TIDMGWMO
RNS Number : 2548B
Great Western Mining Corp. plc
30 September 2022
GREAT WESTERN MINING CORPORATION PLC
("Great Western", "GWM" or the "Company")
PRECIOUS METALS PRODUCTION PROJECT
Great Western Mining Corporation PLC is pleased to announce the
formation of Western Milling LLC ("Western Milling"), a limited
liability company owned in equal shares by Great Western Mining
Corporation, a 100%-owned subsidiary of Great Western incorporated
in the US state of Nevada ("GWMC") and Muletown Enterprizes LLC, an
affiliate of Tipton Trucking Company of Mina, Nevada
("Muletown").
HIGHLIGHTS
-- Western Milling LLC created for recovery of precious metals from pre-mined materials
-- 50-50 joint venture agreement signed with Muletown Enterprizes LLC
-- First stage gravity separation project prioritised for early revenues
Great Western Chairman Brian Hall commented: "I am very pleased
to share some of the details of our processing project which we
have been working hard to deliver for some time. The immediate
priority is to secure approval to operate the plant for gravity
processing which will enable us to generate revenues and the
agreement we have signed today gives us an experienced local
partner who will be critical to the venture's success. We have
worked closely with the owners of Muletown for over ten years, most
recently on the construction of a 14 km access road to Mineral
Jackpot earlier this year. Adding a production facility to our
considerable exploration potential, for both precious metals and
copper, allows us to move forward with confidence."
PROJECT SUMMARY
Western Milling will produce precious metals from tailings,
spoil heaps, stockpiles of pre-mined material and shallow ore. At a
second stage, Western Milling will acquire material for processing
from third parties, as no similar facility exists at present in the
area.
The Mill will be constructed on approximately 20 acres (8.1
hectares) of private land to the south of Mina, Nevada, leased by
Western Milling from Muletown at a nominal rent. This location is
readily accessible to vehicles, beside a major highway and roughly
equidistant from Great Western's claims at Mineral Jackpot and the
Olympic Gold Project. It will be on the site of an existing but
abandoned mill, with a lay down area for raw material adjacent to
the highway and a gentle slope descending vertically 15 metres on
which the mill will be constructed, allowing gravity to facilitate
processing. Double-lined holding and tailings ponds will be
constructed at the foot of this slope and light construction
industrial buildings erected for processing the material.
Permitting and processing will be in three phases: (1) a simple
gravity separation plant for early results (2) a flotation process
and (3) a vat-contained leaching process for ultimate recoveries.
Engineering design is virtually complete and being worked on by an
independent reporting engineer who will certify the plans in
support of the permit applications to the state authorities.
Because the mill is to be on private land, the primary permitting
authority will be the Nevada Department of Environmental Protection
rather than a federal agency. It is anticipated that approvals for
gravity processing and flotation will be received earlier than
permission for the proposed vat-leaching process, which will be
subject to closer environmental scrutiny.
Under the terms of the agreement, Muletown will provide not only
the land for the mill but also virtually all the equipment required
for processing mined material. GWMC will finance upgrading the
milling equipment to operational status, purchasing any additional
equipment required and the third-party costs of constructing the
mill, ponds, portable buildings and necessary infrastructure. A
capital expenditure budget of up to $600,000 will be phased over
the three stages of construction and implemented following receipt
of permits for each of the stages. Timing of receipt of permits is
beyond the Company's control but it is unlikely that major
expenditure will be incurred during the remainder of this year.
The mill will process both Great Western's material and material
from claims owned by Muletown. Processing will be in separate
batches, charged to the owner of the material by the joint venture
at rates to be agreed, with the precious metals produced from each
batch belonging to the original owners of the material and not to
Western Milling. Western Milling also aims to process material
acquired from third parties, anticipating that there will be strong
demand for the mill in the area, where no comparable facility
exists at present.
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 Listing Sponsor
& Joint Broker)
Brian Garrahy +353 1 679 6363
Novum Securities (Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (PR advisers)
Nick Rome/Joe Walker +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. The Company is party to a 50-50
joint venture known as Western Milling LLC which is constructing a
mill to process pre-mined material for secondary recovery of gold
and silver.
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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END
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