Gold Mountain Mining (TSX: GMTN) this morning achieved a major milestone. The firm has officially completed the first delivery of ore to its processing partner, New Gold, at their New Afton Mine in Kamloops, BC.
The achievement marks a milestone for the company, whom is the newest mine operator in British Columbia. Revenue will now begin to be generated on a monthly basis, resulting in the firm transitioning to a cash flow generating operation.
Raw ore will now begin to routinely be delivered to New Gold at their processing facility, with ownership of the ore transitioning to the processor upon delivery, further reducing the risk profile for Gold Mountain. The first such deliveries are being mined from the 1300 vein, which last saw production in 2014 at an average grade of 16.7 g/t gold.
The company is currently expecting to process a total of 70,000 tonnes of ore in the first year of production, resulting in the recovery of an estimated 21,500 ounces of gold and a further 14,200 ounces of silver.
“When going public in December of 2020, we had a goal to restart the Elk and develop a million-ounce producer. [..] Looking forward, we plan to ramp up high-grade ore delivery to New Gold, continue aggressively drilling out our highly prospective land package, and kick off the technical work necessary for our proposed Phase ll production expansion,” commented CEO Kevin Smith on the achievement.
Gold Mountain Mining last traded at $1.30 on the TSX.
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