VANCOUVER, BC / ACCESSWIRE / June 10, 2021 / Gold Mountain Mining Corp. ('Gold Mountain' or the 'Company') (TSXV:GMTN, OTCQB:GMTNF, Frankfurt:5XFA) is pleased to provide a construction update at its 100% owned Elk Gold Mine, located outside Merritt, British Columbia.
- The Company received authorization from the Ministry of Mines to begin construction on April 29th through its Notice of Departure ("NoD")
- Nhwelmen-Lake LP ("Nhwelmen-Lake") has mobilized vehicles and mining equipment to begin construction and road development
- Waste rock mining has begun by utilizing the Company's gravel borrow near the corner of Pit 2
- Gold Mountain is on schedule for ore delivery in October and revenue in November 2021
"Aggressive timelines of getting into production are something we have committed to since coming to trade in December of 2020. We continue to deliver on key milestones and maintain our target of revenue generation in Q4," commented Kevin Smith, CEO and Director of Gold Mountain. "We've aligned ourselves with a first-class construction and mining contractor, Nhwelmen-Lake, to reduce our initial capex and leverage their expertise to develop BCs next high-grade gold and silver producer. With the Company receiving its early works permit and waste rock mining already underway through our gravel borrow, operations will be in full stride once we receive our mining permit amendment. All the while our drill team continues to hit mineralization and we anticipate receiving a steady stream of results from the lab in the coming weeks."
Waste Rock Mining - Road and Laydown Construction
On April 29, 2021, the Company received its Notice of Departure ("NoD") under its M-199 Mines Act permit, authorizing it to undertake certain construction and site preparation work at the Elk Gold Mine. A key component of the NoD was authorization for a "gravel borrow", which allows Gold Mountain to waste rock mine at Pit 2 and repurpose existing soil and gravel at site to develop roads and laydowns. The Company selected an area near PIt 2 for the gravel borrow in order to execute on a strategy that allows Gold Mountain to adhere to its aggressive timelines and accelerate the path to hit its high-grade 1300 vein.
Since receipt of the NoD the Company's mining partner Nhwelmen-Lake has cleared overburden and conducted the first blast of waste rock near Pit 2. Nhwelmen-Lake is now crushing and screening the blasted rock and has begun road and laydown construction.
Additionally, on May 7, 2021, the Company received a letter of authorization from the Ministry of Environment and Climate Change Strategy related to dewatering of the historical open pits under the existing Effluent Discharge Permit. As of June 8, 2021 the Company has pumped out 46,500m3 of water from Pit 2. The dewatering efforts will ensure a smooth transition into ore mining.
Nhwelmen-Lake has mobilized various pieces of equipment to the Elk Gold Mine to support site construction activities, including; tracked dozers, excavators, a production blast-hole drill, rock trucks and a mobile jaw crusher. Other equipment en route include a weigh scale, fuel storage, office facilities, washroom/dry facilities and generator structures.
Path to Ore Delivery and Revenue
Once the final Mine Permit is issued, the Company anticipates beginning it's large scale waste rock mining operations through July and August. This will allow the Company to mine the high-grade 1300 vein for ore delivery in October to its ore purchase partner, New Gold Inc.
Prior to delivery to New Gold's New Afton Mine, the ore will be assayed by an independent third party and weighed on site to determine the ore's value. Trucks then haul the ore approximately 133km to the New Afton Mine where title to the ore is passed to New Gold upon delivery. New Gold will pay Gold Mountain for the delivered ore within 17-days of each month end.
The foregoing technical information was approved by Grant Carlson, P.Eng., a Qualified Person, as defined under National Instrument 43-101 and the Chief Operating Officer for Gold Mountain Mining Corp.
About Gold Mountain Mining
Gold Mountain is a British Columbia based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a past-producing mine located 57 KM from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website at www.gold-mountain.ca.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release
This news release includes certain 'forward-looking statements' under applicable Canadian securities legislation. Forward- looking statements include statements that are based on assumptions as of the date of this news release and are not purely historical including any information or statements regarding beliefs, plans, expectations or intentions regarding the future and often, but not always, use words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements include but are not limited to: timing to begin large scale waste rock mining in July through August, delivering ore in October and receiving payment in November, Nwhelmen-Lake's schedule to mobilize. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of gold; and the results of current exploration. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a comprehensive overview of all risks that may impact the Company, please see the Company's Management Discussion and Analysis for the year ended January 31, 2021 a copy of which is available at www.sedar.com.
SOURCE: Gold Mountain Mining Corp