TIDMGMET TIDMPOW
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 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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