FRANKFURT EXCHANGE: 3G8
VANCOUVER, March 22, 2012 /PRNewswire/ - Golden Dawn Minerals Inc. (TSX-V: GOM; FRANKFURT: 3G8) (the "Company" or "Golden Dawn") is pleased to announce that it has extended the time to fulfill its exploration expenditure commitments under the option agreements with respect to the Boundary Falls, Wild Rose and Royal Attwood properties located in the Greenwood Mining District, British Columbia.
Wolf Wiese, President and CEO of Golden Dawn, stated: "these revisions will allow greater flexibility in carrying out the continued exploration and drilling programs that have returned encouraging results to date on all of the properties. Golden Dawn anticipates a resumption of its drilling activity now that permits are in hand."
The 1000 ha Boundary Falls property is located 3 km west of Greenwood and contains the historic permitted May Mac Mine and the associated 130 t/d gravity and floatation mill and tailings pond. The property was optioned by Golden Dawn on February 23rd, 2010 with property expenditure commitments were $1,500,000 over 3 years, i.e. $250,000 due to be incurred by February 23rd 2011; $500,000 (aggregate - $750,000) by February 23rd, 2012; and $750,000 (aggregate - $1,500,000) by February 23rd, 2013. The Company has incurred to date approximately $570,000 on Boundary Falls. These commitments have now been revised to $250,000 (aggregate - $820,000) by December 2012, $250,000 (aggregate - $1,070,000) by June 30th, 2013 and $430,000 (aggregate -$1,500,000) by December 31st, 2014.
To the north of the Boundary Falls, the contiguous 750 ha Wild Rose property contains both the Wild Rose and Wild Cat multiple vein systems and the recently drilled gold Inferred Resource of 19.4 million tonnes grading 0.43 grams per ton (g/t) gold with a cut-off grade of 0.3 g/t (see news release of July 13th, 2011). The property was optioned on September 15th, 2010, with property obligations and work commitments of $2M to be incurred in stages by December 2014. Recognizing that approximately $1,750,000 has been expended on exploration since November 2010 on that property, the Optionors have agreed to defer the remaining $250,000 in exploration expenditures to December 31, 2014.
The 1800 ha Royal Attwood property is located about 15 km southeast of Greenwood and about 5 km south of the historic Phoenix Mine, which produced 1,000,000 ounces (oz) of gold, 6 million oz of silver and 600,000,000 pounds of copper from 30,000,000 tonnes grading 1.2 g/t gold and 1% copper. The original agreement to earn in a 100% interest by Golden Dawn required exploration expenditures as follows: $250,000 by February 23rd, 2011, $500,000 (aggregate - $750,000) by February 23rd, 2012 and $750,000 (aggregate - $1,500,000) by February 23rd, 2013. To date, Golden Dawn, jointly with Hi Ho Silver Resources Inc. (pursuant to an option agreement amended on June 30th, 2011 - see news release on May 9th, 2011) has incurred $580,000 in exploration expenditures on the property. The Option agreement has been amended to an earn-in option of 90% and the exploration expenditure commitment has been revised to $250,000 (aggregate - $830,000) by December 31st, 2012; $250,000 (aggregate - $1,080,000) by June 30th, 2013; and $420,000 (aggregate - $1,500,000) by December 31st, 2014.
Golden Dawn looks forward to a rewarding exploration season for 2012. We anticipate an evaluation of the May Mac Mine, on the Boundary Falls property, for bulk sampling and metallurgical testing. Continued planning and permitting is in progress for drilling in order to evaluate potential extension of the Deadwood Inferred Resource located, on the Wild Rose property, westward onto the Tam O'Shanter portion of the Greenwood project.
Golden Dawn, jointly with Hi Ho Silver Resources Inc., plans to initiate a diamond drilling program of at least 2,500 meters on the Royal Attwood Project in 2012.
The information in this document has been reviewed and verified by Mike Dufresne, M.Sc., P.Geol. of APEX Geoscience Ltd., a Qualified Person. The programs will be supervised by Mr. Dufresne.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
President/ Chief Executive Officer
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.
SOURCE Golden Dawn Minerals Inc.