Vancouver, May 20, 2015 – Golden Dawn Minerals Inc. (TSX-V: GOM; FRANKFURT: 3G8N) (the “Company” or “Golden Dawn”) is pleased to provide the following update of recent activities and plans for the immediate future. The Company’s principal properties with historic mines and processing facility are located 4 km west of the community of Greenwood B.C., Canada, on Highway #3 in South Central B.C.. The Company is in the process of permitting two -10,000 tonne bulk samples for the May Mac Property totalling 20,000 tonnes for the 2015 exploration and processing. One bulk sample would be produced from the #7 access of the historic May Mac Mine, and the other from the #2 access of the historic Amigo Mine, which is located 1.1 km south of the May Mac #7 adit. The mineralized zones at the May Mac and Amigo may or may not be part of the same regional mineralized structure.
Bulk sample permitting is subject to the Company either having (A) its own Mill in operation, or (B) having processing done at a regional toll Mill, or (C) shipping run of mine or pre-concentrated material direct to a suitable smelter. Currently, the Company is evaluating each of these options to determine which is the most feasible. As part of the initial program the Company is collecting representative underground mineralized rock samples from the historic May Mac and Amigo mines. These samples will be subjected to laboratory metallurgical testing to generate data for flowsheet design, which is estimated to be concluded by mid-July 2015. The initial metallurgical test results should be available within 2-4 weeks.
Concurrently, the Company will commence with exploration including underground drilling in the May Mac number #7 main access to confirm the extension of the historic AA Vein Zone. This vein was successfully mined historically from the #6 access located approximately 75 meters above the #7 access. (For more details see Company website www.goldendawnminerals.com) The permit for this exploration work is in place. The estimated cost of the above exploration and related laboratory testing program is $300,000.
Subject to the results of the bulk sampling permit application and exploration including drilling results, the company will then commence with mining up to 20,000 tonnes. Approval of the bulk sample permit is estimated for the third quarter of 2015. The underground drilling and bulk sampling programs are being conducted in order to assess whether the potential historic May Mac and Amigo mines can support the economics for producing and processing up to 75,000 tonnes per annum. Assuming positive economics, this would require re-activating the underlying historic small mines permits.
The cost of refurbishing the Company’s existing (100 Tonnes per day) mill at the site of the historic May Mac and Amigo Mines is estimated not to exceed $1,000,000. The decision to refurbish the Company’s existing processing facility will be made in the event a suitable resource and mill feed can be established from the underground exploration and bulk sampling program at the historic May Mac and Amigo mines. The Company expects to have the initial 20,000 tonnes processed by a toll mill, or in the event of sufficient in-situ grades, possibly by using pre-concentration techniques, to sell this material by direct shipping (DSO) to a suitable smelter.
Given that the property with its historic mines and processing facility, is situated in a significant historic mining camp, with pre-existing infrastructure, with a positive 2011 authored National Instrument (NI) 43-101 technical report, the Company is encouraged that re-evaluating potential mining operations at the historic May Mac and Amigo mines is warranted based on the above program. Currently there are no known NI 43-101 compliant mineral resources at either of the historic May Mac or Amigo mines. The May Mac Mine last produced in 1982 and has been on care and maintenance since then.
This News Release has been reviewed and verified by Michael Dufresne, M.Sc., P.Geol., P.Geo. of APEX Geoscience Ltd., a Qualified Person as defined by National Instrument 43-101.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Chief Executive Officer
For further information, please contact:
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS DOCUMENT CONTAINS CERTAIN FORWARD LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, DELAYS, AND UNCERTAINTIES NOT UNDER THE COMPANY’S CONTROL WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR ACHIEVEMENTS IMPLIED BY THESE FORWARD LOOKING STATEMENTS. WE SEEK SAFE HARBOR.