FRANKURT EXCHANGE: 3G8
VANCOUVER, June 1 /PRNewswire-FirstCall/ - GOLDEN DAWN MINERALS (TSXV-GOM, FRANKFURT - 3G8) has signed a Letter of Intent covering an additional gold-silver-copper prospect in the Greenwood Mining District, southern British Columbia, Canada. This property is contiguous to the recently optioned Boundary Falls property, with its historic Maymac Mine, 1000 meters of tracked drifts, a permitted mill and tailings pond. Both properties are accessible by road, and lie in the heart of this highly prospective belt which has a history of gold, silver, and copper production dating from the 1880's to this date.
The Wildrose property, covering approximately 750 ha, is situated immediately southwest of the town of Greenwood and 2 km south of the depleted Motherlode Mine. Previous mining development activity in 2002-2003, consisting of an extension to an existing adit of 450 meters length, intersected a new vein, the Wildcat vein, while advancing toward the Wildrose vein which was known from previous shaft exploration plus surface drilling. These two veins project to the north toward a prospective area known as the Deadwood zone at about 500 meters distance. The Deadwood zone is a highly mineralized potential bulk tonnage target as evidenced by diamond dril hole # 92-27 which intersected 63.23 meters grading 0.95 g/t gold, including 134.5 g/t gold, 19.2 g/t silver, and 0.55% copper over 0.15 meters.
The Wildrose vein was intersected by several drill holes from earlier drilling programs. For example DDH87-3 returned 0.255 oz/t gold over 7.5 feet. This intersection is projected to lie about 5 meters beyond the end of the exploration adit. Other drilling of the Wildrose vein has provided evidence for continued exploration drifting with some of the better drill intercepts as follows: DDH 86-5 :5.5 feet @0.33oz/t gold,0.47oz/t silver; DDH 86-8: 5.0 feet @0.17oz/t gold, 0.17 oz/t silver; DDH 86-12: 5.0 feet @0.27 oz/t gold, 0.22 oz/t silver; and DDH 87-3: 7.5 feet @0.255 oz/t gold, 0.39 oz/t silver, 0.38% copper.
A historic resource of 32,000 tons grading about 0.29 oz/t gold was estimated by Burton in 1991. This estimate is non-compliant with NI43-101 and cannot be relied upon for investment purposes. It is presented here to demonstrate the potential for early bulk sampling for determining gold grades when underground exploration is conducted on this vein.
During the driving of the adit toward the Wildrose vein, a new vein designated the Wildcat vein was intersected over a width of 3.75 feet grading 0.352 oz/t gold. This Wildcat vein is located approximately 60 meters to the east of the Wildrose vein but on a similar north-south orientation.
The processing plant (mill) on the nearby Boundary Falls property can be utilized to treat production fromthe Wildrose property, as the Wildrose mine portal is only about 2 km by road from the mill. Alternatively the mineralized material could be shipped to toll milling facilities such as the Kinross mill situated approximately 70 km to the south in the Republic Mining District of eastern Washington, USA.
As previously reported, Golden Dawn Minerals has also recently acquired the Royal Attwood property of 1800 ha, situated 10 km to the southeast of the properties described above. The Attwood property has extensive gold geochemical anomalies and I.P. targets coincident with helicopter TEM and MAG targets, which have not been subject to a diamond drilling program.
Both the Greenwood District and the Republic District to the south, while having been mined at multiple locations for about 100 years, are still yielding new deposits of gold and gold-silver-copper from re-evaluation of old showings and application of state-of-the-art exploration technologies. The Buckhorn Mountain gold deposit in Washington State, southwest of the Greenwood camp, which was discovered in the late eighties and containing over one million ounces of gold, is currently in production by Kinross, with the ore being processed through their mill near Republic. That mill has already processed over three million ounces of gold from several deposits discovered since the early 1980's.
To acquire an 80% interest in the Wildrose prospect, Golden Dawn must, within three years, pay $400,000 in cash, issue 2,000,000 shares and complete work commitments of $2,000,000. Golden Dawn Minerals' immediate focus will be to undertake a thorough exploration program on these properties, consisting of bulk ore sampling from the Wildrose and Maymac mines, and tests on the bulk tonnage exploration targets, with a view to move to production from any of the three properties should resources and reserves be delineated in furtherance to NI43-101 reports.
There are currently no known resources under NI43-101 located on the properties. There can be no assurance that any such resources will be found, or if found that they can be mined at a profit.
The information contained in this press release has been reviewed for release by Stewart A Jackson, PhD, P.Geol., a qualified person under NI 43-101. The qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Golden Dawn Minerals is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
ON BEHALF OF THE BOARD OF DIRECTORS OF
GOLDEN DAWN MINERALS INC.
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SOURCE Golden Dawn Minerals Inc.