REG - Great Western Mining - Precious Metals Production Project

Great Western MiningAnnouncement

30/09/2022 07:01

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RNS Number : 2548B  Great Western Mining Corp. plc  30 September 2022

GREAT WESTERN MINING CORPORATION PLC

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

 

 

PRECIOUS METALS PRODUCTION PROJECT

 

Great Western Mining Corporation PLC is pleased to announce the formation of
Western Milling LLC ("Western Milling"), a limited liability company owned in
equal shares by Great Western Mining Corporation, a 100%-owned subsidiary of
Great Western incorporated in the US state of Nevada ("GWMC") and Muletown
Enterprizes LLC, an affiliate of Tipton Trucking Company of Mina, Nevada
("Muletown").

 

HIGHLIGHTS

 

·    Western Milling LLC created for recovery of precious metals from
pre-mined materials

·    50-50 joint venture agreement signed with Muletown Enterprizes LLC

·    First stage gravity separation project prioritised for early revenues

 

Great Western Chairman Brian Hall commented:  "I am very pleased to share
some of the details of our processing project which we have been working hard
to deliver for some time.  The immediate priority is to secure approval to
operate the plant for gravity processing which will enable us to generate
revenues and the agreement we have signed today gives us an experienced local
partner who will be critical to the venture's success.  We have worked
closely with the owners of Muletown for over ten years, most recently on the
construction of a 14 km access road to Mineral Jackpot earlier this year.
Adding a production facility to our considerable exploration potential, for
both precious metals and copper, allows us to move forward with confidence."

 

PROJECT SUMMARY

 

Western Milling will produce precious metals from tailings, spoil heaps,
stockpiles of pre-mined material and shallow ore. At a second stage, Western
Milling will acquire material for processing from third parties, as no similar
facility exists at present in the area.

 

The Mill will be constructed on approximately 20 acres (8.1 hectares) of
private land to the south of Mina, Nevada, leased by Western Milling from
Muletown at a nominal rent. This location is readily accessible to vehicles,
beside a major highway and roughly equidistant from Great Western's claims at
Mineral Jackpot and the Olympic Gold Project.  It will be on the site of an
existing but abandoned mill, with a lay down area for raw material adjacent to
the highway and a gentle slope descending vertically 15 metres on which the
mill will be constructed, allowing gravity to facilitate processing.
Double-lined holding and tailings ponds will be constructed at the foot of
this slope and light construction industrial buildings erected for processing
the material.

 

Permitting and processing will be in three phases: (1) a simple gravity
separation plant for early results (2) a flotation process and (3) a
vat-contained leaching process for ultimate recoveries.  Engineering design
is virtually complete and being worked on by an independent reporting engineer
who will certify the plans in support of the permit applications to the state
authorities.  Because the mill is to be on private land, the primary
permitting authority will be the Nevada Department of Environmental Protection
rather than a federal agency.  It is anticipated that approvals for gravity
processing and flotation will be received earlier than permission for the
proposed vat-leaching process, which will be subject to closer environmental
scrutiny.

 

Under the terms of the agreement, Muletown will provide not only the land for
the mill but also virtually all the equipment required for processing mined
material.  GWMC will finance upgrading the milling equipment to operational
status, purchasing any additional equipment required and the third-party costs
of constructing the mill, ponds, portable buildings and necessary
infrastructure.  A capital expenditure budget of up to $600,000 will be
phased over the three stages of construction and implemented following receipt
of permits for each of the stages.  Timing of receipt of permits is beyond
the Company's control but it is unlikely that major expenditure will be
incurred during the remainder of this year.

 

The mill will process both Great Western's material and material from claims
owned by Muletown.  Processing will be in separate batches, charged to the
owner of the material by the joint venture at rates to be agreed, with the
precious metals produced from each batch belonging to the original owners of
the material and not to Western Milling.  Western Milling also aims to
process material acquired from third parties, anticipating that there will be
strong demand for the mill in the area, where no comparable facility exists at
present.

 

For further information:

 

 Great Western Mining Corporation PLC
 Brian Hall, Chairman                                                         +44 207 933 8780

 Max Williams, Finance                                                        +44 207 933 8780
 Director

 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                                                                +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 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.

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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