Revenue generation has officially begun for Gold Mountain Mining (TSX: GMTN). The firm today revealed that it has received its first payment for ore delivery, which was received from New Gold via their New Afton Mine, where the firms gold ore is processed.
The payment relates to gold ore delivered throughout the month of February, the first month in which deliveries occurred. The company in total collected a payment of $548,862, with the first stockpiles processed consisting of low grade material. Material provided then transitioned to high-grade ore from the firms 1300 vein.
In total, 2,473 tonnes of ore was delivered to New Gold’s processing facility, resulting in a total of 302.65 ounces of gold being processed.
“In our first month of ore delivery, we afforded ourselves additional time to calibrate our newly commissioned sample plant using some of our lower grade stockpile. We are currently working with New Gold to help ensure industry best practices are attained promptly. We have begun sampling material from our high-grade 1300 vein and are ramping to full scale production in March,” commented CEO Kevin Smith.
The firm also provided guidance for production in both March and April. Gold Mountain currently anticipates to produce 1,650 ounces of gold in each month, resulting in expected revenues of $3.0 million per month. As of Friday, the company had seen a total of 1,100 ounces of gold delivered as operations continue to ramp.
The firm is currently expecting to be able to release formal guidance when it delivers its annual financial results for the year ended January 31, 2022.
Gold Mountain Mining last traded at $1.39 on the TSX.
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