TIDMGWMO
RNS Number : 7188F
Great Western Mining Corp. plc
09 November 2022
GREAT WESTERN MINING CORPORATION PLC
("Great Western" or the "Company")
Mineral Resource Estimate and Exploration Target
Olympic and Mineral Jackpot Projects, Nevada, USA
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 announce the results of an
independent initial Mineral Resource Estimate for the Olympic Gold
Tailings project as well as Exploration Targets for stockpile and
spoil material at the Olympic Gold Project and Mineral Jackpot
Project, Nevada USA. All resources and exploration targets are
reported in accordance with the JORC code (2012).
HIGHLIGHTS
-- Inferred Resource Estimate of 31,000 tonnes, grading 1.6 g/t
Au and 3.0 g/t Ag in tailings at Olympic Mine.
-- Exploration Target of 3,400 - 6,400 tonnes grading between
0.5 and 1.2 g/t Au and 1.2 and 2.1 g/t Ag in the substrate beneath
the tailings volume at the Olympic Mine.
-- Exploration Target of 9,000 - 12,000 tonnes grading between
0.9 and 2.4 g/t Au and 2.0 and 5.1 g/t Ag in a coarse stockpile at
Olympic Mine.
-- Exploration Target of 4,200 - 7,700 tonnes grading between 40
and 140 g/t Ag and 0.3 and 0.3 g/t Au in spoil heaps at Mineral
Jackpot.
Note 1 - g/t = grams per metric tonne, equivalent to parts per
million
Great Western chairman Brian Hall commented: "This independent
assessment of the pre-mined material so far identified on our claim
groups in Nevada strongly reinforces our confidence in being able
to generate revenues from gold and silver through the Western
Milling LLC joint venture recently announced. We will keep
shareholders informed regularly as the mill development project
progresses."
OVERVIEW
Below are the results of an independent Initial Mineral Resource
Estimate ['MRE') for the Olympic Gold Tailing project together with
Exploration Targets for stockpile and spoil material at the Olympic
Gold Project and Mineral Jackpot group of claims, all reported in
accordance with JORC code (2012) and prepared by independent
consultant Addison Mining Services Limited ('AMS').
This MRE, effective as of 4 May 2022 for the Olympic Tailings
Project comprises:
-- An Inferred Mineral Resource of approximately 31,000 tonnes
grading 1.6 g/t Au and 3.0 g/t Ag for 1,600 troy ounces of Au metal
and 3,000 ounces of Ag metal (see the following table).
Table 1 : Olympic Tailings Inferred Mineral Resource, reported
globally (no cut-off grade)
Area Au Ag Volume Density (g/cm(3) ) Tonnage Au Metal Ag Metal
(g/t) (g/t) (m(3) ) (t) (ozt) (ozt)
Main tailing pad 1.62 2.91 21,000 1.42 29,000 1,500 2,700
------- ------- --------- ------------------- -------- --------- ---------
Minor tailing pad 1.65 6.92 1,200 1.42 1,800 100 400
------- ------- --------- ------------------- -------- --------- ---------
TOTAL 1.6 3.0 22,000 1.42 31,000 1,600 3,000
------- ------- --------- ------------------- -------- --------- ---------
In addition to the Mineral Resources set out above, Exploration
Targets are presented as a range of grades and tonnages where
insufficient exploration has been completed to allow estimation and
reporting of a Mineral Resource in accordance with the JORC code
(2012). These estimates are therefore conceptual in nature. Full
details of these targets are presented in tables below. Summary
details of the targets are:
-- Material underlying the Olympic tailings: 3,400 - 6,400
tonnes grading between 0.5 and 1.2 g/t Au and 1.2 and 2.1 g/t
Ag.
-- Olympic Mine coarse stockpile: 9,000 - 12,000 tonnes grading
between 0.9 and 2.4 g/t Au and 2.0 and 5.1 g/t Ag.
-- Mineral Jackpot spoil heaps: 4,200 - 7,700 tonnes grading
between 40 and 140 g/t Ag and 0.3 and 0.3 g/t Au.
Table 2 : Exploration Target for material underlying the Olympic
tailings resource.
Scenario Thickness Au Ag Volume Tonnage Au Metal Ag Metal
(m) (g/t) (g/t) (m3) (t) (ozt) (ozt)
Conservative 0.3 0.5 1.2 2,400 3,400 50 150
---------- ------- ------- ------- -------- --------- ---------
Pragmatic 0.5 0.8 1.6 3,500 4,900 150 250
---------- ------- ------- ------- -------- --------- ---------
Optimistic 0.6 1.2 2.1 4,500 6,400 250 400
---------- ------- ------- ------- -------- --------- ---------
Table 3 : Exploration Targets in the Stockpile at Olympic.
Scenario Au Ag Volume Density Tonnage Au Metal Ag Metal
(g/t) (g/t) (m3) (g/cm3) (t) (ozt) (ozt)
Conservative 0.9 2.0 6,500 1.40 9,000 300 600
------- ------- ------- --------- -------- --------- ---------
Pragmatic 1.7 3.7 6,500 1.60 10,000 600 1,200
------- ------- ------- --------- -------- --------- ---------
Optimistic 2.4 5.1 6,500 1.80 12,000 900 1,900
------- ------- ------- --------- -------- --------- ---------
Table 4 : Exploration Target for Spoil Heaps at Mineral
Jackpot.
Scenario Au Ag Volume Density Tonnage Au Metal Ag Metal
(g/t) (g/t) (m3) (g/cm3) (t) (ozt) (ozt)
Conservative 0.3 40 3,000 1.40 4,200 30 5,500
------- ------- ------- --------- -------- --------- ---------
Pragmatic 0.3 75 4,300 1.60 6,900 50 17,000
------- ------- ------- --------- -------- --------- ---------
Optimistic 0.3 140 4,300 1.80 7,700 60 35,000
------- ------- ------- --------- -------- --------- ---------
Competent Person's Inferred Mineral Resource Estimate and
Exploration Targets, reported in accordance with the JORC Code
(2012 edition)
Following drilling and sampling conducted in 2021 and 2022, the
Company commissioned AMS to conduct an independent Mineral Resource
Estimate together with outline Exploration Target potential.
Estimates are based on all the available data from the tailings,
stockpiles and waste dumps collected up to 4 May 2022.
The MRE and Exploration Targets have been reported in accordance
with the Joint Ore Reserve Committee (JORC) code, 2012 edition.
Summary of Resource Estimate and Reporting Criteria
In accordance with the JORC code (2012), a summary of the
material information used to estimate the initial MRE and
Exploration Targets is set out below. For further detail please
refer to the JORC (2012) Table 1, set out in the appendix to this
announcement. Both the appendix and the supporting images can be
found at the following link:
https://www.greatwesternmining.com/greatwesternmining-com/_img/pdf/TableOneAndFigures.pdf
Geological Interpretation
As discussed above, the resources and exploration targets
covered by this release are in pre-mined material - tailings,
stockpiles and spoil heaps. A summary of the geology of the
deposits mined for this material is as follows:
Olympic
The OMCO vein, which was mined between 1916 and 1942, is a low
sulphidation epithermal gold vein hosted in a late Early Miocene
rhyolitic volcanic sequence.
Mineral Jackpot
The workings at Mineral Jackpot were developed along an array of
parallel quartz veins hosted in a Cretaceous granite batholith.
Input Data Summary
The MRE is based on all the available data from the tailings
collected up to 4 May 2022 and includes information from 23 auger
drillholes totalling 93 m and 33 surface grab samples.
A total of 20 drillholes were completed over the main tailings
pad which has a surface area of approximately 7160 m(2) . The
spacing between drillholes is irregular (10 - 30 m between collars
except for a pair of holes drilled to check close-range variability
which are 4 m apart), with more dense coverage in the southern part
of the pad. In addition, 24 surface grab samples were collected in
the main tailings area which were taken into consideration for the
MRE.
The minor tailings pad is located approximately 20 m to the
south of the main tailings area. A total of two drillholes were
completed over minor tailings which has a surface area of
approximately 550 m(2) . Both drillholes are located in the west
part of the tailings with 10 m spacing between them. Additionally,
nine surface grab samples were collected from the minor tailings
area and taken into consideration for the MRE.
The distribution of drillholes within the tailings area is
sufficient to establish the degree of geological and grade
continuity appropriate for classification of Inferred Resources as
defined by the JORC (2012) code.
An exploration target in the horizon underlying the tailings,
which is dominantly clay material, was also identified based on the
drilling dataset described above, but there was insufficient data
to estimate a mineral resource.
An exploration target in the stockpile was identified based on
four vertical RC drillholes, of which two were twinned, covering
the central part of the stockpile. Additionally, six surface bulk
samples were collected in that area. The stockpile has an
approximate surface area of 2,000 m(2) and drillhole and surface
samples are distributed over the major part of the area. There was
insufficient data to estimate a mineral resource.
An exploration target in the Mineral Jackpot (MJ) Prospect was
determined over 44 spoil heaps identified in the field and modelled
via deviation of the heap from the surrounding land surface. Spoil
heaps were identified and mapped over an area of 1 km(2) . However,
heaps located in only a part of this area (approximately 400 m x
350 m) were sampled. In total 22 bulk surface samples were
collected, of which 16 were unique and six were field duplicates.
There was insufficient data to estimate a mineral resource.
Sampling and Sub-Sampling Techniques
All samples were submitted to the lab from the field.
-- For the tailings pad drilling, sample intervals were
typically 2 ft (0.61 m), with a range of 1--3 ft (0.30 - 0.91
m).
-- The coarse stockpile was drilled with a reverse circulation
(RC) drill rig. Each of the four holes rendered one bulk
sample.
-- The Mineral Jackpot spoil heap bulk samples were each in the range of 15-25 kg.
Both labs used were ISO17025 accredited and used similar
preparation and analytical techniques. Samples were crushed until
70% or more of the material passed a 2 mm sieve, then this material
was split down to a 250 g sample and pulverised until 85% or more
of this passed a 75 um sieve. This master pulp was then analysed
via fire assay for gold and ICP-OES for a 35-element suite.
Sample Recovery
Sample recovery was not directly measured for RC and auger
drillholes. However, geologists present during drilling observed
the quantity of material being produced from the drill rigs per
metre, noting any drops in recovery. In the case of the stockpile,
drilling lower sample mass was attributed to void space. The
recovery of the auger drilling over the tailings was reported by
Great Western to be excellent with no notable areas of poor
recovery.
Data Verification
The drill hole data were validated using Micromine's drill hole
database validation tools. The database was checked for errors such
as overlapping intervals, intervals beyond drill hole collar depth,
missing intervals, missing drill holes and large deviations in
drill hole surveys. The drill hole traces were also visually
inspected. The spatial location of surface samples was visually
checked and compared to the location of 3D wireframes. Some samples
were noted to be plotting outside the wireframe, especially on
small spoil heaps. Those variations are due to the inaccuracy of
handheld GPS and accepted after consultation with the Company's
geological team. Additionally, 10% of the total samples were cross
checked with original assay certificates. A small number of minor
errors were detected in drilling data and corrected via
consultation with the Company's geological team.
The drillhole database is considered by the Competent Person to
be robust and fit for purpose in Mineral Resource Estimation.
Estimation Methodology
Solids for the main and minor tailings pads were created based
on lithological contacts of tailings material and underlaying
layer. Wireframes were manually generated in Micromine and
restricted to a DTM generated from a drone survey with 0.5 m
accuracy.
Analysis of surface samples indicated potential Au and Ag
enrichment on the top layer of the tailings material. Surface
samples were collected up to 15 cm into the ground, hence two
domains were established - top 15 cm of the solid and the part
below that. Those domains were established for both main and minor
tailings. Original solids were then split into two parts using
Boolean operations with the DTM dropped by 15 cm. The grade within
the volumes was averaged using length-weighted averaging.
Sensitivity to data clustering was also investigated but not
considered to be material.
For exploration targets of the Olympic stockpile and Mineral
Jackpot spoil heaps, volumes were estimated from mapping and
digital terrain models. The tonnage range was estimated based on
variable bulk density and the grades were estimated based on the
distribution of the assay data and assessment of one standard
deviation about the mean. In the case of Mineral jackpot, the
volume was further ranged by removing 30% of the spoil heaps from
the estimate.
For all estimates a length or mass-weighted average was used in
assessment of the grades. One sample was capped at 10 g/t Au in the
tailings estimate.
Bulk Density
The database contains 12 bulk density measurements in the
Olympic tailings of which nine were taken from surface and three
from downhole material. For the purpose of Mineral Resource
Estimation, the tailings material was assigned a bulk density of
1.42 g/cm(3) . For the other prospects, variable density values
from conservative to optimistic, based on comparable material
elsewhere, were used to calculate the tonnage ranges of the
exploration targets.
Classification Criteria
Based on the data available, it is the Competent Person's
opinion that a classification of Inferred is warranted for the
major and minor tailings at Olympic. Further sampling to better
understand grade variability is required to allow classification of
Indicated Resources. The material immediately underlying the
tailings does not have sufficient sampling and volumetric control
to allow classification of a Resource and is reported as an
exploration target. Similarly, further sampling is required to
understand the grade variability of the Olympic stockpile and
Mineral Jackpot spoil heaps and consequently these are reported as
exploration targets.
Reasonable Prospect of Eventual Economic Extraction
No calculation of an economic cut-off grade has been undertaken
for the Olympic Tailings Resource. It is anticipated that no
selective mining would be undertaken and the Resource is reported
globally (no cut-off grade). The average grade above cut-off is
considered by the Competent Person to have a reasonable prospect of
eventual economic extraction, assuming that metallurgical
recoveries greater than 20% may be achieved.
Environmental and Social Considerations
Both sites are remote from habitation and represent a minimum of
potential disturbance for local neighbours. Both sites are existing
mine sites, so further work, particularly the extraction of mine
waste material when managed sensitively, can be considered an
improvement.
Care must be taken in driving to Olympic as the route passes an
isolated ranch, and cattle are often found near the main track.
Similar considerations occur on the route to Mineral Jackpot where
the low-level access road passes through the Marietta Wild Burro
Range.
Independent Competent Person's Statement
The Olympic Tailings Inferred Resource Estimate, Olympic Coarse
Stockpile and Mineral Jackpot Spoil Heaps Exploration Targets were
prepared by Mr R. J. Siddle, MSc, MAIG, Principal Resource
Geologist and Director of Addison Mining Services Ltd. and
Competent Person. Mr. Siddle is an independent Competent Person
within the meaning of the JORC (2012) code. Mr. Siddle has reviewed
and verified the technical information that forms the basis of, and
has been used in the preparation of, the Mineral Resource Estimate
and this announcement, including analytical data, drill hole logs,
QC data, density measurements and sampling practice. Mr. Siddle was
assisted in the study by Ms. Paula Mierzwa, MSc., who worked under
the supervision of the Competent Person. Mr. Siddle consents to the
inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr.
Siddle has also reviewed and approved the technical information in
his capacity as a Competent Person as defined by the JORC code
(2012).
Qualified Person's Statement (for Great Western)
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.
MARs Statement: This press release contains inside information
as defined in Article 7(1) of the Market 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 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 acreage position 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,
Great Western 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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