Gold Mountain to Begin Mine Construction

Rhea-AI Summary

Gold Mountain Mining Corp. announced it has received its Notice of Departure to commence construction at its Elk Gold Project near Merritt, BC. This approval allows the company to start site preparation and anticipate ore delivery by Q4 2021. The authorization, received on April 29, aligns with the company's forecast to initiate construction in May 2021. Additionally, the company has addressed all remaining information requests from regulatory authorities, ensuring progress towards final permit approvals.

Positive

• Receipt of Notice of Departure facilitates early mine construction.
• Construction allows for preparation for ore mining and delivery in Q4 2021.
• Efficient use of recycled material mitigates capital costs and carbon emissions.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / April 30, 2021 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company" ) (TSX.V:GMTN, OTCQB:GMTNF, Frankfurt:5XFA) is pleased to announce that it has received its Notice of Departure ("NoD") to begin mine construction at its 100% owned Elk Gold Project located near Merritt, BC. The Company anticipates construction to begin in May 2021 and is the first major operating catalyst to ore delivery in Q4 2021.

Highlights

• On April 29, the Company received authorization from the Ministry of Mines to begin construction and upgrades required to put the mine back into production.
• This milestone is inline with the Company's Q2 forecast and is a major catalyst to preparing the site for ore mining and delivery.
• The Company has resolved the remaining Information Requests from the Ministry of Energy, Mines and Low Carbon Innovation ("EMLI") and the Ministry of Forests, Lands, Natural Resource Operations and Rural Development ("FLNROD").
• Once all Information Requests have been accepted, it is anticipated the Permit Amendment will be sent up for final approval.

"Feedback from institutions has always been that our projected timelines are aggressive and might be difficult to achieve", commented Kevin Smith, CEO of Gold Mountain. "Receiving this Notice of Departure allows us to take the critical steps of upgrading our existing water management system, installing a weigh scale, as well as leveraging a gravel borrow to start stripping waste from our initial pit and repurpose it into aggregate needed to resurface roads throughout the property. By getting into construction early, we will be ready to hit the ground running once our various mine permit amendments are approved. Since acquiring this project, we were very clear about our intent to quickly put this mine back into production, with efficient deployment of capital. Management intends to continue maintaining our strong treasury, while pushing the pace of project advancement and delivering key milestones, week after week. With the snow on site nearly gone, our mine construction partner, Nhwelmen-Lake LP, has been notified to begin mobilizing their equipment, in anticipation of developing BC's next high grade Gold and Silver producer."

Notice of Departure
The NoD is an authorization allowing the Company to begin construction and site preparation at the Elk Gold Project under Gold Mountain's existing M-199 mine permit. This milestone was achieved on-time and adheres to the Company's forecasted schedule of ore mining and delivery to its ore purchase partner, New Gold Inc., in Q4 of 2021.

Environment and Sustainability
The NoD includes permission for the Company to facilitate a "gravel borrow" at the Elk Gold Project. This authorization allows Gold Mountain to begin waste rock mining operations where the material can be recycled and reused for road construction. With this permission, the Company avoids the need to purchase and haul additional material to site, mitigating high capital costs, carbon emissions, and wasteful mining procedures.

Equipment Mobilization
Following the issuance of the NoD, Nhwelmen-Lake LP, the Company's mining partners, will begin mobilizing the equipment needed to begin constructing roads, a site offices, support facilities and upgrading the projects water management system.

Permit Update
Gold Mountain has continued to advance it's Mine Permit amendment (the "Mine Permit '') with the necessary regulators to adhere to it's aggressive timelines. Currently, the Company has addressed all round 2 questions from the EMLI and FLNROD. The permitting team is now cohesively working with the Ministry of Environment and Climate Change Strategy to address its final information requests for the receipt of the Effluent Discharge Permit.

Additionally, the Company continues to emphasize and foster it's relationships with Indegenous Communities in the region and has made significant progress in developing strong relationships. Gold Mountain looks forward to sustaining it's rapport with the communities and building a working relationship built on transparency and respect.

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 atwww.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

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. Forward looking statements in the press release include but are not limited to: any of the activities contemplated to begin upon receipt of the NoD, the timeline for the permit to be sent for approval, the timeline to begin construction in May 2021, the timeline for the Company to begin mining and ore delivery in Q4 2021 and becoming BC"s next high grade gold and silver producer. 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 Filing Statement filed on Gold Mountain's SEDAR profile on December 15, 2020.

SOURCE: Gold Mountain Mining Corp

View source version on accesswire.com:
https://www.accesswire.com/643410/Gold-Mountain-to-Begin-Mine-Construction

FAQ

What significant approval did Gold Mountain Mining Corp. receive on April 29, 2021?

Gold Mountain received its Notice of Departure, allowing the start of construction at the Elk Gold Project.

When is Gold Mountain expected to begin construction at its Elk Gold Project?

Construction is anticipated to begin in May 2021.

What is the expected timeline for ore delivery at Gold Mountain Mining Corp.'s Elk Gold Project?

Ore delivery is expected in Q4 2021.

What environmental benefits does Gold Mountain claim with the NoD authorization?

The NoD allows for waste rock to be recycled for road construction, reducing costs and carbon emissions.

Who is Gold Mountain Mining Corp.'s ore purchase partner?

Gold Mountain's ore purchase partner is New Gold Inc.