Gold Mountain's Memorable Journey Through The Year 2019; Stock Trading Close to 52-Weeks High

ASX-listed mineral exploration and development company Gold Mountain Limited (ASX: GMN) is based in Australia and owns substantial areas within the fertile Au-Cu-endowed Papuan Mobile Belt that includes world-class mines.

The Company has several prospects within its flagship, Wabag Project, an opportunity for GMN as number of identified areas within the exploration licences have never been explored using modern technology. The Company has identified multiple targets within the licence area of approximately 2,500 km².

To learn more about the Company’s project and activities in detail, follow: GMN Seeking to Create Shareholder Value through Flagship Project in the Heart of PNG

GMN Trading Close to 52-Weeks High

On 30 December 2019 (AEDT 01:01 PM), the GMN stock was trading at $ 0.076, inching closer to its 52-week high price of $ 0.083. The company has a market capitalisation of $ 50.77 million and has delivered a return of 37.93% during the last three months.

Over the past year, Gold Mountain has evolved as a more focussed mineral exploration and development Company with primary focus on the acquisition, exploration and development of the highly prospective areas for gold and other precious and base metals and minerals in Australia and Papua New Guinea (PNG).

Let us unlock the Company’s progress during the year 2019. The discussion would provide you with a drone-shot of its progress and activities during the year.

At the beginning of the year 2019, the company updated the market with its activities report for the three-month period to 31 December 2018.

· GMN received encouraging results from the two diamond holes (strongly mineralised and exhibited porphyry-style alteration and mineralisation characteristics) drilled at Mongae Creek;

· GMN geologists completed a preliminary reconnaissance program at the K-Lam prospect and identified sub-parallel quartz – sulphide veining containing visible chalcopyrite, hosted by a tonalite which shows evidence of alteration and contains finely disseminated pyrite;

· At the Crown Ridge prospect, a soil geochemical sampling program was completed wherein a total of 328 auger samples were collected.

High Potential at Key Prospects

Early 2019, activities at the company’s Wabag Project in PNG produced significant results, which are as follows:

· Confirmation to high prospectivity at the Sak Creek and K-Lam prospects from Rock-chip samples at these two areas with following results;

• 10.6 g/t Au and 0.16% Cu from a 40 cm wide gossanous shear zone at Sak Creek, and
• 0.69g/t Au and 0.16% Cu from an outcropping pyritic skarn at K-Lam;

· Completed soil sampling at Mongae Creek and Crown Ridge prospects with pXRF analysis of Cu-in-soil showing a 600 x 200 m NW-trending high-grade anomaly at Mongae Creek, providing a clear and cohesive surface expression of the target in future;

· Identified an alteration halo characteristic of a porphyry system through mapping at Sak Creek with resultant assays from rock chip sampling further supporting the exploration model;

Issue of Shares and Securing Funding

In order to serve the purpose of general working capital requirements, GMN, on 28 February 2019, announced its intentions to issue more than 20.29 million new fully paid ordinary shares along with 20.29 million free unlisted options for the placement of shares at a price of $0.065 per share, raising a total of $1,319,300.

Moreover, in early March 2019, GMN announced to have secured commitments from a group of professional and sophisticated ‘Placement Investors’ to participate in the capital raising of the Company in the issue of up to 100 million shares along with other equity securities entitlement that would meet GMN future funding requirements. The Placement Investors were expected to take up the subscription of 100 million shares at an issue price of $0.10 per share, raising up to a total of $10.0 million before issue costs.

Excellent Exploration Results at Key Prospects

On 21 March 2019, the company updated the market with excellent exploration results at its key prospects, which have been summed up below:

· Step-out soil sampling at Mongae Creek identified high-grade extensions to the north-west, with the soil grid returning five samples over 0.1% Cu including one sample that recorded 0.39% Cu in soil;

· Additional rock chip sampling in the central part of the Sak Creek prospect returned rock chips to 23 g/t Au with a further 12 samples assaying over 5 g/t Au;

· Soil-sampling program completed at Sak Creek, with the first 187 samples showing a distinct NW – SE striking feature;

· Additional geological mapping and rock-chip sampling at Sak Creek identified mineralisation south of the main target with rock-chip values to 4.24 g/t Au;

· A geological reconnaissance programme at the Laialam prospect returned rock chip results up to 7.60 g/t Au;

GMN further renewed four of its tenements that constitute the Wabag Project for an additional 2-year period. By 29 April 2019, GMN identified much higher-grade tenor or a new copper anomaly via extensions to the Mongae Creek soil grid.

Promising Trench Results at Mongae Creek

In July 2019, GMN announced to have received excellent copper-gold rock chip channel sample results at Mongae NW from trenching confirming broad zones of >0.1% Cu grades in trenches that cover an area of 90,000 m² along with significant intercepts results.

Following such significant results, GMN received commitments for a share placement (made to sophisticated and professional investors only) raising $2.5 million by issuing up to 41.67 million fully paid ordinary shares at an issue price of $0.06, which was expected to be used for general working capital and to complete the initial diamond drilling programme at the Mongae NW prospect.

Drilling Commenced At Monoyal Prospect

On 15 October 2019, GMN announced the commencement of a 1,250 m diamond drilling programme at its Mongae Northwest Cu-Mo porphyry prospect (local name, the Monoyal prospect) following the successful capital raising in late August and early September 2019. The company planned a three-hole drilling programme, targeted towards testing Cu-Mo anomalies generated from the soil, trench and mapping programmes that were finalised during early 2019.

Most Recent Activities

· Drilling completed at the first hole, MCD003, to a depth of 500.50 m (planned depth 450m), at the Monoyal copper – porphyry prospect;

· The rig was moved to MCD004 and drilling commenced on 12 November 2019 to a planned depth of 475m;

· In early December 2019, the Company advised the issue of around 24.83 million new fully paid ordinary shares and 88.23 million free unlisted options;

· GMN is engaged in pursuing a regional exploration campaign beside the high-potential NW-SW structural corridor, extending from Mongae Creek to the Mt Wipi area (subject to an Exploration Licence Application).

· The Company also appointed experienced mining executive Tim Cameron as its Chief Executive Officer, boasting sound leadership, technical, corporate and financial skills underpinned by a reputation of innovation, integrity and determination. He holds expertise in acquisitions, strategic direction, and business and project management. Mr Cameron has experience in both domestic (Australia) and international (North America and Asia) markets. He played an integral part in number of successful open cut mining and exploration operations (Greenfield and Brownfield), in addition to other high growth companies (both from an owner-operator and contractors’ perspective).

These wells are part of an initial nine-hole diamond drilling programme, designed to test highly anomalous copper geochemistry identified in a grid-based soil sampling programme.

Gold Mountain is operating in an exceptional mining destination with one of the highest densities of Tier 1 gold-copper projects in the world. The Company’s activities during the year 2019 reflects that GMN is progressing well with its diamond drilling programme at the Wabag Gold Project in PNG, targeted towards creating shareholder value.

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