Let’s you and me assume you know nothing about mining, that you’re just a plain average ‘them’, minding your own business, maybe looking for an opportunity to make your cash multiply.
Cool. Pleased to meet you. Have you heard about Gold Mountain Mining (GMTN.V)?
The summary is thus: Unlike a lot of mining explorers, that take a decade-plus of drilling and photo taking and rock kicking and sampling and golfing to get to a place where they have a whole area mapped out and can start thinking about gold production, Gold Mountain is just going in. I mean, they’re still drilling and permitting and such, but the endless ‘raise money, drill a bit, raise more money, drill a bit’ scenario isn’t their jam. This isn’t about maintaining a CEO lifestyle, this is about getting in the ground and taking out the shiny.
TL/DR; They know where there’s a bunch of gold, at least enough to start going after it in a small way, and that small push is intended to pay for further exploration as they go.
To be clear, ‘going after it’ still requires some work – they’re not sending dudes out with pickaxes next week. There’ll be permits to get and more drilling as they go and even a little actual digging will require *some* financing, but the plan this outfit laid out initially was starkly simple – ‘no pissing about, just watch us work.’
And every few weeks we get more news showing they’re doing that work, and in quick time.
Gold Mountain Mining Corp. has received its notice of work (NoW) permit, allowing it to expand its 2021 exploration program at its 100-per-cent-owned Elk gold project. The NoW permits Gold Mountain to continue chasing its deep, high-grade mineralization while exploring additional satellite zones throughout the property.
The highlights are pretty simple for anyone to understand, whether or not you’re a rocklicker.
- Gold Mountain receives authorization for an expanded phase 2 exploration program allowing it to drill outside the Siwash North zone.
- Phase 2 includes 10,000 metres of drilling and continues to relog high-interest historical core
- The NoW allows the company to continue chasing the deep, high-grade mineralization of the Mother Shoot zone as well as other satellite regions of the property.
Sure, this isn’t the ‘to the moon’ news you might be looking for with your stimmy cheques and your tendies, but it is step #84 on a many step march that has seen GMTN move from a $0.75 stock when we first told you about it, to a $2.55 stock four months later.
That stock chart is a beauty. A consistent stepper with ongoing high levels of trading, and folks clearly taking more over time whenever it dips.
That it’s at a high isn’t scary at all because, look, it’s holding that high. That tells me folks aren’t taking their profits and moving on, or if they are, plenty of new blood is entering.
We told you CEO Kevin Smith was all business. We told you he was going to bring a lot of news. We told you grownups were involved and looking at the long term play.
WE TOLD YOU.
Now what I’m telling you is, they’re continuing to remove risk and demonstrate their steel and PUTTING THEIR MONEY WHERE THEIR MOUTH IS.
Here’s the insider buys and sells for GMTN for the last six months. The buys are highlighted in green, sells in red.
Good luck finding any red.
Those below-value green spots? That’s warrants being executed, which means more money to the company and more strong hands grabbing what they can.
When the insiders are hoarding the stock, and executing warrants that will be untradeable for four months, that’s telling you a lot.
Let’s hear it from the man in the big chair.
“This is fantastic news as we move into our next 10,000 m drill program at the Elk,” commented chief executive officer Kevin Smith. “With this notice of work, we now have a lot more optionality to target deep, high-grade zones, particularly down dip of the 1300 vein. It also opens up other satellite areas we’ve identified as being highly prospective for vein extensions and new discoveries. In this phase 2 program, we have five holes planned for our Elusive zone with the intention of developing a more bulk-tonnage-style resource to complement our high-grade sulphide mineralization. Our focus remains to continue unlocking shareholder value by aggressively growing the Elk deposit while rapidly moving through development and into commercial production. Stayed tuned for a very exciting second half of 2021 as we continue building out B.C.’s next high-grade gold and silver producer.”
Right now, what these guys are doing is sector-proofing their deal. Sure, the price of gold will rise and fall, politics will make people look for places to hide their cash and gold is always one of them, but when your gold explorer is ripping through milestones and doing EXACTLY WHAT THEY PROMISED and all the big guys are buying anything they can find, and the highs remain current because every dip is taken out by big money, it doesn’t matter what the price of gold is.
Gold Mountain is building something serious.
If you’re a mining guy, you know.
And if you don’t know, now you know.
— Chris Parry
FULL DISCLOSURE: Gold Mountain is an Equity.Guru marketing client, and we own stock in the company.