REG - Golden Metal Rsrcs. Power Metal - Pilot Mountain: Significant Exploration Targets

Power Metal ResourcesAnnouncement

06/06/2023 07:00

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RNS Number : 7205B  Golden Metal Resources PLC  06 June 2023

6 June 2023

Golden Metal Resources plc

("Golden Metal" or the "Company")

Pilot Mountain Project: Geophysical Survey Uncovers Three Significant
Exploration Targets

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused
on tungsten, gold, copper and silver within Nevada, USA, is pleased to
announce a significant outcome from the interpretation of results from the
high-resolution induced polarisation ("IP") geophysics survey completed over
its 100% owned flagship Pilot Mountain Project ("Pilot Mountain" or the
"Project") located within the prolific Walker Lake Mineral Belt in Nevada,
USA.

Highlights:

-      Detailed analysis of the IP geophysics results have highlighted
the presence of three significant undrilled exploration targets (1- Desert
Scheelite Parallel West Zone; 2- Porphyry Depths Zone; and 3- Desert Scheelite
East Extension Zone; collectively the "Targets") which are highly prospective
for further tungsten ("W")-copper("Cu")-silver("Ag")-zinc("Zn")
mineralisation.

 

-      The Company considers that Pilot Mountain hosts the largest known
undeveloped tungsten resource in the USA (with the US currently without any
domestic primary tungsten production), and these newly identified targets
indicate the potential for a significantly greater in-ground resource than
currently known marking a significant uplift in Project potential.

 

-      Any increase in potential mineralisation will further bolster the
inherent value of the Project and its attractiveness as a target for
non-dilutive grant funding for Project exploration and development, which the
Company is actively working on at present.

Oliver Friesen, CEO of Golden Metal, commented:

"While it was the criticality and in-situ value of the W-Cu-Ag-Zn mineral
resource that originally attracted us to Pilot Mountain, our due diligence
highlighted considerable untapped exploration upside which is what ultimately
led us to acquire 100% of the Project back in November 2021.

"Review of all historical data available highlighted several conceptual
exploration targets, all of which lay under thin sand cover. As a result, we
set out to complete IP geophysics over these targets and the results now
received and presented herein have exceeded  our expectations with three
significant high-priority untested zones now successfully identified on our
flagship Project.

"The scale of the opportunity presented to us as 100% owners of this advanced
tungsten Project is large, and with these three new exploration targets now
identified the opportunity has grown significantly."

Detailed Overview:

1)    Desert Scheelite Parallel West Zone (Figure 1)

o  Mineralisation at Desert Scheelite ("DS"; Total Resource 10.7Mt @ 0.26%
WO(3), see Table 1) is hosted within a very well-defined resistivity low
(conductivity high) geophysical feature that is mapped for approx. 500m in a
generally east-west direction (see dark blue feature on Figure 1).

 

o  The 2023 IP geophysical results have led to the discovery of the Desert
Scheelite Parallel West Zone ("DSPW Zone") which is defined by a resistivity
low (conductivity high) with nearly identical geophysical characteristics to
DS. The DSPW Zone is located approx. 200m to the north/north-west of DS and
have never been drill tested. The 2023 IP results show that the DSPW Zone is
larger than the DS Zone, and if drilling successfully proves that the DSPW
Zone contains skarn-style W-Cu-Ag-Zn mineralisation, it would represent a
highly significant discovery at Pilot Mountain.

 

2)    Porphyry Depths Zone (Figure 2)

o  The Good Hope ("GH") and Desert Scheelite ("DS") Zones are located
approximately 1,400m apart. The area in between these two zones is blanketed
by a thin layer of post-mineral sedimentary and basaltic cover which
historically precluded effective exploration between these two zones (despite
both zones displaying very similar skarn-type alteration and
mineralisation).

 

o  The 2023 IP geophysical results have successfully highlighted a
significant geophysical feature which appears to broadly connect the DS and GH
zones at depth. This feature is defined by a resistivity and chargeability
high and as a result it is postulated that it is related to a porphyry
intrusion at depth. Skarn-type systems are ultimately spatially related to
porphyry mineral deposits at depth, and this newly identified geophysical zone
may represent the ultimate source of W-Cu-Ag-Zn mineralisation found across
the entire Pilot Mountain Project. As a result, the discovery of the Porphyry
Depths Zone ("PDZ")may represent a significant development at Pilot Mountain.

 

3)    Desert Scheelite East Extension Zone (Figure 3)

o  One of the furthest east historical drillholes completed at Desert
Scheelite returned some of the strongest copper and tungsten mineralisation
ever found at Pilot Mountain which includes 17.5m @ 1.8% Cu (incl.
sub-interval of 13.9m @ 0.89% W0(3)). Because of this, the previous operator
in 2013 completed a two dimensional IP survey across and to the east of Desert
Scheelite. The goal of this survey was to profile the eastern extension of
mineralisation from the main Desert Scheelite Zone.

 

o  Re-interpretation of these 2013 results by Golden Metal have clearly shown
that the mineralisation at Desert Scheelite (Total Resource 10.7Mt @ 0.26%
WO(3)) is strongly coincident with a resistivity low (conductivity high)
signature which corroborates with the 2023 IP results (see DSPW Zone writeup).
Review of the historical results highlight that the DS resistivity low
signature extends for an additional  circa 500m towards the southeast
(dipping under cover) where it remains untested by drilling. This similarly
represents a very high-priority exploration target for Golden Metal going
forward.

Further Project Information

Overview

The Pilot Mountain tungsten-copper-silver-zinc Project is located
approximately 200km southeast of Reno, in Nevada. Nevada ranked first in
overall mining investment attractiveness in the Fraser Institute 2022 annual
survey (1). The Project is located entirely on United States Bureau of Land
Management ("BLM") land - allowing for efficient and cost-effective
permitting.

The 3,656-acre Project is centred around four existing mineral deposits
including Garnet, Good Hope, Gunmetal and Desert Scheelite all which possess
significant skarn-style W-Cu-Ag-Zn mineralisation.

The Desert Scheelite and Garnet deposits host a combined Mineral Resource
Estimate (MRE) of 12.53Mt at 0.27% tungsten trioxide ("WO(3)") with
significant Cu-Ag-Zn credits (see Table 1). This in-ground resource is
believed to be the largest and most advanced undeveloped tungsten resource
located in the USA.

Table 1: Pilot Mountain Project Updated Mineral Resource Estimate, dated 13
December 2018 (2)

                          Resource   Tungsten Tri-Oxide                Silver                      Copper                      Zinc
                   Mt     Grade (%)  Contained metal (t)  Grade (g/t)  Cont. metal (t)  Grade (%)  Cont. metal (t)  Grade (%)  Cont. metal (t)
 Desert Scheelite  Ind.   9.01       0.26                 23,400       20.73            187        0.15             13,200     0.41             37,100
                   Inf.   1.69       0.25                 4,300        12.24            21         0.16             2,800      0.19             3,200
                   Total  10.7       0.26                 27,700       19.38            207        0.15             16,000     0.38             40,300
 Garnet            Ind.   0          0                    0
                   Inf.   1.83       0.36                 6,590
                   Total  1.83       0.36                 6,590
 Summary           Ind.   9.01       0.26                 23,400
                   Inf.   3.53       0.31                 10,890
 Total                    12.53      0.27                 34,290

Notes:         All figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.

·           Cut-off grade 0.15% WO₃

·           Garnet deposit resource reported 22 May 2017. Thor
Mining stated it is not aware of any information or data which would
materially affect this previously announced resource estimate, and all
assumptions and technical parameters relevant to the estimate remain
unchanged.

·           The estimates are considered by SRK Exploration
Services Limited to be non-compliant with the JORC Code (2012) reporting
standard due to insufficient disclosure of the technical and economic support
for the cut-off assumptions applied and are therefore viewed as historical.

Development Potential

There is currently no known domestic United States primary tungsten
production, and tungsten is classified as a strategic mineral by the United
States Geological Survey (USGS) (3). Set against this backdrop, the Pilot
Mountain Project is key strategic and defense metal deposit located on
American soil.

Potential production viability was reinforced with a scoping study (4)
commissioned by Thor Mining plc and completed in 2018 on the Project which
indicated the potential for an initial 12-year operational life based on
processing ore from an open pit at Desert Scheelite supplemented by potential
production from Garnet.

Furthermore, previous independent metallurgical testwork on 694kg of
mineralised rock from Pilot Mountain (5) highlighted strong metallurgical
results including the successful production of two saleable concentrates
(scheelite, and copper/silver) from a coarse grind treated by floatation or by
flotation and wet high-intensity magnetic separators ("WHIMS").

Shallow mineral resources at the Desert Scheelite and Garnet deposits may be
amenable to shallow open-cut mining methods (as modelled in the 2018 scoping
study) which would allow for rapid low-cost start-up costs.

Exploration Upside

The previous operator, Thor Mining plc, conducted a study which looked into
exploration potential at Pilot Mountain. Thor Mining's exploration targets
were broken into Tier 1 and Tier 2 targets for which a total Exploration
Target of 11.0 - 23.0Mt with an expected average grade of 0.3-0.5% WO(3) was
published (6) (see Table 2).

Table 2: Pilot Mountain Exploration Targets (stated by Thor Mining plc) (6)

 Target Type                Size (Mt)    Grade (WO3 %)  Description
 Tier 1 Targets             7-5 - 13.5   0.3 - 0.5      Based on historical drill intersections
 Tier 2 Targets             3.5 - 9.1    0.3 - 0.5      Based on favourable geology and proximity to known mineralisation
 Total Exploration Target*  11.0 - 23.0  0.3 - 0.5      Combined Tier 1 & 2

*Exploration Targets are conceptual in nature and there has been insufficient
exploration to define a Mineral Resource. It is uncertain if further
exploration will result in the determine of a Mineral Resource.

Considering the current Mineral Resource tonnage equates to 12.53Mt (2),
should the exploration targets postulated be converted to Resources they could
deliver a significant increase to the potential Pilot Mountain project value.
The IP geophysics results presented today have further corroborated and
supported the likelihood of proving up some of the Tier 1 and Tier 2 targets
published historically.

Media

High-resolution versions of the below three figures can be found at the link
below:

https://www.goldenmetalresources.com/pmgeophysical-survey/

Figure 1 - Desert Scheelite Parallel West (DSPW) Zone Resistivity Map. Eastern
resistivity low (conductivity high) or dark blue feature is strongly
coincident to W-Cu-Ag-Zn mineralisation found at the Desert Scheelite Zone
which hosts the majority of the in-ground resource at Pilot Mountain (10.7Mt
at 0.26% WO3). The sub-parallel, larger, dark blue zone (resistivity
low/conductivity high) represents the undrilled DSPW Zone.

Figure 2 - Resistivity and Chargeability Cross-Sections across Porphyry Depths
(PD) Zone. PD Zone is characterised by a slightly concave up resistivity and
chargeability high which broadly connects the Good Hope (GH) and Desert
Scheelite (DS) zones at depth.

 

Figure 3 - Desert Scheelite (East Extension) Target Zone. White lines
represent resistivity low (conductivity high) that extends from known
mineralisation at Desert Scheelite towards the east under cover where it has
never been drill tested.

 

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.

Reference Notes:

1:            Fraser Institute Annual Survey of Mining Companies,
2022, published 4 May 2023

 
(https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022
(https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022)
)

 

2:            Thor Mining PLC, regulatory news announcement,
'Increased Mineral Resource Estimate - Pilot Mountain Nevada USA', dated 13
December 2018

                (
https://wcsecure.weblink.com.au/LSE_news/2018/12/13/Thormining_14158543.pdf
(https://wcsecure.weblink.com.au/LSE_news/2018/12/13/Thormining_14158543.pdf)
)

 

2:            News announcement: 'The United States Geological
Survey has released a new list of 50 mineral commodities critical to the U.S.
economy and national security after an extensive multi-agency assessment', 22
February 2022

(
https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals
(https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals)
)

 

4:            Thor Mining PLC, regulatory news announcement,
'Twelve Year Open Pit Life for Desert Scheelite

Pilot Mountain Scoping Study', dated 7 September 2018

                (
https://wcsecure.weblink.com.au/LSE_news/2018/09/07/Thormining_14049369.pdf
(https://wcsecure.weblink.com.au/LSE_news/2018/09/07/Thormining_14049369.pdf)
)

5:            Unpublished metallurgical testwork report by
Guangzhou Research Institute of Nonferrous Metals commissioned by Black Fire
Minerals Ltd: 'The Development of Separation Technology from the Pilot,
Mountain Tungsten Project, Nevada, USA: Process Mineralogy Mineral processing
Preliminary Testing', dated 31 August 2013.

6:            Thor Mining PLC, regulatory news announcement,
'Development Plan Pilot Mountain Tungsten Project - Nevada USA', dated 1
December 2014

( https://wcsecure.weblink.com.au/LSE_news/2014/12/01/Thormining_13057433.pdf
(https://wcsecure.weblink.com.au/LSE_news/2014/12/01/Thormining_13057433.pdf)
)

 

 

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.

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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