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General Market Commentary
British Columbia’s Next Pure-Play Gold Company
by Mike Fagan
Gold Mountain Mining (TSX-V: GMTN) – currently trading below C$0.90 per share – is a newly-listed junior gold explorer-developer that’s advancing the past-producing Elk Gold Project in British Columbia, Canada.
The company aims to become the next pure play gold producer in British Columbia with targets identified to increase the current resource at its 100%-owned Elk Gold Project to 1 million+ gold ounces.
The Elk property consists of 27 contiguous mineral claims and one mining lease covering 16,566 hectares and has past production of over 50,000 ounces of gold from a test pit.
Management envisions a conventional open pit mining scenario for 50,000 ounces of gold production per year over a 10-year mine life at a 92% gold recovery rate, including processing 2.4 million tonnes of mineralized material grading 5.26 grams per tonne gold.
Phase 1 of a two-phase drill program has been initiated and is being guided in-part by an in-house database of 127,000 meters of historic drilling.
Gold Mountain CEO, Kevin Smith, whom you’ll be hearing more from in a moment, stated via press release on 14 January 2021:
“The $4.7m financing is closed, Phase 1 of our diamond drill program is underway, and management is focused on continuing to develop our vision of a high-grade, multi-pit production scenario at our Elk Gold Project. Over the next six months our goal is to finalize the details required to bring the Elk Gold Project into production, as well as look to continue onto Phase 2 of our drill program. Our technical team continues to assess similar underappreciated, high grade deposits here in British Columbia, and the greater Canadian region, that have large historic investments in resource development and require relatively low CAPEX to get into production. The increase in gold price in 2020 has further highlighted the opportunity outlined in the Elk Gold Project PEA. Last year was about laying the foundation of our plan. This year will be about bringing it to life and delivering on our commitments to our long-term shareholders and supporters. In our view, this is BC’s next Gold producer.”
Notably, the Elk Gold Project, which is located just 3 hours by car from downtown Vancouver, is permitted and has excellent infrastructure in-place including road access, water and waste rock management systems, and an ore stockpile area.
Our own Gerardo Del Real of Junior Resource Monthly sat down with Gold Mountain CEO, Kevin Smith, for an in-depth look at the project, the team, and the mining approach currently underway at the Elk Gold Project. Click here to listen to the interview.
You can also learn more about Gold Mountain Mining here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.