REG - Great Western Mining - Huntoon Mine Area Cooperation Agreement

Great Western MiningAnnouncement

23/01/2024 07:00

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RNS Number : 5147A  Great Western Mining Corp. plc  23 January 2024

GREAT WESTERN MINING CORPORATION PLC

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

 

HUNTOON MINE AREA COOPERATION AGREEMENT

 

Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW),
which is exploring and developing gold, silver and copper targets in Nevada,
announces the signing of a new agreement with Crowne Point Gold & Silver
LLC ("Crowne Point") for cooperation in exploring the western part of the
Huntoon Valley (the "Agreement").

 

The Agreement novates a previous cooperation agreement with Crowne Point,
signed in 2016 but now expired, under which a single hole, CPGW_1, was
drilled, intercepting both copper and gold.  The Agreement has been
negotiated primarily to build on Great Western's recent progress in
establishing the copper potential of its West Huntoon claims.

 

HIGHLIGHTS

 

·    Early drilling on private land will attempt to prove up a copper
porphyry

·    Access to existing infrastructure

·    Potential for both copper and precious metals

·    Great Western to focus on copper potential, Crowne Point on precious
metals

 

Great Western has recently staked and registered an additional 19 claims in
the West Huntoon Valley and now holds 126 full and 12 fractional claims which
form part of the Company's larger Huntoon Copper Project area, where a copper
resource has already been reported at M2.  Crowne Point owns patented land
equivalent in area to six standard claims (the "Six Claims") and which is
surrounded by  Great Western claims. The Six Claims include the historic and
abandoned Huntoon gold mine, together with a comprehensive network of access
roads.  Under the Agreement, Great Western will have access to the Six Claims
and in return will assign a 50% interest in nine of its unpatented claims to
Crowne Point.  The surface rights on the Six Claims belong to Crowne Point
and the Agreement will enable Great Western to drill on and from them without
the requirement to obtain regulatory approval which could otherwise cause long
delays. Initial drilling will be aimed at proving up the copper porphyry
potential of the West Huntoon area which Great Western identified during its
productive 2023 field programme, as already announced to shareholders.

 

Each party will plan its own exploration activity and bear its own exploration
cost unless a decision is made to explore on a joint basis.  The Agreement
includes the following provisions:

 

·    Copper or other base metal discovered by Great Western on the Six
Claims will be owned in equal shares and gold or precious metals discovered by
Crowne Point will be shared 70% by Crowne Point and 30% by Great Western.

·    Any minerals discovered by Great Western on its own claims through
angled drilling from the Six Claims will belong exclusively to Great Western
except where the drilling targets  shared claims, in which case the benefits
of any discovery may be shared equally between the parties subject to Crowne
retroactively reimbursing Great Western for 50% of the direct costs of
drilling the discovery.

·    Any value extracted from pre-existing mining waste present on Crowne
Point's existing claims will belong exclusively to Crowne.

 

Great Western Chairman Brian Hall commented: "We have successfully cooperated
with Crowne Pointe in the past and are very pleased to have entered into this
new cooperation arrangement with them. The flexibility to carry out initial
drilling on private land, which will circumvent a potentially lengthy
permitting process, will enable us to fast-track our work in defining what we
consider may be a significant new copper porphyry in the Walker Lane trend of
Nevada.  We are actively seeking a joint venture partner to help finance this
programme and currently working on several positive leads."

 

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 Corporate Finance LLP (Joint Broker)

 Ewan Leggat/Harry Davies-Ball                                                                                            +44 203 470 0470

 Walbrook PR (PR advisers)

 Nick                                                                                                                     +44 207 933 8783
 Rome

 

Notes to Editors

The Company has a large tract of acreage in Mineral County, Nevada. The
acreage partly consists of rugged, mountainous terrain, large parts of which
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 was rated the world's most mining friendly jurisdictions
by the Fraser Institute of Canada in 2023.  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. As well as mineral exploration and appraisal, he Company
is a 50% participant in the Western Milling LLC joint venture which has now
completed construction of a mill to process pre-mined material for secondary
recovery of gold and silver.  The mill is currently waiting on a state
environmental permit to enable commissioning and first production of precious
metal concentrates.

 

Through extensive drilling over a five-year period, GWM has established a
Mineral Resource on its M2 target area in the Black Mountains group of
claims.  4.3 million tonnes at 0.45% copper are reported, being 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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