Gold Mountain Mining (TSX-V: GMTN)(OTCQB: GMTNF) CEO Kevin Smith on Mine Construction at Elk & Hitting More High-Grade
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Gold Mountain Mining, Mr. Kevin Smith. Kevin, congrats again on new all time highs for you. How are you?
Kevin Smith: I'm great, Gerardo. Thank you so much for having us.
Gerardo Del Real: Listen, thanks for coming back. Those new all time highs are well-deserved. You not only announced some more positive assay results from your phase one drill program at Elk, that was about a week or so ago, but you had some news just this morning that again, deserves a congratulations. You've announced that you've received your notice of departure to begin mine construction. Major, major milestone. The market has received it very well. Congrats, Kevin.
Kevin Smith: Oh, thank you very much. Appreciate the positive feedback. Management's been working really hard over here to continue delivering these milestones. As you said the first time you had me on the show, it's aggressive, and we're just knocking these off one by one, week after week, trying to show that we're real about putting this thing back into production and expanding the resource.
Gerardo Del Real: Let's talk about the timeline. I understand that you're anticipating construction to begin sometime in May and then you're anticipating ore delivery in Q4 of this year, correct?
Kevin Smith: Yeah, absolutely. So, depending on when all the snow's melted, we'll have the equipment mobilized to site looking like mid to late May here, and then we'll go immediately into construction. There's not a lot to do on the site to get it ready because it's already a past producer, but there's some stuff that we want to upgrade, like the roads and the water management system as part of our subjects to our permit. And then, we'll get right into waste rock mining. We've got a gravel borrow on this notice of departure, which allows us to start our waste rock mining and repurpose that waste rock into aggregate. So, running a really lean tight ship here and then July, August waste rock, September ore mining, October ore delivery, and then, the goal is November pay dirt like we've been saying since the start.
Gerardo Del Real: If share price performance is any indication, it should be a fun Christmas for shareholders.
Kevin Smith: Absolutely. That's the goal here. We have what we feel are some of the best shareholders in the junior mining space. They've held long with us and the response from the market, it seems like it's starting to wake up and all signs point to a good Christmas for our shareholders, which is great because we're large shareholders, too. We continue cutting checks into the market. I don't know if you've seen our steady reports, but management's very real about the prices up here and we keep buying because we believe there's still a lot of value to come.
Gerardo Del Real: And you should be commended for that, too, and I don't want to turn this into a congratulations fest, but the bottom line is this, share structures are so critical and so often overlooked when a company comes out the gate with, again, aggressive timelines. And so, in fairness to you and the team, you structured it correctly, you got the right shareholders in there, you're buying. The insider buy reports clearly show there's confidence there. So, all of those things should absolutely be highlighted because I know they're often overlooked. What wasn't overlooked were your assay results from a week or so ago. I think your hit rate is now, I want to say a hundred percent, which is not bad, right?
Kevin Smith: Yeah, absolutely. We're very fortunate to have inherited 127,000 meters of historic drilling. So that means that we can go in and be very targeted with the drill. Management has got a goal of marching this thing up over a million ounces and we feel like somewhere in the neighborhood of a hundred-thousand ounces is realistic off of this last drill program. We're looking to do a resource update, deliver that to the market. Hopefully, sometime mid-May, late May maybe, depending on how the QPs make out with it, but yeah, that's going to show the market that not only are we going into production, which is a big part of the story, obviously, but we're looking to add ounces and show people that this asset is real and it's got that million ounce plus potential, and we're going to keep driving towards that.
Gerardo Del Real: It's got to be really encouraging to see the continuity with the data gaps that you had in the 2600 and 2700 vain system, and being able to fill those blanks per se, as you reference in the release. That's got to be extremely encouraging as you follow this thing through, right?
Kevin Smith: Yeah, absolutely. I mean the drill hitting a hundred percent is hugely encouraging. Next week, the drills fire back up on another 8,000 meter program and our relogging is going incredibly well. We got that original vein that was overlooked by previous operators of 216 grams a tonne. And then, part of our last news release we put out on our assay results, there was another 48 gram a tonne vein that we were able to pick up in the old core, so we've really accelerated that core relogging because we feel like there's a lot more of that in here. Back in the day, they were focused on the super high grade stuff, given the gold price, but where the gold is today, any vein around 48 grams a tonne or higher, we're very interested in bringing into our resource. So, we're excited about the opportunity of expanding it, not only with the drill bit, but also just going through and sticking some new technology on the relogging program.
Gerardo Del Real: Kevin, excellent work. We'll chat again in a few weeks, it sounds like. Keep up the aggressive timelines and keep checking those boxes.
Kevin Smith: All right. Thank you so much, Gerardo. Really appreciate the positive feedback and you having us.
Gerardo Del Real: Thanks for coming on. Take care.
Kevin Smith: Bye.