Premier Canadian Gold Company Marching Towards Million Ounce Vision

August 27, 2021

Precious minerals and metals are a major generator of wealth and employment in Canada, contributing billions of dollars to overall gross domestic product and producing hundreds of thousands of jobs within the country. The extraction of minerals and metals provide key ingredients for nearly every element of our daily lives. From buildings to vehicles, electronics to toothpaste, civilization as we know it would be nonexistent without the endeavors of our active junior miners. More importantly, these commodities are essential towards the ultimate transition towards clean energy technologies such as solar cells, wind turbines and high density batteries.

The process of discovering mineralization suitable for extraction has proven to be expensive and quite difficult, with hundreds of junior mining companies actively searching for the makings of the next great Canadian mine. Very few find themselves successful, however one company in particular appears well positioned and ordained to cross the finish line in the near future.

Gold Mountain Mining Corp.

Gold Mountain Mining Corp. (TSX-V: GMTN) is a gold and silver exploration and development company based in British Columbia with primary focus pertaining to increasing production at its flagship Elk Gold Project. Through the utilization and combination of veteran mining leadership and unrivaled assets, its goal is to execute on its vision of becoming a predominant gold producer in the Canadian mining sector. Gold Mountain has managed to gather an exceptional executive team and board of directors with a combined 50 years of experience in the technical, construction, operations, and financial fields of mining, and have aided in production advancement of more than 15 mines historically.

The company appears to understand that the success of the company relies heavily on ethical business practices, which in today’s junior mining markets can be hard to come by. With a firm capital structure combined with insider holdings sitting near 25% of the company, management depicts their full support in producing long-term shareholder value for institutional, retail, and high net-worth investors alike. In combination with the astonishing 32 million ounces of gold production in British Columbia over the course of the previous centuries, the Elk Gold Project appears well positioned to generate significant results, adding its contributions to the industry and further strengthen shareholder value.

While British Columbia has proven to be one of the most exciting, mining friendly jurisdictions, Gold Mountain appears destined on becoming the next pure play gold company in the Canadian west, relentlessly focused on increasing current resources to over 1 million ounces and has seamlessly raised more than $50M in capital to be used towards the completion of its aggressive multi-phase drill program of the Elk Gold Project.

Elk Gold Project

Through the acquisition of Bayshore Minerals in September of 2020, Gold Mountain now boasts 100% ownership of the massive 21,000 hectare Elk Gold Project, conveniently located within commuting distance of the Merritt area of British Columbia, Canada, offering access to all-season highways, abundant natural resources, and a skilled local labor force. The land package in itself is a beast, having already produced 127,000 meters of historic drilling ($30M value) and extensive geochem and geophysics programs, and has proven that the mesothermal, intrusive related gold vein system found in the Elk Gold Project hosts multiple gold mineralization zones.

Throughout the high grade gold prospect that is the gold bearing mesothermal quartz and sulfide vein deposit of the Elk Gold Project, several exploration targets have been identified. In addition to the historic pits found within the initial Siwash North site, Gold Mountain has ambitions to further explore the following locations:

Siwash East Zone
Bullion Zone
Gold Creek
Lake Zone
End Zone
Elusive Zone
Discovery Zone
South Zone

With measured and indicated quantities in excess of 651,000 AuEq ounces in addition to 159,000 AuEq inferred ounces in the Siwash North zone alone and aspirations to deliver permit acquisitions to begin production shortly, Gold Mountain appears to be well on its way to achieving its growth objective of converting the Elk Gold Project into a million ounce producer. Impressively enough, management has reassured its investors that no salaries will be collected until the production permit is obtained, revealing a grand devotion of resources towards production results. One mustn’t look far within the industry to understand the importance of this benevolent leadership plan and the unmitigated value this brings to its investors. Furthermore, and exceedingly impressive, the mine is expected to reach a staggering 65,000 ounces per year by the fourth year of production, resulting in a post-tax NPV of $231M. With the company’s overall market cap hovering around the $100M mark, it appears that share prices have only one way to go, which will undoubtedly leave its shareholders smiling copiously.

Active Exploration

Phase 1 of the Elk Gold Project took place from January 2021 through April 2021, and successfully added over 260,000 ounces to its resources at an average discovery cost of $8 per ounce. Gold Mountain impressively managed to unearth mineralization in all 41 drill holes with grades reaching an astonishing 124 g/t while further extending its reach into the Siwash vein system.

SND20-029 intercepted 1.42m averaging 37.00 g/t Au (including 0.42m averaging 124.00 g/t Au)
SND20-032 intercepted 1.22m averaging 16.23 g/t Au (including 0.30m averaging 62.20 g/t Au)
SND20-032 intercepted 1.30m averaging 7.95 g/t Au (including 0.30m averaging 31.30 g/t Au)

As Phase 1 concluded, Gold Mountain’s CEO Kevin Smith commented: “These results at the tail end of our Phase 1 Drill program bring our hit rate to 100%. Every drill hole from this program returned significant gold intercepts. The primary goal of the final drill holes was to in-fill data gaps in the 2600 and 2700 vein system and to further enhance JDS’ underground geotechnical model. Having these holes return some of our highest grades is a welcomed surprise. Additionally, we continue to uncover phenomenal grades from our relogging program that is proving to be an economical way to fill gaps in our model. The Elk Gold project continues to demonstrate excellent continuity and expandability.”

Kevin Smith continues, “Gold Mountain finds itself in a unique position where we’re able to deliver shareholder value not only through our exploration efforts but also through the coming transition into development and production. This gives us a unique upside in the junior space which we feel sets us apart from our peers. The market seems to be waking up to our story and with early shareholders staying long there has been a great response in our share price. Management is extremely focused on execution and looks forward to continuing to deliver meaningful progress in the coming months.”

Phase 2 is currently underway, scheduled to commence from May 2021 through August 2021 and plans to produce roughly 10,000 meters of additional drilling, looking to expand the north zone of Siwash, as well as expansion into the Gold Creek and Elusive zone. The ongoing drill program continues to extend the shallow, open pit amenable vein systems and continues to confirm the deep, high grade mineralization at the Siwash North Zone. Some of the high-grade assays recently revealed by the company are quite impressive.

0m grading 17.3g/t Au including 0.73m of 24.4g/t Au
3m grading 13.9g/t Au including 0.30m of 60.4g/t Au
12m grading 6.4g/t Au including 0.30m of 24.0g/t Au

From the end of June, the company has drilled 13 of the planned 34 holes, with the first batch of assays representing only a few of the 13 holes drilled. Witnessing the Phase 2 drill program rush out of the gates should be exhilarating for shareholders, strengthening the already impressive Phase 1 results, and conjectures can be made that the targeted 1 million ounces should be easily achievable.

Forward

As the end of the Phase 2 drill program draws near, the company has briefly outlined future plans for a third drill program, focused on targeting an additional six high grade locations with significant expansion potential showing similar geological attributes as Siwash north. In addition, further soil and geochemical anomalies that extend beyond the targeted six locations offer inherit untapped discovery potential for future explorations and expansions. The company has also revealed plans to procure a second drill for its Phase 3 exploration program in the interest of accelerating its discovery ambitions and increasing its mine life.

When investigating the open markets, it can easily be seen that the talented management team continues to purchase and retain a flurry of stock, combining for nearly 400,000 shares obtained at an average price of $1.91 (26% above current levels) since the beginning of April alone, showcasing confidence in its goals as hard work and determination quickly transforms from dream to reality. Finding a reliable junior mining company that offers outstanding investment opportunity within the sector can be a daunting task, but when considering recent successes in combination with exuberant near term upside potential, Gold Mountain should not be easily overlooked when deciding where one can add unmatched value to their portfolio.