REG - Great Western Mining - Olympic Gold Project Acquisition

Great Western MiningAnnouncement

18/04/2024 07:00

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RNS Number : 0210L  Great Western Mining Corp. plc  18 April 2024

GREAT WESTERN MINING CORPORATION PLC

("Great Western", "GWM" or the "Company")

 

OLYMPIC GOLD PROJECT ACQUISITION

 

Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW) is
pleased to announce that it has exercised an option to acquire the Olympic
Gold Project in Mineral County, Nevada.

 

In 2020, Great Western's wholly owned U.S. subsidiary, Great Western Mining
Corporation ("GWMC") entered into an agreement with Nevada
Select Royalty Inc. ("Nevada Select"), a wholly owned subsidiary of Gold
Royalty Corp, for an option to acquire the Olympic Gold Project, consisting of
48 contiguous claims over 825 acres, including the abandoned OMCO gold mine.
The agreement gave GWMC the right to explore and appraise these claims for a
period of four years, in return for making annual option payments. In 2021
GWMC staked an additional 12 claims to the east of the OMCO Mine. The option
period being due to expire shortly, GWMC has now served Nevada Select with
formal notice of exercising its option to complete the acquisition of the
Olympic Gold Project and has remitted the final option payment. The total cost
of the acquisition is US$150,000 and, following the acquisition, Nevada Select
will be entitled to  a net smelter royalty of 3% on 7 claims referenced NOM
and on the 12 claims staked by GWMC in 2021 together with a further net
smelter royalty of 1.75%  on the remaining 41 claims on which there is an
existing 1.25% net smelter royalty in favour of a previous claim holder,
Sedi-Met Inc.

 

During the option period, the Company has conducted extensive exploration at
the Olympic Gold Project.  28 holes aggregating 4,243 metres have been
drilled over three prospects, including new drilling at the OMCO Mine site
where an extension to the original productive vein has been identified.  Nine
holes were drilled at the Trafalgar Hill prospect in the western area of the
claims, the best of which encountered gold at 8.9 g/t over 1.52 m from 86.8 m
in hole, as previously reported to shareholders. One hole at the West Ridge
prospect identified a possible epithermal zone at depth which justifies
follow-up drilling.

 

In the south, soil sampling has yielded encouraging results at the Rhyolite
Dome prospect with best grades of 61 ppb, 58 ppb and 51 ppb gold in recent
samples and 207 ppb in legacy samples.  Rhyolite Dome has never been drilled
and a geophysical (IP) survey is planned for this year to determine drill
targets.

 

At the OMCO Mine site there are significant tailings and unprocessed
stockpiles dating back almost 100 years. In 2022, the Company commissioned an
independent report which recorded an Inferred Resource of 31,000 tonnes
grading 1.6 g/t gold and 3.0 g/t silver in the tailings, together with
exploration targets in the substrate beneath the tailings and in a coarse
stockpile at the Olympic Mine.  This will be the first material to be
processed for gold and silver concentrates through GWM's 50% owned Western
Milling joint venture.

 

Great Western Chairman Brian Hall commented:  "The Olympic Gold Project has
become an important component of our exploration activity as well as a
potentially key source of feedstock for our milling operation, which is ready
to start operations once an environmental permit is in place. We are very
pleased to have been able to move Olympic from option status to a fully
integrated part of our portfolio. "

 

For further information:

 

 Great Western Mining Corporation PLC
 Brian Hall,                                                                                                              +44 207 933 8780
 Chairman
 Max Williams, Finance                                                                                                    +44 207 933 8780
 Director

 Davy (NOMAD, Euronext Growth Listing Sponsor & Joint Broker)

 Brian Garrahy

                                                                                                                          +353 1 679 6363

 SP Angel (Joint Broker)

 Ewan Leggat                                                                                                              +44 203 470 0470

 Walbrook PR (PR advisers)

 Nick Rome/Joe                                                                                                            +44 207 933 8783
 Walker

 

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 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.

 

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.

 

GWM has also established an Inferred Resource Estimate of 31,000 tonnes
grading 1.6 g/t gold and 3.0 g/t silver in tailings associated with the OMCO
Mine at the Olympic Gold Project.  Additionally, exploration targets have
been independently reported 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.

 

 

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