Gold Mountain confirmed it has completed its first ore delivery to New Gold’s New Afton mine in British Columbia.
The material in the shipment was mined from the 1300 vein neighboring the historic Pit 2, which was most recently mined from 2012-2014. With this, officials said, the company has transitioned into revenue generation.
“By selling high-grade ore directly to New Gold, the company avoids the need for an on-site mill and tailings storage facility,” Gold Mountain said, noting that the deal also significantly reduces Elk Gold mine’s environmental impact.
As a result, the company is reducing its carbon emissions by 11,500 tonnes per year, power consumption by 10.2 Mwh per year, and annual water consumption by more than 14,000,000 L.
The three-year OPA’s terms outline that Gold Mountain will deliver 70,000 tonnes yearly, or approximately 200 tonnes per day, to New Gold.
In June 2021, the company said it had inked a letter of intent to increase tonnage delivered to New Afton from 70,000 to 350,000 t/y beginning on the fourth year. That update to the terms is subject to necessary regulatory and Indigenous approvals.
“By securing a world-class ore purchase partner in New Gold and a fixed cost mining contract with Nhwelmen-Lake LP, Gold Mountain has the operational partners in place to consistently execute its business plan which the company anticipates will result in increased shareholder value,” Gold Mountain said.
Director and CEO Kevin Smith added that its intent has always been, since it went public in December 2020, to put the mine back into production.
“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,” Smith said.
Source: Gold Mountain Mining