The company anticipates construction to begin in May 2021
Gold Mountain Mining Corp. (“Gold Mountain” or the “Company” ) (TSX.V:GMTN, OTCQB:GMTNF, Frankfurt:5XFA) is pleased to announce that it has received its Notice of Departure (“NoD”) to begin mine construction at its 100% owned Elk Gold Project located near Merritt, BC. The Company anticipates construction to begin in May 2021 and is the first major operating catalyst to ore delivery in Q4 2021.
On April 29, the Company received authorization from the Ministry of Mines to begin construction and upgrades required to put the mine back into production.
This milestone is inline with the Company’s Q2 forecast and is a major catalyst to preparing the site for ore mining and delivery.
The Company has resolved the remaining Information Requests from the Ministry of Energy, Mines and Low Carbon Innovation (“EMLI”) and the Ministry of Forests, Lands, Natural Resource Operations and Rural Development (“FLNROD”).
Once all Information Requests have been accepted, it is anticipated the Permit Amendment will be sent up for final approval.
“Feedback from institutions has always been that our projected timelines are aggressive and might be difficult to achieve”, commented Kevin Smith, CEO of Gold Mountain. “Receiving this Notice of Departure allows us to take the critical steps of upgrading our existing water management system, installing a weigh scale, as well as leveraging a gravel borrow to start stripping waste from our initial pit and repurpose it into aggregate needed to resurface roads throughout the property. By getting into construction early, we will be ready to hit the ground running once our various mine permit amendments are approved. Since acquiring this project, we were very clear about our intent to quickly put this mine back into production, with efficient deployment of capital. Management intends to continue maintaining our strong treasury, while pushing the pace of project advancement and delivering key milestones, week after week. With the snow on site nearly gone, our mine construction partner, Nhwelmen-Lake LP, has been notified to begin mobilizing their equipment, in anticipation of developing BC’s next high grade Gold and Silver producer.”
Notice of Departure
The NoD is an authorization allowing the Company to begin construction and site preparation at the Elk Gold Project under Gold Mountain’s existing M-199 mine permit. This milestone was achieved on-time and adheres to the Company’s forecasted schedule of ore mining and delivery to its ore purchase partner, New Gold Inc., in Q4 of 2021.
Environment and Sustainability
The NoD includes permission for the Company to facilitate a “gravel borrow” at the Elk Gold Project. This authorization allows Gold Mountain to begin waste rock mining operations where the material can be recycled and reused for road construction. With this permission, the Company avoids the need to purchase and haul additional material to site, mitigating high capital costs, carbon emissions, and wasteful mining procedures.
Following the issuance of the NoD, Nhwelmen-Lake LP, the Company’s mining partners, will begin mobilizing the equipment needed to begin constructing roads, a site offices, support facilities and upgrading the projects water management system.
Gold Mountain has continued to advance it’s Mine Permit amendment (the “Mine Permit ”) with the necessary regulators to adhere to it’s aggressive timelines. Currently, the Company has addressed all round 2 questions from the EMLI and FLNROD. The permitting team is now cohesively working with the Ministry of Environment and Climate Change Strategy to address its final information requests for the receipt of the Effluent Discharge Permit.
Additionally, the Company continues to emphasize and foster it’s relationships with Indegenous Communities in the region and has made significant progress in developing strong relationships. Gold Mountain looks forward to sustaining it’s rapport with the communities and building a working relationship built on transparency and respect.