Royalty: Elk Gold Deposit


British Columbia, Canada

Gold

Operator: JDL Gold

Royalty: NSR: 2.0%

The Elk Gold Deposit is located within the Similkameen Mining District in southern British Columbia, Canada, approximately 325 km northeast of Vancouver and 55 km west of Okanagan Lake. The property consists of 27 contiguous mineral claims and one mining lease covering 16,566 hectares.

The property has excellent infrastructure: the Coquihalla – four-lane highway – crosses at the northern portion of the claim group and major power lines are located within 20 kilometers of the project site.

Prospecting activities date back to the early 1900s but detailed work in the area began in 1960s and 1970s by several companies who focused on copper and molybdenum. Fairfield Minerals investigated the area for gold in 1986. Approximately 51,500 ounces of gold were produced between 1992 and 1995 from a test pit.

As reported in a Gold Mountain news release dated August 31, 2016, the Elk Property has a Measured and Indicated Resource of 211,900 ounces of gold grading 6.32 g/t and an Inferred Resource of 209,600 ounces of gold grading 5.94 g/t gold using a 1.0 and 5.0 g/t cut off for in pit and below pit resources respectively.

In 2012 Gold Mountain initiated a bulk sampling program which resulted in 500 short tons being sent for trial processing in 2013. The average grade of this material was 13.8 g/t.

In 2014, 6,597 metric tonnes of mineralized material was shipped with an average grade of 16.7 g/t. Gold Mountain stated that "The results of the bulk sample are encouraging as it has provided data indicating the resource estimate underestimates the contained gold by approximately 43% at the 2g/t cut-off grade." Additional information on the bulk sample program is available from JDL Gold Corp.