Gold Mountain resumes open pit test at Elk
2014-07-02 08:11 ET - News Release
Mr. Chris McLeod reports
GOLD MOUNTAIN RESUMING OPEN PIT TEST AT ELK GOLD PROJECT
Gold Mountain Mining Corp. has resumed the open pit test on its 100-per-cent-owned Elk gold property, located near Merritt, B.C. The program will confirm open pit mining parameters projected in the preliminary economic assessment report. The bulk sample mine plan expects to remove up to 10,000 tonnes of material at grades similar to the sample mined in 2012 (13.8 grams per tonne Au). The bulk sample is projected to be completed by this fall and the material will be shipped off-site for processing to gold bullion.
The bulk sample program was initiated in the fall of 2012. Less than 5 per cent of the gold-bearing vein was removed and 500 tons were sent for trial processing in 2013. The test processing run proved to be very successful with an average grade of 13.8 grams of gold per tonne and a gold recovery of 97.99 per cent. Based on metallurgical tests performed the gold recovery for the balance of the bulk sample is expected to remain in the 98-per-cent range. The mining of the bulk sample will provide invaluable information for the planning and production phase of the Elk gold project. Several mining techniques for the efficient removal of the mineralized vein will be tested to optimize the mining process and establish meaningful benchmarks for the next stage of development of the Elk gold deposit.
The 2014 bulk sample program is expected to produce about 4,000 ounces of gold to yield a positive cash flow for the company based on the current gold price of $1,298 (U.S.) per ounce. 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.