SOURCE: Golden Dawn Minerals Inc.

Golden Dawn Minerals Inc.

September 06, 2016 10:09 ET

Golden Dawn Updates May Mac Mine Project, Greenwood, BC, Canada

VANCOUVER, BC--(Marketwired - September 06, 2016) - Golden Dawn Minerals Inc., (TSX VENTURE: GOM) (FRANKFURT: 3G8A) (the "Company" or "Golden Dawn") provides the following update on activities at its May Mac silver-gold mine project, part of the ongoing Greenwood Precious Metals Project in south-central British Columbia, Canada. The May Mac mine, in the historic Greenwood mining district, lies 15 kilometres west of the mill currently being acquired from Huakan International Mining Inc.

The company received a permit to rehabilitate, construct underground drill stations, and commence underground drilling in the #7 Adit, and has resumed surface diamond drilling on the Boundary Falls property. Initial drilling will test gold-silver quartz veins exposed in historic workings on the Amigo portion of the property, south of the May Mac mine, including the Glory Hole and No. 1 Tunnel workings.

Drilling on the May Mac mine will test for strike extensions to the upper Skomac vein beyond the No. 7 Level. Further drilling will probe a parallel vein 100 metres below the Skomac vein. This new mineralized parallel vein was discovered in hole #6 of the surface drill program conducted in late 2015 and early 2016.

Permit transfers to the Company of the Huakan assets (Lexington and Golden Crown Mines) are expected toll take 6+ months. During this time interval any mineralized material encountered in the May-Mac Mine can be bulk sampled and fed to the newly acquired Greenwood Processing plant 15 km to the east of the May Mac.

A National Instrument 43-101 Technical Report for the Boundary Falls Property was completed in June 2016 (see report on SEDAR or Company web site). The report recommends continued exploration and development of the May Mac and Amigo Mines. Highlights include the following:

  • Exploration work conducted in 2015 and early 2016 consisted of rock chip sampling (85 samples) and surface diamond drilling (17 holes, 1,770 metres). Rock sampling confirmed the presence of silver mineralization in the May Mac upper Skomac vein, and gold mineralization in the May Mac lower Skomac vein, and the Glory Hole and No 1 veins.
  • Diamond drilling confirmed that mineralization in the upper Skomac vein extends down to and below the No 7 Level. Hole 6 intersected the vein approximately 16 metres vertically below the No. 7 drift, and hole 9 intersected the vein about 3 metres vertically above the level. Both intersections are situated about 50 metres before the end of the No. 7 drift, where the vein lies northeast of the drift.
  • The intercepts in these holes (previously announced) are:
    BF15-06: 144.1-148.5 (4.4m), 218.6 g/t silver and 2.49 g/t gold, 1.5% lead, 2.9 % zinc
    (including) 148.1-148.5 (0.4m), 779.0 g/t silver and 4.15 g/t gold
    BF15-09: 117.2-119.3 (2.1m), 185.9 g/t silver and 3.50 g/t gold, 1.5% lead, 1.8 % zinc
  • Diamond drilling also intersected a new silver zone situated 120 metres below and 150 metres northeast of the No. 7 level. The new zone intercept (previously announced) is:
    BF15-06: 288.3-290.6 (2.3m), 152.0 g/t silver and 0.36 g/t gold, 1.9% lead, 1.9 % zinc
    (Including) 289.1-289.7 (0.6m), 377.0 g/t silver and 0.81 g/t gold
    Note: The above intervals are core lengths. There is insufficient information at this time to estimate the true widths. Core samples were analyzed at Met-Solve Analytical Services in Langley, B.C., an independent commercial laboratory that is ISO 9001 certified and operates according to ISO 17025 standards. Analyses for gold were by Fire assay method using 50 gram samples and ICP-AES finish, with a detection limit of 0.03 ppm. Silver and other elements were analyzed by ICP-AES using a four acid digestion. Quality control included the insertion into the sample stream of certified standard pulps and a field blank sample at a frequency of 1 for every 20 samples.
  • An exploration target has been projected for the May Mac mine based on the updated geological model. The target ranges from 200,000 to 600,000 tonnes in size at an estimated average grade of between 100 and 400 g/t Ag, 1.5 to 5.9 g/t Au, 0.7 to 3.0% Pb and 0.3 to 1.9% Zn, based on historic results.
    Note: The potential quantity and grade of this Exploration Target is conceptual in nature; there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
  • Multiple mineral deposit types are recognized on the property. The May Mac mine is a polymetallic silver-gold-lead-zinc vein deposit whereas the Boundary Falls Glory Hole and No. 1 mines, as well as numerous other historic workings on the property, have characteristics of orogenic gold vein deposits. There is also skarn-type mineralization in the Knob Hill marble units, and geochemical evidence for Tertiary epithermal precious metals related to the Greyhound Creek Fault.

Technical disclosure in this news release has been reviewed and approved by Dr. Mathew Ball, P.Geo., Chief Operating Officer of Golden Dawn Minerals Inc., who is a Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Directors:

GOLDEN DAWN MINERALS INC.

­­­­Wolf Wiese, Chief Executive Officer

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