Golden Dawn Minerals - Lexington Mine

The Lexington Mine

Mar. 2016: Golden Dawn (GOM) updates 43-101 technical resource report to confirm resources of Lexington & Golden Crown mines.
Sept. 2016: GOM acquires Lexington and Golden Crown mines and Greenwood processing mill.
June 2017: GOM files positive PEA for Lexington, Golden Crown mines and Greenwood mill.
June 2017: GOM receives mine permits for Lexington and Greenwood process plant operations.
Permits allow for de-watering and material extraction of Lexington mine and operating of Greenwood mill to process material from Lexington mine.
Jan. 2018 The de-watering of the Lexington mine is now complete.

Lexington Mine Update (March 2018)

Lexington Mine Project Video

The 100% owned Lexington-Grenoble Deposit was developed as an underground copper-gold mine by Merit Mining Corp and saw a short period of production in 2008 by Merit Mining Corp., after which it ceased operation due to lack of funding indirectly related to the 2008 market crash. It has been kept on care and maintenance.

A total of 54,237 tonnes of ore were mined from the underground Lexington-Grenoble Mine by Merit Mining Corp. from April to  December 2008 and processed through the Greenwood gravity-flotation plant, producing 5,486 ounces gold, 3,247 ounces silver and 860,259 pounds of copper. Only a small portion of the Lexington-Grenoble Deposit was mined in that episode.

The remaining resource estimate, based on a total of 232 drill holes, is given in the table below.


Lexington-Grenoble Deposit Updated Mineral Resource Estimate

Source: Updated Preliminary Economic Assessment on the Greenwood Precious Metals Project, P&E Mining Consultants Inc., Effective date: May 5, 2017.

(3.5 g/t AuEq cut-off)

Class Tonnes Au g/t Cu % AuEq g/t AuEq ozs
Measured 58,000 6.98 1.1 8.63 16,100
Indicated 314,000 6.38 1.04 7.94 80,200
Meas & Ind 372,000 6.47 1.05 8.05 96,300
Inferred 12,000 4.42 1.03 5.96 2,300

(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. It is noted that no specific issues have been identified as yet.

(2) The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

(3) The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council

(4) The 3.5 g/t AuEq underground Mineral Resource cut-off grade for Lexington and Golden Crown were derived from the approximate Apr 30/17 two year trailing average Au price of US$1,200/oz and Cu price of US$2.50/lb, US$/C$ exchange rate of 0.80, 90% & 85% respective Au and Cu process recoveries, C$35/t process cost, C$75/t mining cost and C$30/t G&A cost. AuEq g/t = Au g/t + (Cu% x 1.5)