Royalty: Elk Gold Deposit

British Columbia, Canada


Operator: Trek Mining Inc.

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 MIning Corp. 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.

Between 2012 and 2014, Gold Mountain initiated a bulk sampling program which resulted in 6,597 metric tonnes of mineralized material being shipped for processing with an average grade of 16.7 g/t, resulting in the production of 3,531 ounces of gold. Additional information on the project is available from Trek Mining Inc.