As outlined in an up to date preliminary financial evaluation (PEA) launched in September, Gold Mountain expects to construct an 11-year open pit and underground operation at Elk Gold. Manufacturing would begin off at 19,000 oz. per 12 months for the primary three years, with a rise to 65,000 oz. per 12 months for the rest of the mine life.
Because of an ore buy settlement with New Gold (TSX: NGD), whose New Afton mill is simply 133 km away and working under capability, the mission has a low preliminary capital value of C$9 million.
The 211.9-sqkm Elk gold mission is situated between Merritt and Kelowna in southern BC.
Beforehand a non-public firm named Bayshore Minerals, Gold Mountain listed on the Enterprise Trade on the finish of December, after finishing a reverse takeover with Freeform Capital. Bayshore acquired the Elk Gold mission from Equinox Gold (TSX: EQX) in Might 2019 for C$10 million.
“Aggressive timelines of stepping into manufacturing are one thing we’ve dedicated to since coming to commerce in December of 2020,” mentioned Kevin Smith, CEO of Gold Mountain, in a launch. “With the corporate receiving its early works allow and waste rock mining already underway via our gravel borrow, operations will likely be in full stride as soon as we obtain our mining allow modification. All of the whereas our drill crew continues to hit mineralization and we anticipate receiving a gentle stream of outcomes from the lab within the coming weeks.”
A ultimate mining allow will enable the corporate to start large-scale waste rock mining operations in July and August, and mining of the high-grade 1300 vein at Elk. Some building and web site preparation work, in addition to pit dewatering, has already been approved and is underway.
The corporate has employed Nhwelmen-Lake as its building and mining contractor.
A prefeasibility examine can also be being carried out by JDS Mining & Power with outcomes anticipated within the third quarter.
In accordance with the September PEA, the Elk Gold mission has a post-tax web current worth of C$231 million, utilizing a 5% low cost fee. All-in sustaining prices, based mostly on $1,600 per oz. gold, are projected at $554 per oz.
The mission, which hosts a mesothermal, intrusive associated, gold vein system, has 127,000 metres of historic drilling and manufacturing by way of bulk sampling packages going again to the Nineties.
Gold Mountain accomplished an extra 8,739-metre drill program in January, and began a second-phase, 10,000-metre program in Might.
The corporate launched an up to date useful resource for Elk Gold in Might that boosted measured and indicated ounces by 43% and inferred ounces by 67%.
Within the measured and indicated classes, mixed open pit and underground assets stand at 3.3 million tonnes grading 6.1 g/t gold equal (5.9 g/t gold and 11.1 g/t silver) for 651,000 gold equal oz. Inferred assets add 1 million tonnes grading 4.8 g/t gold equal for 159,000 oz.
(This text first appeared within the Canadian Mining Journal)