Gold Mountain Mining Corp. is happy to announce that it has signed a Letter of Intent with New Gold Inc to extend its tonnage delivered to New Afton from 70,000 to 350,000 tonnes every year starting in 12 months 4 of manufacturing. This addition displays a 400% bump to the supply commitments outlined within the Firm’s Ore Buy Settlement with New Gold and gives a transparent path to scale mining …
Gold Mountain Mining Corp. (‘Gold Mountain’ or the ‘Firm’) (TSX.V:GMTN)(OTCQB:GMTNF)(FRA:5XFA) is happy to announce that it has signed a Letter of Intent (“LOI”) with New Gold Inc (“New Gold”) to extend its tonnage delivered to New Afton from 70,000 to 350,000 tonnes every year starting in 12 months 4 of manufacturing. This addition displays a 400% bump to the supply commitments outlined within the Firm’s Ore Buy Settlement with New Gold (the “OPA”) and gives a transparent path to scale mining operations
- The rise in ore supply permits Gold Mountain to scale mine operations with out the necessity for an on-site mill.
- The Firm foregoing an on-site mill was a considerable driver for lowering its all-in sustaining prices (“AISC”) from $735/ounce to $554/ounce (USD).
- Ramp up in mining operations to 350,000 tonnes per 12 months is scheduled to start 2024.
“We not too long ago up to date our PEA with a rise to our manufacturing profile in years 4-11, a rise in whole ounces produced over the lifetime of mine, and the continuation of promoting our ore on to New Gold. As a way to substantiate these economics we felt it was necessary to point out a willingness on either side to broaden the long run working relationship, by executing this LOI. Based mostly on commerce off research that we’ve got accomplished as a part of our ongoing PFS work with JDS Vitality and Mines, it turned obvious setting up a mill in 12 months 4 was not the proper resolution,” commented Kevin Smith, CEO and Director of Gold Mountain.
“This new plan eliminates a considerable amount of CapEx and reduces the environmental impacts by not constructing an on-site mill and tailings storage services. This may enable us to reallocate that capital into persevering with to aggressively discover the property, in addition to speed up the remediation and enlargement of the prevailing underground decline. Persevering with to display this venture’s economics and scalability has all the time been a excessive precedence. This new mine plan has us producing extra gold sooner, at a drastically decrease AISC. With the drill turning and the Elk being roughly six months away from business manufacturing, we intend to proceed pushing the tempo over the second half of 2021.”
Ore Buy Settlement
On January 26th 2021, the Firm entered into an Ore Buy Settlement with New Gold to buy the ore from the Elk Gold Mine. The Firm will ship ore to New Gold’s New Afton Mine situated 133km from the Elk Gold Mine in Kamloops BC. Underneath the phrases of the Ore Buy Settlement, Gold Mountain will ship 70,000 tonnes of ore every year or roughly 200 tonnes per day. The Ore Buy Settlement has a time period of three years.
The ore will probably be sampled and weighed on the Elk Gold Mine to find out the contained ounces of gold and silver. Following supply, New Gold pays Gold Mountain on the finish of every calendar month based mostly on the worth of the gold and silver within the ore, internet of the agreed metallurgical restoration and focus promoting prices. The phrases of the Ore Buy Settlement mitigate the variance and volatility of operational throughput and permits the Firm to keep away from any danger of restoration.
Letter of Intent
The LOI contemplates a rise to the annual tonnage delivered to New Gold by 400%. Underneath the phrases of the LOI, New Gold confirmed its capability to buy as much as 350,000 tonnes of ore per 12 months starting in 12 months 4. The brand new phrases enable Gold Mountain to scale manufacturing with out the requirement to construct an on-site mill, drastically lowering its capital necessities over the lifetime of mine. The Firm foregoing an on-site mill was a considerable driver for lowering its AISC from $735/ounce to $554/ounce (USD) in its newest Preliminary Financial Evaluation (“PEA”). For extra data, see the Firm’s press launch dated Could 27, 2021 at www.sedar.com.
With the LOI in hand, Gold Mountain will now look to streamline the allowing course of required to scale manufacturing by avoiding the environmental impression of an on-site mile. The Firm anticipates growing manufacturing to 350,000 tonnes per 12 months starting in 2024 topic to each the Firm and New Gold acquiring the required regulatory approvals.
New Gold Allowing Replace
Moreover, New Gold has submitted its Discover of Departure (“NOD”) to the Ministry of Vitality, Mines and Low Carbon Innovation to obtain ore from the Elk Gold Mine. The NOD contemplates New Gold processing 70,000 tonnes every year in years 1-3. Each events don’t foresee any delays to the manufacturing schedule which anticipates ore supply in October 2021.
The foregoing technical data was accredited by Grant Carlson, P.Eng., a Certified Individual, as outlined below Nationwide Instrument 43-101 and the Chief Working Officer for Gold Mountain Mining Corp.
About Gold Mountain Mining
Gold Mountain is a British Columbia based mostly gold and silver exploration and improvement firm targeted on useful resource enlargement on the Elk Gold Challenge, a past-producing mine situated 57 KM from Merritt in South Central British Columbia. Further data is offered at www.sedar.com or on the Firm’s new web site at www.gold-mountain.ca.
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Neither the TSX Enterprise Change nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) has reviewed or accepts accountability for the adequacy or accuracy of this Launch
This information launch contains sure ‘forward-looking statements’ below relevant Canadian securities laws. Ahead- wanting statements embody statements which are based mostly on assumptions as of the date of this information launch and usually are not purely historic together with any data or statements relating to beliefs, plans, expectations or intentions relating to the long run and infrequently, however not all the time, use phrases or phrases corresponding to “expects” or “doesn’t anticipate”, “is predicted”, “anticipates” or “doesn’t anticipate”, “plans”, “estimates” or “intends”, or stating that sure actions, occasions or outcomes “might”, “might”, “would”, “would possibly” or “will” be taken, happen or be achieved. Ahead wanting statements on this press launch embody these regarding the Firm’s capability to extend manufacturing to 350,000 tonnes per 12 months, the timing to scale manufacturing on the Elk Gold Challenge and the timing for New Gold to acquire permits essential to course of ore from the Elk Gold Challenge. Ahead-looking statements are essentially based mostly upon various estimates and assumptions that, whereas thought-about affordable, are topic to recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes and future occasions to vary materially from these expressed or implied by such forward-looking statements. Such components embody, however usually are not restricted to: common enterprise, financial, aggressive, political and social uncertainties; delay or failure to obtain board, shareholder or regulatory approvals; the value of gold; and the outcomes of present exploration. There may be no assurance that such statements will show to be correct as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case, besides as required by legislation. For a complete overview of all dangers that will impression the Firm, please see the Firm’s Administration Dialogue and Evaluation for the 12 months ended January 31, 2021.
SOURCE: Gold Mountain Mining Corp
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