Gold Mountain samples 22.8 g/t Au in Elk lot 2
2014-11-17 08:07 ET - News Release
Mr. Chris McLeod reports
GOLD MOUNTAIN BULK SAMPLE LOT 2 GOLD GRADE AT 22.8 GPT
Gold Mountain Mining Corp. has completed the 2014 open-pit bulk sample test on its 100-per-cent-owned Elk gold property, located near Merritt, B.C.
Bulk sample mining resumed the middle of June, 2014, and finished the middle of September. Shipping of mineralized material in 1,000- to 3,000-tonne batches commenced the middle of July with lot 2 and ended Oct. 31 with lot 5 for a total of 6,253 tonnes shipped from the bulk sample mining operations in 2014. Including the lot 1 shipment in 2013 (415 tonnes), a grand total of 6,668 tonnes of mineralized material from the bulk sample pit have been shipped to a commercial milling operation for processing.
The table summarizes the status of the bulk sample mineralized material processing including; the total tonnage, settlement grades received, expected settlement grades based on mine site estimates and total troy ounces of gold expected based on those grades. The 6,668 tonnes of mineralized material is expected to yield an average expected grade of 17.3 grams per tonne for a total of 3,711 troy ounces of gold. The estimated gross value of gold for the first four lots of mineralized material processed is $3.88-million (U.S.).
2012/2014 ELK BULK SAMPLE MATERIAL PROCESSED Lot Tonnes Grade Troy oz LME fix Gross No. Au g/t gold price (U.S.$) value (U.S.$) 1 415 13.8 185 $1,270.50 $234,877 2 606 22.8 445 $1,217.25 $541,438 3* 2,568 20.9 1,728 $1,162.00 $2,008,385 4* 2,045 14.3 943 $1,162.00 $1,095,733 5* 1,034 12.3 410 TBD TBD ----- ---- ----- --------- ---------- Total* 6,668 17.3 3,711 - $3,880,434 * Note: Settlement grade has been estimated.
Lot 2 consisted of 606 dry tonnes of 2014 mineralized material and was processed in late August, 2014, with financial settlement completed at the end of September. The settlement grade was 22.8 grams per tonne gold for 445 troy ounces of gold produced and the settlement contract LME afternoon gold price was $1,217.25 (U.S.) per troy ounce.
Correlation of the processing plant determined gold grade for lot 2 was within 5 per cent of the mine site estimated gold grade based on mineralized material pile sampling by Gold Mountain staff. Processing and settlement for lots 3 to 5 are still in progress and will be reported once complete.
For lots 1, 2 and 4 the mineralized material shipped for processing was a blend of rock mined from the new bulk sample pit and lower-grade stockpiles remaining from the 1992 to 1995 mining campaign. Historic stockpile material totalled 1,094 tonnes at an average expected gold grade of 5.6 grams per tonne yielding an expected 198 troy ounces of gold.
In total, 7,762 tonnes of mineralized material was shipped for processing, yielding an expected 3,909 troy ounces of gold. All mineralized material has now been removed from the mine site for processing.
When the final results are confirmed for all lots, the gold grade and tonnage from the final gold milling figures will be compared to both the mine site grade estimate of vein material extracted, and the polygonal resource grade estimated from diamond drill holes within the bulk sample pit.
During the bulk sample mining operations, several mining techniques for the efficient removal of the mineralized vein were tested to optimize the mining process and establish meaningful benchmarks for the next stage of development of the Elk Gold deposit.
The bulk sampling process has provided additional information for the planning and optimization of the mining and process metallurgy as the Elk project moves another step closer toward production. Mine planning and production cost projections are being analyzed based on the work performed to date. Information from the bulk sample mining will help to determine the optimum open-pit mining process and will provide a confirmation of the representative grade for the Elk Gold potential resource. In addition, analysis of the bulk sample mining operations has provided more information on the structural and grade continuity as well as mining and milling characteristics for the Elk gold-bearing structures.
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 press release.