Gold Mountain Receives Its Mining Permit from The Ministry of Mines
Gold Mountain Mining Corp. has received its M-199 Mining Permit from the Ministry of Energy, Mines & Low Carbon Innovation after 18 months of regulatory efforts. The company plans immediate mining of the high-grade 1100 and 1300 vein systems at historical pit 2, with expectations to achieve commercial production in November. Anticipated annual after-tax profit for Year 1 is $10 million. The first mineralized material delivery to New Gold Inc. is expected in late Q4 2021, marking a significant milestone for the company.
- Received M-199 Mining Permit after 18 months.
- Plans to mine high-grade 1100 and 1300 vein systems.
- Expected Year 1 after-tax profit of $10 million.
- First mineralized delivery to New Gold anticipated in November.
- None.
VANCOUVER, BC / ACCESSWIRE / November 1, 2021 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX.V:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is pleased to announce that the Ministry of Energy, Mines & Low Carbon Innovation Communications Office ("EMLI") has awarded the Company its M-199 Mining Permit.
Highlights:
- After 18 months of regulatory and permitting advancements, Gold Mountain has received its Mining Permit from EMLI.
- The Company will immediately begin mining the 1100 and 1300 vein systems in historical pit 2.
- Mineralized material will be delivered to the Company's Ore Purchase Partner, New Gold Inc.
- The Company anticipates achieving commercial production in November.
- Year 1 of Gold Mountain's mine plan contemplates mining the highest grade mineralization, resulting in an expected annual after-tax profit of
$10,000,000.
"It is extremely rare for a junior mining company to evolve from exploration and into production. For Gold Mountain to achieve this after being public for only 10 months is a testament to Management's focus and commitment. We would like to thank our shareholders for believing in the project and continuing to support us while we transition into BC's next gold producer," commented CEO and Director Kevin Smith.
"With construction nearly complete, waste rock mining from our quarry development underway, the Elk Gold Project is already in full stride. We anticipate releasing first mineralized material from our 1100 vein in the coming weeks. While aggressive, management is still confident in delivering our first shipment to New Gold in November, with recognized revenue anticipated in Q4 of this year. The upsized 13,000m Phase 2 diamond drill program is wrapping up and we anticipate a steady stream of assays very shortly. Our 10,000m Phase 3 drill program will commence right away. With a strong treasury, the Elk project is being pushed forward on all fronts and momentum continues to build. This is a pivotal moment for Gold Mountain, and we are thrilled to deliver the first gold mining permit in BC in nearly a decade."
Indigenous Communities
While the Provincial review and the corresponding Mine Review Committee process have come to a close, Gold Mountain is aware and acknowledges each respective Indigenous Nation's decision-making process will continue independently from the Province of British Columbia.
Over the past 18 months, the Company has made a concerted effort to build strong relationships with communities that are affected by the development of the Elk Gold Project. Gold Mountain looks forward to continued collaboration with all Indigenous Nations that have interests in the Elk Gold mine. The Company also wishes to communicate that there is no time limit on direct engagement and consultation between the Company and each respective Indigenous Nation.
Next Steps
With mine construction nearly complete and waste rock mining taking place near Pit 2, the Company is in a strong position to achieve revenue in Q4 ‘21. Gold Mountain will now turn its focus to the following operating milestones:
- Continue to engage directly with surrounding Indigenous communities to adhere to each Nation's independent review process
- Begin mining operations, targeting the Elk's high-grade 1100 and 1300 vein systems
- Deliver material to New Gold's New Afton mine in Kamloops, located 133km away from the Elk Gold Project
- Begin revenue generation and receive payment from its first mineralized material delivery
Moving into 2022, the Company anticipates being in steady-state mining operations outlined in its Year 1 production profile of 19,000 oz/annum. Pursuant to the mine plan set out in the Company's PEA, the Company will target some of its highest grade mineralization in the first year which is expected to result in an annual after-tax profit of approximately
Preliminary Economic Assessment
For details on the key assumptions behind the Company's Year 1 production profile and anticipated cash flow, please see the Preliminary Economic Assessment entitled "Updated Preliminary Economic Assessment on the Elk Gold Project" dated June 21, 2021 with an effective date of May 14, 2021 a copy of which is available on SEDAR (the "PEA").
The Company's mine plan and annual after-tax profit are based on the PEA which is preliminary in nature and includes inferred 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.
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 the Company.
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.
For Further information, please contact:
Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Executive Officer
Phone: 604-309-6340
Email: ks@gold-mountain.ca
Website: www.gold-mountain.ca
Twitter: www.twitter.com/goldmtnmine_
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 the anticipated Year 1 production profile and anticipated profits, the timing for the receipt of any EA, the timing to commence mining, the timing for the delivery of mineralized material to New Afton. 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
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FAQ
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