REG - Golden Metal Rsrcs. Power Metal - Golconda: Carlin-Type Gold Targets Identified

Power Metal ResourcesAnnouncement

31/05/2023 07:00

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RNS Number : 0876B  Golden Metal Resources PLC  31 May 2023

31 May 2023

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Golconda Summit Project: Carlin-Type Gold Targets Identified

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused
on tungsten, gold, copper and silver within Nevada, USA, is pleased to
announce exploration results from its Golconda Summit gold project
("Golconda", "Golconda Summit Project" or the "Project") located within the
prolific Walker Lane Mineral Belt in Nevada, USA.

Highlights:

-      Rock sampling results returned significant arsenic (As) anomalism
- the main alteration element associated with Carlin-type gold systems,
including:

 

o  11 of the 52 samples collected returned > 250ppm (or g/t) As, with an
impressive 6 returning > 500ppm As (which represents the upper limit for
the analytical method used); and

 

o  both samples collected near the "Trench Zone" returned >500ppm As, this
is located in the vicinity of historical trenches which yielded channel sample
assay results of 7.6m @ 19.7g/t gold (Au) and 15.2m @ 7.1g/t Au.(1)

 

-      Together these results further suggest the presence of a "feeder
zone" and therefore the possibility that a Carlin-type gold system may exist
within the Project at depth.

Oliver Friesen, CEO of Golden Metal, commented:

"Carlin-type gold systems represent globally important mineral deposits that
are found almost exclusively within northern Nevada. Because of this, when we
set out to build Golden Metal it was paramount to have an exciting Carlin-type
gold opportunity within the portfolio, therefore allowing UK investors to get
exposure to these very important gold systems.

"The results presented today give further support that a significant
Carlin-type gold system may be present within the Project. With this important
data now in hand we continue to work with our in-country geologist to develop
and refine drill targets at Golconda.

"We look forward to providing further updates from Golconda in due course, as
well as at our flagship Pilot Mountain Project where multiple technical and
commercial workstreams are moving forward in tandem."

Detailed Overview:

-      Detailed geological mapping and rock sampling has recently been
completed across the Golconda Summit Project, managed by Golden Metal's
(ex-Newmont) senior geological consultant. A total of 52 individual rock
samples were taken and detailed mapping of the easterly dipping Golconda
Thrust Fault ("Golconda Fault") was completed. This fault represents an
important conduit for mineralising fluid flow within northern Nevada.

 

-      Of the samples collected across the Project, 11 returned
>250ppm As, with 6 returning >500ppm As (which represents the upper
limit for the analytical method used).

 

-      Of the samples collected across the Golconda Fault, 6 returned
>250ppm As, with 2 returning >500ppm As, highlighting the strong
Carlin-type arsenic anomalism across this regionally important structural
feature. This area has been named the "Thrust Zone".

-       Previous exploration on the Project by the Nerco Mineral Company
is 1989 encountered significant gold mineralisation located within upper plate
Havallah Sequence rocks at the "Trench Zone", including surface mechanized
trenching channel sample assay results of 7.6m @ 19.7g/t gold (Au) and 15.2m @
7.1g/t Au.(1) Both samples collected near to this zone returned >500ppm As.

-       The presence of arsenic anomalism within the Trench and Thrust
Zones suggests the presence of a 'feeder zone' at Golconda. A feeder zone
would have allowed for carlin-type gold mineralisation to be remobilised from
lower plate rocks below. Both of these zones represent priority targets for
ongoing exploration at Golconda.

-       Golconda is located within the same host rocks (Havallah
Sequence upper plate rocks as well as lower plate Edna Mountain/Preble
Formation and Antler Peak Limestones) as the nearby multi-million-ounce
Turquoise Ridge, Lone Tree Complex, and Marigold gold mines (see Fig. 1).

Further Project Information

The Golconda Summit Project is underlain by a thrust faulted Palaeozoic
sedimentary sequence which has been transported eastward to its present-day
location along the major Golconda Thrust Fault. The preserved stratigraphic
section includes the Antler Peak Limestone, Edna Mountain Formation and the
Preble Formation (collectively "Lower Plate Rocks"), which are structurally
capped by the Havallah Sequence ("Upper Plate Rocks"). Previous work has been
primarily focused on surface anomalies within the Upper Plate Rocks, which are
not a known host of Carlin-type mineralisation within Nevada; despite this,
previous work by Nerco Mineral Company in 1989 encountered significant gold
mineralisation within Upper Plate Rocks including trench sample results of
7.6m @ 19.7/t Au and 15.2m @ 7.1g/t Au, as well as shallow drilling results of
10.7m @ 3.1g/t Au.(1)

These results were believed to be caused by fluids remobilising gold
mineralisation from favourable Lower Plate Rocks along sub-vertical and thrust
fault structures leading to redeposition in the Upper Plate Rocks found at
surface today. This hints at the significant potential that exists within the
virtually untested Lower Plate Rocks found across the Project, directly below
the Upper Plate Rocks. Most of the previous exploration at Golconda consisted
of shallow, vertical drill holes which were terminated short of the more
favourable Lower Plate Rocks. Only two holes penetrated through the Golconda
Thrust fault testing only a short section of the upper Edna Mountain
Formation.

The Antler Peak Limestone is a known host rock for both Carlin-type (Chimney
Creek Mine) and replacement-skarn deposits (Fortitude and Phoenix Mines), the
Edna Mountain Formation is the known host rock for the nearby Lone Tree Mine
(see Figure 1), and the Preble Formation is host to the nearby Preble Mine,
located less than 10km from the Project.

Using the newly acquired data, the Company is working with its in-State
geological team to further refine its drill targets at Golconda. Golden Metal
plans to be the first company to ever fully drill test the multiple
prospective Lower Plate Rocks including the Antler Peak limestone, Edna
Mountain and Preble Formations - all of which host Carlin-type gold deposits
in Northern Nevada.

Media

Full size images are also available at the link below:

https://www.goldenmetalresources.com/golconda-summit-exploration-update/

Figure 1 - Carlin-Trend Regional Map

 

Figure 2 - Golconda Summit Property Map

 

Figure 3 - GS125 (253ppm As) taken from a quartz-carbonate veined outcrop
along the Golconda Fault

Analysis

All rock samples were prepped and analysed at ALS USA Inc.'s laboratory in
Elko, Nevada. Assays were determined using the analytical package ME-MS41
comprising aqua regia digestion with super trace inductively coupled plasma
mass spectrometry (ICP-MS) analysis providing extremely low detection limits
for analysis of rocks. A total of 41 elements were reported as part of this
analysis. Gold determinations were completed using Au-AA23 which includes a
30g sample analysed via a Fire-Assay (FA) finish.

Property Ownership

Golden Metal holds an option to earn a 100% interest in the Golconda Summit
Project through its wholly-owned Nevada operating company, Golden Metal
Resources LLC.

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.

Reference Notes:

(1)Summary Report for the Golconda Summit Property Iron Point Mining District,
Humboldt County, Nevada; unpublished report prepared for Carlin Gold
Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006.

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

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
 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) (3,656.1 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.

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.

Garfield Project

The Garfield project is an early exploration stage copper, gold and silver
property consisting of 39 lode mining claims covering 3.23 km(2) (797.9 acres)
located in Mineral County, Nevada, approximately 14km due east of the town of
Hawthorne and 120km due west-northwest of Tonopah.

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.

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