Golden Dawn signs letter of intent with the Lichtfield Group, one of Peru's largest underground mining contractors to fund and develop its May Mac Mine on the Greenwood project, British Columbia, Canada
VANCOUVER, Sept. 26, 2011 /PRNewswire/ - Golden Dawn Minerals Inc.
, (the 'Company' or 'Golden Dawn') is pleased to announce that it has signed a Letter of Intent with Lichtfield del Peru S.A.C. of Lima, Peru, whereby Lichtfield may earn a 50% interest in its Boundary Falls property, three kilometers from the town of Greenwood, BC, by funding the exploration and development of the historical May Mac gold-silver mine, including the processing of a 10,000 tonne bulk sample. Lichtfield's contribution will be up to $1.8 million, of which $1.4 million will be directed toward refurbishing the historical adit access, underground exploration, surface exploration, permitting and drifting to new mineralized zones.It is anticipated that this work will commence immediately upon receipt of the necessary permits for the upgrading of existing adits to current standards and bulk sampling. The mine is currently permitted with an adjoining 100 tonnes per day mill and permitted tailings pond.
Mike Dufresne, P.Geol of Apex Geoscience Ltd. (APEX) will supervise all surface exploration and the Lichtfield Group will supervise and carry out all underground operations, supply all equipment and skilled labour and deploy their expertise in mining high grade narrow vein underground mines.
The Lichtfield Group has been and is one of the largest underground mining contractors in Peru. The incoming partner, Lichtfield del Peru S.A.C. has operations in several mines including Pan American Silver, Vinchos Mining Company (operator of Volcan Mining subsidiary), Los Quenuales Mining Company, Minsur, Barrick (Laguna Norte Operation) and Atacocha Grupo Votorantim. 'The association with Lichtfield in the Canadian mining arena is an important milestone for our Company, and we are really looking forward to a continued beneficial relationship between our companies as exploration proceeds on our properties in the greater Greenwood Mining District.', says Wolf Wiese, the Chief Executive Officer.
The May Mac mine was intermittently developed and mined between 1900 and 1983 on two veins (referred to as the Lower and Upper Skomac veins), accessed by seven adits (horizontal tunnels). Production records and unconfirmed information suggest that during that period, some 3,600 metric tonnes (4,000 tons) of mineral were mined, containing some 350 troy ounces (oz) of gold and 100,000 oz of silver. Note that these data are unconfirmed and have not been verified.
The May Mac property is very well mineralized. The veins encountered to date occur within a favorable meta-sediment belt over one kilometer long and up to 200 metres in width. Although the majority of the property is covered by a mantle of overburden, at least ten other parallel vein outcrops have been encountered (in addition to the two veins developed). Furthermore, short-hole underground diamond drilling has intersected an additional five parallel veins in close proximity to the Upper Skomac vein. Still other mineralized occurrences include glory-holes (small pits) on brecciated zones. Finally, strong geochemical and geophysical anomalies have been encountered in still other overburden-covered areas.
In summary, substantial potential for production is suggested from the tenor of both vein material left by previous operators, and mineral disseminations in the adjacent wall-rocks, considered uneconomic during previous development and mining campaigns. It should be noted that the companies that conducted mining at the May Mac mine and surface exploration on the Boundary Falls property were underfunded, and unavailability of modern geological techniques resulted in poor data compilations.
The Company recently completed surface geochemical sampling, conducted under the supervision of APEX, that returned several areas anomalous for copper, gold, silver, zinc and lead which require follow-up and drilling. A land use permit application for surface drilling has been submitted and is in progress.
Currently the Company is diamond drilling on the Wild Rose-Tam O'Shanter property, contiguous to the North of the Boundary Falls property, where a resource of 286,000 oz of gold in the inferred category (See GOM News Release dated July 13, 2011) has been delineated by the Company.
There are no known mineral resources on the Boundary Falls property. Historical references are related here for background information only. There is no assurance that any mineral resource will be located on the property, or if located that such mineral resource might be profitably mined.
The contents of this press release have been reviewed and verified by W. Ash, P.Eng., and Mike Dufresne, P.Geol., Qualified Persons, as defined by National Instrument 43-101.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
'Wolf Wiese'
_______________________________
Wolf Wiese
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.
Golden Dawn Minerals Inc.
CONTACT: Mike Poulin
Investor Relations
604-630-6793
mike@goldendawnminerals.com