Golden Dawn Issues President’s Letter to Shareholders
December 21 2017 - 2:00AM
Wolf Wiese, President & CEO of Golden Dawn Minerals Inc.
(TSX-V:GOM) (FRANKFURT:3G8A) (OTC:GDMRF) (the “Company” or
“Golden Dawn”), issues President’s Letter to shareholders.
Dear Shareholders:
The end of the year is nigh; and your Company,
led by a team of dedicated professionals and employees, extends
Seasons Greetings to you as our valued shareholders. As spokesman
for Golden Dawn, I take this opportunity to report our activities
in 2017 to you, and update you on how we managed your investment
over the past year.
As of January 3, 2017, our market cap was
$23,690,685 and today our market cap has increased to $38,000,000
an increase of 60% over the past twelve months.
In 2017, financing activities brought
approximately $10,000,000 into the treasury of the Company
including $600,000 through the exercise of warrants.
These funds served to reduce a bridge loan of
USD $3,600,000 (CDN$4,600,000) down to USD$800,000 (CDN $1,030,000)
which equals a loan reduction of CDN $3,570,000.
The cash cost of the Kettle River Resources
acquisition was $1,000,000. The Kettle River lands are comprised of
11,000 hectares, hosting 34 historic mines. This property package
is contiguous with the Golden Crown Mine property. All the active
and historic mines are located within a radius of 15 km to our 100%
owned processing facility. This is the first time in the history of
the Greenwood Mining District that all significant historic mines
and showings have been consolidated and they are 100% owned by
Golden Dawn Minerals Inc.
The Company has strengthened its administrative
and technical teams to ensure that our budgets and milestones are
adhered to and attained.
Dr. Matt Ball, P.Geo., and COO of the Company,
has supervised the following work during and prior to 2017, with
Apex Geoscience providing competent geological staff to supplement
our staff geoscientist:
- Approximately 9,500 meters of surface and underground core
drilling on the May Mac property and surface drilling on the Golden
Crown properties was completed by our drilling contractor,
T-Drilling of Timmins, Ontario, and DMAC Drilling from B.C.
- We built a large core storage facility and stored tens of
thousands of meters of core in this facility through the
construction of numerous large core racks and rearranging core for
easy retrieval.
- We carried out an extensive prospecting program from late
spring to late fall 2017, delineating four high-priority drill
targets on four of our properties hosting the Greenwood Precious
Metals Project, to explore and potentially increase our in situ
ounces. Our existing mining fleet and ancillary mill rolling stock
was partially repaired and made serviceable. The interior of the
mill was organized. It is now ready for start-up and service to
achieve a wet start of the mill.
- The Company funded equipment purchases and care and maintenance
costs for the mill and tailings impoundment pond. The tailings
impoundment pond was dewatered and the liner underwent extensive
repairs.
- The Lexington mine was dewatered and the decline was
rehabilitated to current safety standards.
- The east portals ramp has been rehabilitated and access to the
stopes is now possible.
- The ancillary mine buildings were rebuilt.
Andrea Yuan, our CFO, and I negotiated the
option agreement for the J&L Property with the management of
Huakan International Mining Inc. The successful outcome of these
negotiations presents our Company with an opportunity to own 100%
of one of B.C.’s largest undeveloped, known precious metal
deposits. During the first 18 months of the option agreement, the
risks for our Company are entirely manageable, providing Golden
Dawn ample time to de-risk the venture substantially, by authoring
a new preliminary economic assessment (PEA) within the first six
months of the agreement. The conclusions of the new PEA will be the
basis of the Company’s decision to go forward and develop the
sizeable precious metal and base metals deposit contained in the
J&L project. The J&L project will be staffed by
professionals independent of the Greenwood Precious Metals
Project.
We are focused on restarting the Lexington Mine
in January 2018 and aim to be in full scale production during the
course of 2018. Upon receipt of permits, the restart of the Golden
Crown Mine will make it possible to fulfill the June 2017 PEA
forecast of Zip mill daily production of 400 tonnes per day by the
first quarter of 2019.
The Company’s decision to proceed to extract
mineralized material from the Lexington and Golden Crown deposits
for processing at its facility located at the Greenwood Precious
Metals Project is 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 staff, management and Board of Directors of
our Company will continue to work diligently to increase
shareholder value in 2018.
On behalf of all the members of our Company best
wishes to you in 2018.
Kind regards,
Wolf Wiese, President & CEO GOLDEN DAWN MINERALS INC.
For further information, please
contact:Corporate Communications604-221-8936
allinfo@goldendawnminerals.com
This press release was prepared by management,
who take full responsibility for its contents. 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 release. This
document contains certain forward looking statements which involve
known and unknown risks, delays, and uncertainties not under the
Company’s control which may cause actual results, performance or
achievements of the Company to be materially different from the
results, performance, or achievements implied by these forward
looking statements. We seek safe harbor.
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