VANCOUVER, Canada, October 7, 2019, Golden Dawn Minerals Inc., (TSX-V: GOM | FRANKFURT: 3G8C | OTC Pink: GDMRD), (“Golden Dawn” or the “Company”), announces that it is initiating metallurgical testing of material from the Kenville gold mine in Nelson, B.C. The Kenville gold mine is being developed by Ximen Mining Corp. as an underground mine and is anticipated to produce gold-bearing material from development drives and bulk sampling. Golden Dawn and Ximen Mining Corp are collaborating on collection and metallurgical testing of mineralization from the Kenville mine. This is being done to support the concept of processing Kenvile material at Golden Dawn’s gravity-floatation process plant (see picture below).
Photo of Golden Dawn 200 tonne/day process plant flotation circuit in action (taken in 2008).
A representative sample of the gold-quartz mineralization from Kenville will be collected from historic drill core and submitted for metallurgical characterization. Specifically, the test work will investigate the mineralogy and chemistry of the mined material and process tailings, as well as the gold recovered using gravity concentration and bulk sulphide floatation. The tailings product will also be characterized for acid generating potential. (The tailings from Kenville material is anticipated at this stage to be non-acid generating and benign of by-product metals based on historical information.) The results will be used to support an application to the BC Ministry of Mines to amend the mill permit to allow custom milling of the Kenville material.
Currently, the Greenwood plant is configured to process free-milling gold and gold-copper sulphide mineralization from the Lexington mine. The anticipated run-of-mine product from the Kenville operation will also consist of a combination of free-milling gold and gold-sulphide (mainly pyrite) mineralization. As such, it is anticipated that gold from the Kenville mine could be recovered using the existing configuration of Golden Dawn’s Greenwood mill. Free milling gold would be recovered in the existing centrifugal concentrator, and a gold-pyrite concentrate would be produced from bulk floatation concentration following the flowsheet of the existing treatment circuit.
The Company’s intention is to transport Kenville material to Greenwood (approximately 150 km) and process the material in the Greenwood mill without having to perform major modifications to the existing treatment facility. Once the metallurgical test work is complete, a permit amendment will be applied for to allow custom milling. The next step would be refurbishment of the Greenwood mill in preparation for operations. Refurbishment of the mill would also benefit Golden Dawn’s plans for future operations at the Lexington mine.
Technical disclosure in this news release has been approved by Dr. Mathew Ball, P.Geo., a Qualified Person as defined by National Instrument 43-101, and President of the Company.
On behalf of the Board of GOLDEN DAWN MINERALS INC.
Per: “Christopher R. Anderson”
Christopher R. Anderson
Chief Executive Officer
For further information, please contact:
Golden Dawn Minerals Inc. – Corporate Communications:
Forward-Looking Statement Cautions:
This news release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, relating to, among other things, preliminary plans for a consolidation of the Company’s Shares. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the possibility that the TSX Venture Exchange will not approve the proposed share consolidation, and that the Company may not be able to raise sufficient additional capital to continue its business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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