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 hanging wall 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, discreet 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, P.Geol., and Steve Nicholls, MAIG of APEX. The current inferred resource is the result of an 8 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. ("Inspectorate") of Vancouver, BC, for standard fire assay and multi-element geochemical analysis for gold and trace metals. APEX employed a comprehensive QA/QC 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 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 1750 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 cutoff grade. A search ellipsoid of 70 m x 25 m x 3 m orientated along strike (085 degrees ) was utilized for grade interpolation for the Deadwood Gold Zone, and 30 m x 20 m x 7 m along strike (120 degrees ) for the Wild Rose - Wild Cat Zone. A nominal density of 2.86 t/m3 has been applied to all blocks.
In April 2011, Golden Dawn directed Inspectorate to initiate preliminary metallurgical test work by conducting Bottle Roll Leach tests on a 60 m (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 1 kg of sample material per sample, has been compared to original fire assay results and shows a correlation of 0.9798. Overall, the bottle roll leach tests report an unweighted average of 92% of the "total gold" established by fire assay. This preliminary data indicates that the Deadwood gold mineralization would be amenable to cyanide leaching.
The resource estimate reported in this press release was prepared by Michael Dufresne, P.Geol. and Steve Nicholls, M.AIG. of APEX Geoscience Ltd., all Qualified Persons as defined by National Instrument 43-101. Mr. Dufresne have reviewed and verified the contents of this release.
On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.
Wolf Wiese, President/ Chief Executive Officer
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NEITHER 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.
Golden Dawn Minerals Inc.
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