Gold Mountain Provides Update On Elk Mine Project

Rhea-AI Summary

Gold Mountain Mining has announced significant operational changes at its Elk Gold Mine in British Columbia. The company reported reduced production during Q3 and Q4 due to planned winter work. Following an internal review of its NI 43-101 Technical Report, the company has identified the need for a complete relogging of all core data, expected to be completed by September 2025. As a result, Gold Mountain will substantially reduce production operations until the relogging work is complete and a new Mine Plan, Mineral Resource Estimate (MRE), and 43-101 are prepared. The company has also begun exploration drilling in the "Bullion Zone" north of the Siwash Pit, with preliminary observations suggesting potential for operational expansion.

Positive

• Exploration drilling in Bullion Zone shows potential for operational expansion
• Company taking proactive approach to address data verification needs

Negative

• Substantial reduction in production operations until further notice
• Low production results in Q3 and Q4
• Need for complete core data relogging indicates potential issues with historical data
• Operations will remain reduced until at least September 2025

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VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / May 14, 2025 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX:GMTN)(OTCQB:GMTNF)(FRA:5XFA) provides an operational update regarding its Elk Mine project.

Elk Mine Update

Low production results realized during the Q3 and Q4 reporting periods were directly attributable to the planned winter work program, which substantially reduced operations throughout the quarter. As a result, production from the Elk Gold Mine was at a reduced activity level.

The Company has commenced an internal review of its National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant independent Technical Report for the Elk Mine titled "National Instrument 43-101 Technical Report and Resource Update on the Elk Gold Project, Merritt, British Columbia, Canada" prepared by L. John Peters, P.Geo, Gregory Z. Mosher, P.Geo, and Marinus Andre De Ruijter, P. Eng, each an independent "Qualified Person" as defined in NI 43-101, with an effective date of December 7, 2021, and a report date of January 21, 2022 (the "Technical Report"). Accordingly, readers are cautioned to not place undue reliance on the Technical Report or the resource estimate included therein until the Company has completed and reported on those activities.

Initial quality checks on historical works and findings including random sample re-logging of historical drill core; and evaluating existing drill core data has determined the need for a complete relogging of all core data. The Company anticipates completing the relogging by September 2025 and will provide an update in due course.

Gold Mountain also anticipates receiving the results of exploration drilling which has commenced on the "Bullion Zone", an area located immediately north of the Siwash Pit. Preliminary observations support additional exploitation and expansion of the existing operational plan for that location.

In light of recent findings Elk Gold Mine will reduce production operations substantially until such time as the relogging work is complete together with a new Mine Plan, MRE and 43-101.

About Gold Mountain

Gold Mountain is a British Columbia based gold and silver production, exploration and development company focused on the development of the Elk Gold Mine, a producing mine located 57 kilometers from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website at www.goldmountainminingcorp.com.

For more information, please contact:

Gold Mountain Mining Corp.
Email: info@goldmountainminingcorp.com
Website: www.goldmountainminingcorp.com

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Forward Looking Statements

Forward-looking statements in this news release may include, but are not limited to, statements relating to those in respect of the Company's future financial reporting. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

SOURCE: Gold Mountain Mining Corp

View the original press release on ACCESS Newswire

FAQ

Why is GMTNF reducing production at the Elk Gold Mine?

GMTNF is reducing production due to the need for complete relogging of core data and preparation of a new Mine Plan, MRE, and 43-101 Technical Report. This decision follows an internal review that identified data verification needs.

When will Gold Mountain Mining complete the core relogging at Elk Gold Mine?

The company expects to complete the relogging work by September 2025.

What caused low production at GMTNF's Elk Gold Mine in Q3 and Q4?

The low production results were directly attributable to the planned winter work program, which substantially reduced operations throughout the quarter.

What is the Bullion Zone exploration at Gold Mountain's Elk Mine?

The Bullion Zone is an area located immediately north of the Siwash Pit where exploration drilling has commenced, with preliminary observations supporting potential additional exploitation and expansion of existing operations.

Where is Gold Mountain's Elk Gold Mine located?

The Elk Gold Mine is located 57 kilometers from Merritt in South Central British Columbia, Canada.