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Golden Dawn Completes Kettle River Resources Acquisition

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Golden Dawn Completes Kettle River Resources Acquisition

 

 

 

 

 

Wolf Wiese, CEO of Golden Dawn Minerals Inc., (TSX-V: GOM)  (FRANKFURT: 3G8A)  (OTC PINK: GMFRD) announces it has completed the acquisition of Kettle River Resources Ltd. with New Nadina Explorations Ltd. (TSXV:NNA).The KRR assets include the Greenwood Area Properties with mineral claims totaling 11,000 ha., covering 78 mineral showings, including 29 historic metal mines.

 

 

Golden Dawn has acquired this property through the acquisition of Kettle River Resources Ltd., a wholly owned subsidiary of New Nadina Explorations Limited. Golden Dawn and New Nadina Explorations Limited signed a Letter of Intent regarding this transaction which includes the mineral property assets. Consideration for the acquisition consisted of a non-refundable deposit of $80,000 on signing the LOI, $15,000 by November 26, 2016, and on closure cash payments totaling CAD$1,010,000 (inclusive of deposits and closing extension fee of $10,000), as well as 2,222,250 shares of the Company issued at $.27 which are subject to a 4 month and one day hold period. The properties are subject to a 1% NSR where the Company can purchase a ½% for $1,000,000 up to five years and thereafter $1,200,000 up to 10 years leaving a ½% NSR payable to New Nadina.

 

 

The Greenwood Area Property lies in southern B.C. near Provincial Highway 3 between Rock Creek to the west and Grand Forks to the east. It lies in the Boundary Falls area, of the Greenwood Mining Division, to the South, East and West of the City of Greenwood. The Property is comprised of 57 Crown Granted claims with sub-surface mineral rights covering 814.3 hectares, 24 Crown Granted claims with surface and sub-surface rights covering 277.4 hectares, and 51 mineral tenure claims with subsurface rights covering 10,263 hectares. The area covered by the various claim types exceeds 11,000 hectares.

 

 

The property map may be viewed at: http://www.goldendawnminerals.com/wp-content/uploads/2017/01/GOM-Property-Map.jpg

 

 

This land package has an abundance of mineral prospects, encompassing 29 historical past producing mines and 49 documented mineral showings. Included is the historic Phoenix mine which produced nearly 1 million ounces of gold and 235,700 tonnes of copper from a total of 21 million tonnes mined from 1900-1919 and 1956-1978.

 

 

Mine production records from 1959 through 1967 show that 4.19 million tonnes of tailings at an average grade of 0.15% Cu, 0.38 g/t Au and 3.8 g/t Ag, were discharged to the Tremblay site, as reported in a previous technical report prepared for Kettle River, effective date July 9, 2012 and titled “National Instrument 43-101 Technical Report on the Phoenix Tailings Property, Boundary District”.

 

 

 

Note: This historical estimate is not a mineral resource or mineral reserve and the issuers are not treating this as a current mineral resource. This estimate is relevant to the current property because the tailings deposit is still present and warrants further investigation. The estimate cannot be considered accurate, given the age of the original records and uncertainties in the key assumptions, parameters, and methods used to prepare the historical estimate. The historical estimate uses categories other than the ones set out in sections 1.2 and 1.3 of NI 43-101 because it is an estimate of tailings produced and is not a mineral resource estimate. More recent sampling was documented in a 1985 report titled “Report on Drill Testing of the Tremblay Tailings, Noranda Exploration”. This report describes a vibra-core drill program in which 18 vertical holes were drilled for a total of 191.7 metres. The holes were spaced on a 100 metre grid. The drilling was performed with a vibra-core drill with NQ rod size, with samples taken every 1.5 metres (5 feet) vertically. Only a few of the holes penetrated entirely through the deposit. The resulting samples were analyzed at Rossbacher Labs of 2225 S. Springer Rd. Burnaby B.C. The samples were screened to a -80 mesh with the +80 mesh being discarded; the -80 mesh fraction was analyzed and found to contain gold, silver, copper, zinc, and lead contents at reasonably consistent grades. The total number of samples collected and analyzed was 137. The arithmetic means of analytical results were 304.8 ppb Au (0.30 g/t Au), 1088.5 ppm Cu (0.11% Cu), 2.4 ppm Ag, 83.6 ppm Zn and 6.7 ppm Pb. These results are comparable but slightly lower in Au and Cu than indicated from the production records. In order to upgrade or verify this historical estimate as a current mineral resource, an accurate survey to determine the volume of tailings, as well as a representative sample suite with density measurements and accurate metal analyses, and mineralogical characterization would be required. Metallurgical testing would also be required. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.

 

 

All of the historic mines are less than 150 meters in depth with the majority being less than 50 meters deep. In addition to potential extensions to known deposits, large areas of the Greenwood Area Property remain under-explored. Early exploration was focused on copper and little exploration work has been conducted in the last 20 years.

 

 

The Kettle River acquisition also includes an extensive catalogued library of records from over 100 years of exploration and development. The data, much of it proprietary, is invaluable for assessing the mineral showings in light of new structural and metallogenic models.

 

 

All showings and historic mines are within a 15 km radius from the company’s Greenwood mill. These historic copper-gold deposits are clustered in two areas: Phoenix and Summit camps.

 

 

This localized grouping of occurrences suggests the two areas may overlie porphyry-copper gold source intrusions, and were generated by metal-rich hydrothermal fluids that ascended from the intrusions.

 

 

The majority of mineralization in the Greenwood Camp can be classified as copper-gold skarns or skarn-related. Early pre-1919 exploration in the Greenwood camp focussed on such massive sulphide/oxide ores that were self-fluxing and could be shipped directly to smelters. Lower grade footwall stringer mineralization was largely ignored, as the mines wished only to ship high grade ore. As such there is excellent potential to discover large tonnage deposits of low to moderate grade copper-gold skarn material peripheral to the historic mines. In addition, since most of the historic mines were focussed on copper, iron-rich skarn zones of mineralization were largely ignored. It will be important to re-evaluate all of the skarn deposits for gold.

  

Summary of Past Producing Mines

 

Property

Minfile

Northing

Easting

Model

Commodity

Tonnes
Produced

Phoenix

082ESE020

5438785

383228

Skarn

Cu-Au-Ag

21,552,283

Rawhide

082ESE026

5438732

384281

Skarn

Cu-Au-Ag

855,634

Snowshoe

082ESE025

5439164

384331

Skarn

Cu-Au-Ag

545,129

Brooklyn

082ESE013

5440016

383093

Skarn

Ag-Au-Cu

292,834

Emma

082ESE062

5443063

386967

Skarn

Cu-Au-Ag-Gr-Mo-Co

241,538

Oro Denoro

082ESE063

5442630

387019

Skarn

Cu-Au-Ag-Co

123,782

Stemwinder

082ESE014

5439926

383333

Skarn

Cu-Au

105,336

B.C. Mine

082ESE060

5443204

389159

Skarn

Cu-Au-Ag

93,874

Grey Eagle

082ESE018

5438536

383324

Skarn

Fe-Cu

45,360

Skylark

082ESE011

5438910

380288

Poly Vein

Ag-Pb-Zn+-Au

38,761

Last Chance

082ESE216

5439276

379099

Vein

Au-Ag-Pb-Zn

704

Bay

082ESE005

5438408

379202

Poly Vein

Ag-Pb-Zn+-Au

447

Marshall

082ESE031

5441016

382930

Skarn

Au-Cu-Pb,Zn

370

Bluebell

082ESE188

5443134

388063

Skarn

Cu-Au-Ag

353

 

  

Summary of Past Producing Mines (cont’d)

 

Property

Minfile

Northing

Easting

Model

Commodity

Tonnes
Produced

R.Bell

082ESE064

5441827

388523

Skarn/Vein

Cu-Ag-Au

287

Cyclops

082ESE122

5442111

386724

Skarn(strat)

Zn-Pb-Ag-Cu

259

Crescent

082ESE012

5440073

379360

Vein Meso

Ag-Pb-Zn+-Au

250

Mavis

082ESE027

5438129

379277

Vein

Ag-Au

29

Prince Henry

082ESE250

5438915

378625

Vein

Ag-Au-Pb-Zn

19

Gold Drop

082ESE028

5439105

384168

Skarn

Cu-Au

12

Aetna

082ESE022

5439027

384476

Skarn

Cu-Au-Ag

Part of Phoenix

Curlew

082ESE024

5438913

384508

Skarn

Cu-Au-Ag

Part of Phoenix

Monarch

082ESE027

5438619

383812

Skarn

Cu-Au-Ag

Part of Phoenix

Old Ironsides

082ESE021

5439494

383324

Skarn

Cu-Au-Ag

Part of Phoenix

Victoria

082ESE023

5439333

383625

Skarn

Cu-Au-Ag

Part of Phoenix

War Eagle

082ESE019

5438625

383324

Skarn

Fe-Cu

Part of Phoenix

Gilt Edge

082ESE015

5440225

383826

Skarn

Cu

N/A

Lake

082ESE003

5439330

379425

Poly Vein

Ag-Pb-Zn+-Au

N/A

May Alice

082ESE197

5441175

371596

Skarn

Cu

N/A

Niagara

082ESE065

5440546

392391

unknown

unknown

N/A

Pac

082ESE194

5441826

388341

Vein

Au

N/A

Rathmullen

082ESE059

5443710

390122

Vein

Cu-Ag-Au-Zn

N/A

Stan

082ESE132

5442576

383673

Skarn

Cu-Mo

N/A

Sylvester K

082ESE046

5440524

382798

Skarn(hornfels)

Au

N/A

Tokyo

082ESE257

5442636

389776

Vein

Cu-Ag-Au-Zn

N/A

Yellow Jacket

082ESE030

5438878

384711

Skarn

Cu-Au

N/A

 

 

Concurrently the company will explore the areas evidencing indications of intrusive porphyry deposits which may be sources for the numerous historic Mines and mineral showings. See National Instrument 43-101 Report on website or SEDAR (www.sedar.com). This is the first time of the plus 120 year history that the Greenwood Mining District with most of the significant mines and showing has been assembled by one company.

 

Posted February 17, 2017

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