19 gpt
Gold Mountain's Elk bulk sample averages 19 g/t Au
2014-07-24 08:39 ET - News Release
Mr. Chris McLeod reports
GOLD MOUNTAIN BULK SAMPLE GOLD GRADE ABOVE PLAN AT 19 GPT
Gold Mountain Mining Corp. has resumed the open pit bulk sample test on its 100-per-cent-owned Elk gold property, located near Merritt, B.C.
The bulk sample mining began on June 19, with the aid of two hydraulic excavators and three 30-tonne articulated haul trucks, and will continue until the bulk sample program is completed. In excess of 3,000 tonnes of mineralized material have already been mined and are being trucked on a 24-hour basis to the contract processing facility. The average grade of the 3,000 tonnes of mined material is approximately 19.1 grams of gold per tonne, representing 1,840 ounces of gold with an attributed gross value of approximately $2.4-million (U.S.) at $1,300 (U.S.) per ounce.
The mineralized material mined to date in 2014 was removed in 46 lots and includes 14 lots of material grading in excess of 31 grams per tonne gold and four lots grading between 63 grams per tonne gold and 130 grams per tonne gold. To obtain correlation, a direct comparison was made between the mined material and the 13 exploration drill holes that were drilled within the mined area. For each of the 13 exploration drill holes, the lots of material mined and sampled immediately adjacent to the drill holes returned gold assay results that consistently exceeded the exploration drill hole assay results. The average gold grade for the bulk sample material immediately adjacent to the exploration drill holes exceeded the average gold grade for the 13 drill holes by 4.28 times.
One objective of the bulk sample program was to confirm gold grade estimates based on the exploration drill holes used in the resource modelling. The higher gold grades in the mined bulk sample are believed to be due to the significant amount of pyritic gouge material recovered in many areas of the bulk sample pit that may have been lost during diamond drilling. Pyritic gouge material can be washed away with drilling mud, and the gold associated with the pyrite lost in the core sampling process. This, together with the relatively small drill core sample size in a nugetty deposit, helps explain the large positive variance noted above. This hypothesis will be further tested with continued mining, additional sampling and testing of the mineralized bulk sample material.
Trucking of the bulk sample material to the processing mill has begun at a rate of approximately 110 tonnes per day. The material will be processed at the mill in separate lots of between 1,000 tons and 3,000 tons. The first lot of material is expected to be processed in late August.
The company's senior geologist, Robert Wilson, PGeo, acts as the company's qualified person for technical disclosure per National Instrument 43-101 and has reviewed and approved the technical content of this news release.