Golden Dawn files Greenwood technical report on SEDAR
2013-01-29 12:07 ET - News Release
Mr. Wolf Wiese reports
GOLDEN DAWN FILES NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT FOR UPDATED MINERAL RESOURCE AT GREENWOOD GOLD PROJECT, BRITISH COLUMBIA
Golden Dawn Minerals Inc. has filed on SEDAR a National Instrument 43-101-compliant independent technical report related to its press release issued on Dec. 11, 2012, announcing an updated mineral resource estimate for the Greenwood gold-silver project in south-central British Columbia.
The technical report entitled "Technical Report on the Update Resource for the Wild Rose-Tam O'Shanter Property, Greenwood Area, South Central British Columbia," dated Jan. 25, 2013, was prepared for Golden Dawn Minerals by APEX Geoscience Ltd. The technical report is available under the company's profile on SEDAR and on the company's website.
Wolf Wiese, president and chief executive officer of Golden Dawn Minerals, commented: "We are extremely pleased with the continued growth of the Deadwood gold resource. The updated NI 43-101 mineral resource estimate is another important milestone in the advancement of the Greenwood gold project as we continue to increase the size and grade of the gold resource. The Deadwood gold zone resource remains open in all directions and has been identified as an epithermal system, providing Golden Dawn with ability to delineate drill targets with high probability of increasing gold grades to depth and to further increase the gold resource along strike through 2013."
The updated inferred mineral resource estimate of 24.5 million tonnes grading 0.53 gram per tonne gold is estimated to contain a total of 415,000 ounces of gold at a cut-off grade of 0.3 g/t Au. This is an increase of 49 per cent from the previous resource. A sensitivity analysis of the grade and tonnage relationships has been completed and is shown in the accompanying table.
INFERRED MINERAL RESOURCE ESTIMATE AT VARIOUS CUT-OFF GRADES FOR GOLD (i) Lower cut-off Tonnes Average gold Ounces(g/t Au) (t) grade (g/t) (ii)0.1 54,511,000 0.35 610,0000.2 40,233,000 0.42 541,0000.3 24,483,000 0.53 415,0000.4 14,692,000 0.65 306,0000.5 9,137,000 0.77 226,0000.6 6,020,000 0.89 171,0000.7 3,650,000 1.04 122,0000.8 2,515,000 1.18 95,0000.9 1,863,000 1.3 78,0001.0 1,635,000 1.34 71,0001.2 936,000 1.54 46,0001.4 422,000 1.83 25,0001.6 251,000 2.07 17,000(i) Inferred mineral resources are not mineral reserves. Inferred mineral resources do not have demonstrated economic viability and may never be converted into reserves. (ii) Contained ounces may not add due to rounding.
Preliminary metallurgical testing conducted during April and May, 2011, by F. Wright Consulting Inc. suggests that the material from the Greenwood project may be a good candidate for conventional mineral processing procedures. Gold recoveries ranged from 63 per cent to 95 per cent. The resource is considered to exhibit reasonable prospects for economic extraction at today's prices for gold. The base-case cut-off threshold of 0.3 g/t Au, which yields 24.5 million tonnes at an average grade of 0.53 g/t Au and is detailed in the attached table, is considered appropriate based on the project's current size, favourable location for access, power, water, labour force and other assumptions derived from deposits of similar type and scale.
2013 drill program proposed to further increase resource
Current drilling, together with historic drilling results, has now confirmed the presence of a significant widespread alteration zone (the Deadwood gold zone) comprising low-grade gold-copper (Au-Cu) mineralization along a strike length of approximately 1,500 metres in length, 300 metres in width and over 300 metres at depth. The Deadwood gold zone remains open in all directions. Certain portions of the resource include elevated concentrations of silver, lead and zinc.
APEX recommends approximately 8,000 metres of diamond drilling in approximately 30 holes to 40 holes for the upcoming 2013 work program. The drill program is designed to expand the current inferred resource immediately along strike northwest and southeast of the Deadwood zone, at depth below the Deadwood zone, and further to the north up stratigraphic section in order to see if further parallel zones are present in the vicinity of a coincident, magnetic, geochemical copper-gold-molybdenum anomaly that is likely indicative of a buried diorite. Drilling of this northern anomaly produced significant mineralized intersections within disseminated chalcopyrite in basalts and dioritic intrusions with wide, low-grade Cu-Au-Mo-Ag mineralization, which likely reflects a possible intrusive-related porphyry system extending over large portions of the property.
Geology of the Deadwood gold deposit
Golden Dawn's Greenwood project is an intermediate to advanced exploration-stage property with a favourable structural, regional, geological and stratigraphic setting that is situated within the highly mineralized Boundary district. Several historic mineralized areas are known on the property including the Deadwood gold zone and the Wild Rose copper-gold veins. Both of these zones are associated with the Wild Rose fault, a splay of the regional Lind Creek thrust fault. Many of the known historic workings and showings on the property are structurally controlled, and spatially associated with major fault zones, intrusions and, in some cases, may be related to skarn-type settings.
The Wild Rose zone comprises three parallel, northwest-trending, moderate, northeast-dipping, copper-gold-bearing veins that occur both within the Wild Rose fault and in the hangingwall of the fault zone. Considerable drilling and underground exploration have been conducted to test the veins. Some of the better historic drill intercepts include 8.7 grams per tonne Au over 2.3 metres, 9.3 g/t Au over two m and 25.7 g/t Au over 0.7 m. There is also potential for bulk-tonnage mineralization in the Wild Rose zone, similar to the Deadwood zone along strike (less than 100 m) to the northwest.
The Deadwood gold zone, which likely represents the on-strike continuation of the Wild Rose zone, is an area of intense silicification (hornfels) with pyrite-biotite-chlorite-epidote alteration and widespread low-grade gold mineralization (including several high-grade veins) in the hangingwall of the Wild Rose fault.
The new drilling indicates that the Deadwood gold zone most likely incorporates the higher-grade Wild Rose veins. Within this large, low-grade, Au-Cu-mineralized zone, discrete quartz veining has been occasionally encountered that returned higher-grade results similar to the Wild Rose vein system to the southeast. As the drilling has moved to the southeast portion of the Deadwood zone, portions of the resource contain increased concentrations of silver plus or minus lead and zinc. This has all the hallmarks indicative of an epithermal system.
Mineral resource estimate
The second mineral resource estimate for the Deadwood gold zone was prepared under the direction of Michael Dufresne, PGeol, and Steve Nicholls, MAIG, of APEX. The current inferred resource is the result of an eight-hole diamond drilling program completed in late 2011, along with the 12-hole diamond drilling program which began in late 2010 and was completed in early 2011, together with 43 historical diamond drill holes from multiple earlier drill campaigns from 1986 to 2004. The 2010-2011 drilling program was conducted under the direct supervision of Mr. Dufresne and Mr. Turner of APEX. All samples were sent to Inspectorate Exploration & Mining Services Ltd. of Vancouver, B.C., for standard fire assay and multielement geochemical analysis for gold and trace metals. APEX employed a comprehensive quality assurance/quality control protocol with respect to drill hole and analytical data that, for the latter, included the insertion and monitoring of an appropriate number of standards, duplicates and blanks into the stream of drill core samples.
The resource model was generated using a total of 61 diamond core holes, with an average drill hole spacing of 50 m to 100 m for the Deadwood gold zone and 20 m for the Wild Rose-Wild Cat zone. The database consists of a total of 1,750 composites of 1.5 m length, capped at 5.0 g/t Au for the Deadwood gold zone and 8.0 g/t Au for the Wild Rose-Wild Cat zone. The mineral resource was estimated by inverse distance squared within a three-dimensional mineralization envelope with similar geological characteristics in terms of alteration, mineralogy and gold grades using a 0.1 g/t cut-off grade. A search ellipsoid of 70 m by 25 m by three m orientated along strike (085 degrees) was utilized for grade interpolation for the Deadwood gold zone, and 30 m by 20 by by seven m along strike (120 degrees) for the Wild Rose-Wild Cat zone. A nominal density of 2.86 tonnes per cubic metre has been applied to all blocks.
In April, 2011, Golden Dawn directed Inspectorate to initiate preliminary metallurgical testwork by conducting bottle roll leach tests on a 60-metre (60-sample) section of hole 11WR010, which exhibited geology, alteration and mineralization typical of the Deadwood gold zone. The data from the bottle roll leach tests, which were conducted on approximately one kilogram of sample material per sample, have been compared with original fire assay results and show a correlation of 0.9798. Over all, the bottle roll leach tests report an unweighted average of 92 per cent of the total gold established by fire assay. These preliminary data indicate that the Deadwood gold mineralization would be amenable to cyanide leaching.
The resource estimate reported in this press release was prepared by Michael Dufresne, PGeol, and Steve Nicholls, MAIG, of APEX, all qualified persons as defined by National Instrument 43-101. Mr. Dufresne has reviewed and verified the contents of this release.
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