Gold Mountain (TSX.V: GMTN) has had a busy winter/spring. Most recently, the company closed a $10M financing taken down by some of the most influential mining funds, appointed Dr. Quinton Hennigh, a renowned economic geologist to its advisory board, and released the initial gold results from phase 1 drill program. Relogging and sampling program uncovered a new vein intercept in historic hole:
- SND11-132, yielding 1.2 m averaging 52.3 g/t Au (including 0.30 m averaging 216 g/t Au)
Gold Mountain (TSX.V: GMTN), with the help of JDS Mining & Energy Inc. will now study the underground exploration potential at the Elk Gold Project, and hopes to grow ounces through additional drill programs.
Phase 1 drilling includes nine holes totaling approximately 2,850 m targeting down-dip high-grade extensions of the 1,300 and 2,500 veins below the current lower extent of the resource model in areas that display robust gold grades. Visual observations thus far indicate strong sulphide vein intercepts in these holes.
After completing several trade-off studies, JDS Mining & Energy Inc. has concluded that the prefeasibility study should include a component examining underground mining at Gold Mountain Mining Corp.'s 100-per-cent-controlled Elk gold project.
"Our ability to demonstrate resource and mine plan scalability has been a recurring theme in our conversations with institutional investors. With recent drilling encountering deeper vein extensions and JDS's trade-off study recognizing a case for transitioning to a potential open-pit/underground hybrid mine plan, a very clear path is forming to showcase the Elk gold project's long-term expansion potential from both a resource and production perspective," commented Gold Mountain's chief executive officer, Kevin Smith. "Over 118,000 ounces of our richest mineralization is beneath the current PEA pit shell. This latest underground concept allows us to consider those well-defined ounces and reduce the project's overall strip ratio to continue chasing the deep, high-grade mineralization at the Elk."
"When I reviewed the Elk gold project a few years ago, it was clear that the mineralization improved at depth," commented Gold Mountain's adviser, Dr. Quinton Hennigh. "Developing an underground scenario was something that I encouraged management to consider during our initial conversations. After conducting a number of trade-off studies, JDS has concluded it is worthy to undertake a study of an underground mine plan to complement the open-pit scenario. This adds a new exciting dimension to the Elk gold project and I look forward to working with Gold Mountain's technical team to continue maximizing the value of this high-grade asset."
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