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Gold Mountain expects first revenue from its Elk Gold mine this November

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(Kitco News) - Gold Mountain Mining (TSXV:GMTN, OTCQB:GMTNF) reported Thursday that construction of its 100% owned Elk Gold mine, located outside Merritt, British Columbia, is on track and the company is on schedule for ore delivery in October and revenue in November 2021.

The company said it received authorization from the Ministry of Mines to begin construction on April 29th through its Notice of Departure ("NoD"). Since receipt of the NoD, the company's mining partner Nhwelmen-Lake has cleared overburden and conducted the first blast of waste rock near Pit 2. Nhwelmen-Lake is now crushing and screening the blasted rock and has begun road and laydown construction.

Nhwelmen-Lake has mobilized various pieces of equipment to the Elk Gold mine to support site construction activities, including; tracked dozers, excavators, a production blast-hole drill, rock trucks and a mobile jaw crusher. Other equipment en route include a weigh scale, fuel storage, office facilities, washroom/dry facilities and generator structures.

Additionally, on May 7, 2021, the company received a letter of authorization from the Ministry of Environment and Climate Change Strategy related to dewatering of the historical open pits under the existing Effluent Discharge Permit. As of June 8, 2021, the company has pumped out 46,500m3 of water from Pit 2. The dewatering efforts will ensure a smooth transition into ore mining.

Once the final Mine Permit is issued, the company said it anticipates beginning of its large scale waste rock mining operations through July and August. This will allow the company to mine the high-grade 1300 vein for ore delivery in October to its ore purchase partner, New Gold.

The company explained that prior to delivery to New Gold's New Afton mine, the ore will be assayed by an independent third party and weighed on site to determine the ore's value. Trucks then haul the ore approximately 133km to the New Afton Mine where title to the ore is passed to New Gold upon delivery. New Gold will pay Gold Mountain for the delivered ore within 17-days of each month end.

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