The company has an ore purchase agreement with New Gold. The deal is for the ore to be delivered to New Gold's New Afton mine, where ownership is transferred.
Gold Mountain noted that the first delivery of ore to New Gold was mined from the 1300 vein near the historical pit two, which was last mined from 2012 to 2014 at an average grade of 16.7 grams per tonne.
Production from the past producing and newly permitted Elk mine was planned to be 19,000ounces/year for three years, then a targeted full-scale production of 100,000oz/y in 2025. Mine life was set at 11 years.
"When going public in December of 2020, we had a goal to restart the Elk and develop a million-ounce producer," Gold Mountain's director and CEO Kevin Smith said on February 3.
Gold Mountain acquired the Elk gold project for C$10,000,000 from Equinox for a C$1,000,000 cash deposit and C$9,000,000 interest free loan in May 2019.
The company traded on the Toronto Stock Exchange at C$1.40/share on February 3, which was up 8% day-on-day. Since listing on the TSX at the end of 2020, Gold Mountain's share price has seen a peak of C$2.96/share, which was hit in June last year.
Gold Mountain had a market capitalisation of C$97.98 million.
The company, which adopted the name Gold Mountain in
December 2020, is a business combination of Freeform Capital Partners and Bayshore Minerals Inc.
