REG - Great Western Mining - MOU for creation of JV to process gold and silver

Great Western MiningAnnouncement

12/07/2022 07:00

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RNS Number : 0698S  Great Western Mining Corp. plc  12 July 2022

GREAT WESTERN MINING CORPORATION PLC

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

 

MOU for creation of JV to process gold and silver

 

Joint Venture to enable processing of Company's as well as third party
material

 

Great Western Mining Corporation PLC is pleased to announce that it has signed
a non-binding Memorandum of Understanding to create a Joint Venture ("JV")
with an experienced Nevada mining contractor, for processing gold and silver
from waste material on its mineral concessions in Nevada.

 

Great Western and its proposed partner are currently negotiating a
fully-termed operating agreement which will follow a standard industry format
used in Nevada.

 

The JV will process material using both gravity separation and a contained
flotation system, full details of which will be announced upon signing of the
formal agreement.

 

The JV has now:

 

·    Secured the use of a suitable mill site on private land

·    Determined an initial design for a (1) gravity separation plant and a
(2) flotation plant

·    Identified and secured the equipment required

 

The Company has allocated up to $100,000 to the JV to facilitate the detailed
planning stage and submission to the Nevada Department of Environmental
Protection.

 

The equipment identified by the JV will in most cases be pre-used mine
equipment sourced locally, refurbishment cost of which is expected to be
significantly less than the cost of new equipment, providing for economical
start-up costs and a faster lead-time to commissioning.

 

The JV will initially process material from the Company's Mineral Jackpot and
Olympic Gold properties. The JV will also process material owned by the JV
partner and the partners will together source additional material from third
parties for processing on a commercial basis.

 

At Mineral Jackpot, Great Western has over 50 spoil heaps left from five
adjacent and connected historical mines which produced gold and silver in the
late nineteenth/early twentieth century.  The recently upgraded 14 km road to
the site will enable a 20-ton dumper truck to load spoil material from this
mountainous area.

 

At Olympic Gold, three sources of waste material have been identified and are
being extensively tested for reprocessing, close to the high-yielding OMCO
gold mine where operations ceased during the Second World War:

 

·    Tailings, to be processed through the contained flotation circuit

·    A stockpile of mined material never previously processed

·    Substantial spoil heaps

 

The plant will be located at a site which has previously been used for mineral
processing operations and is approximately equidistant to Mineral Jackpot and
Olympic Gold, on a major highway providing easy vehicle access.

 

Great Western Chairman Brian Hall commented:  "At the end of 2020 we
successfully produced a doré bar of gold and silver from spoil material at
our Mineral Jackpot claims and established the potential for processing such
material on a commercial scale.  An initial low level gravity separation
project was evaluated but this has since expanded as other material has been
identified on our concessions, including significant tailings at the Olympic
Gold Project.  The ingredients are now in place to create a commercial plant
to handle such material from all our concessions, where available, as well as
processing material for third parties on a commercial basis.  This opens a
new chapter in Great Western's story which will run in parallel with our
efforts to explore for and identify significant reserves of precious metals
and copper, aiming to achieve an order of magnitude increase in value for
shareholders.  We will provide more information on the joint venture, the
plant and the detailed research we have carried out on the resources available
to us as soon as we are in a position to do so."

 

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 Adviser & Joint Broker)

 Brian Garrahy                                                                                                            +353 1 679 6363

 Novum Securities (Joint Broker)

 Jon Belliss                                                                                                              +44 207 399 9400

 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 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.

The Olympic Gold Project is held by Great Western under the terms of the
Olympic Option Agreement dated 21 May 2020 and the option must be exercised
before material can be removed from site for commercial exploitation.  The
total purchase price for the Olympic Gold Project was $150,000 of which
$75,000 has been paid to date and the remaining balance of $75,000 will be
paid on exercise of the option.    The vendors of Olympic Gold, together
with historical royalty interest holders, will jointly be entitled to a 3% net
mineral returns production royalty.

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 which
are currently being explored and appraised, including extensive historic mine
workings which offer the opportunity for secondary recovery through the
proposed plant.

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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