Full version / The strongly mineralized King Vein outcrops at surface, whereas today‘s drill results confirm continuation of high-grade mineralization near surface in a field of multiple veins and veinlets.
Yesterday after market close in Canada, Golden Dawn Minerals Inc. released another set of drill results from its ongoing surface drill program at its Golden Crown Property near Greenwood in British Columbia, Canada.
• To date, 31 holes have been drilled totaling 2,954 m (on average 95 m per hole).
• The assays of holes 1- 9 holes were reported in early November (see here).
• Holes 10-19 are reported today along with those for the first 9 holes which are updated to include re-assays of core where initial results were higher than the upper detection limit. Length weighted average grades were calculated for 2 intercepts as follows:
3.53 g/t gold + 0.11% copper @ 3 m (9.24-21.58 m) including:
7.60 g/t gold + 0.13% copper @ 4.6 m (17-21.58 m)
Note: these intercepts include a few intervals of low core recovery (as low as 21%).
6.77 g/t gold + 1.18% copper @ 6.95 m (14.65-21.6 m) including:
16.48 g/t gold + 1.96% copper @ 2.69 m (18.13-20.82 m)
• The results indicate gold and copper grades of economic interest in massive sulphide veins and adjacent wall rocks:
"The deposit now appears to consist of a field of multiple veins and veinlets, with the main vein structures selected as targets for underground development."
• The holes reported to date were drilled to test 4 different zones on the Golden Crown Property: The King, Winnipeg, Portal and Southwest Zones. Located 3 km west of the Golden Crown Property is the historic JD Zone, where rock chip samples (1 m wide) showed grades between 1.8 and 15.8 g/t gold (average of 7.4 g/t).
• As the above 19 holes from Golden Crown not only showed high gold and copper grades in massive sulphide veins but also significant mineralization in the adjacent wall rocks (in form of veinlets and disseminated sulphides), the upcoming drill program will test for a continuation of mineralization in the entire area between the Golden Crown Property and the JD Zone. If this +3 km long area indeed shows a continuation of mineralization of at least 1 g/t gold near surface, the company could start evaluating the potential for open-pit mining of all or parts of this mineralized trend at surface. In general, open-pit mining is less complicated and thus much cheaper than underground mining. Therefore, overall mining costs of a combination of open-pit and underground mining could be reduced significantly while at the same time significantly more material could be mined and processed.
• Already selected targets for underground development will also be evaluated as the company plans to permit underground mine development and bulk sampling to prepare the Golden Crown Property for full-scale production in 2018.
• The drill results of 12 more holes are pending, whereas drilling continues, so the assays of more than 12 holes will be announced once available.
Below video shows recent drilling on the Golden Crown Property:
• The Golden Crown property lies only 3 km from the Greenwood Processing Plant and is a key component of the material scheduled to be processed at the plant.
• Continued drilling is planned to potentially increase resources and upgrade Inferred Resources to the Indicated category:
Golden Crown 2016 Resource Estimate (3.5 g/t gold equivalent cut-off):
Indicated: 163,000 t @ 11,09 g/t gold + 0.56% copper (11.93 g/t gold equivalent; 62,500 gold equivalent oz)
Inferred: 42,000 t @ 9.04 g/t gold + 0.43% copper (9.68 g/t gold equivalent; 13,100 gold equivalent oz)
Shares Issued & Outstanding: 126,943,073
Canadian Symbol (TSX.V): GOM
Current Price: $0.285 CAD (12/04/2017)
Market Capitalization: $36 Million CAD
USA Symbol (OTC): GDMRF
Current Price: $0.194 USD(12/04/2017)
Market Capitalization: $25 Million USD
German Symbol / WKN (Frankfurt): 3G8A / A1XBWD
Current Price: €0.182 EUR (12/04/2017)
Market Capitalization: €23 Million EUR
Report #18: “High-Grade Gold and Copper Drill Results Near Surface at Golden Crown“ (November 1, 2017)
Report #17: “Rapid Progress with the Reactivation of Mine and Mill“ (October 25, 2017)
Report #16: “Dewatering Start! Gold Production Expected in Novembert“ (August 22, 2017)
Report #15: “Golden Dawn receives Mine and Mill Permits and Rockstone publishes a Site Visit Report“ (June 21, 2017)
Report #14: “Golden Dawn Minerals getting increasingly attractive with latest acquisition plans“ (June 6, 2017)
Report #13: “Golden Dawn in the spotlight of the press “ (February 9, 2017)
Report #12: “Gold and Gold Stocks: The Best Hedge Against Trump and Other Uncertainties“ (January 31, 2017)
Report #11: “Golden Dawn Discovers New Prospect For A Possible World-Class Deposit“ (January 26, 2017)
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: “Coverage on 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. The author holds a long position in Golden Dawn Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Golden Dawn Minerals Inc. Cautionary Statement: The June-2017-PEA is preliminary in nature and it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized. Golden Dawn Minerals Inc. (the "Company") would like to clarify that its decision to proceed to extract mineralized material from the Lexington, Golden Crown and May Mac mines for processing at its facility located at the Greenwood Precious Metals Project was not based on a Feasibility Study. The Company cautions that, in such cases, there is increased uncertainty and higher economic and technical risks of failure. The Company notes that, since the mining and processing infrastructure is in place, it intends to proceed to trial mining and processing on the basis of Mineral Resource Estimates and the Preliminary Economic Assessment.