TIDMGWMO
RNS Number : 0698S
Great Western Mining Corp. plc
12 July 2022
GREAT WESTERN MINING CORPORATION PLC
("Great Western", "GWM" or the "Company")
MOU for creation of JV to process gold and silver
Joint Venture to enable processing of Company's as well as third
party material
Great Western Mining Corporation PLC is pleased to announce that
it has signed a non-binding Memorandum of Understanding to create a
Joint Venture ("JV") with an experienced Nevada mining contractor,
for processing gold and silver from waste material on its mineral
concessions in Nevada.
Great Western and its proposed partner are currently negotiating
a fully-termed operating agreement which will follow a standard
industry format used in Nevada.
The JV will process material using both gravity separation and a
contained flotation system, full details of which will be announced
upon signing of the formal agreement.
The JV has now:
-- Secured the use of a suitable mill site on private land
-- Determined an initial design for a (1) gravity separation plant and a (2) flotation plant
-- Identified and secured the equipment required
The Company has allocated up to $100,000 to the JV to facilitate
the detailed planning stage and submission to the Nevada Department
of Environmental Protection.
The equipment identified by the JV will in most cases be
pre-used mine equipment sourced locally, refurbishment cost of
which is expected to be significantly less than the cost of new
equipment, providing for economical start-up costs and a faster
lead-time to commissioning.
The JV will initially process material from the Company's
Mineral Jackpot and Olympic Gold properties. The JV will also
process material owned by the JV partner and the partners will
together source additional material from third parties for
processing on a commercial basis.
At Mineral Jackpot, Great Western has over 50 spoil heaps left
from five adjacent and connected historical mines which produced
gold and silver in the late nineteenth/early twentieth century. The
recently upgraded 14 km road to the site will enable a 20-ton
dumper truck to load spoil material from this mountainous area.
At Olympic Gold, three sources of waste material have been
identified and are being extensively tested for reprocessing, close
to the high-yielding OMCO gold mine where operations ceased during
the Second World War:
-- Tailings, to be processed through the contained flotation circuit
-- A stockpile of mined material never previously processed
-- Substantial spoil heaps
The plant will be located at a site which has previously been
used for mineral processing operations and is approximately
equidistant to Mineral Jackpot and Olympic Gold, on a major highway
providing easy vehicle access.
Great Western Chairman Brian Hall commented: "At the end of 2020
we successfully produced a doré bar of gold and silver from spoil
material at our Mineral Jackpot claims and established the
potential for processing such material on a commercial scale. An
initial low level gravity separation project was evaluated but this
has since expanded as other material has been identified on our
concessions, including significant tailings at the Olympic Gold
Project. The ingredients are now in place to create a commercial
plant to handle such material from all our concessions, where
available, as well as processing material for third parties on a
commercial basis. This opens a new chapter in Great Western's story
which will run in parallel with our efforts to explore for and
identify significant reserves of precious metals and copper, aiming
to achieve an order of magnitude increase in value for
shareholders. We will provide more information on the joint
venture, the plant and the detailed research we have carried out on
the resources available to us as soon as we are in a position to do
so."
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)
Brian Garrahy +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (PR advisers)
Nick Rome +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.
The Olympic Gold Project is held by Great Western under the
terms of the Olympic Option Agreement dated 21 May 2020 and the
option must be exercised before material can be removed from site
for commercial exploitation. The total purchase price for the
Olympic Gold Project was $150,000 of which $75,000 has been paid to
date and the remaining balance of $75,000 will be paid on exercise
of the option. The vendors of Olympic Gold, together with
historical royalty interest holders, will jointly be entitled to a
3% net mineral returns production royalty.
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 which are currently being explored and appraised, including
extensive historic mine workings which offer the opportunity for
secondary recovery through the proposed plant.
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.
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