TSX-V TRADING SYMBOL: GUM
VANCOUVER, Nov. 17, 2014 /CNW/ - Gold Mountain Mining
Corporation (the "Company" or "Gold Mountain") completed the 2014
open pit bulk sample test on its 100% owned Elk Gold property,
located near Merritt, British
Columbia.
Bulk sample mining resumed the middle of June, 2014 and finished
the middle of September. Shipping of mineralized material in
1000 to 3000 tonne batches commenced the middle of July with Lot 2
and ended October 31 with Lot 5 for a
total of 6253 tonnes shipped from the bulk sample mining operations
in 2014. Including the Lot 1 shipment in 2013 (415 tonnes), a
grand total 6668 tonnes of mineralized material from the bulk
sample pit have been shipped to a commercial milling operation for
processing.
The table below 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 6668 tonnes of mineralized material is expected
to yield an average expected grade of 17.3 gpt 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 $US 3.88 million.
2012 / 2014 Elk
Bulk Sample Material Processed
|
Lot
|
Tonnes
|
Grade
|
Troy
Ounces
|
LME
Fix
|
Gross
|
Number
|
|
Au
gpt
|
Gold
|
Price
USD
|
Value
USD
|
|
|
|
|
|
|
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 g/t gold for 445 troy ounces of gold produced and the
settlement contract LME afternoon gold price was US$1,217.25 per troy ounce.
Correlation of the processing plant determined gold grade for
Lot 2 was within 5% 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 stock piles remaining from the 1992 to 1995 mining
campaign. Historic stockpile material totaled 1094 tonnes at an
average expected gold grade of 5.6 gpt yielding an expected 198
troy ounces of gold.
In total, 7762 tonnes of mineralized material was shipped
for processing, yielding an expected 3909 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 towards
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, 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