The Lone Star Mine
June 2, 2017 Golden Dawn Minerals Inc. announces the signing of a non-binding LOI to acquire a 100% interest in the Lone Star Property
Lone Star Highlights
- 2007 Historic Resource
Classification Tonnes Au
Indicated 63,000 1.28 2.30 8.82 2.69 2,600 3.19 Inferred 682,000 1.46 2.00 8.02 2.44 32,000 30.07
- Golden Dawn’s Greenwood Mill for processing material within 17 kms from Lone Star mine
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are conceptual in nature.
(3) The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
(4) Gold equivalent grade (Au Eq) was calculated using a gold price of US$593/oz and copper price of US$2.84/lb., based on the 24 month (at July 31, 2007) trailing average of gold and copper prices, to obtain a conversion factor of % copper x 3.284 + gold g/t = Au Eq g/t. Metallurgical recoveries and smelting/refining costs were not factored into the gold equivalent calculation.
(5) The Cu equivalent cut-off value of 1.5% was calculated and rounded utilizing the following: Cu price US$2.84/lb, $US exchange rate $0.88, process recovery $95%, smelter payable 95%, smelting and refining charges C$7/tonne mined, mining cost C$62/tonne mined, process cost $C28/tonne processed, G&A cost $7.50/tonne processed.
(6) A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves. As such the issuer, Golden Dawn, is not treating this historical estimate as current mineral resources or mineral reserves.
The Lone Star Property is contiguous to the Company’s Greenwood Precious Metals Project located in the Greenwood Mining District, 500 km east of Vancouver, B.C. on Highway #3. The Company’s 100% owned processing facility is 17 km to the north of Lone Star. The 234 hectare Lone Star copper-gold property, composed of a series of patented lode claims and private mineral claims in northern Washington State, lies adjacent to the southern boundary of Golden Dawn’s advanced stage Lexington Property.
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 kilometre long prospective exploration trend of past producing gold-copper mines and prospects, including Lexington-Grenoble, Lexington, No. 7 and Lone Star Mines. The past producing Lone Star Mine operated over two time periods; from 1897-1918 producing 146,540 tonnes, and from 1977-1978 by Granby Mining Co. where they trucked over 400,000 tonnes from the Lone Star open pit to its Phoenix mill.
Numerous exploration companies saw additional copper-gold potential on the property, post-Granby. Exploration across the Lone Star Property to date includes 252 diamond and percussion drill holes for a total of 23,702 metres of drilling. Most recently, in 2006, Merit Mining Corp. (Merit) conducted a diamond drilling program adjacent to the Lone Star open pit and interpreted a series of eight 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. Zones are composed of sheeted and stockwork pyrite-chalcopyrite veins, veinlets and disseminations carrying gold. Many zones in the Lone Star deposit remain open and untested to fully define their extent.
Technical disclosure in this document 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.