VANCOUVER, Feb. 27, 2012 /PRNewswire/ – Gold Mountain Mining Corporation (TSXV: GUM) (the “Company” or “Gold Mountain”) is pleased to announce results from a recent geophysical test survey at the Company’s 100% owned Elk Gold Project, using the Titan-24 Array Magnetotelluric Survey (“Titan-24”) technique pioneered by Quantec Geoscience.
Located near Merritt, BC, Elk is a high grade, narrow vein, mesothermal gold deposit, with an existing NI 43-101 compliant resource, hosted mainly by intrusive rocks. Multiple Induced Polarization (“IP”) chargeability and Magnetotelluric resistivity anomalies were identified during the survey, generally coincident with known mineralized zones and also indicating potential for additional mineralized zones across strike and at depth. These new targets warrant follow up and will be drill tested during the exploration program planned for this season.
The survey was conducted late last year over 2 north-south lines of approximately 7 kilometers length, spaced 400 meters apart, crossing the historic pit and other mineralized zones, to test the effectiveness of the survey technique in detecting the known gold bearing quartz-pyrite vein structures and to look for deeper controlling structures which might be used to target further regional exploration. A survey map and section are attached to this press release.
The survey was successful in recognizing known mineralized zones. Several new near surface anomalies were also identified, approximately 300m and 1300m north of historic pit, in the Bullion and Nicola zones, and approximately 1500m south of the South zone. These anomalies are interpreted to represent shear or fault structures which may host quartz veins similar to mineralized zones elsewhere on the property.
A broad, shallow chargeability high was also detected in the Nicola zone, which may represent disseminated sulphides or possible skarn mineralization associated with the inferred contact between the granodiorite/quartz-monzonite intrusive and Nicola volcanics in this area. In addition, a very large, deep (+500m depth) resistivity low was detected below the known Discovery Zone, which may represent a major regional structure and/or change in composition of the intrusive stock which hosts most of the known mineralization.
All of these new anomalies warrant follow up by drill testing, particularly in the Discovery, Bullion and new Far South zones. The Company is currently planning a minimum 10,000 meter core drilling campaign on the project for summer 2012, targeting roughly 5,000 meters in the historic pit area (including potential western extensions) and a further 5,000 meters on at least four regional targets indicated by the Titan-24 survey.
The current NI 43-101 resource estimate in the historic pit area, based on drill data available in 2009, is tabulated below:
Gold Grade (g/t)
Measured + Indicated
An new resource estimation is underway, with detailed 3D interpretation of the latest 2011 and 2010 data (which was not included in the current estimate) being conducted in house, before Giroux Consultants Ltd. completes an updated block model, expected to be finalized in Q2.
The Company’s Vice President of Exploration, Peter Thiersch, M.Sc., P.Geo., acts as the Company’s Qualified Person for technical disclosure per National Instrument 43-101, and has reviewed and approved the technical content of this press release.
About Gold Mountain Mining
Gold Mountain is a new public resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company owns 100% of the 16,700 hectare Elk Gold property, which it intends to develop into a precious metal producer within the next two years, and is also seeking additional near-term production assets to further build shareholder value. Additional information is available at www.sedar.com or on the Company’s new website at www.aumtn.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
ON BEHALF OF THE BOARD
“Chris McLeod” (signed)
President and CEO
Forward-Looking Statements: This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements regarding the closing of further tranches of the Offering, the use of proceeds from the Offering and the Company’s plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE Gold Mountain Mining Corporation