FRANKFURT EXCHANGE: 3G8
VANCOUVER, Jan. 23, 2012 /CNW/ - Golden Dawn Minerals Inc. (TSX-V: GOM; FRANKFURT: 3G8) (the "Company" or "Golden Dawn") is pleased to announce exploration and bulk sampling intentions on its
Greenwood Project, Greenwood Mining District, British Columbia.
The Greenwood Project comprises exploration on the Company's Boundary
Falls, Wild Rose and Tam O'Shanter Properties, which are contiguous to
each other and cover an area of 3,000 ha. The Boundary Falls Property
hosts the historic underground May Mac Mine and the Wild Rose Mine is
located on the contiguous Wild Rose Property 2 km to the north.
Proposed future work for the Project consists of:
rehabilitation of number 6 and 7 adits on the May Mac Mine and
production after evaluation (drilling), and bulk sampling from the
evaluation (drilling), bulk sampling and preparation for mining of the
nearby Wild Rose vein system that has previously been explored by
underground workings but not developed. The Wild Rose Mine and adits
are located 2 km north of the May Mac Mine;
continuation of diamond drilling and a revised resource study on the Tam
O' Shanter and Wild Rose Properties extending the Deadwood low grade
bulk tonnage style gold- copper deposit, where a 279,600 ounces (oz)
inferred resource has been reported by the Company grading 0.45 grams
per tonne (g/t) gold (Au) with a cutoff grade of 0.3 g/t gold; and
continuing exploration (diamond drilling) on the nearby Royal Attwood
project, where the company has conducted a Titan 24 survey and
extensive ground work to delineate several high priority drill targets.
The initial objective is to commence mining at both mines on the
Greenwood Project sites with processing to be carried out through the
Golden Crown mill located 15 km by road east of the site or
alternatively, through the on-site fully permitted May Mac mill and
tailings pond. Both the May Mac mill and tailings pond require
BACKGROUND: HISTORIC MAY MAC AND WILD ROSE MINES
MAY MAC MINE
The May Mac mine is located 3 km west of Greenwood, British Columbia in
the Boundary District, Greenwood Mining Division, British Columbia,
Canada. According to the Paxton report, 1994, the following records
have been gleaned from the old Minister of Mines Reports for BC 1904 to
1984. In 1903 -1904 Republic Gold Mines shipped 37 tonnes of ore with a
grade of 10.25 ounces per tonne (oz/t)) or 318.86 grams per tonne (g/t)
gold. In 1904 to 1937 there was an intermittent production totaling 807
tonnes with an average grade of 110.23 oz/t or 3,428 g/t silver (Ag).
In 1962 to 1964 Skomac Mines Ltd. shipped 608 tonnes of ore with an
average grade of 0.044 oz/ton or 1.37 g/t gold and 5.96 oz/t or 185.5
g/t silver. In 1975, stoping above Level 6 in the A and AA Zones,
produced 433 tonnes of ore with an average grade of 0.154 oz/t or 4.8
g/t gold and 22.37 oz/t or 696 g/t silver. In 1976, stoping on Level 6
in the B and C Zones produced 548 tonnes of ore with an average grade
of 0.077 oz/t or 2.4 g/t gold and 13.01 oz/t or 404.6 g/t silver. In
1983, 1,725 tonnes of new ore were mined. This produced 99 tonnes of
concentrate containing 45 oz or 1,399.5 g of gold and 6,405 oz or
199,195 g of silver plus lead and zinc. (All numbers are expressed in
The mine has been inactive since 1982 but has been on care and
maintenance with access roads and the processing facilities preserved.
WILD ROSE MINE
The Wild Rose vein system, lying 2 km north of the May Mac Mine, was
discovered pre-1900 with minor production from a shallow shaft on the
discovery. Development by a modern 300 meter underground exploration
adit was undertaken in 1995, which resulted in the discovery of a
second parallel vein denoted the Wildcat vein with assays of 0.352 oz/t
or 12.07 g/t and 2.2% copper over more than 1 meter and with assays up
to 0.858 oz/t or 29.14 g/t gold and 5.2% copper (Linda Caron, 2006).
Previous drilling in this area, combined with a series of recent drill
hole intersections in the vicinity of the vein systems has determined a
substantial strike extent potential for these veins, plus a potential
for several other veins in the target area. The veins measure in the
order of 1-3 meters in width with good values of gold and copper.
The Project will focus on rehabilitation of the underground workings at
both the May Mac and Wild Rose historic mines leading to bulk sampling
and drilling. If the results of the bulk sampling and drilling are
positive, the project will proceed with eventual underground mining.
The project will consist of preparation for mining, and the mining of
gold, silver and base metal-bearing material from the May Mac and the
Wild Rose vein systems and the milling or sale of the production. The
potential target resource is 75,000 to 125,000 tonnes grading 2 to 5
g/t gold and 342 to 684 g/t (10-20) oz/t silver at the May Mac Mine and
75,000 to 125,000 tonnes grading 5 to12 g/t gold and 0.5 to 5% copper
at the Wild Rose Mine. The reader is cautioned that these
are exploration target objectives, they are conceptual in nature, and
that there are no known mineral reserves or resources on the Boundary
Falls Property on which the May Mac Mine is located. An inferred
mineral resource of 279,600 oz of gold contained in 19.4 million tonnes
of material grading 0.45 g/t gold with a lower cutoff of 0.3 g/t has
been reported by the Company from the Deadwood Gold Zone located mainly
west and North-West of the Wild Rose Mine portal on the Wild Rose
property (which includes the Wild Rose vein system) and extending to
the contiguous Tam O' Shanter Property. The conceptual target for this
bulk tonnage style deposit is 1-3 million oz of gold grading 0.5 to 0.7
g/t gold and 2 to 4 pounds of copper per tonne. However, there can be
no assurance that a bulk tonnage resource of this grade and size will
be identified or will become a mineral reserve that could be
The drilling of the bulk tonnage style low grade Deadwood Gold Deposit
has resulted in the identification of a number of higher grade vein and
stockwork gold-silver intercepts. These intercepts are interpreted to
be part of a laterally more extensive vein zone that includes the Wild
Rose vein system. The May Mac vein system may represent another
similar en echelon repetition of the laterally extensive Wild Rose vein
FUTURE DEVELOPMENT PLANS
For the May Mac Mine, the initial program will consist of rehabilitation
of the Number 6 and Number 7 levels of the mine. This mine was
developed on 4 levels with underground tracking, with stoping
proceeding upward from each level and with diamond drilling guiding the
development drifting. Limited funding at the time of the
historic development of this mine led to falling short of projected
target zones which may contain substantially more tonnage of better
grade material, and the then low commodity prices prevented development
of portions of the vein that had been already accessed.
The Number 7 adit has a 50 meter portion of the vein, initially
bypassed, situated close to the portal, and may contain mineralized
material that can be extracted after the rehabilitation of the adit.
Historic sampling of this undeveloped vein yielded assays of 12 g/t
gold and copper values which were undisclosed.
Drifting of 60 meters from the face on the Number 7 Level will penetrate
the target AA Zone, and allow drifting on the AA Zone and development
of stopes between this level and the overhead Number 6 Level. An
initial 10,000 tonne bulk sample will be collected from these target
zones. Once this is completed, the conceptual target of 75,000 to
125,000 tonnes grading 2 to 5 g/t gold and 342 to 684 g/t (10 to 20
oz/t) silver plus base metal credits will be extended within these two
levels of the May Mac Mine.
For the Wild Rose Mine, preparation for this area by trackless
underground exploitation utilizing scoop trams, will proceed with two
target objectives, namely the Wild Rose vein system projected to lie 8
meters beyond the face of the current exploration adit, and the Wild
Cat vein system intersected by the adit as a discovery during the
development. Both veins have numerous high grade drill hole
intersections indicating a potential strike length of the vein system
of at least 750 meters to the north and northwest. Drifting on both of
these veins will proceed with the removal of a 10,000 tonne bulk sample
initially, followed by continued production when permitting of full
scale production from this mine is completed.
Additional veins are anticipated within the series of drill hole
intersections located north and northwest of the Wild Rose vein system
projections. A major vein swarm is possible in this area, presenting
an attractive exploration target.
The reader is cautioned that no feasibility study has been conducted on
these mines or on the inferred resource at the Deadwood Gold Zone.
There has not been a mineral reserve or mineral resource established
for either the May Mac or the Wild Rose Mine. There can be no assurance
that the conceptual exploration targets will become mineral reserves or
that they may be economically mined. The proposed programs will
result in continued compilation of exploration data that may lead to a
mineral reserve in the future.
The Company is currently in negotiations with Peruvian mining
contractors who have the expertise to mine high-grade underground vein
The information in this document has been reviewed and verified by Mike
Dufresne, M.Sc., P.Geol. of APEX Geoscience Ltd., a Qualified Person.
The program will be supervised by Mr. Dufresne.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Chief Executive Officer
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
RESPONSIBILITY FOR ITS CONTENTS. NEITHER TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES
OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE. THIS DOCUMENT CONTAINS CERTAIN FORWARD
LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, DELAYS, AND
UNCERTAINTIES NOT UNDER THE COMPANY'S CONTROL WHICH MAY CAUSE ACTUAL
RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR
ACHIEVEMENTS IMPLIED BY THESE FORWARD LOOKING STATEMENTS. WE SEEK SAFE
SOURCE Golden Dawn Minerals Inc.
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