TIDMGMET TIDMPOW
RNS Number : 7205B
Golden Metal Resources PLC
06 June 2023
6 June 2023
Golden Metal Resources plc
("Golden Metal" or the "Company")
Pilot Mountain Project: Geophysical Survey Uncovers Three
Significant Exploration Targets
Golden Metal Resources plc (LON:GMET), a mineral exploration
company focused on tungsten, gold, copper and silver within Nevada,
USA, is pleased to announce a significant outcome from the
interpretation of results from the high-resolution induced
polarisation ("IP") geophysics survey completed over its 100% owned
flagship Pilot Mountain Project ("Pilot Mountain" or the "Project")
located within the prolific Walker Lake Mineral Belt in Nevada,
USA.
Highlights:
- Detailed analysis of the IP geophysics results have
highlighted the presence of three significant undrilled exploration
targets (1- Desert Scheelite Parallel West Zone; 2- Porphyry Depths
Zone; and 3- Desert Scheelite East Extension Zone; collectively the
"Targets") which are highly prospective for further tungsten
("W")-copper("Cu")-silver("Ag")-zinc("Zn") mineralisation.
- The Company considers that Pilot Mountain hosts the largest
known undeveloped tungsten resource in the USA (with the US
currently without any domestic primary tungsten production), and
these newly identified targets indicate the potential for a
significantly greater in-ground resource than currently known
marking a significant uplift in Project potential.
- Any increase in potential mineralisation will further bolster
the inherent value of the Project and its attractiveness as a
target for non-dilutive grant funding for Project exploration and
development, which the Company is actively working on at
present.
Oliver Friesen, CEO of Golden Metal, commented:
"While it was the criticality and in-situ value of the
W-Cu-Ag-Zn mineral resource that originally attracted us to Pilot
Mountain, our due diligence highlighted considerable untapped
exploration upside which is what ultimately led us to acquire 100%
of the Project back in November 2021.
"Review of all historical data available highlighted several
conceptual exploration targets, all of which lay under thin sand
cover. As a result, we set out to complete IP geophysics over these
targets and the results now received and presented herein have
exceeded our expectations with three significant high-priority
untested zones now successfully identified on our flagship
Project.
"The scale of the opportunity presented to us as 100% owners of
this advanced tungsten Project is large, and with these three new
exploration targets now identified the opportunity has grown
significantly."
Detailed Overview:
1) Desert Scheelite Parallel West Zone (Figure 1)
o Mineralisation at Desert Scheelite ("DS"; Total Resource
10.7Mt @ 0.26% WO(3) , see Table 1) is hosted within a very
well-defined resistivity low (conductivity high) geophysical
feature that is mapped for approx. 500m in a generally east-west
direction (see dark blue feature on Figure 1).
o The 2023 IP geophysical results have led to the discovery of
the Desert Scheelite Parallel West Zone ("DSPW Zone") which is
defined by a resistivity low (conductivity high) with nearly
identical geophysical characteristics to DS. The DSPW Zone is
located approx. 200m to the north/north-west of DS and have never
been drill tested. The 2023 IP results show that the DSPW Zone is
larger than the DS Zone, and if drilling successfully proves that
the DSPW Zone contains skarn-style W-Cu-Ag-Zn mineralisation, it
would represent a highly significant discovery at Pilot
Mountain.
2) Porphyry Depths Zone (Figure 2)
o The Good Hope ("GH") and Desert Scheelite ("DS") Zones are
located approximately 1,400m apart. The area in between these two
zones is blanketed by a thin layer of post-mineral sedimentary and
basaltic cover which historically precluded effective exploration
between these two zones (despite both zones displaying very similar
skarn-type alteration and mineralisation).
o The 2023 IP geophysical results have successfully highlighted
a significant geophysical feature which appears to broadly connect
the DS and GH zones at depth. This feature is defined by a
resistivity and chargeability high and as a result it is postulated
that it is related to a porphyry intrusion at depth. Skarn-type
systems are ultimately spatially related to porphyry mineral
deposits at depth, and this newly identified geophysical zone may
represent the ultimate source of W-Cu-Ag-Zn mineralisation found
across the entire Pilot Mountain Project. As a result, the
discovery of the Porphyry Depths Zone ("PDZ")may represent a
significant development at Pilot Mountain.
3) Desert Scheelite East Extension Zone (Figure 3)
o One of the furthest east historical drillholes completed at
Desert Scheelite returned some of the strongest copper and tungsten
mineralisation ever found at Pilot Mountain which includes 17.5m @
1.8% Cu (incl. sub-interval of 13.9m @ 0.89% W0(3) ). Because of
this, the previous operator in 2013 completed a two dimensional IP
survey across and to the east of Desert Scheelite. The goal of this
survey was to profile the eastern extension of mineralisation from
the main Desert Scheelite Zone.
o Re-interpretation of these 2013 results by Golden Metal have
clearly shown that the mineralisation at Desert Scheelite (Total
Resource 10.7Mt @ 0.26% WO(3) ) is strongly coincident with a
resistivity low (conductivity high) signature which corroborates
with the 2023 IP results (see DSPW Zone writeup). Review of the
historical results highlight that the DS resistivity low signature
extends for an additional circa 500m towards the southeast (dipping
under cover) where it remains untested by drilling. This similarly
represents a very high-priority exploration target for Golden Metal
going forward.
Further Project Information
Overview
The Pilot Mountain tungsten-copper-silver-zinc Project is
located approximately 200km southeast of Reno, in Nevada. Nevada
ranked first in overall mining investment attractiveness in the
Fraser Institute 2022 annual survey (1) . The Project is located
entirely on United States Bureau of Land Management ("BLM") land -
allowing for efficient and cost-effective permitting.
The 3,656-acre Project is centred around four existing mineral
deposits including Garnet, Good Hope, Gunmetal and Desert Scheelite
all which possess significant skarn-style W-Cu-Ag-Zn
mineralisation.
The Desert Scheelite and Garnet deposits host a combined Mineral
Resource Estimate (MRE) of 12.53Mt at 0.27% tungsten trioxide
("WO(3) ") with significant Cu-Ag-Zn credits (see Table 1). This
in-ground resource is believed to be the largest and most advanced
undeveloped tungsten resource located in the USA.
Table 1: Pilot Mountain Project Updated Mineral Resource
Estimate, dated 13 December 2018 (2)
Resource Tungsten Tri-Oxide Silver Copper Zinc
Mt Grade Contained Grade Cont. Grade Cont. Grade Cont.
(%) metal (g/t) metal (%) metal (%) metal
(t) (t) (t) (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
--------- -------- -----------
Notes: All figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.
-- Cut-off grade 0.15% WO
-- Garnet deposit resource reported 22 May 2017. Thor Mining
stated it is not aware of any information or data which would
materially affect this previously announced resource estimate, and
all assumptions and technical parameters relevant to the estimate
remain unchanged.
-- The estimates are considered by SRK Exploration Services
Limited to be non-compliant with the JORC Code (2012) reporting
standard due to insufficient disclosure of the technical and
economic support for the cut-off assumptions applied and are
therefore viewed as historical.
Development Potential
There is currently no known domestic United States primary
tungsten production, and tungsten is classified as a strategic
mineral by the United States Geological Survey (USGS) (3) . Set
against this backdrop, the Pilot Mountain Project is key strategic
and defense metal deposit located on American soil.
Potential production viability was reinforced with a scoping
study (4) commissioned by Thor Mining plc and completed 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 Mountain (5) 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
The previous operator, Thor Mining plc, conducted a study which
looked into exploration potential at Pilot Mountain. Thor Mining's
exploration targets were broken into Tier 1 and Tier 2 targets for
which a total Exploration Target of 11.0 - 23.0Mt with an expected
average grade of 0.3-0.5% WO(3) was published (6) (see Table
2).
Table 2: Pilot Mountain Exploration Targets (stated by Thor
Mining plc) (6)
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 11.0 - 0.3 - 0.5 Combined Tier 1 & 2
Target* 23.0
----------- ----------- ---------------------------------------
*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 (2) , should the exploration targets postulated be
converted to Resources they could deliver a significant increase to
the potential Pilot Mountain project value. The IP geophysics
results presented today have further corroborated and supported the
likelihood of proving up some of the Tier 1 and Tier 2 targets
published historically.
Media
High-resolution versions of the below three figures can be found
at the link below:
https://www.goldenmetalresources.com/pmgeophysical-survey/
Figure 1 - Desert Scheelite Parallel West (DSPW) Zone
Resistivity Map. Eastern resistivity low (conductivity high) or
dark blue feature is strongly coincident to W-Cu-Ag-Zn
mineralisation found at the Desert Scheelite Zone which hosts the
majority of the in-ground resource at Pilot Mountain (10.7Mt at
0.26% WO3). The sub-parallel, larger, dark blue zone (resistivity
low/conductivity high) represents the undrilled DSPW Zone.
Figure 2 - Resistivity and Chargeability Cross-Sections across
Porphyry Depths (PD) Zone. PD Zone is characterised by a slightly
concave up resistivity and chargeability high which broadly
connects the Good Hope (GH) and Desert Scheelite (DS) zones at
depth.
Figure 3 - Desert Scheelite (East Extension) Target Zone. White
lines represent resistivity low (conductivity high) that extends
from known mineralisation at Desert Scheelite towards the east
under cover where it has never been drill tested.
Property Ownership
Golden Metal holds a 100% interest in the Pilot Mountain Project
through its wholly-owned Nevada-based operating companies BFM
Resources Inc and Pilot Metals Inc.
Reference Notes:
1: Fraser Institute Annual Survey of Mining Companies, 2022, published 4 May 2023
(
https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022
)
2: 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
)
2: 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
)
4: 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
)
5: 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.
6: 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
)
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 Tel: +44 (0) 20 7583 8304
Oliver Friesen (CEO)
Cairn Financial Advisers LLP Tel: +44 20 7213 0880
Nominated Adviser
Sandy Jamieson/Jo Turner/Louise
O'Driscoll
--------------------------
First Equity Limited Tel: +44 20 7374 2212
Broker
Jonathan Brown/Jason Robertson
--------------------------
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 km(2)
(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.
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 km(2) (795.4 acres)
located approximately 27km east of Winnemucca.
Garfield Project
The Garfield project is an early exploration stage copper, gold
and silver property consisting of 39 lode mining claims covering
3.23 km(2) (797.9 acres) located in Mineral County, Nevada,
approximately 14km due east of the town of Hawthorne and 120km due
west-northwest of Tonopah.
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 km(2)
(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.
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