REG - Golden Metal Rsrcs. - Pilot Mountain-Significant Interim Drill Update

Guardian Metal ResourcesAnnouncement

25/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240625:nRSY6782Ta&default-theme=true

RNS Number : 6782T  Golden Metal Resources PLC  25 June 2024

25 June 2024

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Pilot Mountain - Significant Interim Drill Update

Extensive Mineralisation in Hole 1 (Desert Scheelite) and Mineralised Porphyry
Intersected Through Entire Hole 2 (Porphyry South)

Golden Metal Resources plc* (LON:GMET, OTCQB:GMTLF), a strategic development
and mineral exploration company focused in Nevada, USA, is pleased to announce
a drilling update at the Company's 100% owned flagship Pilot Mountain Project
("Pilot Mountain" or the "Project") located within the prolific Walker Lane
Mineral Belt in Nevada, USA.

Drilling operations have been underway for over a month with two NQ diameter
diamond core drill holes completed for a total combined 547.6m from the
planned 2,000m programme. Details of findings in respect of visual
mineralisation and alteration observed in each completed hole are outlined
below, and the third hole is now underway. The first batch of laboratory assay
results are pending.

*Golden Metal is to change its name to Guardian Metal Resources plc. Formal
papers have been submitted and the name change confirmation is awaited from
Companies House. The Company will confirm when this process is complete. The
stock codes will remain as LON:GMET and OTXQB:GMTLF.

 

HIGHLIGHTS

Hole 1 - Desert Scheelite (PM24-001)

§ Drillhole PM24-001 was drilled near the central portion of the Desert
Scheelite zone and was designed to test for extensions of the deposit to the
north and south.

 

§ PM24-001 intersected observed scheelite (tungsten) mineralisation and skarn
alteration from 12.2m (immediately below overburden) to 42.8m as well as from
65m to 151.8m (the end of hole, finished in mineralisation). Extended
intervals within this hole were observed to be very strongly mineralised.

 

§ Subject to confirmatory assay results (which are pending), this hole has
the potential to expand the deposit footprint towards both the north and
south.

Hole 2 - Porphyry South (PM24-002)

§ Drillhole PM24-002 was completed to a final depth of 407.1m and was drilled
to test the Porphyry South magnetic anomaly. This hole represents the first
hole ever drilled into this target.

 

§ PM24-002 has successfully discovered a mineralised porphyry system and
intersected a quartz monzonite porphyry from immediately below overburden at
22m depth through to the final hole depth of 407.1m.

 

§ The Company is finalising arrangements with a porphyry expert to complete a
detailed review of PM24-002 in conjunction with all available Company
datasets. The results of this analysis will help guide subsequent drillholes
into Porphyry South which, based on the magnetic anomaly, stretches for at
least 1,200m in an east-west direction and greater than 500m north-south
representing a considerable target.

Oliver Friesen, CEO of Golden Metal, commented:

"I am extremely pleased to provide this interim drill update with our first
two holes testing separate targets and both delivering very exciting visual
results.

"PM24-001 has significant mineralisation/alteration observed over very large
intersections and ended in mineralisation.  Based on detailed drill core
review and utilising blacklight testing, strong scheelite (tungsten)
mineralisation has been identified and we look forward to the drill assay
results which are pending to confirm the tungsten grades from the 115 samples
submitted to the laboratory.

"Drillhole PM24-002 intersected a mineralised porphyry system throughout the
full extent of the hole from just below overburden at 22m to 407.1m (EOH),
which we consider to be a remarkable result considering this represents the
first drillhole ever completed into this target.

"Importantly, we have gone from geophysical concept, to geological
confirmation, giving the team further confidence in the other priority
porphyry and skarn-type targets areas our technical team has developed across
Pilot Mountain (1-Porphyry South, 2-Desert Scheelite Parallel West, 3-Porphyry
West) and Garfield (4-Power-Line, 5-High-Grade Zone).

"We will now bring in a porphyry expert to assist the team in further
reviewing drillhole PM24-002 as well as all existing data, to help guide
subsequent drillholes into Porphyry South.

"In the current planned 2,000m drill programme, which we expect will be
expanded given the positive findings to date, there are many holes remaining
and the drill rig has now moved to our next target area where drilling is
underway.

"The geophysical programme announced 11 June 2024 is also progressing well and
should be finished in the coming days with preliminary results to be received
by the Company shortly. We very much are looking forward to receiving further
drill programme and geophysical results and then disseminating to the market
as soon as possible."

DETAILED HOLE BREAKDOWN

PM24-001 (151.6m):

Drillhole PM24-001 was drilled near the central portion of the Desert
Scheelite zone and was designed to test for extensions of the deposit to the
north and south. Skarn-type alteration and visible scheelite mineralisation
was intersected from immediately below overburden from 12.2m to 42.8m as well
as from 65m to 151.8m end of hole (hole finished in mineralisation) including
extended intervals which were considered strongly mineralised.

Considering the expected zone of mineralisation as predicated by the 2018
Mineral Resource estimate block model and subject to laboratory assays
results, PM24-001 appears to have successfully increased the size of the
potential deposit footprint in multiple directions. In total 115 samples are
being tested at ALS Reno laboratory with assay results expected in the coming
weeks.

Figure 1*: Mineralised skarn sample intersected between 100.9m to 104.1m
within drillhole PM24-001.

 

Figure 2*: Under blacklight, mineralised skarn sample intersected between
100.9m to 104.1m within drillhole PM24-001 under blacklight highlighting
scheelite (CaW0(4)) mineralisation throughout (scheelite fluoresces
blue-white). For reference, the 337 foot block visible in the photo lines up
with the 102.7m block in Figure 1.

PM24-002 (407.1m):

PM24-002 was completed to a final depth of 407.1m and was drilled to test the
Porphyry South magnetic anomaly. Detailed logging is being finalised with core
cutting of the upper parts of the hole now underway.

The hole intersected a quartz monzonite porphyry from immediately below
overburden at 22m to the end of hole at 407.1m

Classic porphyry type veins are distributed throughout the hole with variable
intensity. The porphyry veins range between being tungsten (scheelite), pyrite
and molybdenite dominated with local chalcopyrite.

Vein selvedges are often very well defined with strong up to cm-scale
potassium feldspar selvedges indicating a high fluid temperature during
emplacement which suggests proximity to the main potassic core, where the
highest grades within a porphyry system are found.

The vein mineralisation and alteration observed is very encouraging
considering this represents the first ever drill hole completed into this
target.

Overall, the quartz monzonite alteration is defined by sericite, pyrite,
chlorite with lesser epidote locally with variable silicification and
pyritisation. This places the hole somewhere within the propylitic or phyllic
alteration halo.

Further details will be announced once  detailed logging is completed, as
well as further drilling plans into this now confirmed mineralised porphyry
system.

Figure 3*: PM24-002 drill core, quartz-calcite vein at 190.5m downhole with
abundant molybdenite and pyrite within a quartz monzonite porphyry. The vein
selvedge is strongly potassic altered with strong molybdenite mineralisation
noted in the vein selvedge (dark grey/blue specks).

 

Figure 4*: PM24-002 drill core, strong quartz-calcite veining at 224m downhole
with abundant molybdenite and pyrite (± chalcopyrite) as well as scheelite
within a quartz monzonite porphyry. The vein selvedge is strongly potassic
altered with strong molybdenite mineralisation noted in the vein selvedge
(dark grey specks). See figure 5 below of zoomed up area A.

 

Figure 5*: Under ultraviolet light PM24-002 drill core area A (see figure 4
above) highlighting scheelite (blue-white fluorescence) mineralisation.

 

 

 

 

 

 

 

Figure 6*: PM24-002 drill core, quartz-calcite vein at 103.6m downhole with
coarse grained molybdenite and pyrite along vein surface within a quartz
monzonite porphyry. The vein selvedge is strongly potassic altered.

 

Figure 7*: PM24-002 drill core, quartz-calcite vein at 335m downhole with
coarse grained molybdenite and pyrite (± chalcopyrite) along vein surface
within a quartz monzonite porphyry. The vein selvedge is very strongly
potassic altered.

 

 

 

Figure 8*: PM24-002 drill core, quartz-calcite vein at 399.5m downhole (near
EOH) with molybdenite and pyrite along vein surface within a quartz monzonite
porphyry. The vein selvedge is very strongly potassic altered.

*Photos are selective in nature and not necessarily representative of
mineralisation throughout the drill holes.

The original drillhole into Porphyry South (PM24-02) was drilled to a depth of
143.6m and then due to casing issues was restarted as drillhole PM24-02 which
was then completed to 407.1m depth. Therefore, a total of 550.7m has been
drilled into Porphyry South to date. Core from the first hole (PM24-02A) was
geologically logged but only full sampling will be completed of PM24-02.

PROPERTY OWNERSHIP

Golden Metal holds a 100% interest in the Pilot Mountain Project through its
wholly owned Nevada-based operating companies BFM Resources Inc and Pilot
Metals Inc.

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a
qualified geologist and acts as the Competent Person under the AIM Rules -
Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal
consultant working for Mining Analyst Consulting Ltd which has been retained
by Golden Metal Resources plc to provide technical support.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

For further information visit www.goldenmetalresources.com
(http://www.goldenmetalresources.com) or contact the following:

 Golden Metal Resources plc                   Tel: +44 (0) 20 7583 8304

 Oliver Friesen (CEO)
 Cairn Financial Advisers LLP                 Tel: +44 20 7213 0880

 Nominated Adviser

 Sandy Jamieson/Jo Turner/Louise O'Driscoll
 Shard Capital Partners LLP                   Tel: +44 (0) 20 7186 9000

 Lead Broker

 Damon Heath/Erik Woolgar
 First Equity Limited                         Tel: +44 20 7374 2212

 Broker

 Jonathan Brown/Jason Robertson

 

THE PROJECTS

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource
definition stage project located in Mineral County in western Nevada. The
project covers an area of 14.80 km(2) (3,904.1 acres) and is located 200km
southeast of Reno and 18km east of Mina, Nevada. It is well situated for
the supply of power, water and skilled labour and proximity to transport
infrastructure in Mineral County and is centred around four existing mineral
deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which
possess significant skarn-style tungsten-copper-silver-zinc
mineralisation. The Pilot Mountain project consists of 176 active lode
mining claims and 4 filed mill site claims. The four mill site claims filed at
the former Dunham mill site have secure access to groundwater supply
sufficient for the proposed project.

Garfield Project

The Garfield Project is an exciting copper-gold-silver prospect consisting of
65 lode mining claims covering 5.4 km(2) (1,338 acres) located in Mineral
County, Nevada, approximately 14km due east of the town of Hawthorne and
120km due west-northwest of Tonopah. Exploration to date has included
detailed geochemical sampling and follow up analysis which highlighted the
presence of both porphyry and skarn-type mineralisation and alteration at the
'High-Grade Zone'. Further to this, mapping, prospecting and rock sampling was
recently completed with results confirming presence of high-grade copper,
silver and gold mineralisation as well as leading to the bedrock discovery of
the Pamlico Au Zone with individual rock samples up to 18.35g/t Au, 1,225g/t
Ag & 1.89% Cu. Following this, geochemical analysis of the full suite of
data confirmed the strong presence of porphyry style mineralisation across the
Project, as well as potentially overprinting epithermal style mineralisation
leading to increased gold-silver prospectivity.

Kibby Basin Lithium Project

The Kibby Basin Project covers two claim packages which are prospective for
lithium brine mineralisation. The southern claim package is less than 250m
from a 2022 drillhole which returned a significant interval (169m) of lithium
brine mineralisation which was determined to be open in all directions. The
Project is less than 5km to the southeast of the Company's flagship Pilot
Mountain Project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held
under an earn-in right to acquire up to 100 per cent. of the project from the
mineral claim owner pursuant to an option agreement. The Golconda Summit
project is an exploration stage gold and silver project located in Humboldt
County and situated at the confluence of the Getchell and Battle
Mountain - Eureka metallogenic trends, and consists of 44 lode mining
claims, covering a total area of approximately 3.22 km(2) (795.4 acres)
located approximately 27km east of Winnemucca.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective
for epithermal gold-silver mineralisation. The property consists of 19 lode
mining claims covering 1.59 km(2) (392.5 acres) located on the northern flank
of Stonewall Mountain, on the western edge of the Nellis Airforce Range
Restricted Access Area, in Nye County, Nevada, approximately 24km south-east
of the historic gold mining town of Goldfield and 60km due south
of Tonopah.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLBCGDLRXDDGSS