2010-11-02 14:24 ET - News Release
See News Release (C-GOM) Golden Dawn Minerals Inc.
Mr. Wolf Wiese reports
GOLDEN DAWN MINERALS EXPANDS GOLD-COPPER EXPLORATION HOLDINGS, HISTORIC GREENWOOD MINING DISTRICT, BRITISH COLUMBIA, CANADA.
Golden Dawn Minerals Inc. has concluded an agreement with Kettle River Resources Ltd. to acquire 100-per-cent interest in the Tam O'Shanter gold-copper prospect in the historic Greenwood mining district, British Columbia, Canada. The acquisition requires the payment of $230,000 in cash, the issue of 1.5 million shares of common stock in Golden Dawn Minerals Inc. and a work commitment of $2-million over four years, subject to a 3-per-cent net smelter return royalty retained by Kettle River Resources Ltd. The company has the option to repurchase 2-per-cent NSR royalty for $3-million.
The 1,250-hectare Tam O'Shanter property complements and adjoins on the west two other tracts already held by Golden Dawn Minerals Inc., namely the Wild Rose property (750 hectares), and to the south the Boundary Falls property (1,000 hectares). This contiguous 3,000-hectare land package has undergone multiple phases of exploration during the 1980s, 1990s and early 2000s. Drilling of over 150 holes in several drilling campaigns encountered significant gold values at the Deadwood and Wild Rose zones along the eastern portion of the Tam O'Shanter property on strike with the Wild Rose vein systems and the Deadwood lower-grade bulk-tonnage targets.
A large reference database has been accumulated on the property from underground exploration, development and former production. These activities include 450 metres of underground exploration on the Wild Rose and Wild Cat vein systems; production and underground development in the 1,000-metre MayMac tracked adit on the Boundary Falls property; and milling of production from the MayMac mine through the 120-tonne-per-day permitted Roberts grinding and flotation mill, with tailings facility, located on that property. Combined with detailed geochemical surveys, and both surface and recent airborne TEM and magnetic surveys, this database provides a working platform for an anticipated exploration program. All this data are being compiled by APEX Geoscience Ltd. (APEX) of Edmonton into an Arc-Gis database.
Multiple gold-copper target types encountered in previous work and suggested by the current geophysical work provide the impetus for this current renewed exploration. These include: bulk-tonnage low-grade gold and gold-copper systems of Overlook type and South Penn type found in the Republic district of Washington state, United States, located immediately south of the land package; higher-grade sulphide-rich gold-silver-base-metal vein systems of Rossland type; gold and copper-bearing massive sulphides and skarns of Motherlode and Phoenix type; magnetite-gold systems of Belcher and Buckhorn type; and high-grade bonanza-grade low-sulphidation epithermal gold vein systems of the Knob Hill and K2 types.
Numerous historic diamond drill holes that have yielded wide auriferous intersections indicate a prospective exploration target zone approximately 2,000 metres by 200 metres in extent that reaches northwest across the property from the Wild Rose vein area to the Deadwood prospect area and into the newly optioned Tam O'Shanter property to the west. One of the most encouraging holes in this group is DDH 92-27 which intersected 63 metres averaging 0.95 gram per tonne gold and up to 0.4 per cent copper, including 0.15 metre assaying 134.2 g/t (4.3 ounces per ton) gold. Numerous drill holes into the Wild Rose vein system have encountered intersections of up to 2.5 metres assaying from anomalous gold up to 34 g/t gold and up to 3 per cent copper.
All of the data are historical in nature and have not been verified. There are no known mineral resources on the property, and there can be no assurance that any will be found or if found that such may be economically mined.
Field crews are being mobilized to the area in preparation for drilling. The property is easily accessed by good logging and gravel roads from the nearby city of Greenwood, which is situated on Highway 3 and where all support services are available. Drilling has historically been possible into mid-December and can resume around mid-January.
The historic Greenwood district has produced gold and copper since 1888 from multiple deposits including the Motherlode (4.2 million tonnes at 0.8 per cent copper, 1.39 g/t gold) and the Phoenix (30 million tonnes at 0.99 per cent copper and one g/t gold). Significant gold production (173,555 ounces in 2009) continues within this mineral belt immediately to the south in Washington state at the Buckhorn mine of Kinross Gold.
This press release has been reviewed by Dr. Stewart Jackson, PGeol, a qualified person, and Mike Dufresne, MSc, PGeol, president of APEX Geoscience Ltd.
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