REG - Great Western Mining - Project Updates & Current Year Plans

Great Western MiningAnnouncement

12/01/2022 07:00

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RNS Number : 1123Y  Great Western Mining Corp. plc  12 January 2022

GREAT WESTERN MINING CORPORATION PLC

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

 

 

PROJECT UPDATES & CURRENT YEAR PLANS

 

Great Western Mining Corporation PLC (AIM - GWMO, Euronext Growth - 8GW),
which is exploring and developing gold, silver and copper targets in Nevada,
is pleased to provide the following update on the current status of its
projects and outlines its plans for 2022.

 

HIGHLIGHTS

·    Strong cash position

·    Drilling contract signed for spring start-up at Olympic Gold and Rock
House

·    Road upgrade will open up Mineral Jackpot for both drilling and spoil
heap recovery

·    Survey results at Eastside Mine (EM Group) reveal exciting copper
potential

·    Volume calculation reported for gold tailings at OMCO Mine

·    Project planning for precious metals secondary recovery on track

 

 

Great Western Chairman Brian Hall commented:  "We anticipate a busy and
productive year for Great Western on all fronts at an exciting time in the
Company's development.  We have a broad range of excellent prospects for both
precious and base metals, a first-class team in place to follow through on
them and the funding to go to the next stage.  At the time of writing our
prospects are under deep snow during a severe winter but, in the spring, field
operations will recommence in earnest and we will be ready for that.  We will
publish updates and keep shareholders informed."

 

 

FINANCIAL STATUS

 

Great Western started 2022 with net cash of €2,042,534 (£1,716,301)
(unaudited) and no debt beyond payables arising in the normal course of
business. This will enable the Company to pursue an active programme in 2022
across its large portfolio of assets in Nevada.

 

EXPLORATION AND APPRAISAL

 

DRILLING - CONTRACT SIGNED

 

A contract has been signed for a 2022 reverse circulation (RC) drill
programme, with start-up intended as soon as ground conditions allow.  It is
estimated that this will be early spring 2022.

 

DRILLING - TARGETS

 

The Company is prioritising follow-up drilling at both the Rock House Group
and the Olympic Gold Project, at both of which regulatory permits have already
been secured.

 

High gold grades were encountered last year at both the shallow zone to the
south of the Trafalgar Hill prospect (Olympic Gold) and at the Southern
Alteration Zone (Rock House Group).

 

Around the former OMCO Mine (Olympic Gold) the search for a continuation of
the prolific Olympic vein has already confirmed continuity of mineralisation
and drilling will target direct extensions to the OMCO vein together with
adjoining leads.

 

Other drill locations for 2022 with high potential include the Mineral Jackpot
group and the M4 copper prospect.

 

GEOPHYSICS - EM GROUP

 

In late 2021 the Company conducted an Induced Polarity (IP) survey over its
claims in the Eastside Mine area copper prospect (EM Group) and initial
evaluation has identified two main-faulted graben structures.

 

Both fault zones are accompanied by high resistivity and chargeability
features which correlate with veining and copper mineralisation previously
observed at surface.

 

Evaluation is still in progress but results are very encouraging and an
announcement will be made once the IP survey results analysis is complete.

 

GEOPHYSICS - DRONE SURVEYS

 

In 2020 and 2021 Great Western carried out extensive surveys with man-portable
magnetometer units, producing excellent new datasets.  Some of the claims,
however, are not easily accessible on foot and the Company has secured a
'Drone' contractor to carry out aerial surveys over parts of Mineral Jackpot,
in the Huntoon Valley and at the TUN Group.

 

 

PROCESSING OF PRECIOUS METALS FROM PRE-MINED MATERIAL

 

Great Western has identified 51 spoil heaps at Mineral Jackpot and extensive
gold tailings heaps at the abandoned OMCO Mine (Olympic Gold), while other
possible spoil heap locations are under review, including in the Huntoon
Valley.

 

A combination of the Mineral Jackpot spoil material and the OMCO Mine gold
tailings offers exciting potential for generation of commercial revenues in
parallel with work on the Company's multiple exploration prospects which it
believes offer significant upside for shareholders.

 

MINERAL JACKPOT ACCESS

 

In December 2020 Great Western successfully produced a small doré bar of gold
and silver and established the potential for recovery of precious metals from
multiple spoil heaps at Mineral Jackpot. Spoil heap material was also analysed
at a laboratory in the UK, and a provisional plan drawn up for a simple
gravity separation plant to produce commercial quantities of gold and silver
concentrate.

 

The mountainous nature of the terrain and limited access have so far proved a
barrier to both commercial exploitation and appraisal drilling with modern
plant and machinery.  A decision has therefore now been taken to upgrade the
14km road which links Mineral Jackpot directly to the Great Western base at
Marietta in the valley and a contractor appointed.  This significant
upgrading will not only enable spoil material to be transported in bulk off
the mountain for processing but also facilitate access for drilling
operations.  Permits for the road upgrade have already been secured.

 

OMCO MINE TAILINGS (Olympic Gold)

 

In 2021 extensive gold tailings heaps at the abandoned OMCO Mine site on the
Olympic Gold project were identified. It quickly became apparent that this
material had only previously been subjected to a simple flotation process,
many decades ago, and that reprocessing these tailings via leaching would
represent an excellent opportunity.

 

Late in the year 12 holes were drilled into the tailings heaps and in December
the Company announced the assay results indicating average grades of gold at
1.25 g/t.  The hole depths measured have since been used to appraise the
volume calculation for material available for processing, now thought to be in
a range of 25,000 to 31,000 cubic metres.

 

An accurate gold recovery estimate for the tailings  will depend on a
detailed density survey and a formal JORC-compliant resource report.  For
planning purposes, however, there is a high enough level of confidence in the
potential recoverability of gold to be able to proceed with the project.

 

NEXT STAGES

 

A combination of the Mineral Jackpot spoil material and the OMCO tailings
greatly enhances the potential for secondary recovery of precious metals from
Great Western's properties, but also makes for a larger-scale project which is
now under detailed evaluation for optimum recoveries and for which external
financing may be sought rather than depending solely on shareholder funds.

 

Work is underway on a definitive plan, with a view to initiating a development
project as early as possible in 2022.

 

 

COPPER POTENTIAL

 

At M2 in the Black Mountain claims group, where substantial additional
potential is thought to be present, Great Western has already established an
Inferred Resource of 4.28 million tonnes at 0.45% Cu and is actively seeking a
partner or partners of sufficient size and capability to help expand this
copper resource to the next stage.

 

The encouraging results of the IP survey at the EM Group in late 2021
represent another strong copper target and should enhance the potential for
acquiring industry partners.

 

 

 

PLANS FOR 2022

 

In 2022 Great Western plans to:

 

·    Continue drilling at Olympic Gold, initially to track potential veins
in the shallow area at Trafalgar Hill as a follow on to the high gold grades
established in 2021

·    Drill at Rock House (RH Group) to follow up the high gold grades
established last year in the Southern Alteration Zone (SAZ)

·    Continue the hunt for an extension of the OMCO Mine vein to the east
of a north-south fault

·    Drill at Mineral Jackpot when access has been upgraded

·    Complete aerial surveys over Mineral Jackpot, the TUN Group and the
Huntoon Valley

·    Finalise plans for a commercial recovery project for pre-mined
material and initiate a project

·    Secure partners for developing the Company's copper potential

 

These plans may be varied or expanded depending on results and changing
circumstances.

 

Qualified Person Statement: 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, and to the activity which he is
undertaking, to qualify as a "Competent Person" as defined in the 2012 Edition
of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. 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.

Abuse Regulations.

 

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)

 John Frain                                                                                                               +353 1 679 6363

 Novum Securities (Joint Broker)

 Jon Belliss                                                                                                              +44 207 399 9400

 Walbrook PR (PR advisers)

 Nick Rome/Nicholas                                                                                                       +44 207 933 8783
 Johnson

 

 

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.

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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