Gold Mountain Mining Corp T.GMTN

News just out

[Elliot]

VANCOUVER, BC, June 14, 2022, Gold Mountain Mining Corp. ("Gold Mountain" or the
"Company") (TSX: GMTN) (OTC:GMTNF) (FRA:5XFA) reports its first-quarter 2022 summary
financial and operating results. The Company’s interim financial statements and related
management’s discussion and analysis for the three months ended April 30, 2022, is available for
download on SEDAR and on the Company’s website. All amounts are expressed in Canadian
dollars (“$”), unless otherwise noted.
Highlights
Gold Mountain achieved $3,706,423 in revenue with an adjusted EBITDA of $526,949
EBITDA
The Company delivered 1,898 AuOz and 1,697 AgOz to its Ore Purchase Partner New
Gold Inc. (“New Gold”)
As of June 6th, the Company completed 15,500 m of drilling in Siwash North & Gold
Creek zones as part of its Phase lll exploration program
The operations team continues to optimize the Elk’s procedures while scaling to the
contemplated Year 1 production profile
The Company finished the quarter with $18,819,693 in cash
Gold Production
In the Company’s first producing quarter, Gold Mountain began start-up operations at the Elk Gold
Mine to commission its newly constructed sample plant and streamline its procedures to
accommodate the Elk’s narrow-vein, high-grade structure.
The Elk Gold Mine also experienced challenges during commissioning with respect to both grade
control and sampling processes, which resulted in lower than forecast ore production during the
initial ramp-up.
The Company has implemented a number of initiatives that are expected to positively impact
future mining results. They include hiring industry experts that have experience mining narrow-
vein deposits, implementing a robust in-fill drill program and examining other initiatives such as
preconcentration technologies. The Company anticipates that it will continue working through
these initiatives during the upcoming quarter.
Mining
During the quarter ended April 30, 2022, the Company mined 15,063 tonnes of ore
containing 1,898 AuOz and 1,697 AgOz to New Gold’s New Afton Mine in Kamloops.
Several new initiatives were launched which are expected to have a positive impact on
ore production and recovered ounces, which include:
Continuing to optimize sampling procedures to ensure samples fully represent
daily production. Procuring a second diamond drill to facilitate infill drilling in order to enhance the
ore model.
Refining blasting procedures to improve fragmentation, reduce dilution and
increase production.
Industry Expertise
With the Company now into production, it has brought on industry veterans with expertise
in mining narrow vein deposits
Paul MacRae - General Manager at the Elk Gold Project. 50 years of experience
in mine operations having applied learned engineering and operational practices.
Dan Lampman - Senior Ore Control Geologist. 35 years of experience with narrow
vein deposits having worked at the Red Lake Mine, Mulatos Mine, Plutonic Gold
Mine and the Eskay Creek Deposit.
Exploration
Gold Mountain continues to intercept high-grade mineralization in the Siwash North Zone
during its Phase lll drill program, including:
1.50 m grading 42.39 g/t Au including 0.30m of 207.00 g/t Au
2.31 m grading 18.90 g/t Au including 0.43m of 101.00 g/t Au
1.60 m grading 26.03 g/t Au including 1.09 m of 38.20 g/t Au
1.17 m grading 16.46 g/t Au including 0.30 m of 35.30 g/t Au
1.00 m grading 12.04 g/t Au including 0.30 m of 39.60 g/t Au
As of June 6th, the Company drilled 63 holes for a total of 15,500 m of its Phase III drill
program.
Phase III is focusing on the Elk's Siwash North and Gold Creek Zones with the goal of
expanding the current resource.
The Company will wrap up its Phase lll drilling at the end of June and anticipates producing
an updated resource estimate in Q3 2022.
Expansion
The Company has begun to lay the groundwork for the expansion contemplated in the Elk
Gold Project’s technical report which sees the Company scaling up to 324,000 tonnes/year
and 65,000 oz.1
Honoring commitments made to Indigenous Communities during the recent mine permit
amendment process, the Company applied to the British Columbia Environmental
1 The expanded case is contemplated in the Company’s 2021 PEA, a copy of which is available at www.sedar.com.
The 2021 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 2021 PEA will be realized. Mineral resources that are not mineral reserves do
not have demonstrated economic viability.

 

Assessment Office to designate the proposed expansion plan for the Elk Gold Project as
a reviewable project under the Environmental Assessment Act.
Finance
The Company closed a bought deal prospectus offering for $18.5M raising net proceeds
of $17,412,434.
The Company completed its second property payment of $3,000,000 to Equinox Gold
Corp. (EQX) on May 16, 2022 with the final $3,000,000 payment due May 16, 2023.
Mergers & Acquisitions
The Company is actively evaluating M&A opportunities with a focus on assets with near-
term production potential.
Financial Results
Positive adjusted EBITDA of $526,949 for the three months ended April 30, 2022
Revenues of $3,706,423 for the three months ended April 30, 2022
The Company finished the quarter with $18,819,693 in cash
Operational and Financial Details
Operating Data Metric For the three months ended, April 30, 2022,
Ore Mined and Crushed Tonnes 15,063
Waste Mined Tonnes 379,855
Average head grade Grams per tonne gold 4.24
Gold Ounces Sold Ounces 1,898
Average Price Realized1 $/oz 1,930
Total cash costs/oz sold1 $/oz 1,379
Cost of sales/oz2 $/oz 1,465
Revenue $ 3,706,423
Gross profit $ 925,420
Adjusted EBITDA $ 526,9491 This is a non-IFRS financial measure. Please refer to the “Non-IFRS Financial Measures” section at the
end of this MD&A for a description of these non-IFRS financial measures and a reconciliation to operating costs from the
Company’s condensed interim consolidated financial statements.
Management Reorganization
The Company is reorganizing its management structure which will see Ron Woo transition from
the role of President to Vice-President of Permitting. Kevin Smith will be taking on the duties of
the President.
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.