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.