TIDMGMET
RNS Number : 6230R
Golden Metal Resources PLC
30 October 2023
30 October 2023
Golden Metal Resources plc
('Golden Metal' or the 'Company')
Golconda Summit Gold Project - Key Developments
Golden Metal (LON:GMET; OCTQB:GMTLF), a mineral exploration
company focused on tungsten, gold, lithium, copper and silver
within Nevada, USA, is pleased to announce a number of key
developments from its Golconda Summit gold ("Au") Project
("Golconda", "Golconda Summit Project" or the "Project") located
within the prolific Walker Lane Mineral Belt in Nevada, USA.
HIGHLIGHTS:
- Additional rock sampling conducted by the Company demonstrates
continued strong arsenic (As) anomalism along the Golconda thrust
fault, further validating the presence of a "feeder zone" and
therefore the potential for Carlin-Type gold mineralisation at
depth.
- Arsenic anomalism is a lead indicator for Carlin-type gold
systems. This is highly encouraging given the known presence of
multiple large gold deposits in the Getchell Trend and the Battle
Mountain-Eureka Trend, at the confluence of which (Figure 3) the
Golconda Project is located, in a very similar geological
environment including:
o 35km southwest of Nevada Gold Mines Turquoise Ridge Complex
Mine (13Moz at 5.02g/t gold). (1)
o 20km northwest of Nevada Gold Mines Lone Tree Complex which
produced 4.6Moz at 2.06g/t gold. (2)
o 30km northwest of SSR Mining Inc. Marigold Mine (3.16Moz gold
Measured & Indicated Mineral Resource).(3)
- Previous exploration on the Project by the Nerco Mineral
Company in 1989 encountered significant gold mineralisation located
within upper plate Havallah Sequence rocks at the "Trench Zone"
(see Figure 1), including mechanised trenching sample assay results
of 7.6m @ 19.7g/t gold (Au) and 15.2m @ 7.1g/t Au.(4) Both recent
rock samples collected near to this zone returned >500ppm As
giving further credibility to these trenching results.
- Recognising the potential for a significant gold discovery,
Golden Metal expedited the submission of a new permit notice
application ("Notice") to the Bureau of Land Management ("BLM") for
both trenching (12 trenches) and drilling (9 drill sites), all of
which are designed to test for the presence of a significant
Carlin-type gold system within the Project.
- The Notice has now been accepted, which was the key final
hurdle to allow the Project to advance to the next important
exploration stages. Following the submission of a bond guarantee,
the Company can proceed with trenching and/or drilling. Further
information to follow in this regard .
Oliver Friesen, CEO of Golden Metal, commented:
"There are many encouraging economic signs within the broader
metals and mining markets, in particular the strong price of gold.
As a result, across multiple assets in the portfolio we are working
towards obtaining the necessary permits which would allow us to
expedite a move to the next important exploration stages if the
strength showing within the mineral resource markets persists.
"At Golden Metal we are of the belief that decades of
underinvestment in the mineral exploration and mining sector is
leading us into what will be one of the most exciting times ever in
the space, with demand for many precious as well as critical and
defence metals vastly outstripping available supply.
"Golconda continues, in our view, to offer the potential for a
major gold discovery, in a region that hosts several multi-million
ounce gold deposits in a geological environment markedly similar to
that which has been confirmed at Golconda. We look forward to
providing more information to the market as soon as possible."
Detailed Overview:
Golden Metal provided a detailed exploration update for Golconda
on 31 May 2023 confirming Carlin-type gold targets had been
identified. This announcement may be viewed through the link
below:
https://www.londonstockexchange.com/news-article/GMET/golconda-carlin-type-gold-targets-identified/15978043
- Further rock sampling was recently completed across the
Golconda Summit Project, managed by Golden Metal's (ex-Newmont)
senior geological consultant. A total of 21 individual rock samples
were taken and detailed mapping of the easterly dipping Golconda
Thrust Fault ("Golconda Thrust", see Figure 1) was completed. This
fault is considered to be an important conduit for mineralising
fluid flow within northern Nevada. A total of 73 rock samples have
now been extracted and sampled during the last two work
programmes.
- Of the latest 21 samples taken, strong arsenic anomalism was
continually identified (6 samples >250ppm including a Project
high result of 616ppm) in proximity to the Golconda Fault giving
further confidence to the Company that a feeder zone and a
Carlin-type gold system could exist within the Project.
- The presence of arsenic anomalism within the Trench and Thrust
Zones suggests the presence of a 'feeder zone' at Golconda. A
feeder zone would have allowed for Carlin-type gold mineralisation
to be remobilised from lower plate rocks below. Both of these zones
represent priority targets for ongoing exploration at Golconda.
- Golconda is located within the same host rocks (Havallah
Sequence upper plate rocks as well as lower plate Edna
Mountain/Preble Formation and Antler Peak Limestones) as the nearby
multi-million-ounce Turquoise Ridge, Lone Tree Complex, and
Marigold gold mines (see Fig. 3).
FURTHER INFORMATION
Figure 1 - Golconda Summit Project Overview Map
Figure 2 - Golconda Summit Trench Zone Inset Map
Figure 3 - Regional Map Showing Relative Location of Nearby Gold
Mines.
Analysis
All rock samples were prepped and analysed at ALS USA Inc.'s
laboratory in Elko, Nevada. Assays were determined using the
analytical package ME-MS41 comprising aqua regia digestion with
super trace inductively coupled plasma mass spectrometry (ICP-MS)
analysis providing extremely low detection limits for analysis of
rocks. A total of 41 elements were reported as part of this
analysis. Gold determinations were completed using Au-AA23 which
includes a 30g sample analysed via a Fire-Assay (FA) finish.
Property Ownership
Golden Metal holds an option to earn a 100% interest in the
Golconda Summit Project through its wholly-owned Nevada operating
company, Golden Metal Resources LLC.
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.
Reference Notes:
(1) Bolin, C. L., Fiddes, C., Olcott, J., Yopps, S.W., 2020,
Technical Report On The Turquoise Ridge Complex, State Of Nevada,
USA, Nevada Gold Mines.
(2) Samal, A.R., 2021, NI 43-101 Technical Report on the Mineral
Resource Estimates for the Lone Tree Deposit, Nevada,
GeoGlobal.
(3)
https://www.ssrmining.com/_resources/pdfs/Reserves-and-Resources.pdf
(4) Summary Report for the Golconda Summit Property Iron Point
Mining District, Humboldt County, Nevada; unpublished report
prepared for Carlin Gold Corporation and Toquima Minerals US Inc.
by K. Brook, dated 4 April 2006.
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 km2 (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.
Kibby Basin Lithium Project
The Kibby Basin Project covers two claim packages which are
prospective for lithium brine mineralisation. The southern claim
package is less than 250m from a 2022 drillhole which returned a
significant interval (169m) of lithium brine mineralisation which
was determined to be open in all directions. The Project is less
than 5km to the southeast of the Company's flagship Pilot Mountain
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 km2 (795.4 acres)
located approximately 27km east of Winnemucca.
Garfield Project
The Garfield Project is a exciting copper-gold-silver prospect
consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres)
located in Mineral County, Nevada, approximately 14km due east of
the town of Hawthorne and 120km due west-northwest of Tonopah.
Exploration to date has included detailed geochemical sampling and
follow up analysis which highlighted the presence of both
skarn-type and porphyry style mineralisation and alteration at the
'High-Grade Zone'. Further mapping, prospecting and rock sampling
is now completed with further results pending.
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 km2 (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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