VANCOUVER, Canada, July 22, 2019, Golden Dawn Minerals Inc., (TSXV: GOM | OTCPink: GDMRD | FRANKFURT: 3G8C), (“Golden Dawn” or the “Company”), provides the following update on exploration permitting activities in the Greenwood Mining Camp in southwestern British Columbia.  The Company lodged a number of applications for exploration permits last year and has been quietly processing these and identifying new targets for the next rounds of exploration work. 

“It’s a been a challenge, but we are making steady progress and there is light at the end of the tunnel” States Anderson CEO

 

Through its subsidiary 1086359 BC Ltd., the Company recently received a Multi-Year Area-Based permit for exploration on claims surrounding the Lexington mine site, conditional on payment of a reclamation bond.  This permit will facilitate exploration along a 4 km trend of favorable host rocks that stretches from the border with Washington State to the Lexington mine and further northwest.  This favorable corridor contains several historic drill holes that intersected significant copper-gold mineralization similar to that exposed within the Lexington mine, and three historic mines around which minimal drilling has been done.  (See map above).

A surface exploration permit application for the Lexington mine area has also been lodged to facilitate testing for parallel zones of mineralization close to the Lexington Main zone, the so-called “Exploration Targets” documented in the May 5, 2017 Preliminary Economic Assessment report.  Also within the mine area, a rock chip channel sample collected at the City of Paris historic mine that overlies the Lexington mine returned a result of 18.0 grams per tonne gold and 0.42% copper over a sample width of 4.5 meters, indicating excellent potential for significant mineralization in this area (previously reported in news releases dated 30 January and 11 June, 2018).

The Company also received an amendment to its exploration permit on the Golden Crown property which expands the area permitted for drilling to include the JD mine area.  The historic JD Zone is located 3 km west of the Golden Crown Mine along a trend of gold in soil anomalies, where sulphide veins similar to those at the Golden Crown mine are present. Weighted average results for chip samples (sample traverses) from the JD area are provided in the table below (previously reported 30 January 2018).  

Table of averaged results for consecutive surface rock chip samples at JD area (2017)

 

Permitting is also underway for exploration on the Phoenix property, registered to Golden Dawn’s wholly owned subsidiary Kettle River Resources Ltd.  This property is currently under review for option by GGX Gold Corp (GGX).  The Company expects to receive a permit this season, which will enable exploration drilling on a number of priority target areas. 

The purpose of the planned exploration work is to advance a pipeline of targets that have potential to provide additional feed material to the Greenwood processing plant and extend the project life beyond that described in the May 5, 2017 PEA report.

The Lexington mine and Greenwood processing facility remain on care and maintenance pending further technical studies and review by new the management. New management is also in the process of making updates to the permits prior to proceeding with any operations; news will follow in due course.  The Company will be in a position to make a production decision once its corporate affairs and financial position have improved.

Dr. Matt Ball, P.Geo, a qualified person as defined by National Instrument 43-101 and President of the Company, approved the technical information in this release.

The company has granted one million three hundred thousand stock options at an exercise price of twenty five cents to its directors, officers, employees and consultants. The options are exercisable for five years and will be cancelled 30 days after cessation of acting as director, officer, employee or consultant of the company. The stock options are not transferable and will be subject to a four-month hold period from the date of grant and any applicable regulatory acceptance.

 

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:

Tel: 604-488-3900

Email: Office@goldendawnminerals.com

 

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.

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.