Burin Gold begins drilling 10,000 m exploration program at Hickey’s Pond Gold Venture, Newfoundland

Date:


Gold Mountain Mining Corp. (“Gold Mountain” or the “Firm”) (TSX:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is happy to announce that it has accomplished its first supply of ore to New Gold Inc.’s (“New Gold”) New Afton Mine (“New Afton”) in Kamloops, BC positioned 133 km from the Elk Gold Mine

Highlights:

  • Following the prolonged provincial assessment and approval of New Gold’s customized milling allow, the Firm is now positioned to ship high-grade ore to accommodate its Yr 1 manufacturing profile.
  • The fabric was mined from the 1300 vein close to historic Pit 2, which was final mined from 2012 to 2014 at a median grade of 16.7 g/t.
  • This preliminary supply marks the Firm’s transition into cash-flow and income technology.
  • Underneath the phrases of the Ore Buy Settlement with New Gold, the Firm will likely be paid on a month-to-month foundation for all ore delivered.
  • Possession of ore transfers to New Gold upon supply, eliminating all dangers of restoration for Gold Mountain.

“Since buying the undertaking from Equinox, our major focus has all the time been placing the mine again into manufacturing. When going public in December of 2020, we had a purpose to restart the Elk and develop a million-ounce producer. We’re more than happy to ship this replace to our loyal shareholders. The Elk undertaking has all the time been an execution story and I would prefer to thank all these concerned in bringing the Elk Gold mine again to life. Wanting ahead, we plan to ramp up high-grade ore supply to New Gold, proceed aggressively drilling out our extremely potential land package deal, and kick off the technical work obligatory for our proposed Part ll manufacturing enlargement.” commented Director and CEO Kevin Smith.

Indigenous Communities

Whereas the Provincial assessment and the corresponding Mine Evaluation Committee course of have come to an in depth, Gold Mountain is conscious and acknowledges every respective Indigenous Nation’s decision-making course of will proceed independently from the Province of British Columbia.

Over the previous 21 months, the Firm has made a concerted effort to construct robust relationships with communities which might be affected by the event of the Elk Gold Venture. Gold Mountain appears ahead to continued collaboration with all Indigenous Nations which have pursuits within the Elk Gold mine. The Firm additionally needs to speak that there is no such thing as a time restrict on direct engagement and session between the Firm and every respective Indigenous Nation.

First Supply and Cost Phrases

Following the prolonged provincial assessment and approval of New Gold’s customized milling allow, Gold Mountain accomplished its first supply of ore to New Afton. The fabric was mined from the Elk’s 1300 vein, positioned on the footwall of historic Pit 2 and marks the start of cash-flow and income technology for the Firm.

Pursuant to the phrases of the Ore Buy Settlement (“OPA”), every truck leaving the Elk Gold Mine is weighed on-site to find out the burden of the ore being delivered. An assay is taken representing every day’s gold and silver grades for delivered ore which, together with the truck scale tickets, mix to create a complete metals worth which might be reconciled on a month-to-month foundation. Gold and silver costs are decided primarily based on the month-to-month common of the official AM/PM London Bullion Market Affiliation for gold and London Metals Trade for silver. The OPA differs from a standard “toll milling” association in that Gold Mountain is paid primarily based on the worth of the ore delivered to New Gold and bears no danger of processing restoration.

An entire copy of the OPA was filed on the Firm’s SEDAR profile on February 3, 2021.

Sustainability

By promoting high-grade ore on to New Gold, the Firm avoids the necessity for an on-site mill and tailings storage facility. This association drastically reduces the Elk Gold Mine’s environmental influence and minimizes the consequences it has on surrounding ecosystems and habitats. In consequence, the Firm reduces its carbon emissions by 11,500 tonnes/annum, energy consumption by 10.2 Mwh/12 months, and annual water consumption by over 14,000,000L[1].

Ore Buy Settlement

Underneath the phrases of the OPA, the Firm will ship 70,000 tonnes of high-grade ore every year or roughly 200 tonnes per day to New Gold. The OPA has a time period of three years and is efficient upon the primary supply of high-grade ore. In June 2021, the Firm introduced that it signed a letter of intent with New Gold to extend its tonnage delivered to New Afton from 70,000 to 350,000 tonnes every year starting in Yr 4. The rise in tonnage delivered is topic to each the Firm and New Gold acquiring the mandatory regulatory and Indigenous approvals.

By securing a world-class ore buy associate in New Gold and a hard and fast value mining contract with Nhwelmen-Lake LP, Gold Mountain has the operational companions in place to constantly execute its marketing strategy which the Firm anticipates will end in elevated shareholder worth.

Certified Particular person

The foregoing technical info was permitted by Grant Carlson, P.Eng., a Certified Particular person, as outlined beneath Nationwide Instrument 43-101 and the Chief Working Officer for the Firm.

For info on previous manufacturing on the Elk Gold Mine, please discuss with the Firm’s technical report entitled “Nationwide Instrument 43-101 Technical Report and Useful resource Replace of the Elk Gold Venture, Merritt, British Columbia Canada” dated January 21, 2022 with an efficient date of December 7, 2021.

About Gold Mountain Mining

Gold Mountain is a British Columbia primarily based gold and silver exploration and growth firm centered on useful resource enlargement on the Elk Gold Venture, a producing mine positioned 57 KM from Merritt in South Central British Columbia. Extra info is offered at www.sedar.com or on the Firm’s new web site atwww.gold-mountain.ca.

For additional info, please contact:

Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Government Officer
Telephone: 604-309-6340
E-mail: ks@gold-mountain.ca
Web site: www.gold-mountain.ca
Twitter: www.twitter.com/goldmtnmine_

This information launch contains sure “forward-looking statements” beneath relevant Canadian securities laws. Ahead- wanting statements embody statements which might be primarily based on assumptions as of the date of this information launch and usually are not purely historic together with any info or statements concerning beliefs, plans, expectations or intentions concerning the long run and infrequently, however not all the time, use phrases or phrases resembling “expects” or “doesn’t anticipate”, “is predicted”, “anticipates” or “doesn’t anticipate”, “plans”, “estimates” or “intends”, or stating that sure actions, occasions or outcomes “might”, “may”, “would”, “may” or “will” be taken, happen or be achieved. Ahead-looking statements on this press launch embody, reaching 19,000 oz manufacturing profile for Years 1-3, the anticipated grade of ore shipped to New Afton, any improve in tonnage delivered to New Afton and the power of Gold Mountain to constantly execute its marketing strategy leading to elevated shareholder worth. Ahead-looking statements are essentially primarily based upon quite a few estimates and assumptions that, whereas thought of cheap, are topic to identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes and future occasions to vary materially from these expressed or implied by such forward-looking statements. Such elements embody, however usually are not restricted to: normal enterprise, financial, aggressive, political and social uncertainties; delay or failure to obtain board, shareholder or regulatory approvals; the value of gold; and the outcomes of present exploration. There might be no assurance that such statements will show to be correct as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, readers shouldn’t place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as required by regulation. For a complete overview of all dangers which will influence the Firm, please see the Annual Data Type for the 12 months ended January 31, 2021 a replica of which was filed on November 4, 20201 and is offered on SEDAR.

The TSX has not reviewed and doesn’t settle for accountability for the adequacy or accuracy of the content material of this Information Launch.

[1] 100,000 L diesel/month utilizing:https://www.epa.gov/vitality/greenhouse-gases-equivalencies-calculator-calculations-and-referencs

Based mostly on comparability toto 1.5 MW mill contemplated in 2020 PEA = 30,000 kwh/day * 0.4L Diesel/kwh = 11,500 tonnes CO2/yea

and to the 900 tonne/day processing mill contemplated within the Firm’s 2020 PEA, a replica of which was obtainable on the Firm’s SEDAR profile on September 24, 2020.

SOURCE: Gold Mountain Mining Corp

View supply model on accesswire.com:
https://www.accesswire.com/687045/Gold-Mountain-Delivers-First-Cargo-of-Ore-to-New-Gold-Inc



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