VANCOUVER, BC–(September 28, 2016) – Wolf Wiese, CEO of Golden Dawn Minerals Inc., (TSX VENTURE: GOM) (FRANKFURT: 3G8A) (the “Company” or “Golden Dawn“) reports that the Company has implemented the following measures on its 100-per-cent-owned Greenwood precious metal project, located in the historical Greenwood mining district near the city of Greenwood, 500 kilometres east of Vancouver, B.C.
The company is moving rapidly toward renewed operations for the Greenwood mill, and the May Mac, Lexington and Golden Crown mines. The 200- to 400-tonne-per-day mill and the Lexington and Golden Crown mines have recently been purchased from Huakan Mining International Inc. All three mines are located within a 15-kilometre radius from the Greenwood mill.
Mechanical personnel has commenced work to reactivate the Greenwood mill from an eight-year care-and-maintenance hiatus.
The company has submitted a permit application to dewater the Lexington mine.
As of this week, an underground mining crew has begun rehabilitating adits No. 6 and 7 of the May Mac mine, with the objective of cutting drilling stations for extensive underground drilling together with extending access to allow bulk sampling. Any material bulk sampled will be processed at the company’s Greenwood mill.
At the Amigo mine, lying 1,000 metres south of the May Mac mine, drilling has been under way since the beginning of September, 2016, with assay results to be provided when available.
Further additional surface drilling will be undertaken on the historical Skomac vein system encountered in five adits within the May Mac mine. The current underground and surface exploration program is designed to delineate mineralized material suitable for bulk sampling, commencing the first quarter of 2017. In total, the company intends to complete 2,500 metres of combined surface and underground drilling on the May Mac and Amigo mines, by year-end 2016.
On the financial front, RIVI LLC and Golden Dawn are finalizing the details of a gold-streaming contract for the Lexington and Golden Crown mines, which will provide a $3-million (U.S.) financing to Golden Dawn, upon signing of a final agreement and TSX Venture Exchange approval. This is to be followed by $1-million (U.S.) when the production rate reaches 80 per cent of at least 200 tons per day. This agreement is expected to be executed in the latter part of October, 2016.
In summary, Golden Dawn anticipates, for the year-end of 2016, completion of the underground and surface exploration of the May Mac mine, and completion of the mill rehabilitation to process the first bulk samples from the May Mac mine in the first quarter of 2017. Postdewatering of the Lexington mine, trial mining will commence in the second to third quarter of 2017. The Golden Crown mine is planned to be placed into operation in the second quarter of 2018.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Chief Executive Officer
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