TSX-V TRADING SYMBOL: GUM
VANCOUVER, May 1, 2013 /CNW/ - Gold Mountain Mining Corporation (the "Company" or "Gold Mountain") has partially completed the planned 10,000 tonne bulk sample program on its 100% owned Elk Gold property, located near Merritt, British Columbia.
The amendment to the existing mine permit authorizing the bulk sample mining was received at the beginning of September, contract equipment and personnel were mobilised immediately. The bulk sample mining operations continued until the middle of December when vein extraction productivity began to decline due to inclement weather.
The average grade for the 684 tonnes of vein material removed from the bulk sample pit was 9.79 grams per tonne gold and 14.1 grams per tonne silver. Although only a small portion of the vein material has been mined, these gold and silver grades compare favourably with the drill core results and polygonal estimates made for the grade of material to be expected from this area of the bulk sample pit. The vein structure and grade continuity over the small section mined to date has provided confirmation of the ore modelling performed. At completion, the bulk sample mining program is expected to yield approximately 10,000 tonnes of vein material and more than 5,000 ounces of gold.
Overburden removal began mid-September and waste rock mining started shortly thereafter. At the end of December, approximately 75% of the waste rock and overburden had been removed from the bulk sample pit area and approximately 5% of the vein material was mined. Recovery of vein material was performed using an excavator and was closely monitored by an on-site geologist. Ore was stockpiled on a prepared storage pad at the mine site. The vein material was removed in blocks, segregated and identified based on the referenced bench elevation and vein location. Subsequently, each block had a representative 200 kilogram sample removed from the stockpile and run through a sampling plant consisting of a jaw crusher, a roller crusher and an automated sampling machine to yield a representative 20 kilogram sample. The 20 kilogram samples were split and sent for assay.
The bulk sampling process is providing the needed information for the planning and optimization of the mining and process metallurgy as the Elk project moves another step closer towards production. Additional metallurgical testing is being performed on the material from the bulk sample program to confirm processing parameters for the mill design. In addition, mine planning and production cost projections are being analyzed based on the work performed to date. The bulk sample mining operations will start up again to complete the program this year.
The test mining operations will focus on determining the optimum open pit mining process and will also provide more information on the structural and grade continuity as well as mining and milling characteristics for the Elk gold-bearing structures.
The Company's Senior Geologist, Robert Wilson, P.Geo., acts as the Company's Qualified Person for technical disclosure per National Instrument 43-101, and has reviewed and approved the technical content of this press release.
About Gold Mountain Mining
Gold Mountain is a public resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company owns 100% of the 16,700 hectare Elk Gold property, which the Company intends to develop into a precious metal producer within the next two years, and is also seeking additional near-term production assets to further build shareholder value. Additional information is available on Sedar.com or on the Company's website at www.aumtn.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
ON BEHALF OF THE BOARD
"Chris McLeod" (signed)
Chris McLeod, President & CEO
Forward-Looking Statements: This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the closing of further tranches of the Offering, the use of proceeds from the Offering and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE: Gold Mountain Mining Corporation
For further information:
Chris McLeod, President & CEO or Rod Shier, Chief Financial Officer at 604 558-4653