Full version / Aerial photograph showing the portal of the Lexington-Grenoble Underground Mine near Greenwood in British Columbia, Canada.
Today, Golden Dawn Minerals Inc. made the eagerly awaited announcement on its plans to go into production. In late March, the company was granted the "master permit" to dewater the Lexington-Grenoble Mine subject to certain conditions, which all have now been fulfilled as the BC Ministry of Environment has given the company the go ahead to dewater the Lexington Mine upon giving 72 hours notice. In late June, the company received the permits from the BC Ministry of Energy & Mines to operate both the Lexington Mine and the Greenwood Processing Plant (see here).
According to today´s news, Golden Dawn will now engage a contractor for the dewatering and subsequent mining operations. Concurrent with the approximately 4 weeks of dewatering, the existing infrastructure of the underground mine will be rehabilitated. Thereafter, short underground drillings will take place in order to collect precise characteristics of the rocks-to-be-mined so that the Greenwood Processing Plant can be calibrated accordingly. This modern processing facility, with a capacity of 200 t/day (expandable to 400 t/day), is located 17 km from Lexington and requires only minor upgrades and equipment refurbishing as it was built in 2007/2008 and was operational only for few months when it processed material from Lexington. See videos of the Greenwood Plant here and here.
Golden Dawn plans to process Lexington material into gold doré bars and base metal concentrates in mid-November 2017 and estimates total costs (rehabilitation of the Lexington Mine, accumulation of 5,000 t of mill feed and refurbishment of the Greenwood Plant) at 3 million to 3.5 million CAD.
The Lexington Underground Mine was operational in 2008 only for a few months because the global financial crisis back then forced the gold price beneath Lexington´s all-in sustainable production costs (852 USD/ounce) which lead to the closure of the mine. The construction of the Greenwood Plant and the development of several deposits incurred costs estimated as much as 40 million, which the previous owner financed with debts. As the gold price today trades well above the anticipated production costs and Golden Dawn does not have that much debt on its shoulders, the circumstances are now clearly in favour of Golden Dawn. Further details on how management achieved the feat of acquiring these projects at the end of the gold correction for about 1/10 of the originally invested sums, can be found in the Site Visit Report, where drone videos of the projects are included, such as of the Lexington Mine:
Video animations on Lexington:
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Golden Dawn Minerals on the TSX Venture Exchange
Golden Dawn Minerals Inc.
#318 - 1199 West Pender Street
Vancouver, B.C. V6E 2R1 Canada
Phone: +1 604 221 8936
Shares Issued & Outstanding: 108,970,865
Canadian Symbol (TSX.V): GOM
Current Price: 0.265 CAD (08/21/2017)
Market Capitalization: 29 Million CAD
German Symbol / WKN (Tradegate): 3G8A / A1XBWD
Current Price: €0.179 EUR (08/22/2017)
Market Capitalization: €20 Million EUR
Report #15: “Golden Dawn receives Mine and Mill Permits and Rockstone publishes a Site Visit Report“ (June 21, 2017)
Report #14: “Golden Dawn Minerals getting increasingly attractive with latest acquisition plans“ (June 6, 2017)
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: “Coverage on 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. The author holds a long position in Golden Dawn Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Golden Dawn Minerals Inc. Cautionary Statement: The June-2017-PEA is preliminary in nature and it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized. Golden Dawn Minerals Inc. (the "Company") would like to clarify that its decision to proceed to extract mineralized material from the Lexington, Golden Crown and May Mac mines for processing at its facility located at the Greenwood Precious Metals Project was not based on a Feasibility Study. The Company cautions that, in such cases, there is increased uncertainty and higher economic and technical risks of failure. The Company notes that, since the mining and processing infrastructure is in place, it intends to proceed to trial mining and processing on the basis of Mineral Resource Estimates and the Preliminary Economic Assessment.