WestMountain Gold, Inc. (“WestMountain”) (OTCQB: WMTN) achieved
several significant milestones in 2013, including the successful
bulk sample production of 384.5 ounces of gold doré (mostly
generated in 2013 with 109 ounces of doré produced in 2012) sourced
from the high-grade Ben Vein at its flagship Terra Project in
southwestern Alaska.
2013 Highlights
- Produced gold doré on-site at Terra
from a 75-ton bulk sample at an average head grade of 5 ounce gold
per ton (oz/t) at a recovery rate of 60-70% in August and September
2013.
- Generated a Canadian National
Instrument 43-101 compliant technical report of estimated
mineralized material for the Ben Vein in February 2013, showing an
increase in tons in the inferred resource category by 250% from the
previous 2007 estimate.
- Upgraded the mill to a processing rate
of one-two tons per hour, including addition of a gold shaker table
for free gold recovery, flotation cells, a water well, and new mill
buildings and a heavy equipment storage shed at the camp.
- Improved site infrastructure with the
80% completion of a 5,000-foot runway for larger aircraft that
allows air transportation of equipment, fuel and supplies and a
4-mile haulage road connecting the mill to the Ben Vein mine
site.
- Invested $2.2 million at the Terra
Project in fiscal year 2013, of which $1.6 million were for capital
expenditures and $0.6 million for exploration expenses.
Greg Schifrin, President and CEO of WestMountain commented, “We
are excited to have the continuity of gold doré production from our
successful bulk sample tests and the associated cash flow that
demonstrated the high-grade production potential of the Ben Vein
and new efforts at the Fish Vein. We achieved all of our goals for
2013, including the year’s highlight of producing gold doré from
successful bulk sample tests of the Ben Vein and Fish Vein in the
short summer season. Approximately 20% of the tons mined in 2013
from the Ben Vein were processed using the deitzer table for free
gold recovery.”
He added, “We accomplished all of the important infrastructure
construction as well as preparation of the new underground portal
site, optimally located below the main Ben Vein shoots, to be ready
for the planned adit or tunnel development in 2014 for proposed
bulk test production of an estimated 2,000 tons in the 2014 summer
season. We believe we have good prospects to raise the needed
capital funds ahead of the construction season.”
Terra Project’s High-Grade Ben and Fish Veins
The bulk samples from the Ben Vein were from three benches,
measuring 30 feet of vertical height and 90 feet along strike. The
prepared portal site for the planned 300-foot adit is located west
of the bench area. This is designed to enable the adit to cross cut
the vein shoots within approximately 250 feet from the portal
entrance.
Approximately 10 tons of the 75 tons bulk sample processed were
from the new Fish Vein, which is located 4,900 feet northeast of
the Ben Vein. There are no identified mineralized material
resources yet at the Fish Vein. However, in 2005 and 2012, the Fish
Vein was core drilled over 2,700 feet in five holes returning assay
intercepts of over 128g/ton gold in quartz veins.
The Ben Vein’s NI 43-101 technical report in February 2013
showed estimated mineralized material of 116,949 tons at average
grades of 0.424 oz/t gold and 0.875 oz/t silver in the indicated
resources category and further 735,994 tons at 0.456 oz/t gold and
0.806 oz/t silver in the inferred resources category. The Ben Vein
zone extends 1.2 miles and is open to the north, south and at
depth. There are no reserves at this time.
The Ben, Fish and Ice Vein area comprise five mining claims
within the prospective and contiguous 344 mining claims of the
Terra Project. The Terra Project covers 86 square miles in the
Tintina Gold Belt which hosts several world-class gold deposits
like Fort Knox, Pogo and Donlin Creek.
WMTN believes that it has earned into its majority ownership
interest in the Terra Project joint venture, subject to
confirmation with its partner that WMTN, through its wholly owned
subsidiary operating Terra, has expended more than the required
$6.0 million since September 2010 to secure its 51% interest in the
Terra Project. Under the joint venture agreement, WMTN could earn
into an 80% interest with the investment of an additional $2.6
million at Terra. The joint venture partner Raven Gold Alaska, Inc.
is a wholly owned Alaskan subsidiary of Corvus Gold Inc.
Managing Prudent Capital Structure
Mr. Schifrin also noted, “We continue to manage our balance
sheet and capital structure prudently. We believe our business
platform of modest expansion, generating cash flow from bulk
samples, and redeploying cash into exploration and project
development, will build value for our shareholders as we advance
the Terra Project towards reserves and year-round production. While
we need a capital infusion for the adit expansion, we expect to
expand the Ben Vein from underground platform drilling and achieve
further growth from the underground access.”
He said, “As a share owner of 16% of WMTN, I am mindful of our
share capital. Our Company has 25.2 million basic shares
outstanding. Our cash flow from bulk sample production allows us to
balance modest debt and equity financing to fund our growth.”
The Company also announced that it has consolidated its
corporate offices to Sandpoint, Idaho and will be closing the
Denver office as a means of reducing overhead.
2014 Outlook
The Company’s goal is to produce 30-50 ounces of gold doré per
day for the 2014 summer season. The underground adit development at
the Ben Vein, mill expansion to 2-3 tons per hour and bulk
sampling, all subject to capital raising, are estimated to cost $3
million - $3.5 million. Work is expected to commence in the spring
of 2014, subject to securing sufficient capital funding.
Specific 2014 goals, subject to financing, include:
- Improve processing and recovery at the
mill
- Construct the underground adit and
acquire associated mining equipment
- Improve the runway for more
flights
- Improve the haulage road to the
mill
- Conduct airborne aeromagnetic survey
over the entire Terra property
- Continue exploration of the Ben Vein
system and other gold targets
WMTN will be flexible in its exploration investment level in
fiscal 2014, which will depend on capital resources on hand and
management’s and the Board’s assessment of market conditions.
Overall, in 2014, the Company is looking to expand the known
mineralized material resources at the Ben Vein, advance the Ben
Vein zone to the north, work towards an initial mineralized
material resource estimate for the Fish Vein in 2015 and test for
additional discoveries at the Terra Project.
About WestMountain Gold
WestMountain Gold, Inc. (OTCQB: WMTN) is a gold exploration and
development company that is advancing the Terra gold project in the
Tintina Gold Belt in southwestern Alaska. The Company currently has
rights to a 51% interest in the Terra Project joint venture. WMTN
has further rights to earn into an 80% interest. Terra is in the
mineral resource definition phase with estimated mineralized
material of 116,949 tons at average grades of 0.424 oz/t gold and
0.875 oz/t silver in the indicated resources category and further
735,994 tons at 0.456 oz/t gold and 0.806 oz/t silver in the
inferred resources category in the Ben Vein deposit, based on the
Canadian NI 43-101 Technical Report completed by Gustavson
Associates on February 19, 2013, using a $1,500 gold price. WMTN
believes this high-grade gold system in total over the
under-explored 86-square mile property offers potential of greater
than 1,000,000 ounces. Additional details are available at
www.westmountaingold.com.
Safe Harbor Statement
Some statements contained in this news release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and, therefore,
involve uncertainties or risks that could cause actual results to
differ materially. These statements may contain words such as
"desires," "believes," "anticipates," "plans," "expects,"
"intends," "estimates" or similar expressions. These statements are
not guarantees of the Company's future performance and are subject
to risks, uncertainties and other important factors that could
cause its actual performance or achievements to differ materially
from those expressed or implied by these forward-looking
statements. Such statements include, but are not limited to, the
potential of the Terra Project, estimated gold production or goals,
gold recovery, indicated and inferred resources, and expectations
to run milling operations at 50 tons per day. Additional
information regarding factors that could cause results to differ
materially from management's expectations is found in the Company’s
SEC filings. The Company intends that the forward-looking
statements contained herein be subject to the above-mentioned
statutory safe harbors. Investors are cautioned not to rely on
forward-looking statements. The Company disclaims any obligation to
update forward-looking statements.
Mineralized material and mineral resources are not considered
reserves as these have not demonstrated economic viability.
WestMountain Gold, Inc.Greg SchifrinChief Executive
OfficerOffice: 208-265-1717Cell:
208-290-1180gschifrin@westmountaingold.com
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