The acquisition requires the payment of $230,000 in cash, the issue of 1,500,000 shares of common stock in Golden Dawn Minerals and a work commitment of $2,000,000 over four years, subject to a 3% NSR retained by Kettle River Resources.
The company has the option to repurchase 2% NSR for $3,000,000.
The 1,250Ha Tam O’Shanter property complements and adjoins on the west two other tracts already held by Golden Dawn Minerals namely the Wild Rose property (750Ha), and to the south, the Boundary Falls property (1,000Ha).
Drilling of over 150 holes in several drilling campaigns encountered significant gold values at the Deadwood and Wild Rose zones along the eastern portion of the Tam O’Shanter property on strike with the Wild Rose vein systems and the Deadwood lower grade bulk tonnage targets.
A large reference database has been accumulated on the property from underground exploration, development and former production.
These activities include 450m of underground exploration on the Wild Rose and Wild Cat vein systems; production and underground development in the 1,000m MayMac tracked adit on the Boundary Falls property; and milling of production from the MayMac Mine through the 120 tons per day permitted Roberts grinding and flotation mill, with tailings facility, located on that property.
Combined with detailed geochemical surveys, and both surface and recent airborne TEM and magnetic surveys, this database provides a working platform for an anticipated exploration program.
Multiple gold-copper target types encountered in previous work and suggested by the current geophysical work provide the impetus for this current renewed exploration.
Numerous historic diamond drill holes that have yielded wide auriferous intersections indicate a prospective exploration target zone approximately 2,000m by 200m in extent that reaches northwest across the property from the Wild Rose vein area to the Deadwood prospect area and into the newly optioned Tam-O’-Shanter Property to the west.
One of the most encouraging holes in this group is DDH 92-27 which intersected 63m averaging 0.95 g/t gold, and up to 0.4% copper, including 0.15 meters assaying 134.2 g/t (4.3 oz/t) gold.
