Report #17

High-grade gold and copper mineralization in quartz vein within the Lexington Underground Mine (source: Golden Dawn Minerals).

Golden Dawn Minerals Inc. is making progress with the dewatering and recommissioning of its Lexington Underground Mine in British Columbia, Canada. The following 2 videos were recorded yesterday and show that dewatering is progressing successfully and that mining vehicles already drive into the mine: 



The following pictures show the progress of the last weeks:

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• Golden Dawn is working diligently to reactive its 100% owned Lexington Underground Mine and its 100% owned Greenwood Mill processing plant. The previous owner invested about 40 million in the development of these projects (plus the near-by Golden Crown Mine) and was, accordingly, highly indebted. When the processing plant was newly built and commissioned in April 2008, and the underground access to the Lexington gold-copper deposit developed, the operations started. However, timing could not have been worse as the global financial crisis started to unfold and the gold price corrected sharply below 750 USD/oz, at which price level no economic operation was feasible anymore. In June 2017, Golden Dawn updated its PEA ("Preliminary Economic Assessment") with projected All-In Sustaining Production Costs of 786 USD/oz


Recent pictures from the work at the Lexington Mine:

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• Today, the gold price is close to 1,300 USD/oz – high enough for Golden Dawn to restart operations. 

• The previous owner not only failed due to a low gold price. The debts were simply too high considering that the 2008 financial crisis did not allow for new financings. On top of that, serious mistakes were made, resulting in an operation that did not run well. Golden Dawn has learned from these mistakes. For example, the previous owner did not have its own laboratory on site to analyze mined material for the calibration of the processing plant. It was only in the last month of production when they installed a lab, which made production much more efficient, but it was too late - the mine and mill were put on care and maintenance in December 2008. Golden Dawn is well positioned to do it better this time. The company has upgraded the lab on site and will use it from the very start. 

The following pictures are from the previous operator showing the 2007/2008 newly developed Lexington Underground Mine and that an operation is feasible even in the toughest winter (similar pictures are expected soon from Golden Dawn´s production restart): 

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The following pictures, taken in 2017, show the modern Greenwood Mill processing plant (the current capacity of 200 t/day can be doubled to 400 t/day with the addition of a second ball mill):

Full version / 2017 / The fully permitted processing plant includes mining vehicles, an indoor production hall with 24 h security and a modern lab, plus fully permitted tailing ponds.

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Full version / 2017 / The primary rock crusher (outside mill).

Full version / 2017 / The ball mill (inside mill).

Full version / 2017 / Ball mill and floatation units.

Full version / 2008 / Final cleaners of the flotation circuit for copper extraction. 

Full version  / 2008  / Flotation of copper concentrate.

Full version / First copper concentrate shipment from the mill to a smelter in June 2008.  

Full version / 2008 / For the subsequent gold concentration: the Knelson Gold Concentrator.  

Full version / 2008 / Inside the Knelson Gold Concentrator you can see fine gold particles.

Full version / 2008 / After the Knelson Gold Concentrator, the material is concentrated further on the "Gold Table". 

Full version / The first gold pour by the previous owner in April 2008. 

Vollversion / 2008 / Pouring of the first gold doré bar from the Lexington Mine.

Vollversion / 2008 / The first gold doré bar. 

Vollversion / 2008 / The previous operator presented the first gold doré bar in April 2008. Golden Dawn is well positioned to restart operations for many years to come. 

See more information in the Site Visit Report

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: 117,792,261


Canadian Symbol (TSX.V): GOM
Current Price: 0.29 CAD (10/24/2017)
Market Capitalization: 34 Million CAD


German Symbol / WKN (Frankfurt): 3G8A / A1XBWD 
Current Price: €0.19 EUR (10/25/2017)
Market Capitalization: €23 Million EUR  

Previous Coverage 

Report #16 “Dewatering Start! Gold Production Expected in Novembert“ (August 22, 2017)

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. 

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Name: Golden Dawn Minerals Inc.
Canada Symbol: GOM
Germany Symbol / WKN: 3G8A / A1XBWD
Shares Issued & Outstanding: 117,792,261
Phone: +1 604 221 8936

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