adequacy decision uk

Gold Mountain Signs Letter of Intent with New Gold to Increase its Tonnage Limit in its Ore Purchase Agreement

Gold Mountain Mining Corp. ('Gold Mountain' or the 'Company') (TSX.V:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is pleased to announce that it has signed a Letter of Intent ("LOI") with New Gold Inc ("New Gold") to increase its tonnage delivered to New Afton from 70,000 to 350,000 tonnes per annum beginning in year four of production. This addition reflects a 400% bump to the delivery commitments outlined in the Company's Ore Purchase Agreement with New Gold (the "OPA") and provides a clear path to scale mining operations


  • The increase in ore delivery allows Gold Mountain to scale mine operations without the need for an on-site mill.
  • The Company foregoing an on-site mill was a substantial driver for reducing its all-in sustaining costs ("AISC") from $735/ounce to $554/ounce (USD).
  • Ramp up in mining operations to 350,000 tonnes per year is scheduled to begin 2024.

"We recently updated our PEA with an increase to our production profile in years 4-11, an increase in total ounces produced over the life of mine, and the continuation of selling our ore directly to New Gold. In order to substantiate those economics we felt it was important to show a willingness on both sides to expand the long term working relationship, by executing this LOI. Based on trade off studies that we have completed as part of our ongoing PFS work with JDS Energy and Mines, it became apparent constructing a mill in Year 4 was not the correct decision," commented Kevin Smith, CEO and Director of Gold Mountain.

"This new plan eliminates a large amount of CapEx and reduces the environmental impacts by not building an on-site mill and tailings storage facilities. This will allow us to reallocate that capital into continuing to aggressively explore the property, as well as accelerate the remediation and expansion of the existing underground decline. Continuing to demonstrate this project's economics and scalability has always been a high priority. This new mine plan has us producing more gold sooner, at a drastically lower AISC. With the drill turning and the Elk being approximately six months away from commercial production, we intend to continue pushing the pace over the second half of 2021."

Ore Purchase Agreement

On January 26th 2021, the Company entered into an Ore Purchase Agreement with New Gold to purchase the ore from the Elk Gold Mine. The Company will deliver ore to New Gold's New Afton Mine located 133km from the Elk Gold Mine in Kamloops BC. Under the terms of the Ore Purchase Agreement, Gold Mountain will deliver 70,000 tonnes of ore per annum or approximately 200 tonnes per day. The Ore Purchase Agreement has a term of three years.

The ore will be sampled and weighed at the Elk Gold Mine to determine the contained ounces of gold and silver. Following delivery, New Gold will pay Gold Mountain at the end of each calendar month based on the value of the gold and silver in the ore, net of the agreed metallurgical recovery and concentrate selling costs. The terms of the Ore Purchase Agreement mitigate the variance and volatility of operational throughput and allows the Company to avoid any risk of recovery.

Letter of Intent

The LOI contemplates an increase to the annual tonnage delivered to New Gold by 400%. Under the terms of the LOI, New Gold confirmed its ability to purchase up to 350,000 tonnes of ore per year beginning in year 4. The new terms allow Gold Mountain to scale production without the requirement to build an on-site mill, drastically reducing its capital requirements over the life of mine. The Company foregoing an on-site mill was a substantial driver for reducing its AISC from $735/ounce to $554/ounce (USD) in its latest Preliminary Economic Assessment ("PEA"). For more information, see the Company's press release dated May 27, 2021 at

With the LOI in hand, Gold Mountain will now look to streamline the permitting process required to scale production by avoiding the environmental impact of an on-site mile. The Company anticipates increasing production to 350,000 tonnes per year beginning in 2024 subject to both the Company and New Gold obtaining the necessary regulatory approvals.

New Gold Permitting Update

Additionally, New Gold has submitted its Notice of Departure ("NOD") to the Ministry of Energy, Mines and Low Carbon Innovation to receive ore from the Elk Gold Mine. The NOD contemplates New Gold processing 70,000 tonnes per annum in years 1-3. Both parties do not foresee any delays to the production schedule which anticipates ore delivery in October 2021.

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 those relating to the Company's ability to increase production to 350,000 tonnes per year, the timing to scale production at the Elk Gold Project and the timing for New Gold to obtain permits necessary to process ore from the Elk Gold Project. 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)

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. A fairly new classification, these gold deposits may be low 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

Barrick Welcomes Nevada Governor Joe Lombardo and His Delegation to Canada

Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today welcomed Nevada Governor Joe Lombardo and members of his economic team as part of the governor's two-day trade mission to Canada.

Canada is Nevada's largest trading partner and Barrick is the largest Canadian company operating in Nevada through Nevada Gold Mines (NGM), the world's biggest gold mining complex. Barrick is one of the highest taxpayers in the state, as well as one of Nevada's biggest employers with a workforce of over 12,000 employees and contractors.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
gold bars

Top 10 Gold Reserves by Country (Updated 2023)

Gold is one of the most important metals on the planet. For millennia it has been used in jewelry, art and currency, capturing the collective imagination as a thing of wonder. Gold's association with royalty and wealth has inspired explorers and treasure hunters alike, who put themselves at risk for a chance to strike it rich.

Today, gold's hold on us as a precious metal is no less powerful. Still used for jewelry and as a store of wealth, the metal also has a variety of modern industrial and electronic applications.

Even though gold seems to be everywhere, in reality it's a finite resource. Only 208,000 metric tons (MT) of gold have ever been mined, and two-thirds of that has been extracted since 1950. Comparing that amount to the more than 700 million MT of copper that have been pulled from the ground provides an idea of how precious a resource gold truly is.

Keep reading...Show less
gold bars and nuggets

How to Use Gold Investments as a Hedge (Updated 2023)

It can be tempting for investors to focus on specific assets, but those taking a long-term approach will want to diversify in order to balance out potential portfolio instability.

Gold has a reputation for being a reliable diversifier because it can act as a hedge against various risks. But how does that work, and what's the best way to get exposure to gold as a hedge?

Read on for a look at how this strategy works and why it's worth considering.

Keep reading...Show less

Latest Press Releases

Related News