Report #11

Today, Golden Dawn Minerals Inc. reported the completion of a NI43-101 Technical Report on the property package which is intended to be acquired from Kettle River Resources Ltd. The total land package is in excess of 11,000 hectares and covers an exceptional abundance of mineral prospects, including 29 past mines and 78 mineral showings.

Although the area was an established mining district, all of the historic mines are less than 150 m in depth with the majority being less than 50 m deep. Therefore, the potential for extensions of known deposits is exceptionally high. Additionally, large areas of the property package remains unexplored.

As soon as the acquisition has been officially closed, the company can immediately start exploring in order to find additional material for processing at its own Greenwood plant. All historic mines and showings are located within a radius of 15 km to this modern mill with a 200/400 t/d capacity, which had been constructed in 2008 (operational only for few months as low gold prices forced the previous operator to cease operations).

On January 3, Golden Dawn reported the closing of the 5.2 million CAD metal purchase agreement with RIVI Capital LLC, in general probably the most critical factor to go into production. On January 16, it was mentioned that underground drilling at the past producing May Mac Mine will resume on January 21, i.e. new results are expected within the next few weeks.

The company has also applied for an extension of the Level #7 at May Mac to access, for bulk sampling purposes, the newly discovered high-grade mineralization as reported on December 13: 3 g/t gold, 156 g/t silver, 2.9% zinc and 0.33% copper, with gold grades increasing to 7.95 g/t in the following 1.2 m long intercept. Surface drilling at May Mac intersected 688 g/t silver, 1.18 g/t gold, 7% zinc and 19% lead, extending the Skomac Vein to 13 m below the #7 adit level with mineralization continuing along strike and open to the northwest.

As soon as the permit has been received, the extension of Level #7 will synchronously become a bulk sampling program as mineralization continues at the end of the existing level. The material will be processed at the near-by Greenwood Mill (expected to be operational shortly) to produce saleable doré bare and concentrates for immediate cashflow generation.

Most interestingly, Golden Dawn today mentioned that the historic mines, deposits and showings within the Kettle River land package are clustered in 2 areas: Phoenix and Summit camps.

This localized grouping of occurrences suggests the 2 areas may overlie porphyry copper gold source intrusions, and were generated by metal-rich hydrothermal fluids that ascended from the intrusions. The majority of the mineralization in the Greenwood Camp can be classified as copper-gold skarns or skarn-related.



Early exploration and historic mining in the Greenwood Camp only focussed on massive sulphide and oxide ores which were easy to process and could be shipped directly to smelters. This means that there is significant potential to discover large tonnage deposits of low to moderate grade copper-gold skarn material peripheral to the historic mines. In addition, since most of the historic mines were focussed on copper, iron-rich skarn zones of mineralization were largely ignored. Iron skarns containing gold mineralization could be economic at current metal prices. It will be important to re-evaluate all of the skarn deposits for gold.

Golden Dawn is confident that new mill feed for its Greenwood Mill will be discovered in and proximal to these historic mines and showings, to extend the current mine life of 5 years from its Lexington and Golden Crown Mines resources. Concurrently, the company will explore the areas evidencing indications of intrusive (porphyry) deposits which may be sources for the numerous historic mines and mineral showings.

The property encompasses the world-class historic Phoenix Mine which produced nearly 1 million ounces of gold and 235,700 tonnes of copper from a total of 21 million tonnes mined from 1900-1919 and 1956-1978. There is also potential to establish a mineral resource from the Tremblay Tailings that were derived from this mine. Production records show that 4.19 million tonnes at an average grade of 0.15% copper, 0.38 g/t gold and 3.8 g/t silver were discharged to the Tremblay site. The production records are only an approximate indication of the total tailings. Note that this is not a mineral resource as more work is required.

SOUTH ZONE Past Production Figures

Sylvester K: 5,090 t @ 5.1g/t gold (1987)

Marshall: 370 t yielded 15.2 kg gold, 17.6 kg silver, 470 kg copper, 2,300 kg lead and 560 kg zinc (1967-1975)

Brooklyn, Idaho, Stemwinder: 292,834 t yielded 855 kg gold, 3,431 kg silver, 3,567 kg copper (1900-1960; production after 1960 is included in the Phoenix summary)

Old Ironsides: 2.4 million t (no assays or recoveries given; production includes that from the Knob Hill, Drop Gold, Monarch, Victoria, Snowshoe and Curlew Mines)

Phoenix, Aetna, Curlew: 22 million t yielded 28,341 kg gold, 183,036 kg silver and 235,693 t copper (1900-1919: 12.4 milliin t of ore mined; 1959-1974: 9 million t of ore was mined; including the Knob Hill, Old Ironsides, Gold Drop, Monarch, Victoria, Snowshoe and the Curlew Mines)

Snowshoe: 1,284 kg gold, 4,950 kg silver and 6,322 t copper (1900-1904, 1906-1911; Granby Consolidated Mining & Smelting purchased the property in 1913 and through the years 1959, 1962-1964 mined 270,000 t of a lower grade ore by open pit mining and processing at the Phoenix Mill)

Rawhide: 856,634 t yielded 1,056 kg gold, 6,919 kg silver and 8,441 t copper (1904-1916; between 1959-1962 Granby mined the property on a
royalty basis and production is included in the Phoenix summary)

Gold Drop: 1.6 million t of ore mined (1905-1919; recoveries reported in Phoenix summary)

Grey Eagle: 45,360 t @ 0.2% copper, 36% iron and 0.7g/t gold (1916)

WESTERN ZONE Past Production Figures

Crescent: 250 t @ 1.5 g/t gold, 453 g/t silver also yielded 3,000 kg lead and 3,500 kg zinc (1905-1908)

Preston: 16 t yielded 18.4 kg silver and 306 kg lead

Last Chance: 704 t yielded 4.7 kg gold and 3,026 kg silver (1904-1905, 1920, 1935; a sample of the dump assayed 15.8 g/t gold, 278 g/t silver, 2% lead and 5% zinc)

Skylark: 1,866 t yielded 5,282 kg gold, 22.5 kg silver, 25.8 t lead and 4.8 t zinc (1905-1907, 1915, 1935) and 33,298 t yielded 11,751 kg silver, 90 kg gold,
108 t lead, 44 t zinc and 9,536 t copper (1988-1989)

Prince Henry: 19 t yielded 40,060 kg silver, 0.4 kg gold and 1,130 kg lead (1906, 1917)

Bay: 447 t yielded 17 kg gold and 17 kg silver (1904-1941; majority in 1935)

Mavis: 29 t yielded 0.6 kg gold and 1.7 kg silver (1906)

(All figures sourced from the latest NI43-101 Technical Report prepared by Dr. Mathew Ball, P.Geo, with effective date as of January 20, 2017)



Portal to the past producing May Mac Mine in Greenwood, British Columbia (photo: Udo Rettberg)

On January 16, Golden Dawn reported additional drill results and corrected erroneous assays for 1 hole at the May Mac Mine. Repeat analyses on surface hole BF 16-26 indicate the original fire assay results announced in a news release dated December 12, 2016 were biased low. Additional check assays were done on a highly mineralized intercept for silver, gold and base metals by the same laboratory. Revised values for the intercept are:

6.07 m @ 133.6 g/t silver, 0.54 g/t gold, 3.6% lead and 1.5% zinc including:

0.96 m @ 688 g/t silver, 1.18 g/t gold, 19% lead and 7% zinc

This intercept is from a very significant 100 m step-out hole along the north-westerly trend of the Skomac Vein system. The hole not only demonstrates the northwest strike extension, but also extends the vein to 13 m below the #7 Adit level. It indicates that mineralization similar to that historically mined from the upper levels of the mine is present down to the No. 7 level, and that the mineralization continues along strike and is open to the northwest. Further surface drill testing will test the extent of the mineralized zone.

9 underground holes totalling 805 m were drilled at the May Mac Mine to test for mineralized zones on the Skomac vein and to test for parallel veins. All 9 holes intersected the target Skomac vein indicating that the Skomac vein mineralization continues down to and below the No. 7 level. Significant results are presented in the Table 1, including previously released results for hole MU16-0.

Drill Hole MU16-01, penetrating from the end of No. 7 level along the line of the tunnel, intersected the Skomac vein at 18 m. Extending the No. 7 drift 18 m will intersect this mineralized zone. The remaining holes (MU16-02 to 9) were drilled on a fan pattern to the northeast from drill station #3, the deepest of 3 drill stations excavated in 2016. Golden Dawn will resume May-Mac Mine underground drilling by January 21 from drill station #3, followed by stations #2 and #1. The company will continue underground as well as surface exploration drilling to locate a source of mill feed from the May Mac Mine to add to the future production from the company’s Lexington and Golden Crown Mines.



Technical Perspective

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Company Details

Golden Dawn Minerals Inc.
#318 - 1199 West Pender Street
Vancouver, B.C. V6E 2R1 Canada
Phone: +1 604 221 8936

Shares Issued & Outstanding: 97,236,676

Canadian Symbol (TSX.V): GOM
Current Price: 0.265 CAD (01/25/2017)
Market Capitalization: 26 million CAD

German Symbol / WKN (Tradegate): 3G8A / A1XBWD
Current Price: €0.187 EUR (01/25/2017)
Market Capitalization: €18 million EUR



Previous Coverage 

Report #10: “Golden Dawn discovers 10 g/t gold over 15 m at surface and delivers top results from the underground“

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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Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 97,236,676
Phone: +1 604 221 8936

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