FRANKFURT EXCHANGE: 3G8
VANCOUVER, Oct. 22 /CNW/ - Golden Dawn Minerals Inc. (TSX-V: GOM) (the "Company") Golden Dawn Minerals (GOM TSXV) is pleased to announce the signing of 2 property purchase agreements (the "North Block" & the "Cariboo Gold"), whereby the Company acquires a total of four blocks of mineral claims totaling 4607.42 ha, lying within the Cariboo region of central British Columbia, Canada. The four blocks lie northeast, northwest and west of the International Wayside Gold Mines Ltd.'s recent spectacular gold discoveries within the Bonanza Ledge property in the Barkerville Gold District. The closest block, Bowron block, is situated 13 km NE from the Bonanza Ledge zone and the farther one, Ahbau block, is 37 km NW. Recent activity in the Barkerville area, by International Wayside, has returned spectacular gold values over long intercepts in drilling including 84.4 meters (277 feet) of 16.5g/tonne (0.481 oz/ton) gold and 37.5 meters (123.1 feet) of 36.1 g/tonne (1.052 oz/ton) gold. These results reward many long years of exploration effort by International Wayside in this historical gold district of British Columbia.
Pursuant to the North Block and the Cariboo Gold purchase agreements, the Company will issue an aggregate of 1.85 million shares, 925,000 warrants and pay an aggregate of $52,500 cash to the vendors.
Pursuant to the North Block agreement covering 1875.98 ha, the Company is required to make a cash payment of $25,000 due on signing, and 1 million common shares and 500,000 common share purchase warrants of the Company due within 5 days of regulatory approval. The Company is also required to expend $150,000 dollars in exploration expenditures on the property by December 1, 2010. The property will be subject to a 2% NSR in favour of the vendor, which the Company may repurchase 1% of the NSR by making a cash payment of 1 million dollars.
Pursuant to the Cariboo Gold agreement covering three blocks (Bowron, Ahbau & Kee Khan blocks) totaling 2731.44 ha, the Company is required to make an aggregate cash payment of $27,500 over time and to issue 850,000 shares and 425,000 warrants to the vendor on closing. Each share purchase warrant is good for 2 years from date of issuance and is exercisable into a common share of the Company for $0.12 in the first year and $0.20 in the second. The property will be subject to a 2% NSR, which the Company may repurchase 1% of the NSR by making a cash payment of 1 million dollars and a further 0.5% NSR from the vendor for a further $500,000 cash payment.
All agreements and underlying share issuances are subject to regulatory approval.
The recently acquired claims cover portions of both the Snowshoe Group of rocks consisting of greenstones and metamorphic rocks which host the Barkerville area gold systems, and also portions of the younger Antler Group of rocks, consisting of limestones, cherts, and some volcanics. Several historical placer deposits lie near the claims acquired under the second agreement. These zones are within the Snowshoe Group and are prospective for gold-silver mineralization similar to the Barkerville hardrock deposits. The first agreement covers the northern and eastern claim blocks that will be explored for disseminated gold mineralization of Carlin type within the Antler Group of rocks consisting of limestones and cherts. Such rocks contain disseminated gold elsewhere in the world, particularly in the Carlin belt of central Nevada, USA.
A geological, prospecting, and geochemical sampling program will be initiated, weather permitting, as soon as a field crew can be mobilized to the area. Compilation of regional geophysical data, geochemical and geological data, from assessment files and published sources, will assist in planning the summer program for 2010. Wolf Wiese stated, "With the recent property acquisition near Decade Resources, the current acquisition surrounding Wayside Gold Mining Ltd. in the Cariboo Gold area of B.C. and the Link-Catherine property currently being drilled in Kirkland Lake, Ontario, the Company is positioned in 3 of Canada's most prospective areas new for Gold discoveries."
This release has been read and reviewed by Stewart A Jackson, PhD, P.Geol. for release by Golden Dawn Minerals.
ON BEHALF OF THE BOARD OF DIRECTORS OF GOLDEN DAWN MINERALS INC.
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 HARBOR.
SOURCE Golden Dawn Minerals Inc.
For further information: For further information: GOLDEN DAWN MINERALS INC., 3929 WEST 30 AVENUE, VANCOUVER, BC, V6S 1X2, Telephone: (604) 221-8936, Facsimile: (604) 221-8932, www.goldendawnminerals.com