Report #14

Full version

Last Friday, Golden Dawn Minerals Inc. announced its intent to acquire the Lone Star Property, which lies contiguous to its Greenwood Property on Highway #3 near Grand Forks in British Columbia, Canada.

There are a number of reasons why this acquisition would mark another well-thought strategic accomplishment by management. I just returned from a site visit of Golden Dawn’s properties, having also spoken in-depth to management and geologists on site. A more detailed site visit report will be published shortly, yet I would like to draw some exclusive attention on Lone Star in this report and explain why I would consider Lone Star as a significant potential mill feed with great exploration upside, making Golden Dawn even more attractive.

The 234 hectares Lone Star Property is located in northern Washington State (USA), adjacent to the southern boundary of Golden Dawn’s advanced-stage Lexington Property in southern BC (Canada). The past producing Lone Star Mine operated over 2 time periods; from 1897-1918 producing 146,540 tonnes (“t”), and from 1977-1978 by Granby Mining Co. where they trucked over 400,000 t from the Lone Star open pit to the Phoenix mill in BC.

After Granby, exploration efforts saw additional copper-gold potential on the Lone Star Property. Most recently in 2006, Merit Mining Corp. conducted a diamond drilling program adjacent to the Lone Star open pit and interpreted a series of 8 shallow to moderately dipping en echelon and overlapping copper-gold zones hosted within a dacitic and minor serpentinite unit, very similar to the Lexington-Grenoble Mine.

The geology, both in rock types and structure, as well as the accompanying gold-copper mineralization on the Lexington Property, continues south onto the Lone Star Property, forming a 3 km long prospective exploration trend of past producing gold-copper mines and prospects, including Lexington-Grenoble, Lexington, No. 7 and Lone Star Mines. Many zones in the Lone Star Deposit remain open and untested to fully define their extent.

Full version 

Full version

The former owner of the Lexington and Lone Star Properties, Merit Mining Corp., commissioned P&E Mining Consultants Inc. in 2007 to prepare a resource estimate on Lone Star, which is now considered historic and cannot be treated as a current resource.

Nevertheless, this historic resource estimate shows the potential for Golden Dawn to now work on this project, making the historic resource compliant and exploring for additional mineralization, with the goal significantly adding mine life to the company’s project portfolio.

Lone Star’s (historic) inferred resource of 682,000 t at 1.46 g/t gold and 2% copper translated into a gold equivalent of 8.02 g/t, including 32,000 ounces (“oz”) of gold and 30 million pounds (“lbs”) of copper (at a cut-off grade of 5 g/t gold equivalent). In other words, this would represent significant potential mill feed for Golden Dawn’s 100% owned processing facility (only 17 km away; 200-400 t/day capacity), subject to making Lone Star’s resource compliant again and demonstrating robust economics.

Golden Dawn’s near-by processing facility was commissioned in 2008 and processed material from the Lexington Deposit, which was developed as an underground gold-copper mine and saw a short period of production in 2008 by former owner Merit Mining Corp., ceasing operation due to lack of funding indirectly related to the 2008 market crash. Since then, Lexington has been kept on care and maintenance, whereas Golden Dawn recently received a dewatering permit.

A total of 54,237 t were mined from the underground Lexington-Grenoble Mine by Merit Mining Corp. from April to December 2008 and processed through the Greenwood gravity-flotation plant, producing 5,486 oz gold, 3,247 oz silver and 860,259 lbs of copper. Only a portion of the Lexington-Grenoble Deposit was mined in that episode. The remaining resource estimate, based on a total of 232 drill holes, is given in the table. Together with Lone Star, the potential for total mine life exceeding 10 years clearly exists, subject to more work on both properties. As the geology and mineralization of both Lexington and Lone Star appears to be similar, processing at Golden Dawn’s own facility could turn out highly favourably, also subject to further work.

Therefore, Golden Dawn appears to be getting increasingly attractive, not only for investors but also for potential joint-venture partners looking for exploration upside and/or potential mill feed. Management has successfully consolidated such a large property package in the historic Greenwood Mining District that the company may decide to work, directly or indirectly, on several fronts at the same time.

Full version

Full version



Updated chart

Updated chart 

Updated chart

Updated chart 



Company Details

Golden Dawn Minerals Inc.
#318 - 1199 West Pender Street
Vancouver, B.C. V6E 2R1 Canada
Phone: +1 604 221 8936

Shares Issued & Outstanding: 107,141,694


Canadian Symbol (TSX.V): GOM
Current Price: 0.29 CAD (06/05/2017)
Market Capitalization: 31 Million CAD


German Symbol / WKN: 3G8A / A1XBWD
Current Price: €0.181 EUR (06/06/2017)
Market Capitalization: €19 Million EUR



Previous Coverage 

Report #13: “Golden Dawn in the spotlight of the press “ (February 9, 2017)

Report #12: “Gold and Gold Stocks: The Best Hedge Against Trump and Other Uncertainties“ (January 31, 2017)

Report #11: “Golden Dawn Discovers New Prospect For A Possible World-Class Deposit“ (January 26, 2017)

Report #10: “Golden Dawn discovers 10 g/t gold over 15 m at surface and delivers top results from the underground“

Report #9: “Golden Dawn passed environmental and safety inspection, provides progress report on Greenwood projects“

Report #8: “Research house Zacks initiates coverage of Golden Dawn"

Report #7: “Golden Dawn Minerals: B.C.´s next powerhouse gold miner?“

Report #6: “Golden Dawn acquires several major past producing mines and becomes largest land holder in the Greenwood District next to Kinross“

Report #5: “Golden Dawn moving rapidly toward renewed operation“

Report #4: “Starting Shot for the May Mac Mine“

Report #3: “Ascend from explorer to producer secured: A Just-in-Time success story par excellence “

Report #2: “Golden Dawn secures funding to go into gold production in BC “

Report #1: “Perfect timing to go into gold production in British Columbia“

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.

Write a comment

Likes | 21
Dislikes | 0
Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 107,141,694
Phone: +1 604 221 8936

Anmeldung zum Newsletter:

Newsletter deutsch:
Newsletter englisch:
Sie erhalten nach der Anmeldung eine E-Mail mit einem Bestätigungslink. Erst nach Erfolgreicher Bestätigung sind Sie für den Newsletter angemeldet.


english/german - german/english