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Mining

Gold Mountain shares rise on positive gold recovery from Crown Ridge

Gold Mountain (ASX:GMN) has commenced phase 2 of the bulk sampling program at its flagship Crown Ridge Gold project in in Papua New Guinea.

The company’s shares were up 11.5% intra-day, last trading at $0.145.

Gold Mountain had completed the phase 1 bulk sampling program utilising smaller (8 cubic metre) pits and confirmed visible gold in over 92% of the 52 pits tested.

The company is now excavating considerably larger 125 cubic metre pits for the phase 2 bulk sampling program.

Interestingly, 37.6 grams of gold and 4 grams of platinum were recovered from the first part of a new pit (from 60 cubic metres).

Importantly, the coarse grain gold and platinum contents were amenable to recovery using gravity (non-chemical) processes.

The results from the remaining 65 cubic metres will be reported in the near term.

Gold Mountain is currently designing a program of further pitting in order to estimate a JORC 2012 compliant mineral resource.

Bulk sampling operations at Crown Ridge have been temporarily wound down due to wet weather and are expected to resume in late March 2017.

In the interim, the company is focused on undertaking further geological studies across the project to broaden its understanding of the geology.

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