Gold Mountain Updates Project Economics at the Elk Gold Project

VANCOUVER, BC / ACCESSWIRE / May 27, 2021 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSXV:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is pleased to announce an updated preliminary economic analysis of the Elk Gold Project. The update is based on the increased Mineral Resource Estimate announced on May 14, 2021, the Ore Purchase Agreement with New Gold Inc. ("New Gold") announced on January 26, 2021 (the "Ore Purchase Agreement") and the Mining Contract with Nhwelmen-Lake LP announced on January 19, 2021 (the "Mining Contract"). An updated preliminary economic assessment (the "PEA") will be filed on the Company's website and SEDAR within 45 calendar days of May 14, 2021.

Highlights:

  • Updated PEA with an After-tax NPV5% of C$231M
  • 19,000oz annual production (Years 1-3) expanding to 65,000oz annual production (Years 4-11)
  • Increased cost certainty over September 2020 PEA through executed:
    • Construction and Mining Contract with Nhwelmen-Lake LP
    • Ore Purchase Agreement with New Gold Inc.
  • Revised mine plan eliminates construction of an onsite mill and incorporates underground mining

Elk Gold Project PEA Summary

The PEA contemplates an initial 19,000 ounce per year mine that ramps up to 65,000 ounces of annual production by Year 4. The pre and post tax NPV (5% discount) are $395M and $231M, respectively. The PEA contemplates that for the life of mine, the mineralized material from the Elk Gold Project will be mined by the Company's contract mining partner, Nwhelmen-Lake LP ("Nwhelmen-Lake") and then delivered to New Gold's New Afton Mine located approximately 130km from the Elk Gold Project (the "New Afton Mine").

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.

Elk Gold Resource Update - Summary

On May 14, 2021 the Company announced the following updated resource estimate at the Elk Gold Project:

Classification
Tonnes
AuEq (g/t)
Au Capped g/t
Ag Capped g/t
AuEq (Oz)
Measured
196,000
9.9
9.8
9.9
63,000
Indicated
3,148,000
5.8
5.7
11.2
589,000
Measured + Indicated
3,344,000
6.1
5.9
11.1
651,000
Inferred
1,029,000
4.8
4.7
10.9
159,000

CIM definitions were followed for classification of Mineral Resources.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Results are presented in-situ and undiluted.

Mineral resources are reported at a cut-off grade of 0.3 g/t Au for pit-constrained resources and 3.0 g/t for underground resources.

The number of tonnes and metal ounces are rounded to the nearest thousand.

The Resource Estimate includes both gold and silver assays. The formula used to combine the metals is:

AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

The Resource Estimate is effective as of May 1, 2021.

Elk Gold Project Preliminary Economic Assessment`

Qualification and Assumptions

The following section sets out the qualifications and assumptions behind the economic analysis supporting the PEA. The PEA envisages a conventional open pit mining operation for the life of mine with underground mining is commissioned in Year 4. The first three years of operation are planned at 70,000tpa (200tpd). Starting in Year 4 of the mine plan, the mine expands to a 324,000tpa (900tpd) operation.

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.

Existing Infrastructure

The Elk Gold Project is a past-producing mine with much of the required surface infrastructure still in place that is required to re-start operations. The site is serviced by the all-season, four-lane Highway 97C connecting Kelowna and Merritt. An existing forest service road provides access to proposed open pits. Surface water management infrastructure around the proposed open pit is already in place including collection ditches and sumps. The stockpile pad where material will be placed prior to being shipped off-site for processing is in place, as well as the sample preparation plant which is required for sampling material from the mine for assay. A laydown area is already in place for mobile equipment maintenance, fuel storage and office facilities.

Pit Optimization

A pit optimization analysis was carried out using the Lerch-Grossman algorithm which is industry standard for assessing the ultimate pit limits for an open pit mine. The parameters used in the pit optimization are detailed in the table below.

Item
Unit
Value
Au Price
US$/oz
1,600
Au Recovery
%
92
Au Selling Cost
%
2
NSR and Mill Revenue Split
%
14
Mining Cost
US$/t
3.03
Highway Haulage and G&A Cost
US$/t milled
19.46
Pit Slope Angles
Overall degrees
45
Mining Dilution
%
Internal
Mining Recovery
%
100
Strip Ratio (est.)
Waste (t): Ore (t)
20:1
Processing Rate
tpd
900

The pit shell with a revenue factor of 0.64 was selected as the ultimate pit for the PEA mine plan and it contained 1.43M tonnes of mineralized material above the cut-off grade and 28.6M tonnes of mineralized material below the cut-off grade for a strip ratio of 20.0 waste (t) : 1 ore (t). The average gold grade in mineralized material above cut-off was 4.68g/t.

Open Pit Mine Design and Pit Phasing

A detailed mine design was developed for the ultimate pit limits. The pit design was developed according to the pit design guidelines in the Health, Safety and Reclamation Code for Mines in BC. The ultimate pit design demonstrated that the material volumes from the ultimate pit shell were achievable when accounting for pit access ramps and slope configurations.

Interior pit phases were developed using optimized pit shells which used lower gold prices and therefore only targeted higher value areas of the deposit. Targeting higher value areas of the deposit allows for the operation to increase revenue and reduce costs early in the mine life, which can improve the discounted cash flow and net present value of the project. The open pit used a cut-off grade of 0.5g/t Au. The ultimate pit design includes 1.16M tonnes of mineralized material above cut-off grade and 22.8M tonnes of rock below cut-off.

Underground Stope Design

The underground mining is contemplated to be in operation from Years 4 to Year 11 concurrently with open pit operations. Stopes for underground mine development were established by generating grade shells from the resource block model at a diluted cut-off grade of 4.2g/t Au. Only large continuous sections of the resulting grade shells which represent practical stope development dimensions were selected for mining. The selected stopes for the underground mine plan are limited to the 1300, 2500, 2600 and 2800 veins. The mineral resource above cut-off was diluted to reflect 1.4m wide stopes which was an external dilution of 40%.

Decline access was designed along the footwall of each of the underground stope solids and that development length was scheduled to ensure access to the stopes as required by the production schedule. The mine design includes dewatering and refurbishing the existing historical decline on site. An additional 10% was added to the development distance to capture cross-cuts and pull-outs resulting in a total development of 8,360m over the life of mine.

Rock Storage Facility Design

Rock below the cut-off grade of the operation will be stockpiled in a rock storage facility which has been designed west of the open pit. The facility is designed on a gentle sloping area within an existing forestry cut-block to minimize impact on intact ecosystems. The facility is designed in 20m lifts with 37° faces. The overall slope of the facility is 26° and the total capacity is 23M tonnes assuming a loose density of 1.8t/m3.

Mine Schedule

The mine is scheduled to release 70,000tpa of plant feed for Years 1 to 3. In Year 4, the mine is planned to expand to 324,000tpa. The material movement that is proposed in the PEA is presented in the table below.

 
 
Total
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Calendar Days
(#)
3,723
365
365
365
366
365
365
365
366
365
365
189
Mineralized material Mined
dmt (000's)
2,542
70
70
70
324
324
324
325
324
324
324
63
Waste Mined
dmt (000's)
22,765
2,594
2,843
2,401
2,617
2,236
2,165
2,481
2,479
2,641
308
-
Au
(g/t)
6.8
10.4
8.4
9.2
6.3
6.3
7.2
7.0
5.9
7.8
7.2
4.9
Ag
(g/t)
11.5
9.1
9.0
8.2
10.8.
9.1
10.1
8.3
11.8
15.0
18.8
12.4
S
(%)
0.81
0.81
0.08
0.10
0.50
0.50
0.9
1.2
1.3
1.0
1.1
1.8
Strip Ratio
(w:o)
18.8
19.1
18.1
17.8
56.3
13.4
11.2
36.3
31.0
33.1
4.8
-
Au Mined
oz (000's)
570
23.3
18.8
20.8
65.6
65.2
75.3
73.5
61.7
81.0
75.4
9.8
Au Recovered
oz (000's)
525
21.5
17.3
19.1
60.3
60.0
69.3
67.6
56.7
74.5
69.3
9.1
Ag Mined
oz (000's)
958
20.4
20.3
18.5
112.5
95.1
105.2
87.0
122.6
156.3
195.5
25.0
Ag Recovered
oz (000's)
671
14.2
14.2
13.0
78.7
66.6
73.7
60.9
85.8
109.4
136.8
17.5

Mine Development Schedule

Year 1

The first year of mining includes two months of site preparation. The current year activities include developing the new water settling pond below the Rock Storage Facility ("RSF"), and associated collection ditches. It also includes stripping organic material, topsoil, and till from the initial footprint of the RSF and open pit Phase 1 as well as mobilizing the initial fleet of mobile equipment, modular office facilities, and explosives storage.

The remainder of Year 1 will be the initial year of mining production, including 70,000 tonnes of mineralized material shipped to the New Afton Mine.

Years 2 and 3

The mine will continue to operate the initial phases of the open pit and transport 70,000 tpa of mineralized material to the New Afton Mine. The mine will also initiate an Environmental Assessment process which is required to expand mine production in subsequent years, as well as apply for a mine permit amendment for the expanded mining rate. The increase in production in Year 4 assumes all permits are in hand. In Year 3, the existing underground decline will be rehabilitated and extended in preparation for underground mining activities.

Years 4 to 10

Upon receipt of an Environmental Assessment Certificate, the mining rate will increase deliveries to the New Afton Mine to 324,000 tpa. The open pit mining rate will increase to an average rate of 150,000 tonnes of mineralized material per year. Underground mining activities will commence on the 1300 vein system to supplement the open pit plant feed, followed by the 2500, 2600 and 2800 veins later in the mine life. The combined open pit and underground plant feed will total 324,000 tonnes per year sold to the New Afton Mine.

Year 11

The final year of production mining will also include the initiation of major reclamation activities. The mine will prepare ahead of time for the ultimate reclamation and closure of the facility.

Year 12

Major mine site reclamation activities will be completed.

Mineral Processing

The PEA does not contemplate any mineral processing on site.

On January 26th 2021, the Company entered into the Ore Purchase Agreement whereby the Company will deliver mineralized material to the New Afton Mine. Under the terms of the Ore Purchase Agreement, Gold Mountain will deliver 70,000 tonnes of mineralized material per annum or approximately 200 tonnes per day. The Ore Purchase Agreement has a term of three years. On May 7, 2021 the Company and New Gold entered into a non-binding Letter of Intent whereby New Gold agreed to purchase up to 350,000 tonnes per year of mineralized material from the Elk Gold Project.

The mineralized material will be sampled and weighed at the Elk Gold Project site to determine the contained ounces of gold and silver being delivered to the New Afton Mine. The Company and New Gold are in the process of finalizing the sampling procedure. Following delivery of the mineralized material, New Gold will pay Gold Mountain at the end of each calendar month based on the value of the gold and silver in the mineralized material, net of the agreed metallurgical recovery and concentrate selling costs.

A copy of the Ore Purchase Agreement was filed on the Company's SEDAR profile on February 3, 2021 and is available to view at www.sedar.com.

Infrastructure Construction Requirements

The infrastructure required for Years 1 to 3 of the mine plan is limited to a modular office facility, surface water management facilities, fuel storage, explosive storage and a pad for vehicle maintenance which will be constructed with run-of-mine rock. Initial power supply requirements are limited to generators already owned by the Company and potable water will be delivered to site by a local supplier. Sewage from on-site facilities will be collected by a contractor for disposal. Mine emergency response will have a dedicated vehicle equipped to respond to any incidents in the operation. Upon inclusion of underground mining in Year 4, infrastructure will expand to include increased power generation, ventilation and utilities for the underground workings. No processing facility is being contemplated which significantly reduces the on-site infrastructure requirements of the project and eliminates the need for a tailings storage facility.

Environmental Studies, Permitting and Social or Community Impact

Gold Mountain has carried out numerous environmental baseline studies which were completed to support the application for a 200tpd mining permit submitted in May 2020. That permitting process is ongoing and is expected to be finalized in June 2021. Gold Mountain anticipates that it will require an Environmental Assessment Certificate and Mine Permit Amendment before the operation can expand to 900tpd. The PEA assumes that the Company holds all permits necessary to increase production and that New Gold obtains all permits necessary to process an increase in mineralized material from the Elk Gold Project.

As a part of ongoing project development, exploration activities and permitting processes, Gold Mountain has been engaged with numerous First Nation Bands and Associations. The Elk Gold Project is located in the traditional territory of the Nlaka'pamux and Syilx Nations and has entered into Memorandums of Understanding with three neighbouring communities.

Economic Analysis

Nhwelmen-Lake Mining Contract

On January 19, 2021, the Company entered into the Mining Contract with Nhwelmen-Lake for construction and contract mining services at the Elk Gold Project. Nhwelmen-Lake is a majority owned, First Nations mining contractor.

Pursuant to the terms of the Mining Contract, Nhwelmen-Lake will be paid a fixed price per tonne mined over the first three years which is determined based on the planned production rate, mined volumes, haulage distances and equipment productivity. The scope of the Mining Contract includes mining of mineralized material at a rate of 70,000 tonnes per annum (200 tonnes per day), waste mining, drilling, blasting, hauling, site supervision, supply of operating personnel, road maintenance, dust suppression as well as all the site preparation activities required prior to commencing mine operations, including topsoil stockpiling and preparing surface water management structures. Nhwelmen-Lake will also provide the haulage of plant feed material from the Elk property to the New Afton mine.

The Mining Contract is for the life of mine while the price schedule carries a three-year term. The obligations of the Company under the Mining Contract begin upon the Company delivering a notice of commencement to Nhwelmen-Lake.

A copy of the Mining Contract was filed on the Company's SEDAR profile on January 22, 2021 and is available to view at www.sedar.com.

Open Pit Mine Operating Costs

The PEA operating costs reflect the life-of-mine average costs under the terms of the Mining Contract which is $4.50/t mined. As a result of commissioning the underground mine in Year 4 to operate concurrently with the open pit mine, the strip ratio was minimized which reduced the open pit operating costs.

Underground Mine Operating Costs

Underground mining costs are based on a narrow-vein long hole mining method, mining 10m high stopes. The underground mining cost, excluding transportation to New Afton and G&A, is $92/t mined and is based on the size of the stopes and estimated productivity.

Highway Haulage Costs

Haulage costs between the Elk Gold Project and the New Afton Mine are $14.50/tonne which is captured in the Mining Contract

Mineral Process Operating Costs

Under the terms of the Ore Purchase Agreement, New Gold will purchase mineralized material from the Elk Gold Project for a percentage of the net revenue from the anticipated sales of gold and silver. As such, New Gold is not charging the Company any unit processing costs.

General and Administrative Costs

General and Administrative costs were developed on an annual basis and include costs for administrative staff, supplies and mine rescue training and equipment. The total general and administrative cost is estimated to be $950,000 per year.

Mine Capital Costs

The start-up capital costs for the Elk Gold Project is $9.0M which is defined in the Mining Contract. This capital cost quote includes establishing the required site facilities such as an office/dry facility, fuel storage, explosive magazines, topsoil and overburden stockpiling, surface water management facilities and the dewatering of the historic open pits. This total also includes $2.5M in working capital and $2.8M in capitalized stripping prior to the initial mineralized material production.

There is an additional $63.5M in sustaining capital costs which includes the development of the underground mining operation starting in year 4 as well as the mine site closure and reclamation.

The mine capital costs for initial operations (Year 1) and the sustaining capital are included in the table below.

Item
Initial Capital
($ ‘000s)
Sustaining Capital
($ ‘000s)
Total Cost
($ ‘000s)
Office/Dry/Fuel Storage
387
4,261
4,648
Maintenance Facility
43
473
516
Explosives Magazines
190
440
630
Surface Water Management
930
-
930
RMSF Topsoil Salvage
394
-
394
Open Pit Topsoil Salvage
657
-
657
Access Road/Gate/Site General
1,013
-
1,013
Initial Pit Dewatering
85
-
85
Capitalize Stripping
2,849
-
2,849
Underground Development
-
41,800
41,800
Mine Closure/Reclamation
-
10,000
10,000
Working Capital
2,500
-2,500
-
Total Mine Capital
9,008
54,474
63,482

Mineral Processing Capital Costs

The PEA does not contemplate construction of a processing facility on site at any stage of the mine life given that it will be delivering all mineralized material to New Gold's New Afton Mine pursuant to the terms of the Ore Purchase Agreement.

Owner's Costs

In addition to the operating and capital costs set out above, there is a total of $16.7M in owners cost over the life-of-mine.

Item
Cost ($,000)
Property payment
$6,0001
Reclamation Bond
$5,000
Technical Studies
$800
Environmental Studies
$600
Corporate costs
$1,800
Permitting
$2,500

1. Remaining Property payments are payable in two equal annual installments of $3,000,000 in May 2022 and 2023.


The tables below further summarize the basis for the PEA and the qualifications and assumptions made by the Qualified Person who prepared the economic analysis:

Base Case: $1,600/oz long-term gold price and an exchange rate of 1.25 (US$/CAD$)

Gold Price

Long-term US$1,600

Exchange Rate
1.25
NPV @ 5% Pre-tax
$395 million
Net present value (NPV 5%) After-tax
$231 million
Year 1 owner's costs
$3.9 million
Year 1 capital costs
$9.0 million
Sustaining owner's costs
$12.8 million
Sustaining capital costs
$54.5 million
After tax payback period
1 Year
All in sustaining costs (AISC) per ounce gold
US$554 / troy ounce
PEA life of mine (LOM)
11 years
LOM metal production gold equivalent ounces
582,080 oz
Base Case: $1,600/oz long-term gold price and an exchange rate of 1.25 (US$/CAD$)
LOM metal recovered gold equivalent ounces
532,942 oz
LOM average gold head grade
6.98 g/t
LOM average silver head grade
11.73 g/t

IRR Note: There is no pre-production capital for the Elk Gold Project. All capital costs of approximately $9.0M, are captured in Year 1 of operations, which results in a positive cashflow of $27.2M. To calculate the IRR, the NPV is set to zero. Since there is no negative cashflow that precedes the positive cashflow, IRR is not calculable.

Additional PEA Parameters:
Gold Recovery
92%
Silver Recovery
70%
Gold Payable
96%
Silver Payable
90%
Gold TC/RC
$6.00/oz
Silver TC/RC
$0.50/oz
NSR Royalty
2%

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.

PEA Sensitivities

The table below sets out a sensitivity analysis showing the effect the price of gold has on the Elk Gold Project's net present value ("NPV"). The bold line shows the PEA's base case.

Gold Price
Pre-tax NPV (5%)
($M)
Post-tax NPV (5%)
($M)
2100
602.9
354.5
1900
519.7
305.0
1800
478.2
280.3
1600
395.4
231.0
1400
311.9
181.3
1200
228.7
131.2

Elk Gold Project Resource Estimate

The table below sets out the detailed results of the updated Mineral Resource estimate for the Elk Gold Project. The effective date of the resource estimate is May 1, 2021 (the "Resource Estimate") and was originally disclosed in a comprehensive press release dated May 14, 2021 a copy of which is available on the Company's SEDAR profile at www.sedar.com.

Classification
Tonnes
Au Equivalent (g/t)
Au Capped (g/t)
Ag Capped (g/t)
AuEq (Oz)
Elk Gold Pit-Constrained Resources
Measured
196,000
9.9
9.8
9.9
63,000
Indicated
2,835,000
5.1
5.0
9.2
468,000
Measured + Indicated
3,031,000
5.4
5.3
9.3
531,000
Inferred
835,000
3.6
3.5
6.5
96,000
Elk Gold Underground Constrained Resources
Measured
0
0
0
0
0
Indicated
313,000
12.0
11.6
29.3
120,000
Measured + Indicated
313,000
12.0
11.6
29.3
120,000
Inferred
194,000
10.1
9.9
18.5
63,000
Elk Gold Total Resources
Measured
196,000
9.9
9.8
9.9
63,000
Indicated
3,148,000
5.8
5.7
11.2
589,000
Measured + Indicated
3,344,000
6.1
5.9
11.1
651,000
Inferred
1,029,000
4.8
4.7
8.8
159,000

CIM definitions were followed for classification of Mineral Resources.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Results are presented in-situ and undiluted.

Mineral resources are reported at a cut-off grade of 0.3 g/t Au for pit-constrained resources and 3.0 g/t for underground resources.

The number of tonnes and metal ounces are rounded to the nearest thousand.

The Resource Estimate includes both gold and silver assays. The formula used to combine the metals is:

AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

The Resource Estimate is effective as of May 1, 2021.

Several factors have contributed to the change in this resource estimate from previous estimates. The primary factors affecting that change are the addition of 41 new diamond drill holes, discovery of mineralized intercepts that were not sampled from historical drill cores, changes to the constraining pit shell parameters and changes to the vein model interpretation.

Mineral Resource Estimate Assumptions

Data Verification

The data that forms the basis for the Resource Estimate was verified by the Qualified Person using industry standard methods. Drill hole collar locations were confirmed with independent surveyors' using high precision GPS equipment. Analytical accuracy and precision are monitored using commercial standards, blanks, re-analysis of both coarse rejects and pulps. A review of all data inputs to the drilling database, both historical and recent, has allowed a sufficient level of confidence to include the drill database in the Resource Estimate.

Key Assumptions, Parameters and Methods Used to Estimate Resources

Exploration Information

The data from the 41 Phase 1 drill holes were added to the 2019 drill data for an aggregate total of 973 holes that intersected the 33 modelled mineralized zones. The assay file contained 19,375 gold and silver assays of which 4,389 were contained within the modelled zones.

Grade Capping

A cumulative frequency curve was generated for both gold and silver assay values to determine whether capping of assay values was appropriate. There is a distinct break in the gold assay cumulative frequency curve at 300g/t and that value was taken as the capping value. There were 12 gold assay values over 300g/t. The silver cumulative frequency curve has a break at 400g/t and that value was taken as the capping value. There are 13 samples in the population which were greater than 400g/t silver.

Vein Modelling

The Resource Estimate is constrained to a vein wireframe model which was developed using LeapfrogTM software by clipping the wireframes to a combination of drill hole composites and lithological units.

Metal Equivalency

The Resource Estimate includes both gold and silver assay values and the combined value is expressed as a gold equivalency. The formula by which the two metals are combined is:

AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

The table below provides the metal equivalency calculation parameters.

Parameter
Unit
Value
Gold Grade
g/t
Variable
Silver Grade
g/t
Variable
Gold Price
US$/oz
1,736
Gold Price
US$/g
55.81
Silver Price
US$/oz
23.70
Silver Price
US$/g
0.76
Recovery of Gold
%
0.96
Recovery of Silver
%
0.86

Mineral Resource Classification

Mineral resources were classified as Measured, Indicated or Inferred according to the criteria set out in the table below.

Classification on Category
Composites
Major
(m)
Median
(m)
Minor
(m)
Min.
Max.
Max./Holes
Measured
8
8
1
25
25
25
Indicated
4
8
1
60
60
60
Inferred
2
8
1
80
80
80

Only material in the 1300 vein was allowed to be classified as measured because that is the only zone that has been explored from underground and has provided three-dimensional exposures of the mineralization as well as close-spaced testing by underground drilling.

Reasonable Prospect of Economic Extraction

The open pit portion of the Resource Estimate was constrained by an economic pit shell using the following parameters:

Parameter
Unit
Value
Gold
US$/oz
1,736
Gold
US$/g
55.81
Silver
US$/oz
23.75
Silver
US$/g
0.76
Exchange Rate
US$:C$
0.80
Production Rate
t/d
900
Mining Cost
$/t material
2.70
Processing + G&A + Trucking Costs
$/t mineralized material
21.00
Recovery Au
%
96
Recovery Ag
%
86
NSR
%
2
Selling Cost
%
2
Pit Slope
degrees
50

Legal, Political and Environmental risks

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the mineral resource estimate.

Qualified Persons

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.

The technical information relating to the resource estimate was prepared by Greg Mosher P. Geo (Global Mineral Resource Services) a Qualified Person as such term is defined under National Instrument 43-101 who is independent of Gold Mountain.

The technical information relating to the project economics were prepared by Antonio Loschiavo P. Eng (AKF Mining Services Inc. and also responsible for the overall preparation of the PEA), and a Qualified Person as such term is defined under National Instrument 43-101 who is independent of 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

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 include but are not limited to: the anticipated annual production rates at the Elk Gold Project, the ability of the Company or New Gold to obtain all of the permits necessary to increase production in Year 4 of the mine life, the costs associated with bringing the Elk Gold Project into production, the timing for the Company to receive the permits required to commence construction and all other statements that are not historical facts. These 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 a copy of which is available on SEDAR at www.sedar.com.

SOURCE: Gold Mountain Mining Corp



View source version on accesswire.com:
https://www.accesswire.com/649386/Gold-Mountain-Updates-Project-Economics-at-the-Elk-Gold-Project

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