FOR IMMEDIATE RELEASE
January 7, 2014
SANDPOINT, Idaho – 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.
- 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.
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.
Chief Executive Officer