TIDMGWMO
RNS Number : 1123Y
Great Western Mining Corp. plc
12 January 2022
GREAT WESTERN MINING CORPORATION PLC
("Great Western", "GWM" or the "Company")
PROJECT UPDATES & CURRENT YEAR PLANS
Great Western Mining Corporation PLC (AIM - GWMO, Euronext
Growth - 8GW), which is exploring and developing gold, silver and
copper targets in Nevada, is pleased to provide the following
update on the current status of its projects and outlines its plans
for 2022.
HIGHLIGHTS
-- Strong cash position
-- Drilling contract signed for spring start-up at Olympic Gold and Rock House
-- Road upgrade will open up Mineral Jackpot for both drilling and spoil heap recovery
-- Survey results at Eastside Mine (EM Group) reveal exciting copper potential
-- Volume calculation reported for gold tailings at OMCO Mine
-- Project planning for precious metals secondary recovery on track
Great Western Chairman Brian Hall commented: "We anticipate a
busy and productive year for Great Western on all fronts at an
exciting time in the Company's development. We have a broad range
of excellent prospects for both precious and base metals, a
first-class team in place to follow through on them and the funding
to go to the next stage. At the time of writing our prospects are
under deep snow during a severe winter but, in the spring, field
operations will recommence in earnest and we will be ready for
that. We will publish updates and keep shareholders informed."
FINANCIAL STATUS
Great Western started 2022 with net cash of EUR2,042,534
(GBP1,716,301) (unaudited) and no debt beyond payables arising in
the normal course of business. This will enable the Company to
pursue an active programme in 2022 across its large portfolio of
assets in Nevada.
EXPLORATION AND APPRAISAL
DRILLING - CONTRACT SIGNED
A contract has been signed for a 2022 reverse circulation (RC)
drill programme, with start-up intended as soon as ground
conditions allow. It is estimated that this will be early spring
2022.
DRILLING - TARGETS
The Company is prioritising follow-up drilling at both the Rock
House Group and the Olympic Gold Project, at both of which
regulatory permits have already been secured.
High gold grades were encountered last year at both the shallow
zone to the south of the Trafalgar Hill prospect (Olympic Gold) and
at the Southern Alteration Zone (Rock House Group).
Around the former OMCO Mine (Olympic Gold) the search for a
continuation of the prolific Olympic vein has already confirmed
continuity of mineralisation and drilling will target direct
extensions to the OMCO vein together with adjoining leads.
Other drill locations for 2022 with high potential include the
Mineral Jackpot group and the M4 copper prospect.
GEOPHYSICS - EM GROUP
In late 2021 the Company conducted an Induced Polarity (IP)
survey over its claims in the Eastside Mine area copper prospect
(EM Group) and initial evaluation has identified two main-faulted
graben structures.
Both fault zones are accompanied by high resistivity and
chargeability features which correlate with veining and copper
mineralisation previously observed at surface.
Evaluation is still in progress but results are very encouraging
and an announcement will be made once the IP survey results
analysis is complete.
GEOPHYSICS - DRONE SURVEYS
In 2020 and 2021 Great Western carried out extensive surveys
with man-portable magnetometer units, producing excellent new
datasets. Some of the claims, however, are not easily accessible on
foot and the Company has secured a 'Drone' contractor to carry out
aerial surveys over parts of Mineral Jackpot, in the Huntoon Valley
and at the TUN Group.
PROCESSING OF PRECIOUS METALS FROM PRE-MINED MATERIAL
Great Western has identified 51 spoil heaps at Mineral Jackpot
and extensive gold tailings heaps at the abandoned OMCO Mine
(Olympic Gold), while other possible spoil heap locations are under
review, including in the Huntoon Valley.
A combination of the Mineral Jackpot spoil material and the OMCO
Mine gold tailings offers exciting potential for generation of
commercial revenues in parallel with work on the Company's multiple
exploration prospects which it believes offer significant upside
for shareholders.
MINERAL JACKPOT ACCESS
In December 2020 Great Western successfully produced a small
doré bar of gold and silver and established the potential for
recovery of precious metals from multiple spoil heaps at Mineral
Jackpot. Spoil heap material was also analysed at a laboratory in
the UK, and a provisional plan drawn up for a simple gravity
separation plant to produce commercial quantities of gold and
silver concentrate.
The mountainous nature of the terrain and limited access have so
far proved a barrier to both commercial exploitation and appraisal
drilling with modern plant and machinery. A decision has therefore
now been taken to upgrade the 14km road which links Mineral Jackpot
directly to the Great Western base at Marietta in the valley and a
contractor appointed. This significant upgrading will not only
enable spoil material to be transported in bulk off the mountain
for processing but also facilitate access for drilling operations.
Permits for the road upgrade have already been secured.
OMCO MINE TAILINGS (Olympic Gold)
In 2021 extensive gold tailings heaps at the abandoned OMCO Mine
site on the Olympic Gold project were identified. It quickly became
apparent that this material had only previously been subjected to a
simple flotation process, many decades ago, and that reprocessing
these tailings via leaching would represent an excellent
opportunity.
Late in the year 12 holes were drilled into the tailings heaps
and in December the Company announced the assay results indicating
average grades of gold at 1.25 g/t. The hole depths measured have
since been used to appraise the volume calculation for material
available for processing, now thought to be in a range of 25,000 to
31,000 cubic metres.
An accurate gold recovery estimate for the tailings will depend
on a detailed density survey and a formal JORC-compliant resource
report. For planning purposes, however, there is a high enough
level of confidence in the potential recoverability of gold to be
able to proceed with the project.
NEXT STAGES
A combination of the Mineral Jackpot spoil material and the OMCO
tailings greatly enhances the potential for secondary recovery of
precious metals from Great Western's properties, but also makes for
a larger-scale project which is now under detailed evaluation for
optimum recoveries and for which external financing may be sought
rather than depending solely on shareholder funds.
Work is underway on a definitive plan, with a view to initiating
a development project as early as possible in 2022.
COPPER POTENTIAL
At M2 in the Black Mountain claims group, where substantial
additional potential is thought to be present, Great Western has
already established an Inferred Resource of 4.28 million tonnes at
0.45% Cu and is actively seeking a partner or partners of
sufficient size and capability to help expand this copper resource
to the next stage.
The encouraging results of the IP survey at the EM Group in late
2021 represent another strong copper target and should enhance the
potential for acquiring industry partners.
PLANS FOR 2022
In 2022 Great Western plans to:
-- Continue drilling at Olympic Gold, initially to track
potential veins in the shallow area at Trafalgar Hill as a follow
on to the high gold grades established in 2021
-- Drill at Rock House (RH Group) to follow up the high gold
grades established last year in the Southern Alteration Zone
(SAZ)
-- Continue the hunt for an extension of the OMCO Mine vein to the east of a north-south fault
-- Drill at Mineral Jackpot when access has been upgraded
-- Complete aerial surveys over Mineral Jackpot, the TUN Group and the Huntoon Valley
-- Finalise plans for a commercial recovery project for
pre-mined material and initiate a project
-- Secure partners for developing the Company's copper potential
These plans may be varied or expanded depending on results and
changing circumstances.
Qualified Person Statement: The information in this announcement
that relates to exploration results is based on information
reviewed by Dr James Blight MGeol PhD MAusIMM (CP) who is
Exploration Manager of Great Western Mining PLC. Dr Blight has
requisite experience relevant to the style of mineralisation and
type of deposit under consideration, and to the activity which he
is undertaking, to qualify as a "Competent Person" as defined in
the 2012 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Dr Blight
is also a "Qualified Person" as defined in the "Note for Mining and
Oil & Gas Companies" which form part of the AIM Rules for
Companies. Dr Blight has reviewed and consented to the inclusion in
the announcement of the information in the form and context in
which it appears.
Abuse Regulations.
For further information:
Great Western Mining Corporation PLC
Brian Hall, Chairman +44 207 933 8780
Max Williams, Finance Director +44 207 933 8780
Davy (NOMAD, Euronext Growth Adviser
& Joint Broker)
John Frain +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (PR advisers)
Nick Rome/Nicholas Johnson +44 207 933 8783
Notes to Editors
The Company has a large tract of acreage in Mineral County,
Nevada. The area consists of rugged, mountainous terrain, which
means that large parts of it remain under-explored. Mineral
potential is hosted by the regional Walker Lane Structural Belt,
the largest structural and metallogenic belt in Nevada, yet one of
the least explored in recent times, with gold, silver and copper
currently produced in Mineral County. Great Western has seven
distinct concession areas which offer the potential for exploiting
(1) short term gold and silver deposits and (2) long-term,
world-class copper deposits.
Six of the Company's properties are in the west of Mineral
County and are 100% owned and operated. The Company has an option
to acquire a seventh property, the Olympic Gold Project, in the
east of the county. Great Western's small exploration team is
supported by locally based consultants and contractors.
The state of Nevada is generally considered to be one of the
world's most mining friendly jurisdictions. While tightly regulated
and environmentally conscious, Nevada welcomes the mining industry.
Great Western takes care to ensure that its claims are maintained
in good standing and all regulations observed.
There are numerous gold and silver prospects on the Company's
acreage, including extensive historic mine workings which offer the
opportunity for secondary recovery.
Furthermore, through extensive drilling over a five-year period,
GWM has established a Mineral Resource on its first target area
known as M2, of 4.3 million tonnes at 0.45% copper, for 19,000
tonnes of contained copper metal. This resource has been
independently reported in accordance with JORC guidelines.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDBSGDBDBBDGDB
(END) Dow Jones Newswires
January 12, 2022 02:00 ET (07:00 GMT)
Great Western Mining (LSE:GWMO)
Historical Stock Chart
From Feb 2024 to Mar 2024
Great Western Mining (LSE:GWMO)
Historical Stock Chart
From Mar 2023 to Mar 2024