Golden Dawn Production Plans
I wrote about a tiny Canadian junior stock last May when they were $.095 a share. As has been true of a lot of juniors no one had heard about, the company went from poor and ignored to a 300% gain in four months. The company is called Golden Dawn Minerals (GOM-V). They are now on the verge of production.
It would be wonderful if I could claim Guruhood and suggest that I am the smartest guy on the block. But I can’t. And I’m not. Actually in a bull market, stocks go up. That’s why they call it a bull market. If companies actually do what they say they are going to do, they go up a lot. Golden Dawn has gone up a lot. If they execute their plan, they will go up a lot more.
Management of the company picked up an option on a mine and mill in southern BC province in Canada called the Greenwood project. It consists of the Greenwood mill with a $40 million dollar replacement value and 100% ownership on a number of small but reasonably high-grade precious metals deposits including the Lexington mine, the May Mac mine and the Golden Crown mine. Since then management has commitments for enough money to complete the option agreement to purchase the Greenwood mill.
In the immediate future the company will begin a two-month process of dewatering the Lexington mine. There will be a total rehabilitation of the 220/400 tpd Greenwood Mill that has been on care and maintenance since last in production in late 2008. They intend to extract ore from the May Mac mine by year-end or Q1 of 2017 to begin processing at Greenwood. In addition, the increase in the price of silver and gold has made several other small-scale mines in the Greenwood district economically viable and the company may do toll milling or simply buy out the owners.
On September 6th Golden Dawn announced plans for the rehabilitation and further exploration including drill on surface and underground at the May Mac mine. Until permits are received for production at the Lexington and the Golden Crown Mines, any ore grade material encountered at the May Mac Mine will be shipped the 15km to the Greenwood processing plant.
It’s all an issue of execution and the price of gold from here. If management executes their plan as well as they have over the last six month, investors have a nice alternative to buy into a small but profitable gold mining operation in the safest of jurisdictions. Don’t be confused by the small resource, this was a major gold district in Canada and Golden Dawn has the only mill. That puts them in the catbird’s seat.
Golden Dawn is an advertiser and I am biased. Please do your own due diligence.
Golden Dawn Minerals