Golden Dawn Closes Acquisition Of Greenwood Gold Mine
Vancouver, September 7, 2016 – Golden Dawn Minerals Inc., (TSX-V: GOM; FRANKFURT: 3G8A) (the “Company” or “Golden Dawn”) provides the following update on its Greenwood Precious Metals Project in south-central British Columbia, Canada.
Wolf Wiese CEO of Golden Dawn Minerals (The Company)reports it has closed the acquisition of Huakan International Mining Inc.’s Greenwood Gold Project consisting of a 200-400 ton p/d gravity-flotation processing facility, the Lexington and Golden Crown underground gold mines (See news release of Feb. 25.16).
The company is proceeding to transfer all existing permits for the acquired Greenwood Mill and Lexington and Golden Crown Mines to Golden Dawn Minerals Inc. During the transition, the company is currently surface drilling and will commence underground drilling later this month on and in its May Mac Mine, with a view to bulk sample material for processing at its Greenwood Mill located 15 km east of the May Mac Mine.
The company’s 100% owned May Mac, Lexington and Golden crown Mines all lie within a 15 Km radius of the Greenwood Mill. The entire project is located near the city of Greenwood, located 500 km east on Hwy #3 in south central British Columbia.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Chief Executive Officer
Golden Dawn Production Plans
By Bob Moriarty on September 7, 2016, on 321gold.com
I wrote about a tiny Canadian junior stock last May when they were $.095 a share. As has been true of a lot of juniors no one had heard about, the company went from poor and ignored to a 300% gain in four months. The company is called Golden Dawn Minerals (GOM-V). They are now on the verge of production.
It would be wonderful if I could claim Guruhood and suggest that I am the smartest guy on the block. But I can’t. And I’m not. Actually in a bull market, stocks go up. That’s why they call it a bull market. If companies actually do what they say they are going to do, they go up a lot. Golden Dawn has gone up a lot. If they execute their plan, they will go up a lot more.
Management of the company picked up an option on a mine and mill in southern BC province in Canada called the Greenwood project. It consists of the Greenwood mill with a $40 million dollar replacement value and 100% ownership on a number of small but reasonably high-grade precious metals deposits including the Lexington mine, the May Mac mine and the Golden Crown mine. Since then management has commitments for enough money to complete the option agreement to purchase the Greenwood mill.
In the immediate future the company will begin a two-month process of dewatering the Lexington mine. There will be a total rehabilitation of the 220/400 tpd Greenwood Mill that has been on care and maintenance since last in production in late 2008. They intend to extract ore from the May Mac mine by year-end or Q1 of 2017 to begin processing at Greenwood. In addition, the increase in the price of silver and gold has made several other small-scale mines in the Greenwood district economically viable and the company may do toll milling or simply buy out the owners.
On September 6th Golden Dawn announced plans for the rehabilitation and further exploration including drill on surface and underground at the May Mac mine. Until permits are received for production at the Lexington and the Golden Crown Mines, any ore grade material encountered at the May Mac Mine will be shipped the 15km to the Greenwood processing plant.
It’s all an issue of execution and the price of gold from here. If management executes their plan as well as they have over the last six month, investors have a nice alternative to buy into a small but profitable gold mining operation in the safest of jurisdictions. Don’t be confused by the small resource, this was a major gold district in Canada and Golden Dawn has the only mill. That puts them in the catbird’s seat.
Golden Dawn is an advertiser and I am biased. Please do your own due diligence.
Golden Dawn Minerals
GOM-V $.375 (Sep 06, 2016)
GDMRF–OTCBB 79 million shares
Golden Dawn website
Golden Dawn to Graduate to Gold Producer
By Marc Davis on September 6, 2016 for BNWnews.ca
When a junior gold development company de-risks a gold project, investors can usually expect a big payday.
This is often the case when the company is gobbled-up for big dollars by a deep-pocketed gold producer. Or it can happen when the project goes into production and investors become fractional owners of a money-making mine.
With this in mind, shareholders in Golden Dawn Minerals (TSX.V: GOM, Frankfurt: 3G8A) just got the news they’ve long been waiting for.
The company has announced a milestone de-risking development. Specifically, it has completed the purchase of the jewel in the crown among a trio of small, past-producing gold mines in southern British Columbia.
Sealing a “Company-Maker” Deal
Known as the Lexington-Grenoble mine, its outright purchase is a significant “company maker” transaction for Golden Dawn.
Not only is it a major de-risking development, but it finalizes what has been a drawn-out acquisition process. This single event has now set the stage for Golden Dawn to become an actual gold miner.
It means that the mine can be put back into production as early as Q2 of next year, according to management. Most importantly, the mine is already permitted, meaning that no regulatory roadblocks stand in its way.
Furthermore, virtually all the necessary mining infrastructure is already on-site, including a modern mill and a tailings storage facility. The mine also benefits from ready access to a power grid, a water supply and a nearby highway.
So Golden Dawn is on the cusp of doing something very rare for an exploration and development “mining junior”. It is graduating to the illustrious ranks of the world’s relatively few gold miners.
This newly-found credibility promises to make the company particularly attractive to speculators and value-oriented investors, alike. This is because it gives them all the best of both worlds: a leveraged proxy to a resurgent bull market for gold, as well as a chance to own shares in what promises to be a profitable gold mining business.
Furthermore, the prospect of steady cash flow, as well as eventual earnings, may also significantly limit the downside risk for the company’s share price. In essence, it’s an ideal insurance policy for investors.
As an aside, this mine was originally commissioned as recently as 2008. But timing is everything in the business world. And production ground to a halt after only a few months when its former operator ran into financial trouble. At the time, gold was trading at around US $750/oz -- a significant discount to today’s buoyant prices.
However, Golden Dawn appears to have impeccable timing. Unlike its predecessor, it is now poised to capitalize on a resurgent bull market for gold bullion. And its shareholders are poised to capitalize on Golden Dawn’s golden future.
Scaling-Up to Catch the Next Big Gold Wave
The Lexington-Grenoble mine isn’t Golden Dawn’s only future source of revenue.
All told, the company’s scalable business model includes the re-commissioning of two other small deposits, namely the gold/silver May Mac mine and the gold/copper Golden Crown mine. The latter was acquired along with Lexington-Grenoble in the same deal.
These mines are all located in close proximity to one another in the historic Greenwood mining camp, which has been mostly under-explored in recent decades. But Golden Dawn aims to change that.
With newly-printed drilling and underground mining permits in-hand, Golden Dawn is set to commence some small-scale mining at May Mac. This involves drill-testing certain high-grade veins by way of a 10,000-tonne bulk sampling program. It should offer a clearer picture of the mine’s overall potential for meaningful, high-grade output.
This promises to generate some valuable cash flow for the balance of 2016. Most of all it should offer a clearer picture of the mine’s overall potential for meaningful, high-grade output.
All told the company is targeting up to 500,000 ounces of high-grade gold and “gold equivalent” (the combined value of the gold, silver and copper) by way of in-fill and exploratory drilling at all three deposits.
Once all three mines are up-and-running, this will also allow Golden Dawn to benefit from cost-cutting economies of scale. Such a reality promises to lower overall mining costs and further benefit the company’s balance sheet.
On-Track for Near-Term, Low-Cost Production
The company computes an average output of 20,700 ounces of gold equivalent per year at Lexington-Grenoble over an initial mine life of 5 years, totaling 104,000 gold equivalent ounces. This is according to an independent preliminary economic assessment (PEA).
However, plans are underway to drill into a network of previously-untapped gold veins with a view to adding enough additional gold resources to double the mine life’s to at least 10 years.
(Lexington-Grenoble mine portal seen above)
At present, the PEA forecasts that the mine will generate an average of CDN $8.6 million a year in post-tax cash flow, based on cumulative revenue of CDN $157.8 million over five years (assuming a price of US $1,250 oz/gold). Notably, this does not factor-in the prospect of boosting the mine’s resource base.
Independent engineering studies also demonstrate that gold can be mined, processed and shipped to market for as little as US $820/oz in “all-in sustaining costs” (which includes all other corporate operating expenditures, as well as royalties).
This translates into a very enviable operating margin of up to US $500/oz based on current gold prices. By comparison, most of the world’s gold mines cost around US $1,100-1,200 an ounce to operate, which explains why so many of them have been unprofitable as of lately.
Other attractive metrics in the PEA include the prospect of a pre-tax net present value (NPV) of CDN $32.5 million at a 6% discount rate and an impressive internal rate of return (IRR) of 72.6%.
The projected payback on the capital expenditures (start-up costs) is a little less than two years, which is relatively fast for any business, and especially mining.
Golden Dawn’s share price has been a strong performer in 2016 due to its attractive risk/reward profile and the company’s proven ability to execute on its game plan.
The company also has a big following among investors, both in Europe and North America, which translates into impressively large daily trading volumes. This also attests to the company’s credibility as a rising star in the junior mining sector.
Most importantly, the prospect of steady cash flow and eventually solid earnings should build meaningful value into the company’s share price. At that time, Golden Dawn should expect to experience a “re-rating” (upgrading) by the investment community, translating into the likelihood of higher share price multiples.
Between now and then, speculative investors have an opportunity to own shares in a company that is still as inexpensively priced as the legions of other aspiring gold producers – most of whom are statistically destined to fail.
However, Golden Dawn’s evolution into a real gold producer is finally happening fast. And its share price is not likely to remain cheap for much longer.
After all, the company is a success story in-the-making. And sooner or later, that will be reflected in the share price. This means that the company’s many loyal shareholders can expect to be well-rewarded with their own big payday.
Read more at http://www.stockhouse.com/opinion/independent-reports/2016/09/06/golden-dawn-to-graduate-to-gold-producer
Starting Shot for the May Mac Mine