Metal Mountain Resources Inc.
Gavin Mines Inc.

Feb. 14th, 2014
Smithers, British Columbia

Dome Mountain Mine Update


Management of Metal Mountain Resources Inc. and Gavin Mines Inc. (the Company) are pleased to provide the following update on the progress at the Dome Mountain gold-silver mine near Smithers, British Columbia.

Throughout 2013, the Company has been working diligently toward achieving onsite milling of gold-silver ore from the Dome Mountain Mine. Accordingly, the Company has been primarily focused on three key elements necessary for production to commence at Dome Mountain:

  • Preparing an application to amend our existing Mines Act and Environmental Management Act permits to include onsite milling and tailings disposal.
  • Seeking the necessary equipment/infrastructure required for onsite milling to commence (for example, a mill that can produce up to 250 tonnes per day and associated equipment).
  • Seeking capital to finance the required equipment/infrastructure from private and institutional sources.
Application to amend Mines Act and Environmental Management Act Permits

In August 2010, Gavin Mines was issued two permits from the BC Government, a Mine Permit and an Effluent Permit. It was the Company's initial intention to process Dome Mountain's gold-silver ore via third party milling (processing the ore at another company's milling facility). The permits that were issued in 2010 were sufficient for the Company to commence third party milling.

Subsequent to the permits being issued, the Company completed a large financing (approx. $11M CAD) to finance the required infrastructure, underground development and mining required to commence operations at the mine. Approximately 7,000 tonnes of ore was produced between September 2011 and October 2012.

The Company entered into a third party milling agreement with a reputable, BC based producer. However, the cost of hauling ore coupled with the decline in the price of gold forced the Company to re-evaluate its third party milling efforts. The Company recognized that to maximize profit, it would be necessary to make application to amend the existing permits to include onsite milling and tailings disposal so that full-scale, stand alone, production could commence at the Dome Mountain Mine.

The Project Description for Stage 2 of the Dome Mountain Mine Project was submitted to the Provincial Government in February 2013. After many months of hard work we are very pleased to announce that the Permit Amendment Application was submitted to the Provincial Government on February 13, 2014.We cannot overstate the significance of this milestone or its importance to the future of the Company and its shareholders.

This achievement is the result of the collaboration of numerous independent firms and contractors (ERM, Lorax, ECOS, In-Depth Geological Services, Golder Associates Ltd., BOMENCO, Kaselco, Water Management Systems Inc, Inspectorate Exploration and Mining Services Ltd, SGS Canada Inc and others) together with Gavin Mines Inc (GMI) and the Provincial Government. The following summary underscores the copious time, capital and resources that have been allocated to the permit application process:

Work completed for permit application:

1. Field Work:
  • Field installation of 7 wells for hydrogeological baseline and monitoring (ERM)
  • Field work to update hydrology baseline (GMI, ERM)
  • Field work to identify till and gravel sources for the Tailings Management Facility (GMI)
  • Field work to build diversion ditch above Tailings Management Facility site
2. Baseline reports:
  • Update water quality baseline (ECOS)
  • Update hydrology baseline (Lorax)
  • Update meteorology baseline (ERM)
  • Update ML/ARD baseline (Lorax)
  • Hydrogeological baseline report (ERM)
3. Development of Operational plans (ERM, In-Depth Geological Services)
  • Sediment and Erosion Control
  • Reclamation and Closure
  • Water Management
  • Hazardous Materials Handling and Waste Management
  • Emergency Response
  • Fuel Management and Spill Contingency
  • Sludge Management
  • ML/ARD Management
  • Environmental Monitoring and Surveillance
  • Occupational Health and Safety Policy
  • Wildlife Management
  • Waste Rock, Ore, Tailings, Overburden and Borrow Materials Management
4. Thickened tailings feasibility study (Golder Associates Ltd.)
5. Mine site dump assessment (In-Depth Geological Services)
6. Archeology overview assessment (ERM)
7. 2013 Environmental Effects Monitoring Report (ERM)
8. Development of Environmental Effects Monitoring program
9. Metallurgical optimization and production of bulk thickened NAG and PAG tailings for further testing (Inspectorate Exploration and Mining Services Ltd, BOMENCO)
10. Kinetic ML/ARD testing of thickened NAG and PAG tailings for water quality modeling (SGS Canada Inc, Lorax)
11. Optimization of water treatment plant operation (GMI, Kaselco and Water Management Systems Inc, In-Depth Geological Services)
12. Tailings Management Facility two-cell design and water balance (Golder Associates Ltd)
13. Mine site water balance modeling (Lorax)
14. Mine site water quality modeling (Lorax)
15. Mill layout (BOMENCO)
16. Permit Amendment Application for an Electrocoagulation Water Treatment Plant (ERM)
17. Mines Act Permit Amendment Application for Stage2 (ERM)
18. Environmental Management Act Permit Amendment Application for Stage 2 (ERM)

Commenting on this important milestone, Kevin Tattersall, Chief Operating Officer, said: "The submission of this application marks a significant step toward the goal of producing gold-silver concentrate at the Dome Mountain Mine providing the Company with more control over operational costs associated with production. This will assist the Company to better forecast the short and long-term profitability of the Dome Mountain mine in various market conditions.

We overcame many hurdles through consultation with various government regulators and engagement with the Lake Babine First Nation. We truly appreciate the tremendous effort by our consultants and contractors to make this day a reality. We are also very grateful for the continued support and patience of our shareholders.

Future production at Dome Mountain, once achieved, will also benefit the Smithers region, providing additional employment opportunities for individuals, businesses and contractors within the community."

Submitting the Application

Photo taken at BC Government office in Smithers. Right to left: Steve Jennings (Senior Consultant, ERM Rescan), Shawn Reed (Project Manager, Major Projects, Ministry of Natural Resource Operations), Ian Sharpe (Manager, Environmental Protection Regional Operations, Ministry of Environment), Kathie Wagar (Regional Director, Ministry of Mines), Kevin Tattersall (COO, Gavin Mines Inc.), Daryl Hanson (Project Manager, Gavin Mines Inc.)

Equipment Required for Onsite Milling

In the fall of 2013, Gavin Mines commenced discussions with a reputable BC based equipment provider/manufacturer to provide new equipment for a 250 tonne per day flotation mill. This company has equipment installed throughout the world and has provided Gavin Mines with a full quote for the milling equipment required at the Dome Mountain Mine.

The Company is also considering other mill options that are currently available.

Finance Required to Advance Dome Mountain Mine into Production

In tandem with the permit application process, Gavin Mines has been seeking strategic relationships with potential lenders or significant private equity investors to finance the required equipment/infrastructure at the Dome Mountain Mine. We currently have institutional lenders that are interested in providing the Company with debt to advance the Dome Mountain Mine into production.

It is important to note that the long awaited permit amendment is the most significant obstacle that has prevented the Company from closing a large financing to date. Understandably, most lenders require the permit amendment to be issued before they can deploy the required capital.

Now that the final application has been submitted to the Government, Gavin Mines has reengaged potential lenders and is receiving positive feedback. Once the permit is issued we are confident a financing will be completed. Once the Company has secured the necessary finance, construction at the Dome Mountain Mine can commence. This could take place as early as spring/early summer 2014 with production targeted to commence in the forth quarter of 2014.

Daryl Hanson, P.Eng.
Project Manager

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. Daryl Hanson, P.Eng. is contracted as a consultant to the company and acted as the company's Qualified Person, as defined by National Instrument 43-101 and has reviewed and approved the full contents of this news release.

For further information please contact:

Curtis Brazeau
VP of Communications
P: 778-846-4907


The information contained in this website is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning Metal Mountain Resources Inc. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by the Company to that effect.

This website includes "forward looking statements". Other than statements of historical fact, all statements included in this document, including without limitation, statements regarding exploration results, future plans and objectives of the Company may be forward looking statements. These statements may reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements, including, but not limited to, general economic conditions, changes arising as drilling results unfold, changes in regulatory environments affecting the Company and the availability and terms of subsequent financings. Although the forward looking statements included in this document are based upon what management believes to be reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.