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November 30, 2022


Investment information for the new generation

Gold Mountain’s (GMTN.V) phase 2 drill program starts off with a bang

On June 30, 2021 Gold Mountain Mining (GMTN.V) announce assay results from the initial holes of its Phase 2 drill program at the Elk Gold Project located near Merritt, BC.

They were good.

“If you are looking for exposure to the precious metal and can appreciate the risk/reward dynamics of the junior exploration arena, Gold Mountain is a compelling speculation—a near-term production scenario boasting a (growing) high-grade resource and significant exploration upside,” wrote Equity Guru’s Greg Nolan on May 14, 2021.

GMTN’s June 30, 2021 drill results follow a wave of positive news flow:


January 19, 2021 – Mining Contract with Nhwelmen-Lake LP
January 26, 2021 – Ore Purchase Agreement with New Gold
May 14, 2021 – Increased Mineral Resource Estimate
May 27, 2021 – Updated PEA
June 17, 2021 – Increase Tonnage Limit in Ore Purchase Agreement


“These high-grade assay results continue to extend the deposit’s established mineralized zones down dip and indicate clear vein continuity at depth,” stated GMTN on June 30, 2021.


  • Drilling Highlights Include:
    • 1.0m grading 17.3g/t Au including 0.73m of 24.4g/t Au
    • 1.3m grading 13.9g/t Au including 0.30m of 60.4g/t Au
    • 1.12m grading 6.4g/t Au including 0.30m of 24.0g/t Au

Gold Mountain’s Phase 2 drill program continues to methodically extend the Elk’s shallow, open pit amenable vein systems as well as its deep, high-grade mineralization at the Siwash North Zone.

Gold Mountain continues to re-log historical core samples after the success of the Phase 1 relogging program.

HEG and Associates (“HEG”) has completed a soil geochemical survey over highly prospective exploration targets on the property including the Elusive Zone.

For years, Equity Guru boss-man Chris Parry has been screaming from the tree-tops that mining companies need to modernize the way they speak to investors.

Mining companies “still think of millennials as idiots and rubes,” wrote Parry on January 23, 2019 , “a lost cause that will never pay attention to a mining explorer or an oil and gas play, even though they were front and center on lithium and cobalt.”

“Step one of any good marketing program in the real world, where actually selling products is how you live or die, is to NOT market to the same old crowd in the same old way, every time,” added Parry, “That’s just a pathway to the middle of the pack, at best”.

Geologically and operationally GMTN has already separated itself from the pack.

Its messaging is also modern and innovative.

GMTN has shot a lot of high quality “B-roll” (documentary footage with no humans) on the Elk Gold property.

Every significant press release comes with a short video where management contextualises the news, interspersed with B-roll.

That turns a spread-sheet into a story.

Simple and smart.

“Our Spring Summer exploration program is in full swing as we continue to drill out the property and march our resource past a million ounces by fall,” stated GMTN CEO Kevin Smith in the above You Tube Video.

“Right now, the drill is located south of pit one,” stated Grant Carlson, COO of Gold Mountain, “and it’s drilling through the 1300 2500 2600 veins. This is very efficient and cost effective because we’re able to intercept three mineralized zones with each hole.”

“We’ve hit three highlight intercepts in his latest batch,” added Smith, “two 24 gram per tonne and one 60 grams per tonne, and the thickness of these veins is consistent with previous intercepts.”

“We learned in phase one that as we chase the veins further west, they’re starting to converge and the results from this drilling in phase two is confirming that model,” stated Carlson.

“In our phase one relogging program we encountered grades as high as 216 grams per tonne, and we are continuing to aggressively relog for in parallel with this diamond drilling program,” added Carlson.

“As a part of phase two, we have a team of eight geologists from HEG exploration, completing a geochemical survey over the elusive zone. By pairing our geochemical data with our magnetic survey and alteration mapping it will allow us to paint a bullseye of where we need to drill.”

“With an ambitious goal of getting this resource up to a million ounces by fall, it’s critical that we continue to hit these early intercepts to deliver on our commitment to shareholders of being BC’s next million-ounce Gold and Silver producer,” stated Smith.

“We also have a team of 8 geologists on site kicking off a soil sampling and field work program in our Elusive zone located approximately 4.5km away from our open pits. This area has the second highest gold in soil anomaly, numerous copper showings, and is yet to be drill tested. If we are able to connect, Gold Mountain could be looking at a bulk tonnage style deposit, to pair with our known high-grade sulphides, at the Elk Gold property,” added Smith.

To date, GMTN has drilled a total of 13 of its planned 34 total drill holes in its Phase 2 exploration program representing approximately 4,350m of the 10,000m program. The first batch of assay results represent only two of the thirteen holes drilled to date encompassing 500m of the 4,350m.

Elk Gold Highlights:

  • Updated PEA with an After-tax NPV5% of C$231M
  • 19,000oz annual production (Years 1-3) expanding to 65,000oz annual production (Years 4-11)
  • Increased cost certainty over September 2020 PEA through executed:
    • Construction and Mining Contract with Nhwelmen-Lake LP
    • Ore Purchase Agreement with New Gold Inc.
  • Revised mine plan eliminates construction of an onsite mill and incorporates underground mining

June 17, 2021 GMT News: Increase Tonnage Limit in Ore Purchase Agreement

“This move to feed the New Afton mill substantially greater volumes of ore adheres to the year 4 production profile outlined in the Company’s recently updated PEA,” wrote Equity Guru’s Greg Nolan on June 18, 2021.

“Aside from enhancing the project’s overall economics—the reduction in the AISC from $735 per oz to $554 per oz is HUGE—this move to aggressively scale production via accelerating the toll milling option greatly reduces risk,” added Nolan.

Core-Relog Program

Gold Mountain continues to relog its historical core after uncovering significant mineralization that was overlooked by previous operators during its Phase 1 relog program.

Current relogging efforts are focused on historical drill holes adjacent to the current Phase 2 drilling to better understand the deposit geometry, which will ensure that subsequent drilling has the best chance of hitting further mineralization.

The Elusive Zone

Gold Mountain, HEG and previous operators have long identified the Elusive Zone as highly prospective. It is defined by a significant gold-in-soil anomaly and known historical copper occurrences and has the potential for both a bulk tonnage, Cu-Au porphyry type discovery, as well as additional high-grade gold mineralization.

HEG is completing a new geochemical survey over the target area and will combine those results with alteration mapping and the Company’s geophysical surveys to vector into drill targets scheduled in the latter half of the Phase 2 drill campaign.

“I have no hesitation recommending Gold Mountain as being something that you should look at,” wrote Parry on June 22, 2021. “And if you’re into mining if you’re into resource companies, you understand how these guys are doing it. If you’re not into resource companies, if it’s a mystery to you, I’m going to break it down for you real simple.”

“They’re just doing it the way it should be done if the goal is to produce gold,” continued Parry, “Not a billion tonnes of gold, and not with a half billion dollar mine, but done if the idea is to make a profit that you can use to build from without the decade of delays.”

“For the next six months, this thing is going to generate more and more interest and, for mine, it’s important you don’t leave the good companies on the table just because you weren’t there for the first 10% of its run,” added Parry, “There’s a lot more of meat on the bones of this thing.”

– Lukas Kane

Full Disclosure: Gold Mountain is an Equity Guru marketing client.

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