SOURCE: Golden Dawn Minerals Inc.

Golden Dawn Minerals Inc.

February 16, 2017 16:01 ET

UPDATE - Golden Dawn Completes Kettle River Resources Acquisition

VANCOUVER, BC--(Marketwired - February 16, 2017) - Wolf Wiese, CEO of Golden Dawn Minerals Inc., (TSX VENTURE: GOM) (FRANKFURT: 3G8A) (OTC PINK: GDMRF) (the "Company" or "Golden Dawn ") announces it has completed the acquisition of Kettle River Resources Ltd. (KRR) with New Nadina Explorations Ltd. (TSX VENTURE: NNA).The KRR assets include the Greenwood Area Properties (GAP), 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 (See news release Oct. 18, 2016). 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 CommodityTonnes
Produced
Phoenix 082ESE020 5438785 383228 Skarn Cu-Au-Ag21,552,283
Rawhide 082ESE026 5438732 384281 Skarn Cu-Au-Ag855,634
Snowshoe 082ESE025 5439164 384331 Skarn Cu-Au-Ag545,129
Brooklyn 082ESE013 5440016 383093 Skarn Ag-Au-Cu292,834
Emma 082ESE062 5443063 386967 Skarn Cu-Au-Ag-Gr-Mo-Co241,538
Oro Denoro 082ESE063 5442630 387019 Skarn Cu-Au-Ag-Co123,782
Stemwinder 082ESE014 5439926 383333 Skarn Cu-Au105,336
B.C. Mine 082ESE060 5443204 389159 Skarn Cu-Au-Ag93,874
Grey Eagle 082ESE018 5438536 383324 Skarn Fe-Cu45,360
Skylark 082ESE011 5438910 380288 Poly Vein Ag-Pb-Zn+-Au38,761
Last Chance 082ESE216 5439276 379099 Vein Au-Ag-Pb-Zn704
Bay 082ESE005 5438408 379202 Poly Vein Ag-Pb-Zn+-Au447
Marshall 082ESE031 5441016 382930 Skarn Au-Cu-Pb,Zn370
Bluebell 082ESE188 5443134 388063 Skarn Cu-Au-Ag353
            
 
Summary of Past Producing Mines (cont'd)
Property MinfileNorthing EastingModelCommodityTonnes
Produced
R.Bell 082ESE0645441827 388523Skarn/VeinCu-Ag-Au287
Cyclops 082ESE1225442111 386724Skarn(strat)Zn-Pb-Ag-Cu259
Crescent 082ESE0125440073 379360Vein MesoAg-Pb-Zn+-Au250
Mavis 082ESE0275438129 379277VeinAg-Au29
Prince Henry 082ESE2505438915 378625VeinAg-Au-Pb-Zn19
Gold Drop 082ESE0285439105 384168SkarnCu-Au12
Aetna 082ESE0225439027 384476SkarnCu-Au-AgPart of Phoenix
Curlew 082ESE0245438913 384508SkarnCu-Au-AgPart of Phoenix
Monarch 082ESE0275438619 383812SkarnCu-Au-AgPart of Phoenix
Old Ironsides 082ESE0215439494 383324SkarnCu-Au-AgPart of Phoenix
Victoria 082ESE0235439333 383625SkarnCu-Au-AgPart of Phoenix
War Eagle 082ESE0195438625 383324SkarnFe-CuPart of Phoenix
Gilt Edge 082ESE0155440225 383826SkarnCuN/A
Lake 082ESE0035439330 379425Poly VeinAg-Pb-Zn+-AuN/A
May Alice 082ESE1975441175 371596SkarnCuN/A
Niagara 082ESE0655440546 392391unknownunknownN/A
Pac 082ESE1945441826 388341VeinAuN/A
Rathmullen 082ESE0595443710 390122VeinCu-Ag-Au-ZnN/A
Stan 082ESE1325442576 383673SkarnCu-MoN/A
Sylvester K 082ESE0465440524 382798Skarn(hornfels)AuN/A
Tokyo 082ESE2575442636 389776VeinCu-Ag-Au-ZnN/A
Yellow Jacket 082ESE0305438878 384711SkarnCu-AuN/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.

Technical disclosure in this news release has been approved by Dr. Mathew Ball, P. Geo., a Qualified Person as defined by National Instrument 43-101, and Chief Operating Officer of the Company.

For more details, please see the National Instrument 43-101 Technical Reports on the Company's website at www.goldendawnminerals.com.

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 TSXVenture 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.

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