18 March 2024
Golden Metal Resources
plc
("Golden Metal" or the
"Company")
Pilot Mountain Exploration
Update
Drill Programme Preparation
Underway Following £750,000 Strategic Financing
Golden Metal Resources plc
(LON:GMET, OTCQB: GMTLF), a mineral exploration and development company focused on
tungsten, gold, copper, lithium and silver within Nevada, USA, is
pleased to announce an exploration update on the 100% owned Pilot
Mountain project ("Pilot Mountain" or the "Project").
On 11 March 2024 the Company
announced that it had completed a strategic fundraise for a total
of £750,000. These funds are being used to facilitate the
exploration steps outlined below.1
Pilot Mountain Resource and Exploration
Highlights:
·
Pilot Mountain hosts a Mineral Resource estimate
("MRE") of
12.53Mt at 0.27% tungsten trioxide (WO3) with
significant copper ('Cu') - silver ('Ag') - zinc ('Zn') credits
(see Table 1)3. This in-ground resource is believed to
be the largest and most advanced undeveloped tungsten resource
located in the USA.
·
Exploration targets identified in 2018 outline
additional resource potential ranging from 11.0 - 23.0Mt with
expected grades from 0.3 - 0.5 % WO3 (see Table
2).4
·
Golden Metal carried out a high-resolution induced
polarisation geophysical survey in 2022/2023 which identified an
additional five priority targets, further highlighting the
significant exploration upside that exists at Pilot
Mountain.
·
As a result, the Company is embarking on its first
ever drilling campaign which will include the drilling of multiple
of these previously untested targets. Drilling permits are expected
in approximately six weeks' time. Programme specifics and expected
start date will be released to the market in the coming
weeks.
·
One of the key targets of interest is the untested
Porphyry South target as it may represent the porphyritic intrusive
body (causative porphyry) that could be responsible for the
skarn-type mineralisation found at Pilot Mountain (see Figure 1 and
2).
·
The copper potential will also be further
investigated during the upcoming programme which is highlighted by
two historical drillholes which returned 17.5m of 1.8% copper
(Desert Scheelite) as well as 26.6m of 1.0% copper (Good
Hope).5
·
The Company is finalising the contract with a
Nevada based drilling contractor and expects this to be signed
before the end of March.
·
Alongside the exploration potential which will be
tested during the upcoming programme, the development and
extraction of the currently defined Mineral Resources at Pilot
Mountain is a key focus, given the USA's need for a domestic
tungsten supply. As a result, the Company is rapidly advancing
plans to commence key permitting studies which will be required for
next stage Project development. Further updates on this will be
released to the market in due course.
Oliver Friesen, CEO of Golden Metal,
commented:
"Since Golden Metal's admission to AIM in May 2023 we have put
many important building blocks in place across our exciting Nevada
focussed portfolio. With many of these important steps now
completed, we move into what I believe will be a potentially
transformational period for the Company. This will involve
undertaking high impact drilling and project development studies
aimed at unlocking significant value at Pilot Mountain in tandem
with further exploration across multiple other Golden Metal
assets.
"The need for the USA to reshore its critical, battery and
defence metal supply chains is approaching all-time highs, and the
Company is perfectly positioned to be part of the solution. I
encourage everyone to watch Golden Metal closely as we enter what
should be a very exciting news-rich period."
Media
Figure 1 - Pilot Mountain Project overview map showing the
location of existing known mineralised bodies (Desert Scheelite,
Gunmetal, Garnet Mine, Goodhope) and the outline of the five newly
delineated exploration targets including the two new targets
(Porphyry South and Good Hope West).
Figure 2 (Porphyry South) - Historical digitised ground
magnetic geophysics data (Zonge, 2013) showing location of magnetic
high. See figure 3 for outline of resistivity anomaly which is
coincident with magnetic high feature. Scale, legend and north
arrow located bottom left of image.
Table 1:
Pilot Mountain Project Updated Mineral Resource Estimate, dated 13
December 20183
|
Resource
|
Tungsten
Tri-Oxide
|
Silver
|
Copper
|
Zinc
|
Mt
|
Grade (%)
|
Contained metal
(t)
|
Grade (g/t)
|
Cont. metal
(t)
|
Grade (%)
|
Cont. metal
(t)
|
Grade (%)
|
Cont. metal
(t)
|
Desert
Scheelite
|
Ind.
|
9.01
|
0.26
|
23,400
|
20.73
|
187
|
0.15
|
13,200
|
0.41
|
37,100
|
Inf.
|
1.69
|
0.25
|
4,300
|
12.24
|
21
|
0.16
|
2,800
|
0.19
|
3,200
|
|
Total
|
10.7
|
0.26
|
27,700
|
19.38
|
207
|
0.15
|
16,000
|
0.38
|
40,300
|
Garnet
|
Ind.
|
0
|
0
|
0
|
|
|
|
|
|
|
Inf.
|
1.83
|
0.36
|
6,590
|
|
|
|
|
|
|
|
Total
|
1.83
|
0.36
|
6,590
|
|
|
|
|
|
|
Summary
|
Ind.
|
9.01
|
0.26
|
23,400
|
|
|
|
|
|
|
|
Inf.
|
3.53
|
0.31
|
10,890
|
|
|
|
|
|
|
Total
|
|
12.53
|
0.27
|
34,290
|
|
|
|
|
|
|
Further Information
Overview
The Pilot Mountain
tungsten-copper-silver-zinc Project is located approximately 200km
southeast of Reno, in Nevada, USA. Nevada is ranked first in
overall mining investment attractiveness in the Fraser Institute
2023 annual survey2. The Project is located entirely on
United States Bureau of Land Management ("BLM") land - allowing for
efficient and cost-effective permitting. The Project covers
3,656-acres (14.8km2) and is centred around four
existing mineral deposits, including Garnet, Good Hope, Gunmetal
and Desert Scheelite, all of which possess significant skarn-style
tungsten ('W') - copper ('Cu') - silver ('Ag') - zinc ('Zn')
mineralisation.
Project Development
There is currently no domestic
United States mined tungsten production, and tungsten is classified
as a strategic mineral by the United States Geological Survey
(USGS)6. Set against this backdrop, the Pilot Mountain
Project hosts a key energy and defense metal deposit located on US
soil during a time of increasing need for resource
domestication.
Potential production viability was
reinforced with a scoping study7 commissioned in 2018 on
the Project which indicated the potential for an initial 12-year
operational life based on processing ore from an open pit at Desert
Scheelite supplemented by potential production from
Garnet.
Furthermore, previous independent
metallurgical testwork on 694kg of mineralised rock from Pilot
Mountain5 highlighted strong metallurgical results
including the successful production of two saleable concentrates
(scheelite, and copper/silver) from a coarse grind treated by
floatation or by flotation and wet high-intensity magnetic
separators ("WHIMS").
Shallow mineral resources at the
Desert Scheelite and Garnet deposits may be amenable to shallow
open-cut mining methods (as modelled in the 2018 scoping study)
which would allow for rapid low-cost start-up costs.
Exploration Upside
In 2018 a study was commissioned
which looked into exploration potential at Pilot Mountain.
Exploration targets were broken into Tier 1 and Tier 2 targets for
which a total Exploration Target of 11.0 - 23.0Mt was defined with
an expected average grade of 0.3-0.5% WO34
(see Table 2).
Table 2:
Pilot Mountain Exploration Targets4
Target Type
|
Size (Mt)
|
Grade (WO3
%)
|
Description
|
Tier 1 Targets
|
7-5 -
13.5
|
0.3 -
0.5
|
Based on historical drill
intersections
|
Tier 2 Targets
|
3.5 -
9.1
|
0.3 -
0.5
|
Based on favourable geology and
proximity to known mineralisation
|
Total Exploration Target*
|
11.0 - 23.0
|
0.3 - 0.5
|
Combined Tier 1 & 2
|
*Exploration Targets are conceptual in nature and there has
been insufficient exploration to define a Mineral Resource. It is
uncertain if further exploration will result in the determine of a
Mineral Resource.
Considering the current Mineral
Resource tonnage equates to 12.53Mt, should the exploration targets
postulated be converted to Resources they could deliver a very
significant increase to the Pilot Mountain Project
value.
Additionally, post the publication
of these exploration targets, Golden Metal carried out a
high-resolution IP geophysics survey which identified five further
exploration targets, multiple of which will be tested during the
upcoming drilling campaign. These exciting exploration targets are
outlined below at:
https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-significant-exploration-targets/15986134
https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-further-targets-identified/16005627
References
1:
Strategic Fundraise of
£750,000, 2024, March 11
(https://www.londonstockexchange.com/news-article/GMET/strategic-fundraise-of-ps750-000/16369924)
2:
Fraser Institute Annual
Survey of Mining Companies, 2022, published 4 May 2023
(https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022
)
3: Thor Mining
PLC, regulatory news announcement, 'Increased Mineral Resource Estimate - Pilot
Mountain Nevada USA', dated 13 December 2018
(
https://wcsecure.weblink.com.au/LSE_news/2018/12/13/Thormining_14158543.pdf
)
4: Thor Mining
PLC, regulatory news announcement, 'Development Plan Pilot Mountain Tungsten
Project - Nevada USA', dated 1 December 2014
(
https://wcsecure.weblink.com.au/LSE_news/2014/12/01/Thormining_13057433.pdf
)
5: Golden
Metal Resources 2023 Admission Document.
( https://www.goldenmetalresources.com/investors/aim-rule-26/
)
6: News
announcement: 'The United States
Geological Survey has released a new list of 50 mineral commodities
critical to the U.S. economy and national security after an
extensive multi-agency assessment', 22 February 2022
(
https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals
)
7: Thor Mining
PLC, regulatory news announcement, 'Twelve Year Open Pit Life for Desert
Scheelite
Pilot Mountain Scoping
Study', dated 7 September 2018
(
https://wcsecure.weblink.com.au/LSE_news/2018/09/07/Thormining_14049369.pdf
)
8: Unpublished
metallurgical testwork report by Guangzhou Research Institute of
Nonferrous Metals commissioned by Black Fire Minerals Ltd:
'The Development of Separation
Technology from the Pilot, Mountain Tungsten Project, Nevada, USA:
Process Mineralogy Mineral processing Preliminary Testing',
dated 31 August 2013.
Property Ownership
Golden Metal holds a 100% interest
in Pilot Mountain through its wholly-owned Nevada-based operating
subsidiary company's including Pilot Metals Inc and BFM Resources
Inc.
COMPETENT PERSON
STATEMENT
The technical information contained
in this disclosure has been read and approved by Mr Nick O'Reilly
(MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and
acts as the Competent Person under the AIM Rules - Note for Mining
and Oil & Gas Companies. Mr O'Reilly is a Principal consultant
working for Mining Analyst Consulting Ltd which has been retained
by Golden Metal Resources plc to provide technical
support.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union
(Withdrawal) Act 2018).
Forward Looking Statements
This announcement contains
forward-looking statements relating to expected or anticipated
future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business
conditions, competition for qualified staff, the regulatory process
and actions, technical issues, new legislation, uncertainties
resulting from potential delays or changes in plans, uncertainties
resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties
regarding the timing and granting of prospecting rights,
uncertainties regarding the timing and granting of regulatory and
other third party consents and approvals, uncertainties regarding
the Company's or any third party's ability to execute and implement
future plans, and the occurrence of unexpected
events.
Actual results achieved may vary
from the information provided herein as a result of numerous known
and unknown risks and uncertainties and other factors.
For further information visit
www.goldenmetalresources.com
or contact the following:
Golden Metal Resources plc
Oliver Friesen (CEO)
|
Tel: +44 (0)
20 7583 8304
|
Cairn Financial Advisers LLP
Nominated Adviser
Sandy Jamieson/Jo Turner/Louise
O'Driscoll
|
Tel: +44 20 7213 0880
|
First Equity Limited
Broker
Jonathan Brown/Jason
Robertson
|
Tel: +44 20 7374 2212
|
|
|
The
Projects:
Pilot Mountain Project
The Pilot Mountain project is
an advanced exploration and mineral resource definition stage
project located in Mineral County in western Nevada.
The project covers an area of 14.80 km2 (3,656.1 acres)
and is located 200km southeast of Reno and 18km east
of Mina, Nevada. It is well situated for the supply of power,
water and skilled labour and proximity to transport infrastructure
in Mineral County and is centred around four existing
mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite,
all of which possess significant skarn-style
tungsten-copper-silver-zinc mineralisation. The Pilot
Mountain project consists of 176 active lode mining claims and
4 filed mill site claims. The four mill site claims filed at the
former Dunham mill site have secure access to groundwater supply
sufficient for the proposed project.
Garfield Project
The Garfield Project is an exciting
copper-gold-silver prospect consisting of 65 lode mining claims
covering 5.4 km2 (1,338 acres) located in Mineral
County, Nevada, approximately 14km due east of the town
of Hawthorne and 120km due west-northwest
of Tonopah. Exploration to date has included detailed
geochemical sampling and follow up analysis which highlighted the
presence of both porphyry and skarn-type mineralisation and
alteration at the 'High-Grade Zone'. Further to this, mapping,
prospecting and rock sampling was recently completed with results
confirming presence of high-grade copper, silver and gold
mineralisation as well as leading to the bedrock discovery of the
Pamlico Au Zone with individual rock samples up to 18.35g/t Au,
1,225g/t Ag & 1.89% Cu. Following this, geochemical analysis of
the full suite of data confirmed the strong presence of porphyry
style mineralisation across the Project, as well as potentially
overprinting epithermal style mineralisation leading to increased
gold-silver prospectivity.
Kibby Basin Lithium
Project
The Kibby Basin Project covers
two claim packages which are prospective for lithium brine
mineralisation. The southern claim package is less than 250m from a
2022 drillhole which returned a significant interval (169m) of
lithium brine mineralisation which was determined to be open in all
directions. The Project is less than 5km to the southeast of the
Company's flagship Pilot Mountain Project.
Golconda Summit Project
Golden Metal is the operator of the
Golconda Summit project, which is held under an earn-in right to
acquire up to 100 per cent. of the project from the mineral claim
owner pursuant to an option agreement. The Golconda Summit project
is an exploration stage gold and silver project located
in Humboldt County and situated at the confluence of the
Getchell and Battle
Mountain - Eureka metallogenic trends, and consists
of 44 lode mining claims, covering a total area of approximately
3.22 km2 (795.4 acres) located approximately 27km east
of Winnemucca.
Stonewall Project
The Stonewall project is an
exploration stage gold-silver property prospective for epithermal
gold-silver mineralisation. The property consists of 19 lode mining
claims covering 1.59 km2 (392.5 acres) located on the
northern flank of Stonewall Mountain, on the western edge of
the Nellis Airforce Range Restricted Access Area, in Nye
County, Nevada, approximately 24km south-east of the historic gold
mining town of Goldfield and 60km due south
of Tonopah.