| GOM - V | 39.5 | 0.26 · 0.265 | 47.5 | 0.26 | -0.01 | -3.7 | 164.6 | 43 | 20 | 0.27 0.27 0.26 | 0.42 0.23 | 12:46:41 | Jan 23 | 15 min |
Golden Dawn releases NI 43-101 estimate for J&L
2018-01-23 06:30 ET - News Release
Mr. Wolf Wiese reports
GOLDEN DAWN ANNOUNCES UPDATED J&L MINERAL RESOURCE ESTIMATE AT 1.35 MILLION MEASURED AND INDICATED GOLD EQUIVALENT OUNCES AND 1.08 MILLION INFERRED GOLD EQUIVALENT OUNCES
An updated mineral resource estimate has been completed for Golden Dawn Minerals Inc.'s J&L project, with 1.35 million gold equivalent ounces in the measured and indicated categories and 1.08 million gold equivalent ounces in the inferred category. J&L is therefore one of the largest undeveloped gold mineral resources in Western Canada.
J&L is an advanced-stage project located 35 kilometres north of Revelstoke, B.C. The project assets include a rail siding and loadout facility for the Canadian Pacific Railway in Revelstoke, and a fully functional 40-man camp as well as a large shop and office facility located at the property, with two mine portals that access 3.1 kilometres of underground mine workings, and a fleet of formerly utilized underground mining equipment.
J&L MINERAL RESOURCE ESTIMATE AT $110/TONNE NSR CUT-OFF (1) (2) (3) (4) (5) (6) Main Tonnes Au Au Ag Ag Pb Zn AuEq AuEq zone (000) (g/t) (000 oz) (g/t) (000 oz) (%) (%) (g/t) (000 oz) Measured 1,337 6.19 266 63.3 2,721 2.21 4.12 9.69 417 Indicated 2,778 5.42 485 49.8 4,450 1.75 3.16 8.14 727 Measured and indicated 4,115 5.67 751 54.2 7,172 1.9 3.47 8.65 1,144 Inferred 4,433 4.42 630 63.0 8,978 1.92 2.65 7.13 1,016 Hangingwall Tonnes Au Au Ag Ag Pb Zn AuEq AuEq zone (000) (g/t) (000 oz) (g/t) (000 oz) (%) (%) (g/t) (000 oz) Indicated 280 0.91 8 57.1 515 2.59 5.93 5.33 48 Inferred 33 0.24 0 77.7 83 3.16 5.89 5.11 5 Footwall Tonnes Au Au Ag Ag Pb Zn AuEq AuEq zone (000) (g/t) (000 oz) (g/t) (000 oz) (%) (%) (g/t) (000 oz) Inferred 319 4.04 41 25.9 265 0.54 0.47 4.77 49 Yellowjacket Tonnes Au Au Ag Ag Pb Zn AuEq AuEq zone (000) (g/t) (000 oz) (g/t) (000 oz) (%) (%) (g/t) (000 oz) Indicated 764 0.09 2 62.8 1,544 2.61 9.98 6.42 158 Inferred 23 0.12 0 55.5 41 2.67 7.75 5.38 4 Total all Tonnes Au Au Ag Ag Pb Zn AuEq AuEq zones (000) (g/t) (000 oz) (g/t) (000 oz) (%) (%) (g/t) (000 oz) Measured 1,337 6.19 266 63.3 2,721 2.21 4.12 9.69 417 Indicated 3,823 4.03 495 53.0 6,509 1.98 4.73 7.60 934 Measured and indicated 5,160 4.59 761 55.6 9,231 2.04 4.57 8.14 1,351 Inferred 4,808 4.35 672 60.6 9,367 1.84 2.55 6.95 1,075 Notes (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, socio-political, marketing or other relevant issues. (2) The inferred mineral resource in this estimate has a lower level of confidence than 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 estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM standing committee on reserve definitions and adopted by CIM council. (4) The following parameters were used to derive the NSR block model cut-off values used to define the mineral resource: * Dec. 31, 2017, U.S.-dollar two-year trailing average metal prices: lead 95 cents/pound, zinc $1.13/pound, gold $1,253/ounce, silver $17.08/ounce; * Exchange rate of 76 U.S. cents/$1; * Process recoveries of Pb 74 per cent, Zn 75 per cent, Au 91 per cent, Ag 80 per cent; * Smelter payables of Pb 95 per cent, Zn 85 per cent, Au 96 per cent, Ag 91 per cent; * Refining charges of Au $10 (U.S.)/ounce, Ag 50 U.S. cents/ounce; * Concentrate freight charges of $65/tonne and smelter treatment charge of $185 (U.S.)/t; * Mass pull of 5-per-cent and 8-per-cent concentrate moisture content. (5) The NSR cut-off of $110 per tonne was derived from $75/t mining, $25/t processing, and $10/t general and administrative expenses. (6) AuEq equals Au g/t plus (Ag g/t times 0.011) plus (Pb per cent times 0.422) plus (Zn per cent times 0.455).
The mineral resource estimate was undertaken by P&E Mining Consultants Inc., which will complete a technical report for Golden Dawn within 45 days of this news release.
The updated mineral resource estimate includes the Main, Yellowjacket, Hangingwall (HW) and Footwall (FW) zones. The most significant are the Main, Footwall and Yellowjacket zones. The Main zone extends over three km on surface and has been drill defined over 1.5 km along strike and 850 m downdip and remains open for expansion. In general, the zones consist of gold-silver-lead-zinc-bearing sulphides.
Golden Dawn will also proceed with a preliminary economic assessment (PEA) to fulfill the first phase of the terms of its option agreement. It is expected that the PEA will incorporate results of advanced metallurgical studies and will investigate opportunities for preconcentration and processing on and off site. The PEA is expected to be completed within five to eight months, with costs estimated at $250,000, including project expenditures. The company has no further significant obligations under the terms of the option agreement until a decision is made to proceed with a prefeasibility study. Golden Dawn intends to manage the J&L project on a stand-alone basis and finance it on the foundation of an economically robust prefeasibility study.
In other news, the Greenwood precious metals project milestones are being met in a timely manner. As recently reported (news release Jan. 18, 2018), dewatering of the Lexington mine is now complete and current work is progressing toward start-up of operations within the next few months.
Discussion
The board of directors and management are grateful to the serendipitous circumstances which led to the three major acquisitions in the past two years (Greenwood mines and plant, the surrounding prospects under Kettle River Resources Ltd., and the J&L project). The situation included: the mostly ignored precious and base metal sector resulting in depressed asset prices, and the company's persistent presence in the Greenwood mining district since 2010, which gave the company the knowledge of key assets available and the personal contacts with their vendors. Company management is optimistic that the market cap of the company will be positively reflected due to its current in-situ mineral resources, its 100-per-cent-owned processing plant in Greenwood (with production start-up targeted in the next few months), and the opportunity to develop the potentially significant J&L property.
Technical disclosure in this news release has been approved by Eugene Puritch, PEng, FEC, CET, of P&E Mining Consultants Inc., who is a qualified person as defined by National Instrument 43-101 and is independent of Golden Dawn Minerals.
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