VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2013) - Golden Dawn Minerals Inc. (TSX VENTURE:GOM)(FRANKFURT:3G8N) (the "Company" or "Golden Dawn") has filed on SEDAR a National Instrument 43-101 compliant independent technical report ("Technical Report") related to its press release issued on December 11, 2012 announcing an updated mineral resource estimate for the Greenwood Gold Silver project in south central British Columbia.
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The Technical Report entitled "Technical Report on the Update Resource for the Wild Rose -Tam O'Shanter Property, Greenwood Area, South Central British Columbia", dated January 25, 2013, was prepared for Golden Dawn Minerals Inc. by APEX Geoscience Ltd. ("APEX") The Technical Report is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.goldendawnminerals.com.
Mr. Wolf Wiese, President & CEO of Golden Dawn Minerals commented: "We are extremely pleased with the continued growth of the Deadwood Gold resource. The updated NI 43-101 mineral resource estimate is another important milestone in the advancement of the Greenwood Gold Project as we continue to increase the size and grade of the gold resource. The Deadwood Gold Zone resource remains open in all directions and has been identified as an epithermal system, providing Golden Dawn with ability to delineate drill targets with high probability of increasing gold grades to depth and to further increase the gold resource along strike through 2013."
The updated Inferred Mineral Resource Estimate of 24.5 million tonnes grading 0.53 grams per tonne (g/t) gold (Au), is estimated to contain a total of 415,000 troy ounces of gold at a cut-off grade of 0.3 g/t Au (Table 1). This is an increase of 49% from the previous resource. A sensitivity analysis of the grade and tonnage relationships has been completed and is shown in the accompanying Table 1 below.
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|Table 1 - Inferred Mineral Resource Estimate at various cut off grades for gold.*
|Lower Cut Off
|* Inferred Mineral Resources are not Mineral Reserves. Inferred Mineral Resources do not have demonstrated economic viability, and may never be converted into Reserves.
|** Contained ounces may not add due to rounding.
Preliminary metallurgical testing conducted during April and May 2011 by F.Wright Consulting Inc. suggests that the material from the Greenwood project may be a good candidate for conventional mineral processing procedures. Gold recoveries ranged from 63% to 95%. The resource is considered to exhibit reasonable prospects for economic extraction at today's prices for gold. The base case cut-off threshold of 0.3 g/t Au, which yields 24.5 million tonnes at an average grade of 0.53 g/t Au and is detailed in Table 1 above, is considered appropriate based on the project's current size, favorable location for access, power, water, labour force and other assumptions derived from deposits of similar type and scale.
2013 Drill Program Proposed to Further Increase Resource
Current drilling, together with historic drilling results, has now confirmed the presence of a significant widespread alteration zone (the Deadwood Gold Zone) comprising low-grade gold- copper (Au-Cu) mineralization along a strike length of approximately 1,500 metres in length and 300 metres in width and over 300 metres at depth. The Deadwood Gold Zone remains open in all directions. Certain portions of the resource include elevated concentrations of silver, lead and zinc.
APEX recommends approximately 8,000 meter of diamond drilling in approximately 30 to 40 holes for the upcoming 2013 work program. The drill program is designed to expand the current Inferred Resource immediately along strike northwest and southeast of the Deadwood Zone, at depth below the Deadwood Zone and further to the north up stratigraphic section in order to see if further parallel zones are present in the vicinity of a coincident magnetic-geochem Cu-Au-Mo anomaly that is likely indicative of a buried diorite. Drilling of this northern anomaly produced significant mineralized intersections within disseminated chalcopyrite in basalts and dioritic intrusions with wide low grade Cu-Au-Mo-Ag mineralization which likely reflects a possible intrusive-related porphyry system extending over large portions of the property.
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Geology of the Deadwood Gold Deposit
The Golden Dawn's Greenwood Project is an intermediate to advanced exploration stage Property with a favourable structural, regional geological and stratigraphic setting that is situated within the highly mineralized Boundary District. Several historic mineralized areas are known on the property including the Deadwood Gold Zone and the Wild Rose Copper-Gold Veins. Both of these zones are associated with the Wild Rose Fault, a splay of the regional Lind Creek thrust fault. Many of the known historic workings and showings on the property are structurally controlled and spatially associated with major fault zones, intrusions and, in some cases, may be related to skarn-type settings.
The Wild Rose Zone is comprised of three parallel, northwest trending, moderate northeast dipping copper-gold-bearing veins that occur both within the Wild Rose Fault and in the hanging wall of the fault zone. Considerable drilling (and underground exploration) has been conducted to test the veins. Some of the better historic drill intercepts include 8.7 g/t Au over 2.3 m, 9.3 g/t Au over 2 m, and 25.7 g/t Au over 0.7 m. There is also potential for bulk tonnage mineralization in the Wild Rose Zone, similar to the Deadwood Zone along strike (less than 100 m) to the northwest. View map: http://wp.goldendawnminerals.com/nrimg/wildroseplan.gif.
The Deadwood Gold Zone, which likely represents the on-strike continuation of the Wild Rose Zone is an area of intense silicification (hornfels) with pyrite-biotite-chlorite-epidote alteration and widespread low-grade gold mineralization (including several high grade veins) in the hanging wall of the Wild Rose Fault.
The new drilling indicates that the Deadwood Gold Zone most likely incorporates the higher grade Wild Rose veins. Within this large low-grade Au-Cu mineralized zone, discreet quartz veining has been occasionally encountered that returned higher-grade results similar to the Wild Rose vein system to the southeast. As the drilling has moved to the southeast portion of the Deadwood Zone portions of the resource contain increased concentrations of silver plus or minus lead and zinc. This has all the hallmarks indicative of an epithermal system.
Mineral Resource Estimate
The second Mineral Resource Estimate for the Deadwood Gold Zone was prepared under the direction of Michael Dufresne, P.Geol., and Steve Nicholls, MAIG of APEX. The current inferred resource is the result of an 8 hole diamond drilling program completed in late 2011 along with the 12 hole diamond drilling program which began in late 2010 and was completed in early 2011, together with 43 historical diamond drill holes from multiple earlier drill campaigns from 1986 to 2004. The 2010 - 2011 drilling program was conducted under the direct supervision of Mr. Dufresne and Mr. Turner of APEX. All samples were sent to Inspectorate Exploration & Mining Services Ltd. ("Inspectorate") of Vancouver, BC, for standard fire assay and multi-element geochemical analysis for gold and trace metals. APEX employed a comprehensive QA/QC protocol with respect to drill hole and analytical data that, for the latter, included the insertion and monitoring of an appropriate number of standards, duplicates and blanks into the stream of drill core samples.
The resource model was generated using a total of 61 diamond core holes, with an average drill hole spacing of 50 to 100 m for the Deadwood Gold Zone and 20 m for the Wild Rose - Wild Cat zone. The database consists of a total of 1750 composites of 1.5 m length, capped at 5.0 g/t Au for the Deadwood Gold Zone and 8.0 g/t Au for the Wild Rose - Wild Cat Zone. The mineral resource was estimated by inverse distance squared within a three dimensional mineralization envelope with similar geological characteristics in terms of alteration, mineralogy and gold grades using a 0.1 g/t cutoff grade. A search ellipsoid of 70 m x 25 m x 3 m orientated along strike (085°) was utilized for grade interpolation for the Deadwood Gold Zone, and 30 m x 20 m x 7 m along strike (120°) for the Wild Rose - Wild Cat Zone. A nominal density of 2.86 t/m3 has been applied to all blocks.
In April 2011, Golden Dawn directed Inspectorate to initiate preliminary metallurgical test work by conducting Bottle Roll Leach tests on a 60 m (60 sample) section of hole 11WR010, which exhibited geology, alteration and mineralization typical of the Deadwood Gold Zone. The data from the bottle roll leach tests, which were conducted on approximately 1 kg of sample material per sample, has been compared to original fire assay results and shows a correlation of 0.9798. Overall, the bottle roll leach tests report an unweighted average of 92% of the "total gold" established by fire assay. This preliminary data indicates that the Deadwood gold mineralization would be amenable to cyanide leaching.
The resource estimate reported in this press release was prepared by Michael Dufresne, P.Geol. and Steve Nicholls, M.AIG. of APEX Geoscience Ltd., all Qualified Persons as defined by National Instrument 43-101. Mr. Dufresne have reviewed and verified the contents of this release.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Wolf Wiese, President/ Chief Executive Officer
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