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