The company formed through a three-cornered amalgamation in December with private explorer Bayshore Minerals, which had bought Elk through its acquisition of Equinox Gold subsidiary Gold Mountain Mining in 2019 for C$10 million.

Historical openpit production at Elk of 47,765 ounces was said to average 93.5g/t gold.

The new Gold Mountain describes the project as having measured and indicated resources of 454,000oz gold-equivalent and an inferred 95,000oz Au-eq, and its management is aiming to drive the resource to 1 million ounces "and beyond".

It raised $10 million at 97c per unit in February, double its original aim, to secure its Equinox property payment and provide capital to advance its exploration and production ambitions.

"With drills turning and a clear path to production, we look forward to continuing to build shareholder value by developing BC's next high-grade gold mine," CEO Kevin Smith said at the time.

Hennigh, who has previous experience in high-grade vein systems including at Kirkland Lake Gold's Fosterville mine in Australia, said he had done a detailed review of Elk a few years ago.

"It is unusual to find an advanced project already on a fast track toward production that also displays strong exploration upside," he said.

A 2020 preliminary economic assessment put Elk's initial capex at $6.9 million, estimating total production of a recoverable 373,000oz of gold and 609,000oz of silver over 10 years.

Gold Mining engaged JDS Energy & Mining a month ago to complete a prefeasibility study.

The gold junior had struck a three-year ore purchase agreement in January, to deliver ore to New Gold's New Afton mine 130km away to help advance initial production.

Gold Mountain said last week initial results from its phase one exploration programme had incrementally expanded the strike of known mineralisation, while its relogging and sampling programme had uncovered a new vein intercept in an historical hole of 1.2m averaging 52.3g/t.

"We plan to accelerate our relogging program, given the newly discovered 216g/t intercept, and commence phase two of our drill program as soon as phase one is complete," Smith said.

Gold Mountain Mining shares (TSXV: GMTN) began trading at the start of this year and have so far ranged between 76c-$1.63.

They closed up 3.8% on Friday to $1.35, valuing it about $80 million (US$64 million).