gold mountain mining corp

Gold Mountain Provides Corporate Update and Guidance for H2 2021

Gold Mountain Mining Corp. ('Gold Mountain' or the 'Company') (TSX.V:GMTN, OTCQB:GMTNF, Frankfurt: 5XFA) is pleased to provide a corporate update as it nears its 6 month trading anniversary, showcasing its transformation from a small-scale asset to a near-term producer on the cusp of mining operations and reaching 1,000,000 ounces

Early History

In May of 2019, Gold Mountain (formerly Bayshore Minerals Inc.) acquired the property from Equinox Gold Corp ("Equinox") for $10M, with a $1M deposit and a $9M interest-free promissory note. The asset had 127,000m of historical drilling, was located on an all-season highway near Merritt, British Columbia and had an M-199 mine permit. When the Elk Gold Project (the "Elk Gold Project") was mining high-grade ore in 2012, it ran into operational challenges and a soft gold market which led to the asset being put into care and maintenance. The Gold Mountain team saw an opportunity to leverage their strong BC mining operations experience and were confident in their ability to expand the mineral resource, amend the mining permit and get the project back into production.

Progress since public listing

Since listing on December 31, 2020 the Company has:

  • January - Established cost certainty through its mining partnership with Nhwelmen-Lake LP which establishes fixed costs for construction, mining and highway haulage.
  • January - Signed an Ore Purchase Agreement with New Gold Inc. to sell its ore to New Gold's New Afton Mine located 133Km from the Elk Gold Project.
  • February - Closed a $10M, oversubscribed private placement with lead order from Crescat Capital.
  • February - Engaged JDS Energy & Mining Inc. ("JDS") to complete a pre-feasibility study which will validate the open pit mine plan contemplated in Years 1-3 and transition into an underground mining and open-pit hybrid scenario in Year 4.
  • March - Completed its Phase 1, 8,700m Drill Program with grades reaching 124 g/t au.
  • April - Received its Notice of Departure ("NOD") from the Ministry of Energy, Mines and Low Carbon Innovation to begin mine construction. The NOD included authorization for upgrades to haul roads, lay down areas and construction of site offices. The NOD also included permission for a gravel borrow which will allow the company to begin waste rock mining in Pit 2 while waiting for the M-199 mining permit amendment and dewatering of existing pits.
  • May - Announced a 49% increase in the total mineral resources to 651,000 ounces grading 6.1 g/t Au in the Measured & Indicated categories and 159,000 ounces grading 4.8 g/t Auin the Inferred category with an effective date of May 1, 2021.
  • May - Announced the conclusions of an updated Preliminary Economic Assessment with an after-tax NPV5% of C$231M, with a 19,000 oz annual production (Years 1-3) expanding to 65,000 oz of production (Years 4-11)
  • May - Completed its $3M property payment to Equinox which was one of largest perceived risks surrounding the project.
  • June - Received its Draft Mining Permit from the Ministry of Energy, Mines and Low Carbon Innovation, to review the document's terms and provide comments prior to receiving its final permit.
  • June - Began mine Construction with Nhwelmen Lake LP

Initiatives for the remainder of 2021

While the Company is proud of its achievements to date, below are the upcoming milestones management is forecasting to accomplish during the latter half of 2021:

  • June - Close its $10M, bought private placement led by Canaccord Genuity, Eight Capital and Red Cloud Securities. These funds will be used to continue expanding the resource and carry the Company into commercial production.
  • June - Submit its final mining permit comments to the statutory decision maker. The Company anticipates its permit to be sent up for final approval in the coming weeks.
  • June/July/August - Waste rock mining in Pit 2.
  • September - Begin ore mining along the high-grade 1300 vein.
  • September - Add an additional diamond drill rig for its Phase 3 exploration program.
  • October - Complete JDS's Pre-Feasibility study, increase the contained mineral resources past 1,000,000 ounces and declare maiden Reserves.
  • October - Deliver first ore to New Gold.
  • November - Receive payment and begin revenue generation.
  • December - Establish steady state commercial production.

Initiatives and outlook for 2022

  • Environmental Assessment ("EA") - Begin the EA process to increase annual production to 324,000 tonnes per year
  • Continued Expansion - Continue to aggressively drill the property and look to acquire additional projects to become a multi-asset company.
  • U.S. Listing - Upgrade its U.S. listing to the New York Stock Exchange

"We have had an extremely active first six months since coming to trade and given our commitment to continuously deliver to shareholders, we wanted to update the market with our timeline for the remainder of the year. When we started this project, the feedback was this mine is always going to be too small, expensive to operate and very difficult to get back into production. Today, we have a PEA built off of locked-in agreements showing an AISC of $554 (USD) per ounce, we've shown we can efficiently expand the resource, our draft permit is in, and we're on schedule to drop off our first batch of ore to New Gold in October." commented Kevin Smith, CEO and Director of Gold Mountain. "It's still heads down here at Gold Mountain as we continue to drive this company forward and create value for those who want to join us in building out BC's next gold producer."

Technical Disclosure

The technical disclosure contained herein is based off of the Company's most recent Preliminary Economic Assessment (the "PEA"), the results of which are summarized in a Press Release dated May 27, 2021 a copy of which is available The Company anticipates filing the Preliminary Economic Assessment prior to the end of June.

Please see the press release for information on data verification and the key assumptions, parameters and methods used to estimate the resources as well as the assumptions behind the economic analysis.

The PEA is preliminary in nature and 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. There is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified Person

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 or on the Company's new website at

For Further information, please contact

Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Executive Officer
Phone: 604-309-6340

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 in this press release include all statements relating to anticipated activities for the remainder of 2021 and 2022. 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.

SOURCE: Gold Mountain Mining Corp

View source version on

News Provided by ACCESSWIRE via QuoteMedia

The Conversation (0)

Newmont Announces Third Quarter 2023 Earnings Call

Newmont Corporation (NYSE: NEM, TSX: NGT) today announced that it will release its third quarter 2023 operations and financial results on Thursday, October 26, 2023 . Newmont will hold a conference call at 10 a.m. Eastern Daylight Time (8:00 a.m. Mountain Daylight Time) , the same day, which will be available on the Company's website.

Conference Call Details

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Twiga Partnership Shows the Transformative Impact of Mining, Says Barrick

All amounts expressed in US dollars unless specified otherwise

Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) and the Tanzanian government are demonstrating how mining can be an enormous force for good when miners and their host governments work together to create sustainable value for all stakeholders, says president and chief executive Mark Bristow.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
piece of gold

Introduction to Gold Assaying and Gold Grades (Updated 2023)

Gold assaying is essential in determining the amount of gold in a mineral deposit. The process involves bringing a rock sample, most often a core obtained through drilling, to a laboratory where it is examined by experts.

Assay results are often mapped and used to pinpoint targets for future drill programs. Gold assay values at particular locations can help exploration companies learn where gold is distributed in a deposit and figure out its potential.

When some gold assay results are extremely high, but others are not, companies must carefully study the high values — these assays may not accurately reflect the gold grade of the deposit. However, strong assay values all around are a positive sign, and when companies report them to the public they may experience a share price jump.

Keep reading...Show less

ISS and Glass Lewis Recommend Newmont Shareholders Vote "FOR" Proposed Acquisition of Newcrest

Newmont Corporation (NYSE: NEM, TSX: NGT) announced today that independent proxy advisory firms Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. (Glass Lewis) recommended that Newmont shareholders vote "FOR" each of the Company's resolutions in connection with the proposed acquisition of Newcrest Mining Limited (ASX, TSX, PNGX: NCM) at the special meeting of stockholders that will take place virtually on Wednesday, October 11, 2023, at 8:00 a.m. Mountain Daylight Time.

Commenting on the proxy advisory firms' reports, Newmont's President and Chief Executive Officer, Tom Palmer, said:

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
david erfle, gold ore

David Erfle: Gold Sector Looking for a Bottom, M&A Needed

Speaking to the Investing News Network, David Erfle, editor and founder of Junior Miner Junky, shared his key takeaways from the Precious Metals Summit, held recently in Beaver Creek, Colorado.

While the atmosphere wasn't as morose as he expected, Erfle said gold juniors continue to face challenges. Of course, as he reminded investors, it's easier to pick winners during tough times than in bull markets.

"Let's face it — the great projects are always going to get financed, they're always going to get built. And many of them are controlled by these juniors," he said. "In bear markets you can always tell the strong companies from the bad companies — you can always tell the wheat from the chaff, they stand out. But in bull markets it's much more difficult."

Keep reading...Show less
mining equipment on desk

What are Intrusion-related Gold Systems? (Updated 2023)

Gold is considered an important part of any investment portfolio, and gold stocks can offer investors exposure to the market without needing to actually hold any physical gold. But investing in gold-focused companies requires due diligence, as well as an understanding of the factors that can bring these entities success.

Understanding gold deposit types is one place to start. Given their reputation for containing high-grade gold, most investors will have heard of Carlin-style gold deposits; however, they may not be familiar with intrusion-related gold systems. These gold deposits are lower grade, but their large tonnage makes them some of the most productive assets in the world. That means they can be highly attractive prospects for gold-focused companies.

Intrusion-related gold systems were first identified more than three decades ago, and in the time since then their defining characteristics have been debated by geologists. This has led to the acceptance of an important distinction between oxidized intrusion-related gold deposits and reduced intrusion-related gold deposits; even so, the reclassification of some deposits as intrusion-related remains controversial among experts.

Keep reading...Show less

Latest Press Releases

Related News