The J&L addition is on top of Golden Dawn's acquisition of three past-producing mines and a processing facility in the past two years and it is also working to restart the Lexington gold-copper mine within months.
Under the agreement with Huakan International Mining, Golden Dawn can earn an initial 51% of J&L by paying a total of C$16 million, issuing 29 million shares, updating the preliminary economic assessment within about six months and spending $6.25 million on exploration within about 30 months.
Golden Dawn yesterday announced a measured and indicated resource of 1.35 million gold equivalent ounces and an inferred 1.08Moz AuEq.
The measured and indicated resource comprises 5.16 million tonnes grading 4.59g/t gold, 55.6g/t silver, 2.04% lead and 4.57% zinc.
"J&L is therefore one of the largest undeveloped gold mineral resources in western Canada," the company said.
The previously explored property has a camp, workshops, underground mining equipment fleet and about 3km of underground development.
Golden Dawn plans to complete a PEA within five to eight months, costing about $250,000, and said it had no further significant obligations under the option agreement until a decision to proceed with a prefeasibility study.
The company intends to manage J&L on a stand-alone basis and finance it on the foundation of an economically robust PFS.
Shares in the company, which have ranged between C23c-42c over the past year, rose 3.85% to 27c.
