Minimize

Welcome!

Gold Mountain Mining – Phase 2 Exploration Results And Production Update

Shad Marquitz
November 25, 2021

Kevin Smith, CEO of Gold Mountain Mining (TSX.V:GMTN – OTCQB:GMTNF), joins us to discuss the two most recent company news releases on their Phase 2 exploration program at the Company’s Elk Gold Project in British Columbia.  We start off reviewing the high grade Siwash North drill hole intercepts reported on November 16th and November 25th.   These results showed the continuity of the deposit, even over large 300 meter step-out holes, and these results are building confidence in the scalability of the Project, and ability to grow the reserves working towards an updated resource estimate in the near future.

 

Next we had Kevin outline the streamlined mining operations and fixed contract costs to get ore shipped over New Gold’s New Afton processing center, without Gold Mountain Mining having to finance and construct a mill at this time. We also review how the company is allowed to process 75,000 tones of mineralized material per year under their MI-99 permit, which expedites production.  The annual production guidance is more than 19,000 ounces, which will generate the incoming revenues to fund explorations activities without shareholder dilution.

 

The Company has just completed their Phase 2 drill program, which was expanded from 10,000 meters to 14,000 meters, with a goal of increasing their resources from 651,000 ounces to over 1 million ounces by the end of this year at their Siwash North zone.  We wrap up with an overview of the Phase 3 exploration program that is ongoing at the satellite targets; the Gold Creek Zone,  Lake Zone, South Zone, and the potential new bulk tonnage discovery 10kms away at the Elusive Zone.

 

If you have any follow up questions for Kevin regarding Gold Mountain Mining, then please us at Fleck@kereport.com or Shad@kereport.com.

https://gold-mountain.ca/news/

Discussion
8 Comments
    Nov 25, 2021 25:01 PM

    Sorry Ex,

    Thought this deserved to be at the top of a thread. Can’t keep up with the movement lol.

    I’m response to Matthew previous post three blogs previous

    Glenfidish
    8 hours ago
    Matthew

    Thanks for your post it really sums up everything. It also shows your commitment to putting yourself out there with making these calls and I have nothing but the upmost respect for them. There’s many idiots on here that like to attack and call people out yet they don’t make any calls they don’t contribute in anyway that’s positive.

    If I reached out to you it’s the same as doc are very few which I respect despite sometimes having differences. I hope that we can put to rest someday the name calling I’m far Pass that.

    Keep sticking to what you do which is great your charts and your knowledge of the overall markets it’s been many many many years and I think I speak for myself and for many others I’m glad we have a group of people in here they try to help each other on a daily basis.

    Once again thank you Matthew for clarifying your position and it makes total sense on what you said in regards to gold and it’s drivers. The frustration as you said is the miners going lower a month or two ago hopefully we can consolidate here and begin to go higher.

    Reply

    Reply
      Nov 25, 2021 25:07 PM

      Good post Glenfidish. I agree that it is good having Matthew share his charts and technical outlook with all of us here at the KER on a regular basis. .
      .
      In the spirit of Thanksgiving…. Thanks guys!
      .
      All the contributions and insights shared by the KER Crew are very much appreciated.

      Reply
    Nov 25, 2021 25:11 PM

    Hi Ex, great questions, I like what I hear, interesting to know they can limit dilution by sending ore tonnage to New Afton processing center. The company seems to be open to shareholder’s interests. Thanks again guys for the interview. Gold Mountain Mining! HMMMM! DT

    Reply
      Nov 25, 2021 25:24 PM

      Thanks DT. Yeah, we talk often about the attractiveness of “growth-oriented producers” that clearly have a path forward with production and thus nice leverage to the metals prices, but that simultaneously also have a serious level of exploration that can still move the needle for the company.
      .
      We’ve worked hard to bring a number of those kinds of “growth-oriented producers” on the show this year like Calibre, Argonaut, Karora, I-80, Mako, Minera Alamos, Novo, Thor, Endeavour Silver, Impact, Guanajuato, Aurcana, Golden Minerals, etc… That stage of junior producer has the underpinning of value through their mining operations, but also the ongoing strategy to grow with the drill bit, which is more the blue-sky upside that animates some investors.
      .
      {In full disclosure, I hold positions in all those companies mentioned, so I’m biased}.
      .
      Gold Mountain is another company, and a brand new producer, that fits a similar business model, where they’ll generate revenues through the production, (without needing the mill since they just truck it to the New Afton processing center), and then the revenues fund the exploration and resource expansion.
      .
      It’s a business model that makes a lot of sense, and is far less dilutive than typical exploration companies doing capital raise after capital raise to drill to make a discovery, then raise more money to drill more and define resources, then raise more money to produce economic studies, then raise more money to keep pay the G&A expenses while they hope to get taken over or sell the project to the big boys. The traditional model is a longer time horizon and far more dilutive. In addition, producers can immediately monetize and quickly benefit from rising metal prices, so if we see gold and silver run to higher levels next year, that will impact their margins, revenues, and free cash flows right away. That is why the producers typically move first in new bullish uplegs, yet some people don’t hold any producers, which seems puzzling. Why wouldn’t you want the ones that move first?

      Reply
        Nov 25, 2021 25:35 PM

        A lot of positives with GMTN. The low share count and no need/plans to dilute near term are eye openers.

        Reply
          Nov 25, 2021 25:38 PM

          Yes, those are positive attributes for sure.
          .
          I also like that they’ve kept their word and delivered on their guidance and goals thus far. They wanted to get the company listed by the end of 2020 and did so last December, then they wanted to get their permits to get it into production by forming a deal with New Gold and they did, then they wanted to drill 10,000 meters for Phase 2 and drilled 14,000 meters, then they wanted to get their shares uplisted from the TSX.V to the TSX big board and they just got that achieved. It is rare to see a mining company say they are going to do something and then deliver on that, repeatedly, so it gives one more confidence that their team can actually execute on their business strategy.

          Reply
            Nov 26, 2021 26:45 PM

            I didn’t delve that deeply but thankful that you do.

    Nov 26, 2021 26:08 PM

    Canon shot over the general markets today which got the miners involved in the computer knee jerk reaction. Let’s see how far lower their fabricated hits take us before we have a few moments in history of an up market again. I remain all in as I think this will be long term: like 3 months instead of 2. OK computers: show us your counter intuitive skills.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *