Terra Project

Project Overview

 

Introduction

The Terra Gold Project consists of 344 State of Alaska unpatented lode mining claims plus an additional 5 unpatented lode mining claims held under lease (subject to a 3-4% NSR royalty to the lesser, dependent upon the gold price) covering approximately 155 km2 in the McGrath Mining District of Western Alaska.  The property is centered on an 8-km-long trend of high-grade gold vein occurrences which have returned numerous surface rock samples and drill intersection in excess of 50 g/t gold.  The property lies approximately 200 km west-northwest of Anchorage and is accessible via helicopter or fixed-wing aircraft.
WestMountain Gold Reports 419, 604 ounces of Gold Grading 15.30 grams per tonne (g/t) in Its 43-101 Technical Report and 23.1 g/t silver for 318,000 ounces contained, at a cutoff grade of 5 g/t gold, in a vein system which remains open.

Project Ownership

WestMountain Gold is pleased to announce that its wholly owned Alaska subsidiary, Terra Gold Corp, has acquired 100% ownership interest in the Terra Gold Project from Corvus Gold Inc’s. (TSX:KOR, OTCQX:CORVF) wholly owned Alaskan subsidiary, Raven Gold Alaska, Inc. of WestMountain Gold.

The company arranged bridge loan financing through two key parties who are significant shareholders and long term supporters of the company which has enabled the Company to increase its ownership in the Terra Gold Project to 100 percent. Corvus has conveyed all interests in the Terra property to WestMountain and will relinquish all royalty payments.

A more detailed description of the agreement is set forth in the Company’s Current Report on Form 8-K recently filed with the SEC, which the Company encourages be reviewed carefully

Property Background

Outcropping gold veins were first discovered at Terra in the late 1990's by Kennecott Exploration.  The claims were transferred to Mr. B Porterfield in 2000. AngloGold Ashanti (USA) Exploration Inc. optioned these claims in 2004 and staked additional claims in the vicinity.  Initial detailed soil and rock surveys were conducted at Terra that same year with results leading to the definition of an initial zone of high-grade gold veins over a 2.5 km strike length.  AngloGold followed up with a discovery drill program of 12 holes in 2005 and drilled three additional holes in 2006.  A total of 587 rock samples were collected on the property averaging 16.25 g/t gold and 192 soils collected over 2.6 km of strike averaging 903 ppb gold. The Terra project was joint-ventured to ITH in August of 2006.

Geology and Mineralization

The high-grade gold veins at Terra are associated with a Cretaceous diorite intrusion similar in age to those at the Donlin Creek and Whistler deposits located to the northwest and east, respectively.  The surrounding host rock to the diorite intrusive and gold-bearing quartz veins is a thick sequence of carbonaceous shale. The Terra deposit is characterized by high-grade, 0.1 to 2 m wide, banded quartz veins that commonly contain visible gold.  These veins appear to be best developed along a north-trending structural zone near the margin of the diorite intrusive. The quartz generally has a banded colloform character but also commonly has intervals of sharp "toothy" or drusy "cockscomb".  Individual bands and cavities may contain sulfosalts, arsenopyrite, pyrite, pyrrhotite, sphalerite, and chalcopyrite as well as native gold and electrum. Alteration selvages around the veins grade from silica-rich near the veins to sericite-rich further away.  The selvages may also contain up to 10% pyrite and arsenopyrite, however they rarely extend more than a meter from the veins. Mineralization from the Terra veins has returned favorable gravity and cyanide recoveries from initial gold characterization studies.


Exploration Summary

During a surface mapping and sampling program in 2006, ITH collected 136 rock and rock chip channel samples from the Terra project, which ranged in values from <2 ppb to 130 g/t Au (average value for all 136 rock samples is 6.8 g/t Au and 33.7 g/t Ag).  This work defined four main zones of veining in the core Terra target area, as well as a new zone of veining 4 km to the south in the Ice Vein area (13 samples averaging 24.8 g/t gold and 170 g/t silver with a high chip sample of 0.5 m @ 72.3 g/t gold and 453 g/t silver).   In addition, a new blind vein was discovered in the 2006 drilling (1.65 metres @ 13.9 g/t gold) which increases the tonnage potential of the system.

Ben Vein System - In2007, ITH carried out a drill program consisting of 12 holes as follow up to AngloGold Ashanti's 2006 drill results. This program was focused on defining continuity of the high-grade mineralization and developed the project's first mineralized resource in the Ben Vein zone, one of several vein systems identified at Terra.  All 12 drill holes intersected the main Ben Vein as planned. These results, together with previous drill hole results, have defined the Ben Vein System as being open along strike and at depth, with a minimum strike length of 400 m and a depth of at least 350 m. The mineralized vein varies in true width (using a 3 g/t cutoff grade) from 0.2 to 3.0 m, averaging 1.0 m with 19.8 g/t gold. The high-grade zone averages 1.3 m in thickness with 23 g/t gold.

??Ice Vein System - ITH drilled 3 additional holes in 2007 intersecting a new high-grade vein system at the Ice Vein Target approximately four kilometres on trend south of the Ben Vein resource area.  Like the Ice vein area, a number of targets and exploration areas along the overall 8+ km Terra vein system have yet to be explored.

WestMountain Gold’s 2011 drill program totaled 4 holes and was successful in expanding the high-grade Ben Vein system by an additional 200 metres to the north, as well as the identification of an additional vein zone outside the currently defined resource which was intersected.  WestMountain Gold commenced bulk sampling of the Ben Vein in the summer of 2012 with subsequent 1,152.6 meters of core drilling.  An additional 4 holes were completed to further define the gold veins along strike and at depth and expanded the gold resources at the project.  Given the high-grade nature of the gold veins, coupled with the favorable mining configuration and gravity recovery characteristics, the deposit appears to  be amenable to near-term gold production for an anticipated 15,000-30,000 ounce per year operation.

2011 summer drill results:

(Intervals calculated using a 1 g/t gold cutoff grade, “Including” intervals use a 5 g/t gold cutoff grade)

Drill Hole From To Interval* Au Ag Vein Zone
  (metres) (metres) (metres) (g/t) (g/t)  
WGC-33-11 35.29 35.44 0.15 31.80 15.20 HW-3
  76.69 77.19 0.50 5.73 3.30 HW-2
including 76.69 76.89 0.20 12.05 6.30 HW-2
  104.84 105.97 1.13 2.23 4.09 HW-1
  139.06 139.90 0.84 7.42 69.39 Ben Vein 100m step out
including 139.59 139.90 0.31 15.60 138.00 Ben Vein
WGC-11-34 21.30 21.60 0.30 8.01 68.50 HW-3 lost hole at 67m
WGC-34B-11 111.04 111.40 0.36 35.70 174.00 HW-2
  115.40 117.95 2.55 6.12 28.75 HW-1
  120.00 125.60 5.60 8.15 69.69 Ben Vein 100m step out
including 121.60 125.00 3.40 11.60 106.50 Ben Vein
WGC-35-11 114.00 114.53 0.53 25.60 4.90 Ben Vein 200m step out

* Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

2012 Summer Drill Results:

(Intervals calculated using a 1 g/t gold cutoff grade and maximum 0.5 m of internal waste)

Hole ID
From
To
Interval
Gold
Silver
Zone
 
(metres)
(metres)
(metres)
(g/t)
(g/t)
 
WGC-12-36
85.20
85.50
0.30
33.00
18.30
Ben Zone
 
122.38
123.00
0.62
21.55
10.72
 
129.54
130.35
0.81
84.24
28.35
 
181.00
181.50
0.50
5.72
1.40
 
192.53
193.00
0.47
11.10
2.20
 
406.5
407.50
1.00
19.38
10.65
WGC-12-37
147.75
148.15
0.40
27.00
17.90
 
174.1
175.40
1.30
10.48
28.08
WGC-12-38
55.50
56.50
1.00
3.10
1.40
 
70.70
71.00
0.30
4.26
3.20
 
272.00
273.00
1.00
5.58
5.00
 
288.00
288.50
0.50
8.49
1.20
WGC-12-39
64.50
66.00
1.50
2.23
1.97
Fish Zone

* Reported drill intercepts are not true widths. At this time, there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

Mineral Resources

Inferred Resources within the Ben Vein (within a 1.0 g/t Au Shell)

Inferred Resources within the Ben Vein (within a 1.0 g/t Au Shell)

Au Cutoff Tonnes > Cutoff Grade  > Cutoff Contained Metals
(g/t) (tonnes) Au (g/t) Ag (g/t) Au (oz) Ag (oz)
5.00 428,000 12.20 23.11 168,000 318,000
6.00 402,000 12.64 24.02 163,000 310,000
7.00 383,000 12.95 24.72 159,000 304,000
8.00 364,000 13.22 25.33 155,000 296,000
9.00 335,000 13.63 26.50 147,000 285,000
10.00 282,000 14.22 27.97 134,000 263,000

* Calculated as at June 15, 2010 by Mr. G. Giroux of Giroux Consultants Ltd in the Report titled "Summary Report On The Terra Gold Project, McGrath District , Alaska."  The above resource table tabulates the resources to the limits of the 1.0 g/t Au shell or envelope around Ben's Vein.

Project Summary

During the 2012 Alaska summer mining season, WestMountain Goldcompleted the installation of a two tonne per hour onsite mill.  A total of 23 tonnes of bulk sample material from the Ben and Fish Creek Veins was processed in the mill. A total of 2,335.9 grams (75.1 ounces) of gold and 877.1 grams (28.2 ounces) of silver was produced.  The results indicated recoveries of 60% for gold and 15% for silver through the gravity recovery system.  As per the joint venture agreement and based on US $1,700 per ounce gold price, our JV partner received 52% of the gold production at no cost until WestMountain earned into the project.   WestMountain Goldintendedto focus on a larger bulk sample during the subsequentsummer mining season.
 

Safe Harbor for Forward-looking Statements

Certain statements contained herein are not statements of historical fact and constitute forward-looking statements.  These statements include specifically identified forward-looking statements herein. Examples of forward-looking statements, include: (i) projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure, and other financial items; (ii) statements of plans and objectives of the Company, or any of its management or Boards of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying those statements. Words such as "believes," "anticipates," "expects," "intends," "targeted," "may," "will" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
 Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include: (i) the strength of foreign and U.S. economies in general and the strength of the local economies in which operations are conducted; (ii) the ability of the Company to finance its planned operations; (iii) the ability of the Company to hire and retain key personnel, (iv) the ability of the Company to maintain its Joint Venture Agreement and Amended Claim Agreement; (v) the ability of the Company to compete with financially stronger competitors; (vi) the effects of and changes in trade, monetary and fiscal policies and laws; (vii) inflation, interest rates, market and monetary fluctuations and volatility; (viii) the timely development of and acceptance of new products and perceived overall value of these products by existing and potential customers; (ix)  the ability to control expenses; (x) the effect of changes in laws and regulations with which the Company must comply; (xi) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board; (xii) changes in the organization and compensation plans of the Company; (xiii) the costs and effects of litigation and of unexpected or adverse outcomes in litigation; and (xiv) the success of the Company at managing the above risks.