Breaking News: Gold Mountain Updates Mineral Resource Estimate at the Elk Gold Property | #site_titleBreaking News: Gold Mountain Updates Mineral Resource Estimate at the Elk Gold Property

Breaking News: Gold Mountain Updates Mineral Resource Estimate at the Elk Gold Property

Gold Mountain Mining Corp. (OTCQB: GMTNF) (TSX-V: GMTN) is pleased to announce an updated National Instrument 43-101 Mineral Resource Estimate following the conclusion of its Phase1 drill program at the Elk Gold Project. An updated technical report will be filed on the Company’s website and SEDAR within 45 calendar days of this disclosure.

Highlights:

  • Gold Mountain increases its resource estimate at its flagship Elk Gold Project to: 651,000 oz of Measured & Indicated Resources at 6.1 g/t Au and 159,000 oz of Inferred resource at 4.8 g/t Au.
  • The updated resource estimate represents an increase of 43% of Measure and Indicated ounces and 67% of inferred ounces.
  • This update to the mineral resources followed the Company’s successful $1,900,000 Phase 1 drill program that consisted of 8,739 metres of diamond drilling where all 41 holes hit mineralization.
  • Elk Gold Resource Update – SummaryThe table below summarizes the updated resource estimate at the Elk Gold Project:
    Classification Tonnes AuEq (g/t) Au Capped g/t Ag Capped g/t AuEq (Oz)
    Measured 196,000 9.9 9.8 9.9 63,000
    Indicated 3,148,000 5.8 5.7 11.2 589,000
    Measured + Indicated 3,344,000 6.1 5.9 11.1 651,000
    Inferred 1,029,000 4.8 4.7 10.9 159,000

    CIM definitions were followed for classification of Mineral Resources.

    Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.

    Results are presented in-situ and undiluted.

    Mineral resources are reported at a cut-off grade of 0.3 g/t Au for pit-constrained resources and 3.0 g/t for underground resources.

    The number of tonnes and metal ounces are rounded to the nearest thousand.

    The Resource Estimate includes both gold and silver assays. The formula used to combine the metals is:

    AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

    The Resource Estimate is effective as of May 1, 2021.

    Elk Gold Project Resource Estimate

    The table below sets out the detailed results of the Mineral Resource estimate for Elk Gold Project. The effective date of the resource estimate is May 1, 2021 (the “Resource Estimate“).

    Classification Tonnes Au Equivalent (g/t) Au Capped (g/t) Ag Capped (g/t) AuEq (Oz)
    Elk Gold Pit-Constrained Resources
    Cutoff Au Eq 0.5 g/t
    Measured 196,000 9.9 9.8 9.9 63,000
    Indicated 2,835,000 5.1 5.0 9.2 468,000
    Measured + Indicated 3,031,000 5.4 5.3 9.3 531,000
    Inferred 835,000 3.6 3.5 6.5 96,000
    Elk Gold Underground Constrained Resources
    Cutoff Au Eq 5.0 g/t
    Measured 0 0 0 0 0
    Indicated 313,000 12.0 11.6 29.3 120,000
    Measured + Indicated 313,000 12.0 11.6 29.3 120,000
    Inferred 194,000 10.1 9.9 18.5 63,000
    Elk Gold Total Resources
    Cutoff Au Eq 5.0 g/t
    Measured 196,000 9.9 9.8 9.9 63,000
    Indicated 3,148,000 5.8 5.7 11.2 589,000
    Measured + Indicated 3,344,000 6.1 5.9 11.1 651,000
    Inferred 1,029,000 4.8 4.7 8.8 159,000

    CIM definitions were followed for classification of Mineral Resources.

    Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.

    Results are presented in-situ and undiluted.

    Mineral resources are reported at a cut-off grade of 0.3 g/t Au for pit-constrained resources and 3.0 g/t for underground resources.

    The number of tonnes and metal ounces are rounded to the nearest thousand.

    The Resource Estimate includes both gold and silver assays. The formula used to combine the metals is:

    AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

    The Resource Estimate is effective as of May 1, 2021.

    Several factors have contributed to the change in this resource estimate from previous estimates. The primary factors affecting that change are the addition of 41 new diamond drill holes, discovery of mineralized intercepts that were not sampled from historical drill cores, changes to the constraining pit shell parameters and changes to the vein model interpretation.

    Mineral Resource Estimate Assumptions

    Data Verification

    The data that forms the basis for the Resource Estimate was verified by the Qualified Person using industry standard methods. Drill hole collar locations were confirmed with independent surveyors’ using high precision GPS equipment. Analytical accuracy and precision are monitored using commercial standards, blanks, re-analysis of both coarse rejects and pulps. A review of all data inputs to the drilling database, both historical and recent, has allowed a sufficient level of confidence to include the drill database in the Resource Estimate.

    Key Assumptions and Parameters and Methods Used to Estimate Resources

    Exploration Information

    The data from the 41 Phase 1 drill holes were added to the 2019 drill data for an aggregate total of 973 holes that intersected the 33 modelled mineralized zones. The assay file contained 19,375 gold and silver assays of which 4,389 were contained within the modelled zones.

    Grade Capping

    A cumulative frequency curve was generated for both gold and silver assay values to determine whether capping of assay values was appropriate. There is a distinct break in the gold assay cumulative frequency curve at 300g/t and that value was taken as the capping value. There were 12 gold assay values over 300g/t. The silver cumulative frequency curve has a break at 400g/t and that value was taken as the capping value. There are 13 samples in the population which were greater than 400g/t silver.

    Vein Modelling

    The Resource Estimate is constrained to a vein wireframe model which was developed using LeapfrogTM software by clipping the wireframes to a combination of drill hole composites and lithological units.

    Metal Equivalency

    The Resource Estimate includes both gold and silver assay values and the combined value is expressed as a gold equivalency. The formula by which the two metals are combined is:

    AuEq = ((Au_Cap*55.81*0.96) + (Ag_Cap*0.76*0.86))/(55.81*0.96)

    The table below provides the metal equivalency calculation parameters.

    Parameter Unit Value
    Gold Grade g/t Variable
    Silver Grade g/t Variable
    Gold Price US$/oz 1,736
    Gold Price US$/g 55.81
    Silver Price US$/oz 23.70
    Silver Price US$/g 0.76
    Recovery of Gold % 0.96
    Recovery of Silver % 0.86

    Mineral Resource Classification

    Mineral resources were classified as Measured, Indicated or Inferred according to the criteria set out in the table below.

    Classification on Category Composites Major

    (m)

    Median

    (m)

    Minor

    (m)

    Min. Max. Max./Holes
    Measured 8 8 1 25 25 25
    Indicated 4 8 1 60 60 60
    Inferred 2 8 1 80 80 80

    Only material in the 1300 vein was allowed to be classified as measured because that is the only zone that has been explored from underground and has provided three-dimensional exposures of the mineralization as well as close-spaced testing by underground drilling.

    Reasonable Prospect of Economic Extraction

    The open pit portion of the Resource Estimate was constrained by an economic pit shell using the following parameters:

    Parameter Unit Value
    Gold US$/oz 1,736
    Gold US$/g 55.81
    Silver US$/oz 23.75
    Silver US$/g 0.76
    Exchange Rate US$:C$ 0.80
    Production Rate t/d 900
    Mining Cost $/t material 2.70
    Processing + G&A + Trucking Costs $/t mineralized material 21.00
    Recovery Au % 96
    Recovery Ag % 86
    NSR % 2
    Selling Cost % 2
    Pit Slope degrees 50

    Legal, Political and Environmental risks

    There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the mineral resource estimate.

    Qualified Persons

    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 Gold Mountain Mining Corp.

    The technical information relating to the resource estimate was prepared by Greg Mosher P. Geo (Global Mineral Resource Services) a Qualified Person as such term is defined under National Instrument 43-101 who is independent of Gold Mountain.

    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 past-producing mine located 57 KM from Merritt in SOuth Central British Columbia.

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