dated Dec.ember 16, 2015).

(2) 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 the #7 Level 100 m northeast. Further surface drill testing will continue to determine the extent of the north-easterly trend of the Skomac Vein system in early 2017. 


Amigo and Glory Holes Mines: Surface Drilling

The Amigo and Glory Hole historic mine workings are located 1 km south of the May Mac Mine and are on different vein systems. A total of 904 m was cored in 16 surface drill holes at the Amigo Tunnel #1 and Glory Hole Mines. Holes BF16-09 to 18 were drilled at the Tunnel #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 and confirm the presence of anomalous gold and silver in veins around the #1 Tunnel and Glory Hole areas. Potentially economic mineralized zones have yet to be discovered.

Sylvester K Mine: Channel Sampling

As part of the due diligence on the intended acquisition of the land package from Kettle River Resources (“KRR“), Golden Dawn took 7 channel samples from the historic Sylvester K Mine, located 3 km north of the company‘s 200-400 t/d processing facility (“Greenwood Mill“).

6 of the 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.

The contiguous land package from KRR lhosts 30 historic mines and significant showings, including the historically famous Phoenix Mine. This suite of properties was consolidated in the early 1980s by KRR 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 its own May Mac Mine, present the company with a rare opportunity to revive the historic Greenwood Mining District for decades to come. Underground bulk sampling of 10,000 t at May Mac is scheduled for early 2017 to potentially produce a first cashflow from processing a first 10,000 t at the Greenwood Mill.

Click on below image (or here) to watch a short video about the Greenwood Project:

 

Core from the recent surface drilling at the May Mac Mine: 

Core from Hole BF-16-26 drilled from surface at the historic May Mac Mine: 143.87-146 m: Argillite; 146-146.7 m: Quartz stringer zone, 1 stringer (146.38-146.49m) 3 cm wide at 45 degrees tca, up to 10% pyrite, 5% sphalerite, 2% galena, 1% chalcopyrite within single stringer; 146.7-147.8 m: Quartz vein, upper contact at 50 degrees tca, lower contact at 20 degrees tca, 2% pyrite, 0.5% galena, <0.5% sphalerite, trace chalcopyrite; 147.8-150.5 m: Argillite with minor disseminated pyrite; 150.5-159.2 m: Quartz stringer zone/argillite/structure zone, brecciated quartz veining, stockwork with block broken core and gouge, 1-2% disseminated pyrite; 159.2-159.6 m: Quartz vein, trace pyrite; 159.6-161.82 m: Argillite with disseminated pyrite, silicified; 161.82-162.58 m: Quartz vein (40-45 degrees tca) no visible mineralization; 162.58-170.8 m: Argillite with 30 cm diorite dyke; 170.8-171.3 m: Diorite dyke; 171.3-173.4 m: Argillite with 3 10-30 cm Diorite dykes; 173.4-175 m: Quartz vein, fractured, 2% pyrite, 1.5% sphalerite, 1% galena; 175-177.56 m: argillite with 10% quartz stringers; 177.56-179 m: Quartz vein with semi-massive to massive sulfide, 15-20% pyrite, 10-15% galena, 5-10% sphalerite, 3-5% chalcopyrite; still in quartz vein at end of run. 

Hole BF16-26 (177.47-183.54 m):
6.07 m @ 79.6 g/t silver, 0.57 g/t gold, 1.9% lead, 1.4% zinc
including (177.94-178.9 m):
0.96 m @ 281.6 g/t silver, 1.42 g/t gold, 7.2% lead, 4.9% zinc
and (184.2-184.66 m):
0.47 m @ 49.4 g/t silver, 2.15 g/t gold, 0.7% lead, 2.7% zinc

 


  


15 min. delayed version


15 min. delayed version

 


  

Company Details

Golden Dawn Minerals Inc.
Suite 900 - 525 Seymour Street
Vancouver, B.C. V6B 3H7 Canada
Phone: +1 604 221 8936
Email: allinfo@goldendawnminerals.com
www.goldendawnminerals.com 

Shares Issued & Outstanding: 94,376,676

Canadian Symbol (TSX.V): GOM
Current Price: $0.265 CAD (12/12/2016)
Market Capitalization: $25 million CAD

German Symbol / WKN (Tradegate): 3G8A / A1XBWD
Current Price: €0.198 EUR (12/12/2016)
Market Capitalization: €19 million EUR

 


  

Previous Coverage 

Report #9: “Golden Dawn passed environmental and safety inspection, provides progress report on Greenwood projects“

Report #8: “Research house Zacks initiates coverage of Golden Dawn"

Report #7: “Golden Dawn Minerals: B.C.´s next powerhouse gold miner?“

Report #6: “Golden Dawn acquires several major past producing mines and becomes largest land holder in the Greenwood District next to Kinross“

Report #5: “Golden Dawn moving rapidly toward renewed operation“

Report #4: “Starting Shot for the May Mac Mine“

Report #3: “Ascend from explorer to producer secured: A Just-in-Time success story par excellence “

Report #2: “Golden Dawn secures funding to go into gold production in BC “

Report #1: “Perfect timing to go into gold production in British Columbia“

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.

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COMPANY INFO
Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 94,376,676
Phone: +1 604 221 8936
Email: allinfo@goldendawnminerals.com
Web: www.goldendawnminerals.com
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