Gold Mountain Mining has engaged JDS Energy & Mining Inc to complete a prefeasibility study on its Elk gold project in British Columbia, Canada.

The PFS was commissioned to reflect the recent advancements the company has made to the project, most notably the signing of both the contract mining agreement – with Nhwelmen-Lake LP – and the ore purchase agreement with New Gold. These key inputs provide Gold Mountain with the near-term cost certainty required to delineate a maiden reserve at the project, the company says.

It is anticipated the PFS will also update the company’s resource estimate at the Siwash North Zone based on the results of its phase one drill program.

JDS will lead the PFS update with support from Knight Piesold Consulting and certain key independent consultants, Gold Mountain said, with the study expected to be completed in the September quarter.

Kevin Smith, Director and CEO of Gold Mountain, said: “We are very pleased to have JDS lead the PFS update. Their proven track record of engineering expertise in building ‘fit for purpose’ projects in Canada’s north will greatly contribute to the Elk gold project.

“Having a reputable group validate our economics, assess the underground potential, and continue to advance the Elk gold project strengthens our upside and ability to deliver long-term value to our shareholders.”

Gord Doerksen, President of the Engineering Division at JDS, added: “We are happy to be working with Gold Mountain to support near-term production and long-term planning at the Elk gold project. The team has built a strong foundation for JDS to add our extensive operational and permitting experience on a number of quality projects in British Columbia, and we look forward to maximising value together as partners.”

Gold Mountain acquired Bayshore Minerals in September 2020, gaining 100% ownership of the Elk gold project in the Merritt area of British Columbia. A past-producing gold mine, Elk comes with an NI 43-101 resource of 454,000 oz of gold-equivalent in the measured and indicated categories and 95,000 oz of gold-equivalent in the inferred category.

A previous preliminary economic assessment contemplated an operating able to mine 50,000 oz/y by year four.