TSX-V TRADING SYMBOL: GUM
VANCOUVER,
May 1, 2012 /PRNewswire/ - Gold
Mountain Mining Corporation (the "Company" or "Gold Mountain") is
proceeding with a 12,000 meter drill program and a 10,000 tonne
bulk sample on its 100% owned Elk Gold property.
The Company plans to conduct a 10,000 tonne open
pit test mining operation to confirm the results of the preliminary
economic assessment outlined in the 43-101 Technical Report. The
test mining and bulk sample program will be used to refine the
mining technique and confirm parameters for full scale operations.
An application to amend the existing small mines permit with a new
Work System and Reclamation Plan has been submitted and is in the
process of government approval. The Preliminary Economic Assessment
("PEA") based on a US$1,200 per troy
ounce gold price results in a mining project with a 9 year mine
life which would produce 297,000 ounces of gold at an estimated
cash cost of C$652 per ounce with
initial capital expenditures of C$17.5
million, pre-tax IRR of 39%, payback of 3.3 years and NPV of
C$67.9 million using an 8% discount
rate.
The first priority for the 12,000 meter drill
program at the Elk property will be to test the western extension
of the historic Bonanza pit. Approximately 5,000 meters of core
drilling will in-fill the 350 meter western step out from the pit,
where 2011 drill results discovered a new vein structure along
strike of the Siwash vein zone. The step out drill hole SND-123
intersected a pyritic quartz vein, grading 30.4 g/t gold and 56.2
g/t silver over a core length of 0.39 meters. This intercept
suggests that the 1300 vein continues at least 350 meters to the
west of the Bonanza pit where more than 50,000 ounces of gold were
previously mined.
A second group of drill targets for 2012 includes
four of the nine prospective regions on the Elk property. Targets
have been identified based on the promising results of the Titan 24
survey and the drill results from 2010 and 2011. Regional drilling
will be designed to extend both the strike length and depth of the
high priority regional gold bearing structures identified in the
2010 and 2011 drilling program, including Bullion, Discovery and
South plus the as-yet undrilled Elusive zone.
The current 43-101 resource estimate, based on the
drill data available in 2009 is tabulated below:
|
|
|
|
|
|
|
|
|
|
Category |
|
|
Tonnes (t) |
|
|
Gold Grade (g/t) |
|
|
Contained Ounces |
Measured + Indicated |
|
|
2,190,000 |
|
|
4.26 |
|
|
301,000 |
Inferred |
|
|
1,150,000 |
|
|
7.13 |
|
|
263,000 |
The resource is currently being updated with the
addition of 26,750 meters of drilling completed since the last
estimate in 2009. Updated block model will be completed by Giroux
Consultants Ltd to provide a new resource estimate in Q2 2012. All
recent drill data has been collated and input into a detailed three
dimensional interpretation of the resource.
Gold Mountain's president and CEO Chris McLeod said "We are pleased with progress
being made to move the Elk Gold project one step closer to
production. In addition, the exploration program has delivered
results with the discovery of the continuation of the Siwash vein
zone as this additional strike length could add significantly to
the resource."
Jim Balmer, P.Geo.,
has joined Gold Mountain to manage the bulk sample mining
operation. Jim has the requisite experience, qualifications and
certifications to manage the open operations for Gold Mountain. We
are pleased to have Jim on board to lead the bulk sample mining
operations at the Elk property.
Peter Thiersch, VP
Exploration, has left the company to pursue other career interests.
Peter's contribution towards enhancing the Elk project is greatly
appreciated and the Company wishes him well in his future
endeavours.
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 new 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 new 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