Gold Mountain targets satellite zones at B.C. project
Gold Mountain Mining Corp. [GMTN-TSXV, GMTKNF-OTCQB, 5XFA-Frankfurt] on Thursday released additional assay results from the Siwash North portion of the phase 2.0 drill program at its 100%-owned Elk gold project near Merritt, British Columbia.
The company said it continues to uncover high-grade mineralization along its well-established vein systems near the project’s open pits, which show strong grade continuity and openness on strike and at depth throughout the Siwash North zone.
Drilling highlights included 1.30 metres of grade 12.00 g/t gold, including 0.30 metres of 44.7 g/t gold as well as 1.10 metres of grade 10.05 g/t gold, including 0.30 metres of 46.1 g/t gold.
Drill results from phase 2 have been announced after the company released an updated preliminary economic analysis for the Elk project.
That announcement followed the recent release of a National Instrument 43 101-compliant resource estimate for the project, which in turn came after the completion of a phase 1 drill program, consisting of 8,739 metres, and costing $1.9 million.
Gold Mountain said Thursday it has concluded all drilling activity for the phase 2.0 program and now awaits assay results from the laboratory. In total, the program consisted of 13,900 metres, with 10,500 metres occurring in the Siwash North zone and the remaining 3,400 metres drilled in the satellite zones (Lake Zone, South Zone and Elusive Zone).
The Elk project has eight additional exploration zones that were drill tested by previous operators. To date, 9,000 metres of drilling have been performed in the satellite zones, which do not currently contribute to the project’s resource estimate.
For the first time, Gold Mountain is exploring the satellite zones and will look to develop maiden resources in multiple areas of the Elk claims. The company said the Elusive Zone is located 10 kilometres from Siwash North and is the most prospective region of the property.
The estimated resource at Elk was recently increased to 651,000 ounces gold in the measured and indicated category at 6.1 g/t gold and 159,000 ounces in the inferred category at 4.8 g/t.
A preliminary economic assessment (PEA) contemplates an initial 19,000-ounce-per-year mine that ramps up to 65,000 ounces of annual production in years four to 11. The PEA also envisages that for the life of mine, mineralized material from the Elk project will be mined by a contract partner and then delivered to New Gold Inc.’s (NGD-TSX, NYSE American) New Afton mine, which is located about 130 kilometres from the Elk mine site.
On November 24, 2021, Gold Mountain shares closed at $1.68 and trade in a 52-week range of $3.12 and 76 cents.