TIDMGWMO
RNS Number : 7140L
Great Western Mining Corp. plc
05 January 2023
GREAT WESTERN MINING CORPORATION PLC
("Great Western", "GWM" or the "Company")
Operations Update
Great Western Mining Corporation PLC (AIM - GWMO, Euronext
Growth - 8GW), which is exploring and developing gold, silver and
copper targets in Mineral County, Nevada, is pleased to provide the
following update on its operations and outlines its plans for
2023.
Construction and commissioning in first
* PRODUCTION MILL half
Assay results from 2022 drilling confirm
* TRAFALGAR HILL potential
Follow-up drilling planned
* MINERAL JACKPOT & OMCO
Positive leads from geological desktop
* COPPER POTENTIAL work in Q3 2022
Review of data indicates potential
* RARE EARTH ELEMENTS at M2
Great Western Chairman Brian Hall commented: "The Company has
made great strides over the last year and we look forward to
building on this momentum in 2023. We expect to commission the
processing mill in the first half of 2023 and we have an ambitious
programme of exploration to follow up on successful drilling
results achieved over the last two years.
"The transition into a revenue generating precious metals
producing entity, underpinned by an exceptional portfolio of
assets, will be a significant milestone for the Company. We have a
targeted work programme in place for the coming year, on which we
expect to deliver, pending developments, during the period.
"We believe that the Company provides a well-balanced blend of
production and exploration across a variety of metals at the same
time as a number of catalysts for a potential rerating."
PRECIOUS METALS PRODUCTION JOINT VENTURE
The Western Milling LLC joint venture is making good progress
and a meeting is scheduled with the regulatory authority NDEP
(Nevada Department of Environmental Protection) in mid-January to
review plans and incorporate any modifications required by the NDEP
to facilitate consent for precious metals production start-up.
Production can only commence after receipt of a NDEP permit but
construction can begin prior to consent. The aim of the review
meeting with NDEP is to give the joint venture the confidence to
start construction. Subject to weather conditions, groundwork will
begin with first concrete poured at the end of February.
The first phase of the project will consist of
gravity-separating spoil material, initially from the Mineral
Jackpot area where the Company constructed an access road in 2022,
to produce gold and silver concentrates for on-sale to a refinery.
Residues from gravity separation will be stored for further
processing via a leaching plant, to be constructed as a second
phase. The leaching project will also process tailings material,
initially from the OMCO Mine area on the Olympic Gold project where
a JORC-compliant resource report was successfully commissioned late
last year. Great Western aims to produce first precious metals
concentrates this year, starting on a small scale and building up
volumes as rapidly as possible. Numerous further piles of material
are available for processing on the Company's claims and will be
assessed as the project evolves. The joint venture will also
acquire material for processing from third parties once the mill is
up and running. The mill will be capable of handling shallow-mined
ore as well as pre-mined material.
TRAFALGAR HILL (Olympic Gold Project)
Three holes were drilled at Trafalgar Hill in summer 2022 and
the results are now available after laboratory delays beyond the
Company's control. The best result was in hole OMRC013, which
contains the longest intercept of anomalous gold yet identified at
Trafalgar Hill (21.34 m at 0.107 g/t Au from 83.82 m, Table 1).
This intercept occurred at the anticipated position in the hole,
approximately 10 m below the contact of the host rhyolite with the
overlying mafic unit. No high grades were achieved from these holes
but, along with a shorter intercept in OMRC012, they show that the
Trafalgar Hill system remains open to the south and it will be
further explored.
Table 1 . Results summary from 2022 drilling at Trafalgar Hill,
Olympic Claim Group.
Hole Collar Collar Collar Azimuth Dip Hole From To Interval Gold Silver
ID Easting Northing Elevation length (metres) (metres) (metres) (Au; (Ag;
(NAD83) (NAD83) (metres) (metres) g/t) g/t)
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- ------- --------
OMRC012 421,297 4,273,511 1,796 270 -60 170.69 150.88 156.97 6.09 0.099 1.9
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- ------- --------
OMRC013 421,156 4,273,414 1,795 270 -60 115.82 83.82 105.16 21.34 0.107 2.25
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- ------- --------
including 83.82 88.39 4.57 0.116 2.66
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- ------- --------
and 94.49 103.16 8.67 0.127 2.58
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- ------- --------
OMRC014 421,254 4,273,412 1,799 270 -60 143.26 No significant intercepts
-------- ---------- ------------ ----------- --------- --- -------- --------- ----------------------------------------------------
MINERAL JACKPOT
In 2022 Great Western carried out the first ever drilling at the
high-altitude Mineral Jackpot group of five historic gold and
silver mines, which were worked by hand in the decades around 1900
and where the Company believes there are considerable volumes of
gold and silver ore yet to be recovered.
As previously reported, a shallow intercept of 3.04 m grading
418.00 grams/tonne silver and 0.554 grams/tonne gold was
encountered from 4.57 metres in hole MJRC004 and follow-up drilling
is planned for this year. Depending on the results, and subsequent
successful estimation of resources and reserves, small-scale mining
would be relatively straightforward at these depths and material
recovered could be processed through the milling joint venture.
Mineral Jackpot was mined in the past through extensive
underground workings, many of which are still accessible and offer
the opportunity for direct observation of mineralisation in situ,
which could be a more effective exploration tool than RC drilling.
Accessing these legacy workings is a potentially hazardous
activity, so the Company is investigating a process with a
contractor which specialises in carrying out such work safely.
OMCO (Olympic Gold Project)
In 2022, drilling intersected the main OMCO vein for the first
time, in an area mapped as containing unmined portions of this
structure. This previously reported intercept contained 6.10 m at
2.682 g/t gold from 38.10 m, including 1.52 m at 8.110 g/t gold and
1.52 m at 1.74 g/t gold. The discovery can be expanded on in the
near term by drilling angled holes from the same permitted pad
position, which will be a priority for early in 2023. If
successful, additional holes could subsequently be drilled at
similar locations on the edge of the mined workings along the full
180 m southwestern perimeter, seeking further extensions to the
vein.
COPPER PROSPECTS
Great Western has already made a significant investment in
copper exploration and an independent report compliant with JORC,
commissioned by the Company, yielded a partly inferred/partly
indicated copper resource of 4.3 million tonnes at an average grade
of 0.44 % copper from the area known as M2, located in the Black
Mountains group of claims.
Over the past few months, the in-house geological team has
worked extensively on Great Western's copper potential, including a
review of all the Company's copper prospects and, where available,
soil and rock-chip samples. As well as M2, the team has studied the
M4 area, the Eastside Mine group, where an IP geophysical survey
was carried out in late 2021 by independent contractors, and the
Huntoon Valley (HUN Group) claims, where, in 2018, the Company
drilled the first ever hole, identifying a number of copper
intercepts (table 2).
Table 2 . Summary of copper results from CPGW_1 as previously
reported in 2018. Note this is the only hole drilled within the
Company's Huntoon claims, and that hole was collared on patented
ground held by the company's joint venture partner in the Western
Milling operation, but the lower portions of the hole crossed into
GWM ground .
Hole Collar Collar Collar Azimuth Dip Hole From To Interval Copper
ID Easting Northing Elevation length (metres) (metres) (metres) (Cu;
(NAD83) (NAD83) (metres) (metres) %)
------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- --------
CPGW_1 362,817 4,225,649 1,966 185 -60 222.50 3.1 7.6 4.5 0.12
------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- --------
10.7 13.7 3 0.12
------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- --------
35.1 62.5 27.4 0.33
--------- ----------- -------- ---------- --------
including 36.6 44.2 7.6 0.70
--------- ----------- -------- ---------- --------
68.6 80.8 12.2 0.23
--------- ----------- -------- ---------- --------
114.3 117.4 3.1 0.17
--------- ----------- -------- ---------- --------
137.2 149.4 12.2 0.22
------- ---------- ------------ ----------- --------- --- -------- --------- ----------- -------- ---------- --------
This review has highlighted the HUN group as a significant
copper opportunity, with existing soil survey data showing a 1700 m
E-W and 900 m N--S copper-in-soils anomaly which remains open to
the north, east and west. Critically, there is nothing to suggest
that the anomaly ends where the host rocks are obscured under thin
surface lavas or sediments, so establishing the continuation of the
anomalous copper zone could lead to a considerably enlarged target.
The quality and number of anomalous copper intercepts in the single
drill hole is also highly encouraging, with a best intercept of
27.6 m at 0.33% Cu from 35.1 m (see Table 2 above). From this hole
the prospect is open in all directions and there are strong
indications that abundant further potential exists in the Huntoon
valley.
The HUN Group claims are approximately 7 km from the Company's
existing resource at M2 and both are within striking distance of
the Company's M4 copper project. Great Western will also be
exploring the potential for linkage between copper prospects on
either side of the Huntoon valley under the valley sediments.
For some time now, Great Western has been seeking a larger
industry partner with appropriate resources and capability to help
develop a potentially major copper project and the recent in-house
work, still ongoing, should make for a much more interesting
farm-out package.
RARE EARTH MINERALS
Great Western is primarily focused on exploring for and
exploiting the precious metals potential of its claims in the
Walker-Lane trend of Nevada, while copper remains a significant
component of the Company's portfolio of prospects which it is keen
to exploit. During the detailed analysis of copper samples carried
out over the past few months, it has become clear that, at the
established M2 copper resource, an elevated and measurable level of
rare earth minerals is present in some samples. It is too early to
assess the commercial viability, if any, of these indications, but
rare earth elements can be highly valuable and of great industrial
interest, so the Company will be pursuing this avenue of
exploration. It should be noted that the Company is aware of
relevant ongoing activity in this area by the US Geological Survey,
an arm of the federal government.
THE YEAR AHEAD
An ambitious provisional work programme for 2023 is divided into
three phases but may be varied.
Phase 1
-- Commence mill construction and prepare for milling operations
-- Commence offloading and processing spoil material from Mineral Jackpot and tailings from OMCO
-- Drilling at OMCO and Mineral Jackpot to follow up successful
2022 results - drillholes designed to follow up on 2022 vein
intercepts.
-- Fieldwork and sampling at several claim groups to generate
new targets and develop existing prospects.
Phase 2
-- Further develop copper potential through (1) IP and airborne
magnetic surveys (2) drilling selectively at M2, and (3) additional
soil sampling at Huntoon
-- IP geophysical survey over the Trafalgar Hill prospect
-- Further drilling at Mineral Jackpot over the undrilled western portions of the prospect.
-- First drilling at the Rhyolite Dome prospect, Olympic Gold
Project and other targets arising from Phase 1 fieldwork.
Phase 3
-- Drill additional holes at the Huntoon claims to follow up on
the long copper intercepts identified in a single hole drilled by
the Company in 2018.
-- Examine the potential link between the copper resource
established at M2, showings at M4, and the copper potential of the
Huntoon claims which may involve an IP survey, an airborne magnetic
survey and staking new claims.
-- Pursue the potential for rare earth elements on the company's claims.
Qualified Person: 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. 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.
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 partly 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.
GWM has established an Inferred Resource Estimate of 31,000
tonnes grading 1.6 g/t gold and 3.0 g/t silver in tailings at the
OMOC Mine at the Olympic Gold Project. It has also established
Exploration targets. In addition, the Company has reported an
Exploration Target as follows:
-- 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.
-- 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.
-- 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.
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.
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END
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