Greenwood Precious Metals Project Lexington Mine Sample Results

Rock chip sampling is being conducted in the mine to assess the working faces remaining from the 2008 mining campaign that are currently accessible.  A total of 339 individual samples have been collected so far.  Results from the first batch of 206 samples sent for assay are provided below.

The sample results are very positive and demonstrate that potentially economic grades of copper-gold mineralization are exposed on the faces in the mine.  The results also serve to substantiate and provide confidence in the mineral resource as reported in the 2017 PEA report. The methodical mapping and sampling will provide the technical team to develop a mining plan based on the data gleaned from this work.  The results will be used as a guide to minimize dilution of the mill feed from day one of trial mining.

Compilation of exploration data around the Lexington mine has highlighted areas with high potential for discovery of similar style gold-copper mineralization.  Potential for at least two parallel zones of mineralization close to the Lexington Main zone are documented in the PEA, and potential has now been recognized for strike extension of these potential zones to the northwest at least as much as the known extent of the mine. There is a 1 kilometer long trend of favourable host rocks that stretches from the Lexington mine across the border with Washington State and into the former Lone Star open pit mine, within which several historic drill intercepts of significant copper-gold mineralization occur.  The favourable stratigraphy also extends over 3 kilometers to the northwest through the historic Lexington, Mable and Number 7 mines, where minimal past exploration drilling was done. 

Good potential for mineralization over significant widths also exists in the vicinity of the City of Paris historic mine that overlies the Lexington Main zone, as indicated by a chip sample collected in 2017 at a raise break-through from this mine.  This sample was previously reported in news release dated 30 January 2018 but check assaying for gold returned a result of 18.0 grams per tonne gold over a sample width of 4.5 meters; the original copper result was 0.42%.

Update on Work Completed

The mine operation has been staffed with a Mine Manager, Mine Superintendent, Heavy Duty Mechanic, Watchman, Mine Shift Boss and two miners as employees to maintain pumps, support technical work, and do repairs.  Daily pumping is underway to maintain the water level at the 1166 level or bottom of the mine. 

Physical work completed:
 

• West Portal: Surface area stripped of loose material and washed down to bedrock, new timber sets assembled to be installed shortly to complete the safe access from the west portal, new roof installed on mechanics shop, temporary toilet installed
• Vent raise was retimbered and new ladders installed
• Equipment: Mine personnel vehicles refurbished, fire suppression systems installed, scooptrams, longhole drill and jumbo moved to mine site and initial mechanical checks done
• East Portal: generator, compressor, mine office, mine dry and toilet facilities installed
• Ditching conducted on roads above East and West portals to control run-off water
• Large trees overhanging west laydown felled
• Mine lubricant storage sump facility refurbished
• Electrical motors in mill megger tested

Technical work competed:
 

• Geotechnical assessment of mine workings and diamond drill records, and rock bolt pull tests to formulate a Ground Control Management Plan
• Mine engineering studies to update the Mine Plan and Ventilation Plan
• Review of past grade control assay data
• Review of past mining stope development
• GIS compilation of prior exploration data initiated; new diamond drilling targets identified and drilling permit applications submitted
• Geotechnical assessments of the East and West Portals underway
• Geotechnical engineer engaged to prepare a waste dump operation, management and surveillance manual
• Environmental consultant engaged to prepare Environmental Management Systems for mine and mill
• Application submitted for power load reconnection with energy supplier to ensure timely startup

• A formal RFP (request for proposal) document is being prepared for engineering design to support permitting an upgrade of the processing and tailings facilities capacity to 400 Tonnes Per Day

The Company is ready to begin installation of mine infrastructure.  However, prior to this various updates to permit documents are required by the Ministry of Mines for the mine and mill.  These include Environmental Management Systems, Water Quality Monitoring Plans, Waste Management Plans, Waste Rock and Tailings Management Plans, Erosion and Sediment Control Plan, Mine Plan, Ground Control Management Plan, Waste Dump Operation and Surveillance Manual, Invasive Plant Management Plans, Closure Management Manual, and Life of Mine Reclamation Programs. 

In addition, the Ministry of Mines and Ministry of Environment recently conducted Environmental, Industrial Hygiene, Geotechnical and Reclamation site inspections of the mine and mill.  BC has one of the highest safety and environmental standards in the world and new regulations have been put into place to improve environmental and safety standards since the mine and plant were constructed in 2008.  The inspections identified items that need to be addressed before approval will be granted to operate.  The Company will engage consultants and contractors as necessary to address the items listed below prior to restart of operations:
 

• Installation of new offices and wash/dry facilities
• Ventilation and lighting surveys and improvements
• Dust Control
• Emergency Wash Facilities
• Hazardous materials storage and handling
• Lead Exposure Control Program
• Refurbishment and Remediation Plan for Assay laboratory
• Health and safety programs (medical surveillance, hearing protection, safe work procedures)
• Confirmation of as-built dimensions for tailings impoundment
• Installation of a weather station

The samples reported above were collected under the supervision of Dr. Mathew Ball, P.Geo. and delivered to Activation Laboratories (Act-Labs) in Kamloops, B.C. Activation Laboratories (Act-Labs) is an independent commercial laboratory that is ISO 9001 certified and ISO 17025 accredited. Analyses for gold were by the fire assay method using 30 gram samples with an AA finish. Fire assay gravimetric analyses were carried out on initial gold analytical results in excess of 30000 ppb gold. Other elements were analyzed by ICP-OES using an aqua regia digestion. Copper results above 0.75% were re-analyzed by peroxide fusion. Quality control was monitored using reference standard, blank and duplicate field samples inserted into the sample sequence at intervals.

The Company would like to clarify that it has not based its decision to proceed to production on a feasibility study of mineral reserves demonstrating economic and technical viability.  The Company cautions that, in such cases, there is increased uncertainty and higher economic and technical risks of failure. 

Technical disclosure in this news release 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.

On behalf of the Board of Directors:

GOLDEN DAWN MINERALS INC.

Wolf Wiese, President & CEO

For further information, please contact:

Corporate Communications
604-221-8936
allinfo@goldendawnminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements:  Certain disclosure in this release constitutes forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company’s current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management’s expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company’s exploration activities will be different than those expected by management and that the Company will be unable to obtain financing or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We seek safe harbor.