Golden Dawn has Filed a Preliminary Economic Assessment (PEA) Technical Report for the Greenwood Gold Project Mines and Milling Complex

VANCOUVER, BC / ACCESSWIRE / May 24, 2016 / Golden Dawn Minerals Inc., (TSXV: GOM) (FSE: 3G8A) (the “Company” or “Golden Dawn”) announces that on May 20^th, 2016, a Preliminary Economic Assessment (“PEA”) Technical Report was filed on SEDAR for its Greenwood Gold Project in south-central British Columbia, Canada. The economic data in this report was previously disclosed in the Company’s news release dated April 7, 2016. The PEA was prepared by P&E Mining Consultants Inc. with technical contributions from F. Wright Consulting Inc. and P. Cowley, P.Geo. The PEA may also be viewed on the company’s website: www.goldendawnminerals.com

View Greenwood Gold Project Map:

http://www.goldendawnminerals.com/greenwood_mines.jpg

PEA Highlights

Base case pre-tax IRR of 72.6% and NPV (6% discount rate) of C$32.5M (after-tax IRR of 61.5% and NPV of C$23.2M)
Pre-production capital requirements of C$9.7M
Pre-production period of 6 months as a result of existing infrastructure and permits from the acquisition of the Mill and Lexington-Grenoble and Golden Crown Mines
Life of mine (“LOM”) cash cost of US$631 per ounce gold and all-in sustaining costs of US$820 per ounce gold
Preliminary Economic Assessment (the “PEA”) uses the updated mineral resource estimates as announced April 6, 2016.
Potential of increasing resource on both Lexington and Golden Crown Mines
Potential of further mill feed from the company’s 100% owned May Mac Mine 15 km by road access from Greenwood Mill.
Several proximal satellite deposits too small to warrant stand-alone processing facilities may further increase mill feed.
Life of Mine: 5 Years

Mineral Resources

The PEA is based upon the updated mineral resource estimates as previously announced April 7, 2016 and shown in the tables below.

Table of Updated Resource Estimates for the Greenwood Gold Properties (Effective March 24, 2016).

(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. It is noted that no specific issues have been identified as yet.

(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

(3) The mineral resources in this report were estimated 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 the CIM Council.

(4) The 3.5 g/t AuEq resource cut-off grade was derived from the approximate Jan 31/16 two year trailing average Au price of US$1,200/oz and Cu price of US$2.75/lb,US$/C$ exchange rate of 0.83, 90% & 85% respective Au and Cu process recoveries, C$35/t process cost,C$75/t mining cost and C$30/t G&A cost. AuEq g/t = Au g/t + (Cu% x 1.5)

(5) Effective date of the resource estimate is March 24, 2016.

Profile of existing Mill as in recommendations of PEA

One of the key aspects of this project is the existing infrastructure, including a permitted modern crushing-grinding-gravity-flotation facility with a mill rated at 212 tonnes per day capacity, assay laboratory and tailing facilities, currently under care and maintenance. The associated lined tailings facility remains stable. The equipment inside the mill building all appear in good condition and the crushing and conveyor belts outside the mill building appear in reasonable condition. This mill is proven as functional since it processed material from the Lexington-Grenoble Mine from May 2008 until the end of December 2008. Refurbishment of the mill facility and crusher equipment is recommended to prepare for processing gold-copper resources from the company’s three proximal mines.

Project Profile

Golden Dawn’s Greenwood Gold Project Mill and Mine Complex are located in the historic Greenwood Mining Division in south-central British Columbia, Canada, approximately 500 km east of Vancouver. On completion of the acquisition from Huakan International Mining Inc., the Company’s primary focus will be re-activating the mine and mill permits and re-opening the Lexington-Grenoble mine. Mining development could then proceed, with gold-copper resources being processed in the Greenwood mill situated on the Golden Crown property. The Company will also be working to bring the Golden Crown mine on stream, and later the May Mac mine. All 3 mines are within a 2 km to 15 km radius of the Greenwood Projects Mill situated on the Golden Crown Property. Please see maps on the company website www.goldendawnminerals.com.

PEA Disclaimer

The PEA is preliminary in nature and it includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.

Qualified Persons

Technical disclosure in this news release has been reviewed and approved by Mr. Eugene Puritch, P.Eng. of P&E Mining Consultants Inc., an Independent Qualified Person as defined by National Instrument 43-101.

On behalf of the Board of Directors:
GOLDEN DAWN MINERALS INC.

“Wolf Wiese”
Wolf Wiese
Chief Executive Officer

For further information, please contact:
Corporate Communications
604-221-8936
allinfo@goldendawnminerals.com

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.

SOURCE: Golden Dawn Minerals Inc.

ReleaseID: 440340

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