TSX-V TRADING SYMBOL: GUM
VANCOUVER, April 8, 2015 /CNW/ - Gold Mountain Mining Corporation (the "Company" or "Gold Mountain") has completed mining and third-party processing of material from the 2014 open-pit bulk-sample test on its 100% owned Elk Gold property, located near Merritt, British Columbia.
The 2014 bulk-sample mining was completed by the end of September, with mineralized rock shipped to a nearby gold mine for processing, which was completed in November. The final head-grade assays were settled in December, with final payments being received in January, 2015.
A total of 6,597 tonnes of mineralized material was shipped from the bulk sample pit with an average settlement grade of 16.7 grams per tonne gold. Gold recovery in the third-party mill averaged 96.9%, confirming the prior metallurgical testing. Total gold produced was 3,696 troy ounces; with 3,531 ounces coming from the 2014 bulk sample and an additional 165 troy ounces of gold obtained from mineralized material left over from historic mining.
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 towards a production decision. Mine planning and production cost projections are being analyzed based on the work performed to date.
The results of the bulk sample are encouraging as it has provided data indicating the resource estimate underestimates the contained gold by approximately 43% at the 2g/t cut-off grade. A further analysis of the entire resource model will be performed based on the data collected during the bulk sample program. The key differences between the resource model and the bulk-sample test results were that the resource model predicted a higher volume of vein material at a much lower grade. The resource estimate tonnage was 2.75 times the tonnage mined but at a grade of 4.2 g/t Au, or only 43% of the gold that was extracted. The volume difference is due to the way in which the veins were geologically modelled and that the bulk-sample mining had less dilution than was incorporated into the resource model. The contained gold underestimate is also due, in part, to the deposit's nugget effect, and is consistent with historical mining results.
The existing Bulk Sample Permit allows the extraction of 4,000 banked cubic meters of mineralized material. Currently, 2,440 cubic meters have been removed, leaving a permitted allowance of another 1560 cubic meters. An evaluation of the economics to mine mineralized material along strike between the old and new pits is currently being undertaken.
The Company's Senior Geologist, Robert Wilson, P.Geo., 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.
About Gold Mountain Mining
Gold Mountain is a public resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company owns 100% of the 16,700 hectare Elk Gold property, which the Company intends to develop into a precious metal producer within the next two years, and is
also seeking additional near-term production assets to further build shareholder value. Additional information is available on Sedar.com or on the Company's website at www.aumtn.com.
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.
ON BEHALF OF THE BOARD
"Chris McLeod" (signed)
Chris McLeod, President & CEO
Forward-Looking Statements: This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the closing of further tranches of the Offering, the use of proceeds from the Offering and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE Gold Mountain Mining Corporation
Chris McLeod, President & CEO or Rod Shier, Chief Financial Officer at 604 558-4653Copyright CNW Group 2015