Gold Mountain (TSX.V: GMTN) has completed the downdip portion of its phase 1 program and has provided investors with some exciting news. The assay results further confirm the company's initial thesis that the high-grade veins at Elk are growing, and indicates the true potential of this beast located in beautiful British Columbia.
- Assay results from downdip drilling confirm the presence of high-grade vein extensions:
- SND20-029 intercepted 1.42 metres averaging 37.00 grams per tonne gold (including 0.42 m averaging 124.00 g/t Au);
- SND20-032 intercepted 1.22 m averaging 16.23 g/t Au (including 0.30 m averaging 62.20 g/t Au);
- SND20-032 intercepted 1.30 m averaging 7.95 g/t Au (including 0.30 m averaging 31.30 g/t Au).
- The assay results of the downdip drilling continue to demonstrate the potential to expand the current resource at depth.
- One hundred per cent of all drill holes have encountered significant mineralized intercepts.
Gold Mountain's chief executive officer, Kevin Smith, commented, "We're thrilled to be sharing these results with the market, further confirming our thesis that the veins at the Elk are getting higher grade the deeper we chase them." Mr. Smith further said: "All 36 drill holes for which assays have been received to date have encountered significant gold vein intercepts, a testament to our project's scalability. Gold Mountain is confidently going to continue to chase these high-grade veins throughout the property with the focus of adding ounces to our resource and making Elk Gold B.C.'s next million-ounce producing mine."
Gold Mountain's technical adviser, Quinton Hennigh, commented: "The Elk gold project hosts one of the most predictable vein systems I have seen. Continuity is excellent, and these holes indicate this characteristic persists at depth. Gold Mountain has a well-designed drill program to exploit this predictability, thus allowing high confidence in the ability to progressively grow the deposit."
Looking at the company's action plan, they hope to start production by Q4 2021. Since completing an Ore Purchase Agreement with New Gold (TSX: NGD), Gold Mountain (TSX.V: GMTN) has eliminated the time and capital to build on-site infrastructure. This deal will provide the company an efficient path towards initial production following the completion of necessary permits.
Currently Gold Mountain (TSX.V: GMTN) has 58.87M shares outstanding and is trading at C$1.54 giving it a market cap of C$90.65M.