British Columbia, Canada is rich in natural resources and has over 150 years of mining history. In 2017 alone, BC produced $8.8 billion worth of mine products, including coal, copper, gold, molybdenum, silver, aggregates, industrial minerals and other mining products (based on information off Trade and Invest British Columbia: https://www.britishcolumbia.ca/).
British Columbia’s key advantages include:
- Home to the world’s largest concentration of exploration companies and mining professionals
- More than 700 mining and mineral firms choose Vancouver as their base of global operations
- A robust capital markets business and a culture of innovation
- World-class geological databases, cataloguing a growing inventory of more than 14,000 mineral occurrences
Within British Columbia, a number of gold districts have been identified. British Columbia’s Golden Triangle spans from a 500 km belt of mineralization stretching south from Atlin in northern British Columbia near the border with the Yukon, to Kitsault, just southeast of Stewart, British Columbia – an area historically producing molybdenum and silver. It’s the southern portion that gives the Golden Triangle its name, as it has hosted many past producing mines, with several more in various stages of being brought into production. These include:
- KSM – It’s considered to be the world’s largest undeveloped Copper/Gold porphyry deposit. It has an initial 44-year mine life production plan, with reserves of 38.8 million ounces of gold and 10.2 billion pounds of copper.
- Brucejack – The mine commenced production in 2017 and is considered to be one of the highest grade gold mines (16.2 g/t) to have opened in recent years, with estimated reserves of 4.2 million ounces of gold.
Within British Columbia, multiple other areas for gold mining activities have skyrocketed. These include explorers, developers, and producers:
- Sun Summit Minerals (TSX.V: SMN) located central British Columbia, south of the city of Houston. A recently announced 4,180m diamond drill program, intercepted – 17 METRE of 5.86 G/T GOLD, marking a significant high-grade gold discovery in a new area.
- Gold Mountain Mining (TSX.V: GMTN) located approximately 57 km from Merritt, BC. Aiming to be in production by Q4 2021. Measure and Indicated 454,000 Gold Eq. ounces at 5.33 g/t Gold Eq.
- New Gold (TSX: NGD) is an intermediate gold producer which holds a portfolio of two core producing assets located in Kamloops, British Columbia and Fort Frances, Ontario.
- Artemis Gold (TSX: ARTG) acquired The Blackwater Gold Project in August 2020 for $190M, and raised $175M in-conjunction with the transaction. Blackwater is located 160 km southwest of Prince George and 446 km northeast of Vancouver.
Sun Summit’s (TSX.V: SMN) 100% controlled Buck Project totals approximately 33,000 hectares, with a focus on gold, silver and zinc mineralization. The project has undergone extensive historical drilling, and completed a phase 1 program in April 2020 (1,800m) and a phase 2 program in November 2020 (4,180m). Sun Summit has started a significant drill program at the Buck property. Sun Summit plans ((TSX.V: SMN) news release dated Jan 19, 2021):
- Sun Summit will mobilize crews to commence an aggressive follow-up drill program to target high-grade gold mineralization near discovery hole BK20-012 (17 metres of 5.86 grams per tonne gold, including 3 metres of 23.05 g/t gold, and 7.5 metres of 10.19 g/t gold; (TSX.V: SMN) news release dated Jan. 5, 2021);
- Over 5,000 metres is planned for the first set of drill holes;
- A new property-scale exploration model defined by high-chargeability anomalies in relation to mineralized zones was used to identify numerous additional drill targets; and
- Several holes are designed to test the gold mineralization potential of four newly identified chargeability anomalies
Bob Willis, Sun Summit's chief executive officer, stated: "We are excited to commence another significant round of drilling at our Buck property. The primary objective for this drill program is to expand on high-grade gold zones discovered in our last phase of drilling. Our new 3-D modelling of mineralized areas on the Buck property in relation to our 3-D geophysical chargeability model is being used to spot new drill holes in areas we consider significant. Two untested chargeability anomalies are priority targets and will be a considerable focus. Over 5,000 metres of diamond drilling will be completed for initial planned holes, with additional drilling expected after initial drill hole assay results are received."
As of today, Sun Summit (TSX.V: SMN) has 51.2M shares outstanding, and is currently trading at $0.405, giving it a market cap of $20.51M. The current share structure is – 11% insider, 20% institutional, and 69% other.
Gold Mountain (TSX.V: GMTN) is developing their 100% owned Elk Gold Project, a past producing gold mine located 57 Km from Merritt, BC. The project is 2km off Highway 97C, and is accessible via an all seasoned gravel road. Gold Mountain has been busy with further developing Elk, and announcing a $5M financing (TSX.V: GMTN) news release dated Feb 1st, 2021) led by Canaccord Genuity Corp. and Gravitas Securities Inc. The company has received an institutional lead order from Crescat Capital LLC.
Recently signing an ore purchase agreement with New Gold Inc. (TSX: NGD. News release announced Jan 26th, 2021):
- Gold Mountain will deliver ore to New Gold's New Afton mine located 130 kilometres from the company's Elk gold project in Kamloops, B.C.
- Pursuant to the OPA, New Gold has agreed to pay Gold Mountain in a timely manner based on the tonnes and grade of the ore delivered to the mill independent of when it is processed.
- The OPA provides the company with an efficient path toward initial production following the receipt of necessary permits.
Gold Mountain (TSX.V: GMTN) plans to start gold production by Q4 2021, starting with a planned Phase 1 production of – 19,000oz/year, which will self-fund them to the proposed 50,000oz/year by 2025. As of today, Gold Mountain (TSX.V: GMTN) has 48.9M shares outstanding, and is currently trading at $1.14, giving it a market cap of $55.75M.
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