Open-Pit in Sight

Surface drilling at Golden Crown has yielded results that exceeded expectations (see video here).

Today, Golden Dawn Minerals Inc. announced the assay results from the remaining 14 holes of the 33 holes drilling campaign at its Golden Crown Property in British Columbia. The results of the first 19 holes were announced on December 4, 2017 (see here). 

Even more impressively, the new results show that Golden Crown hosts significant gold grades within massive sulphide and quartz-sulphide veins and veinlets. It is remarkable that, again, gold grades of interest are also associated with veinlet-controlled and disseminated sulphides in the host rocks. Overall this means that not only veins and veinlets (massive sulphides) are enriched with gold but also the surrounding host rock (e.g. disseminated sulphides).

These findings are increasingly becoming a game-change for the company and its plans with Golden Crown. Originally, the company planned to develop existing underground workings to only mine the main vein structures. Now it sees potential for additional open-pit extraction of the mineralized host rock. Open-pit mining is much cheaper than underground mining. As Golden Dawn is now considering both underground and open-pit mining, overall production costs could be reduced as if only underground mining took place. It also means a higher throughput of mined material and as such a potentially significantly expanded resource estimate. 

More Drilling To Expand Resources

As announced today, further drilling is schedulded to start within the next few weeks, aimed at increasing the current NI43-101-compliant resource estimate, upgrading inferred to indicated category, and to hopefully make additional new discoveries.

The upcoming drill program will first test for extensions of the following zones King, MacArthur, Samaritan and Portal. Thereafter, the area between Golden Crown and the historic JD Zone will be drilled to test if this entire 3 km long area is favorably mineralized and potentially also amenable for open-pit mining. The JD Zone hosts quartz and sulphide veins similar to those intersected in the 2017 drilling at Golden Crown. Rock chip samples from the JD area range between 1.8 and 15.8 g/t gold, with an overall average of 7.4 g/t gold. 

2 Gold Mines To Go Into Production In 2018

The Golden Crown Property lies 3 km from its own, modern Greenwood Processing Plant (200-400 t/day capacity) and is planned to be mined, and processed at the plant, after the Lexington Underground Mine is brought online. The company is continuing with permitting an underground mine and bulk sampling in 2018, leading to full production from the Golden Crown Mine.

The company is rapidly progressing towards start-up of mining operations at the Lexington mine, located 17 km south of the Greenwood Processing Plant, with de-watering now complete and mine planning and geotechnical assessments being conducted prior to initial mining. The Greenwood Processing Plant will be wet commissioned once the mining operation is underway. The company is also awaiting assay results to quantify the test work completed in December utilizing new state-of-the-art product/waste separation sensor sorting technology provided by Steinert US Inc.

In addition, surface rock chip sampling was conducted in late fall of 2017 at the Lexington Property The surface outcrop of the historic City of Paris Mine consists of a quartz-sericite altered zone containing disseminated pyrite. A chip sample across this zone returned significant grade and width (14.5 g/t gold over 4.5 m true width).  This result warrants further investigation to determine the extent of mineralization remaining in this historic mine.

Bottom Line

Owning and advancing an entire district of historic mines and deposits is something exceedingly rare in today´s gold market, especially in such a politically safe and mining friendly jurisdictions like British Columbia. With gold prices on the rise again, Golden Dawn is doing everything they possibly can to ASAP bring into production the Lexington Underground Mine and the Golden Crown Underground Mine, plus potentially an open-pit an Golden Crown. 

The next weeks and months will bring tremendous upside potential as new drill results may result in a significantly expanded gold inventory at Golden Crown. 

The cherry on the cake is the recently acquired J&L Gold-Silver-Zinc Deposit near Revelstoke in British Columbia, where more than 2.4 million ounces of gold equivalents in NI43-101-compliant resources (measured, indicated and inferred) are just waiting to be brought into production. Golden Dawn intends to prove with Lexington and Golden Dawn that the company is capable of not only bringing mines into production but also operating them, namely in a highly profitable and cost-effective manner. 

Golden Dawn Minerals has put everything in place for a booming gold market, however the beauty is that the Lexington Project is so robust that even a gold price at only 1,000 would be sufficient for a profitable operation (All-In Production Costs 786 USD/oz). Eventually, investors will appreciate the true value of what Wolf Wiese has accomplished and is eager to advance into production over the next weeks and months.

Click here for updated gold price chart (15 min. delayed)

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 128,643,073


Canadian Symbol (TSX.V) GOM
Current Price 0.265 CAD (01/29/2017)
Market Capitalization 34 Million CAD


Current Price 0.217 USD (01/29/2017)
Market Capitalization 28 Million USD


German Symbol / WKN (Frankfurt) 3G8A / A1XBWD 
Current Price €0.179 EUR (01/29/2017)
Market Capitalization €23 Million EUR  

Previous Coverage 

Report #23 “Becoming a Heavy-Weight in the Gold Space Golden Dawn puts another 400,000 ounces on the scales“ (January 23, 2017)

Report #22 “Perfect Match Golden Dawn Minerals Takes Over Multi-Million Ounce Gold-Silver-Zinc Project in BC“ (December 19, 2017)

Report #21 “Golden Dawn Minerals Strengthens its Management Team“ (December 7, 2017)

Report #19 “New Drill Results from Golden Crown Show New Potentials“ (November 5, 2017)

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. 

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Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 128,643,073
Phone: +1 604 221 8936

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