Report #9

Today, Golden Dawn Minerals Inc. has provided a significant update on the progress of its current projects as well as its corporate objectives for the next 24 months. Most importantly, a recent environmental and safety inspection by the BC Ministry of Mines has been passed with flying colours. The company´s tailings pond is in excellent condition, a big milestone in order to achieve its mining and processing plans for early 2017.  

Following the recent acquisition of Kettle River Resources (to be completed by no later than January 31, 2017; subject to regulatory approval and successful due diligence), Golden Dawn will own 100% of most historic mines, known deposits and important showings in the historic Greenwood Mining District in British Columbia, ascending to the second largest landholder next to Kinross, the world´s fifth largest gold producer. The acquisition is considered highly significant as this is the first time in the history of the Greenwood Mining Camp that all relevant historic mines, deposits and showings have been consolidated and are owned by a single company. These large landpositions (see below in red) have been held intact by Kettler River for over 30 years. 

Golden Dawn´s total landposition will be approximately 14,000 hectares, all within a radius of 15 km of its own 200-400 t/day Greenwood Processing Plant. The company expects this modern plant, which was installed in 2008 with capital costs of about $40 million yet being operational for a few months only, to be refurbished and fully operational by year´s end in order to start processing material from its near-by May Mac underground mine in early 2017. The plant has a capacity of 200-400 t/day, respectively up to 144,000 t/year. A restart permit will be submitted in early 2017.

Since October, 3 underground drill stations have been excavated in the adit Level #7 of the May Mac Mine in order to start drilling 50-60 holes by Thursday next week (November 10). Upon successful completion of the surface and underground drilling by mid-December, Golden Dawn will proceed to extend the #7 adit with a view of extracting a mineralized bulk sample for processing at its Greenwood Plant.

Below cross-section shows where adits/levels already exist (green), where the proposed drilling will take place and where adit #7 is expected to be extended ("proposed drift") in order to mine a first bulk sample (estimated at 10,000 t) to be processed into gold-silver doré bars and base metal concentrates at its Greenwood Plant for immediate sale to a smelter, potentially generating a first significant cashflow. 

• Most interestingly, historic mining in adit #7 apparently only focused on a small portion of the Upper Skomac Vein, which is believed to extend all the way up to Level 6. The proposed drifting in Level 7 targets an extension of the Upper Skomac Vein and as such may be strongly mineralized. 

• The planned underground drilling in Level 7 will be directed to depth to find out if and how mineralization extends beneath. Besides many short holes, 3 longer holes have been scheduled in order to intersect the Lower Skomac Vein at depth, which has been delineated with a past hole. These 3 longer holes are aimed to define this "new zone" all the way to Level 2/3 so that mining along this vein could start there as well.

• It will not only be interesting to see if the Lower Skomac Vein can indeed be intersected at the expected spots, but as well to see how strong the precious and base metal grades, and widths, turn out. On top of that, the area between both the Upper and Lower Skomac Vein may be mineralized as well.

• As underground holes are typically short but important for follow-up drilling, one may speculate on a fast shipping of core to the lab and as such expect an increased newsflow with regular announcements of new drill results. 

• Surface drilling at the Amigo Mine (1,000 m south of May Mac) started 2 months ago on September 2. As per today´s news, 15 holes have been completed from surface and the core will be shipped to the lab tomorrow on November 1, with assays expected within 4-6 weeks. A second drill rig has been mobilized for surface drilling into the multiple Skomac Veins. An additional 10 holes are expected to be completed by December 15. 

• The company also announced to submit a permit application for surface drilling, starting in May 2017, on the Golden Crown Mine property, to conduct infill drilling in order to increase its current resource. The Golden Crown Deposit currently has a NI43-101-compliant indicated resource of 163,000 t averaging 11 g/t gold and 0.56% copper (62,500 ounces of gold equivalents) plus an inferred resources of 42,000 t averaging 9 g/t gold and 0.43% copper (13,100 ounces of gold equivalents). The upcoming infill and exploratory drilling may significantly expand these resources. In the 3rd quarter 2017, the company will submit permit applications to refurbish the Golden Crown adit and to conduct underground exploration, with a view to start trial mining in the 2nd quarter 2018. 

• The next weeks are expected to deliver an exciting newsflow. May Mac is on track to get developed to a mine faster than the Lexington-Grenoble Mine, where trial mining has been scheduled for the 2nd or 3rd quarter 2017. A dewatering permit for the historic Lexington-Grenoble Mine has been applied for. It currently hosts a NI43-101-comliant measured & indicated resource of 372,000 t averaging 6.47 g/t gold and 1.05% copper (96,300 ounces of gold equivalents), plus an inferred resource of 12,000 t averaging 9 g/t gold and 0.43% copper (2,300 ounces of gold equivalents). Additional infill and exploratory drilling may significantly expand these resources.

Golden Dawn´s estimated timeline:
• Year‐end 2016: Complete rehabilitation of the Greenwood mill
• 1st quarter 2017: Begin processing  bulk sample from May Mac
• 1st quarter 2017: Close acquisition of Kettle River Resources [whereupon work can start there]
• 1st / 2nd quarter 2017: Secure permits for the Lexington‐Grenoble Mine
• 2nd / 3rd quarter 2017: Begin trial mining at the Lexington‐Grenoble Mine
• 2nd quarter 2018: Begin mining at the Golden Crown Mine

Latest Corporate Presentation (November 2016):

PDF version





Technical View

Technically, the share price re-confirmed the important support zones between $0.20 and $0.25 (bullish), whereupon a rebound to the upper resistance at $0.30 followed. As soon as this resistance acts supportive, a new upward-trend is anticipated. 

15 min. delayed version

15 min. delayed version

The gold price, after a short pullback to a strong support zone, is rebounding as well. The new upward-trend is expected to gain traction once the resistance at approximately $1,300 USD acts supportive: 

15 min. delayed version



Company Details

Golden Dawn Minerals Inc.
#900 - 525 Seymour Street
Vancouver, B.C. V6B 3H7 Kanada
Telefon: +1 604 221 8936

Shares issued & outstanding: 87,272,907

Canada Symbol (TSX.V): GOM
Current Price: $0.30 CAD (October 28, 2016)
Market Capitalization: $26 million CAD

Deutschland Symbol/WKN (Frankfurt): 3G8A / A1XBWD
Current Price: €0.205 EUR (October 28, 2016)
Market Capitalization: €18 million EUR


Previous Coverage

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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Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 87,272,907
Phone: +1 604 221 8936

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