VANCOUVER, BC / ACCESSWIRE / June 14,2022 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX:GMTN) (OTCQB:GMTNF) (FRA:5XFA) reports its first-quarter 2022 summary financial and operating results. The Company's interim financial statements and related management's discussion and analysis for the three months ended April 30, 2022, is available for download on SEDAR and on the Company's website. All amounts are expressed in Canadian dollars ("$"), unless otherwise noted.
Highlights
Gold Mountain achieved $3,706,423 in revenue with an adjusted EBITDA of $526,949
The Company delivered 1,898 AuOz and 1,697 AgOz to its Ore Purchase Partner New Gold Inc. ("New Gold")
As of June 6th, the Company completed 15,500 m of drilling in Siwash North & Gold Creek zones as part of its Phase lll exploration program
The operations team continues to optimize the Elk's procedures while scaling to the contemplated Year 1 production profile
The Company finished the quarter with $18,819,693 in cash
Gold Production
In the Company's first producing quarter, Gold Mountain began start-up operations at the Elk Gold Mine to commission its newly constructed sample plant and streamline its procedures to accommodate the Elk's narrow-vein, high-grade structure.
The Elk Gold Mine also experienced challenges during commissioning with respect to both grade control and sampling processes, which resulted in lower than forecast ore production during the initial ramp-up.
The Company has implemented a number of initiatives that are expected to positively impact future mining results. They include hiring industry experts that have experience mining narrow-vein deposits, implementing a robust in-fill drill program and examining other initiatives such as preconcentration technologies. The Company anticipates that it will continue working through these initiatives during the upcoming quarter.
Mining
During the quarter ended April 30, 2022, the Company mined 15,063 tonnes of ore containing 1,898 AuOz and 1,697 AgOz.
Several new initiatives were launched which are expected to have a positive impact on ore production and recovered ounces, which include:
Continuing to optimize sampling procedures to ensure samples fully represent daily production.
Procuring a second diamond drill to facilitate infill drilling in order to enhance the ore model.
Refining blasting procedures to improve fragmentation, reduce dilution and increase production.
Industry Expertise
With the Company now into production, it has brought on industry veterans with expertise in mining narrow vein deposits
Paul MacRae - General Manager at the Elk Gold Project. 50 years of experience in mine operations having applied learned engineering and operational practices.
Dan Lampman - Senior Ore Control Geologist. 35 years of experience with narrow vein deposits having worked at the Red Lake Mine, Mulatos Mine, Plutonic Gold Mine and the Eskay Creek Deposit.
Exploration
Gold Mountain continues to intercept high-grade mineralization in the Siwash North Zone during its Phase lll drill program, including:
1.50 m grading 42.39 g/t Au including 0.30m of 207.00 g/t Au
2.31 m grading 18.90 g/t Au including 0.43m of 101.00 g/t Au
1.60 m grading 26.03 g/t Au including 1.09 m of 38.20 g/t Au
1.17 m grading 16.46 g/t Au including 0.30 m of 35.30 g/t Au
1.00 m grading 12.04 g/t Au including 0.30 m of 39.60 g/t Au
As of June 6th, the Company drilled 63 holes for a total of 15,500 m of its Phase III drill program.
Phase III is focusing on the Elk's Siwash North and Gold Creek Zones with the goal of expanding the current resource.
The Company will wrap up its Phase lll drilling at the end of June and anticipates producing an updated resource estimate in Q3 2022.
Expansion
The Company has begun to lay the groundwork for the expansion contemplated in the Elk Gold Project's technical report which sees the Company scaling up to 324,000 tonnes/year and 65,000 oz.[1]
Honoring commitments made to Indigenous Communities during the recent mine permit amendment process, the Company applied to the British Columbia Environmental Assessment Office to designate the proposed expansion plan for the Elk Gold Project as a reviewable project under the Environmental Assessment Act.
Finance
The Company closed a bought deal prospectus offering for $18.5M raising net proceeds of $17,412,434.
The Company completed its second property payment of $3,000,000 to Equinox Gold Corp. (EQX) on May 16, 2022 with the final $3,000,000 payment due May 16, 2023.
Mergers & Acquisitions
The Company is actively evaluating M&A opportunities with a focus on assets with near-term production potential.
Financial Results
Positive adjusted EBITDA of $526,949 for the three months ended April 30, 2022
Revenues of $3,706,423 for the three months ended April 30, 2022
The Company finished the quarter with $18,819,693 in cash
Operational and Financial Details
Operating Data
Metric
For the three months ended, April 30, 2022,
Ore mined and crushed
Tonnes
15,063
Waste mined
Tonnes
379,855
Average head grade
Grams per tonne gold
4.24
Gold ounces sold
Ounces
1,898
Average price realized2
$/oz
1,930
Total cash costs/oz sold2
$/oz
1,379
Cost of sales/oz2
$/oz
1,465
Revenue
$
3,706,423
Gross profit
$
925,420
Adjusted EBITDA
$
526,949
Management Reorganization
The Company is reorganizing its management structure which will see Ron Woo transition from the role of President to Vice-President of Permitting. Kevin Smith will be taking on the duties of the President.
Qualified Person
The foregoing technical information was approved by Grant Carlson, P.Eng., a Qualified Person, as defined under National Instrument 43-101 and the Chief Operating Officer for the Company.
About Gold Mountain Mining
Gold Mountain is a British Columbia based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a producing mine located 57 KM from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website at www.gold-mountain.ca.
This includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward- looking statements include statements that are based on assumptions as of the date of this news release and are not purely historical including any information or statements regarding beliefs, plans, expectations or intentions regarding the future and often, but not always, use words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this press release include the positive impact the operational initiatives set out above will have on ore production and recovered ounces, the timing for any update to the resource estimate at the Elk Gold Project and the impact of Phase III on the Company's resource estimates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of gold; and the results of current exploration. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a comprehensive overview of all risks that may impact the Company, please see the Annual Information Form for the year ended January 31, 2021 a copy of which was filed on November 4, 2021 and is available on SEDAR.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
[1] The expanded case is contemplated in the Company's 2021 PEA, a copy of which is available at www.sedar.com. The 2021 PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the 2021 PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
[2] This is a non-IFRS financial measure. Please refer to the "Non-IFRS Financial Measures" section at the end of this MD&A for a description of these non-IFRS financial measures and a reconciliation to operating costs from the Company's condensed interim consolidated financial statements.
