TIDMGWMO
RNS Number : 9121U
Great Western Mining Corp. plc
03 April 2019
Great Western Mining Corporation PLC
("Great Western Mining", "GWM" or the "Company")
Final Results for the year ended 31 December 2018
Results Highlights
-- Loss for year EUR992,774 (2017: loss of EUR696,294)
-- Basic and diluted loss per share (cent): 0.002 (2017: 0.001)
-- Net Assets at Year End: EUR6.6 million (2017: EUR6.2 million)
Operational Highlights
-- 16% Upgrade in M2 JORC Resources
-- Further Significant Intersects from M2 Infill Drilling
-- Significant 43.0 metre discovery intersect at M4
-- Significant 27.4 metre discovery intersect at M1
-- 13.5% Increase in Land Position with addition of New Claims
-- New Chief Geologist Appointed
Chief Executive, David Fraser commented:
"2018 has been a year of good progress for Great Western
Mining's exploration activities in Nevada. Further significant
intersects were observed as part of the infill drill programme at
M2, with high readings of 2.59% copper and 1950ppb gold recorded.
The 2018 drill campaign also yielded very encouraging discovery
level intersects at both M1 and M4. In particular the Company is
excited about the continuous 43 metre copper bearing breccia vein
encountered at M4_05, as the Company believes that this vein, along
with others encountered at surface, could be offshoot structures in
the roof of a large buried sulphide ore body. Follow up drilling is
planned at M2 and M4 this Summer, subject to finalisation of our
drilling permit from the United States Forest Service. In
preparation the Company has planned an aggressive Spring field
campaign of geological mapping and sampling, commencing next week.
One objective of the campaign is to identify the best route to
return to the Sharktooth zone where operational problems were
encountered during drilling last year. This should enable the
Company to drill-test the anticipated source of the copper oxide
mineralisation at M2. As always Great Western Mining would like to
thank shareholders for their continuing support and will continue
the Company's commitment to providing updates as soon as relevant
information becomes available."
Note: ppb = parts per billion
Enquiries:
Great Western Mining +44 207 933 8795 (via Walbrook)
Corporation PLC
David Fraser, Chief
Executive
Davy (Nomad, Euronext
Growth Adviser & Joint
Broker)
John Frain +353 1 679 6363
Matthew de Vere White
Novum Securities Ltd
(Joint Broker)
Jon Belliss +44 207 399 9400
Walbrook PR (UK PR and +44 207 933 8795
IR) greatwesternmining@walbrookpr.com
Paul Cornelius
Nick Rome
Chairman's Statement
For the year ended 31 December 2018
Dear Shareholder,
Herewith Great Western Mining Corporation PLC's Annual Report
and audited financial statements for the year ended 31 December
2018. Great Western remains in an exploration phase and therefore
has no revenues beyond interest on cash balances, so is reporting a
loss of EUR992,774 (2017: EUR696,294). Net current assets at 31
December were EUR689,976 (2017: EUR2,766,308) and there has been no
significant change in the Group's financial position since the year
end.
During the 2018 work season we conducted an active drilling
programme on our claims in Mineral County, Nevada with encouraging
results. Also, during the year, we increased our acreage position
through acquiring strategically-interesting adjacent claims,
strengthened our in-house team by taking on an experienced Chief
Geologist and issued new shares for cash to help fund our
programme. Costs are tightly controlled to ensure as far as
possible that shareholders' funds are invested in exploration and
appraisal rather than in overhead burn.
We believe that we have huge mineral potential in Nevada, but we
are operating at high altitude in mountainous terrain with a
relatively short annual weather window for drilling which means
that our operations have to be carefully planned. We have already
established a significant copper resource and we need to increase
this considerably to achieve the potential for a commercial mining
operation which will attract a major industry partner to assist
with large scale development. On our M2 prospect, where we have
done most of our drilling so far, the key to increasing our
resources by an order of magnitude appears to lie in the Sharktooth
location. If successful, this should have the effect of linking two
identified copper zones, thus creating a significant and continuous
combined resource of considerable size. However, during 2018 our
drilling attempts at Sharktooth were not successful in reaching the
target and we are now back to the drawing board and planning a
different type of drilling programme. Frontier exploration often
comes with disappointments but in this case the problems were
operational, which can be overcome, rather than geological and the
potential of the target remains as strong as ever.
As well as our large-scale copper prospects, we believe we have
potential for commercially-recoverable precious metals, gold and
silver, on our acreage. There are several long-abandoned gold mines
within our claim areas and modern technology offers the possibility
of re-entering these selectively and recovering commercial
quantities of gold. We are currently working on the feasibility of
doing this and are appraising suitable locations.
Great Western's shares are listed on AIM in London and the
Euronext Growth market of Euronext Dublin. Euronext has recently
acquired the Irish Stock Exchange and we welcome participation in
this broader, European platform, for trading in our shares.
Since the year end, we have re-launched our website and we hope
you will find the new format useful, user-friendly and informative.
We have a busy operation and our aim, as ever, is to update you
promptly whenever we have anything significant to report.
This year's AGM will be held in Dublin on 16 May 2019 when we
look forward to meeting as many of you as possible. The Board will
be available to answer questions.
Finally, thank you most sincerely for your continuing
support.
Yours truly,
Brian Hall
Chairman
Chief Executive's Report
For the year ended 31 December 2018
Principal activities, strategy and business model
The principal activity of the Group is to explore for and
develop mineral resources, with a focus on copper, gold and silver.
The Board seeks to increase shareholder value by the systematic
evaluation of its existing assets in Mineral County, Nevada,
USA.
The Group's strategy and business model is developed by the
Chief Executive Officer and is approved by the Board. The executive
directors who report to the Board are responsible for implementing
the strategy and managing the business.
The Group's primary strategy is to advance copper projects that
have potential for the discovery of large mineralised systems
through the various stages of exploration and development with a
view to monetising one or more of those projects, whether through
an outright sale, joint venture, or spin-out via a public offering,
within a three to five-year period.
In tandem with this primary strategy the Group seeks to develop
smaller scale and shorter-term gold and silver projects which have
the potential to be taken beyond the development stage and brought
into early production under the control of the Group.
Business development and performance
During the twelve months ended 31 December 2018, Great Western
successfully advanced exploration across its portfolio of six 100%
owned claims groups in Nevada. Most notably, Great Western's
drilling campaigns at the M2, M4 and M1 projects returned some
excellent results. Discovery intersects were achieved at both M4
and M1. M4 established 43 metres of 0.24% copper from 106.2 metres,
including 1.8 metres of 0.74% copper from 121 metres. M1
established 27.4 metres of 0.35% copper from 35.1 metres, including
7.6 metres of 0.7% copper from 36.6 metres. Anomalous intersects
were found in all eight infill bore holes drilled at M2, with
significant intercepts above 0.1% copper and 100 ppb gold
discovered in five out of the eight holes. High readings of 2.59%
copper from 193.5 metres and 292 ppb gold from 192 metres were
found in hole M2-034. Hole M2-039 revealed 1.49% copper from 195
metres and 1950 ppb gold from 195 metres.
The Group has so far been less successful with its drill
programme on the M2-Sharktooth target. Two relatively deep holes
that were planned to intercept the diorite zone beneath the
Sharktooth peak down dip from the current oxide copper resource had
to be abandoned without reaching the diorite target. This was due
to very hard but fractured ground causing extremely difficult
drilling conditions. However, assay results from a depth of 486.5
metres in hole M2-041 in the caprock above the diorite target zone
yielded results of 1.68 metres of 0.55% copper, providing an
encouraging indicator for the diorite host rock below.
During the period a JORC (2012) compliant "Report of Mineral
Resources Modelling" at the company's M2 project was delivered by
independent consulting geologists WT Cohan & Associates of
Grand Junction, Colorado, USA. The report can be reviewed on the
company website. The report estimated Indicated and Inferred
resources of 4.3 million tonnes of 0.45% copper at a cut-off grade
of 0.2% copper, resulting in 19,000 tonnes of contained copper.
This was an approximate 16% increase in mineral resources from the
2014 maiden JORC resource produced by independent consultant Don
Strachan and represents an upgrade to "Indicated" for 1.53 million
tonnes of this resource.
In July 2018 the Group increased its land position with the
addition of 66 claims adjacent to the Black Mountain group of
claims and 32 claims to the JS Group. These new claims, in
conjunction with the 10 new claims added to the EM Group at the
turn of 2018, have increased the overall land position held by
Great Western in Mineral County, Nevada by approximately 13.5% to
996 full and fractional unpatented claims, covering a total land
area of approximately 83.5 square kilometres.
In October 2018 the senior management team of the Group was
strengthened with the appointment of a new Chief Geologist, Bill
Cooper. Bill is an experienced mining geologist whose career has
covered near mine site exploration, underground production geology,
open pit production geology, resource definition drilling and
planning and resource estimation. He holds a MSc in Mining Geology
from the Camborne School of Mines and his affiliations include
membership of the Australian Institute of Geoscientists (MAIG) and
a Fellowship of the Geological Society of London (FGS). Bill has a
wide experience of commodity and deposit types, with particular
expertise in copper and gold.
In July 2018 the Group raised a total of GBP1,001,000
(EUR1,126,555) in new share capital before expenses through the
placing of new Ordinary Shares. The net proceeds from the placing
were allocated to the 2018 drilling and exploration programme and
to treasury for general working capital purposes. At the end of the
year the Group's net cash position was EUR884,452 (2017:
EUR2,678,276).
Review by Project
The Black Mountain Group of Claims
The Black Mountain Group lies on the south-west trending spur
ridge of the Excelsior Range of mountains and comprises 247 full
and 5 fractional claims covering approximately 21 km(2) in
total.
The M2 Copper-Gold Project lies within the Black Mountain Group
and during the year received an increase in estimated Indicated and
Inferred Mineral Resource, independently prepared in accordance
with JORC guidelines. At a 0.2% cut-off grade, the current total
resource is 4.3 million tonnes of 0.45% copper for 19 thousand
tonnes of contained copper metal. The M2 project is open down dip
towards the south-east, and along strike both north-east and
south-west.
During 2018 eight Reverse Circulation ("RC") bore holes were
drilled at M2, all encountering anomalous copper and gold
intersects. High readings of 2.59% copper from 193.5 metres were
encountered in hole M2-034, and 1950 ppb gold from 195 metres in
hole M2-039.
The M2 Sharktooth Target is a deeply buried zone within the
diorite, down dip from the current M2 oxide copper resource. Two
diamond core holes were drilled in 2018, following earlier RC holes
M2-025 and M2-026. The target could potentially extend the current
M2 Resource a further 500m along strike, and 500m down dip. The
target thickness could range from 10m to 100m.The total target zone
covers an area of approximately 2.5km(2) , which could potentially
host a deposit in the range of 15MT to 200MT.
The Mineral Jackpot Prospect ("M3") lies within the Black
Mountain Group. Detailed geological mapping carried out during 2018
indicates the presence of mineralised sheeted quartz veins in host
granite, prospective for narrow vein, high grade precious metals.
Grab sampling of spoil dumps from former workings carried out in
2015 yielded results of 5.6 g/t Au and 19.1 g/t Au. Historic
geological report points to at least 7 subparallel lodes,
prospective for Au-Ag-U mineralization in both the quartz veining,
and the surrounding altered vein selvedge, and historical
production has left numerous residual shafts and adits covering an
area of approximately 0.5km(2) .
Further detailed mapping and soil sampling is planned at M3 and
at the newly added claims containing the adjacent Silver Moon and
Silver Bell historic gold/silver mines. The Group considers that
the area could be one large structure.
The Huntoon Group of Claims
The Huntoon Group is located on the north-west side of the
Huntoon Valley and comprises 164 full and 12 fractional claims
covering an area of approximately 15 km(2) in total. The claims
surround the workings of the historic underground Huntoon mine.
The M1 Copper-Gold Project lies within the Huntoon Group. An
extensive soil sampling programme at M1 has indicated the presence
of both copper and gold mineralisation. In 2018 a single RC hole
was drilled which was designed to test the strong copper anomaly
detected in the soil sampling. The best result was 27.4m @ 0.35% Cu
from 35.1m, including 7.6m @ 0.70% Cu from 36.6m.
Grade-thicknesses, along with host lithologies, bear many
similarities to the mineralisation seen at M2.
The JS Group of Claims
The M4 Copper-Gold Project lies within the JS Group. The M4
copper target was identified through geophysical surveys, soil
sampling and mapping of mineralised veins on surface. Three diamond
holes were drilled in 2018 to test beneath outcrops of cupriferous
vein and silicic alteration. One hole, M4_005, hit a large
quartz-copper breccia vein at 106.2 metres. The intercept comprised
43.0m @ 0.24% Cu, including 1.8m @ 0.74% Cu from 121 metres. The
breccia vein, with an assumed attitude of NNW-SSE, is open along
strike and down dip following the trend of the limestone-sediment
contact. Desk top analysis in 2018 of ASTER and IP studies strongly
suggest the presence of metal sulphides at depth beneath a silica
cap. The Group believes that the breccia vein intercepted at M4_05,
along with the other veins mapped at surface, could be offshoot
structures in the roof of a buried sulphide ore body.
In December 2018 the Group submitted a 2019 drill permit
application to follow up on the exciting discovery in hole M4_05.
The application is on schedule for approval in May 2019.
The M5 Gold Prospect lies within the JS Group. The M5 prospect
is in altered siliceous host rock, exposed beneath caprock for one
square kilometre north and east of M5. Gold (Au), Arsenic (As) and
Antimony (Sb) were all anomalous in samples taken along the
north-easterly crest of the central ridge at M5. Gold (Au) was
consistently anomalous with two samples in the 740 ppb Au range.
Arsenic (As) and Antimony (Sb) were also anomalous, with highs of
1,736 ppm As and 51 ppm Sb. This coincidence of geochemistry and
altered sediments strongly suggests Carlin-type disseminated gold
mineralisation.
The EM Group of Claims
The M8 Copper Prospect lies within the EM Group. M8 contains the
historic Eastside Mine ("Eastside"), where high grade oxide copper
ores were mined from shallow underground workings during the First
World War. Conoco investigated Eastside as a copper porphyry
prospect in the early 1970s, identifying mineralisation consisting
of substantial copper and molybdenum values. The Group undertook
various desktop studies in 2018 in conjunction with further field
exploration and this highlighted the historical north-east trending
mineral workings at the Eastside Mine, which indicate a substantial
mineralisation event. The trend of the workings parallels regional
scale normal faulting. Photo imagery indicates the presence of
crosscutting WNW-ESE strike slip faults, where the junctions
between the opposing fault trends provide prospective traps for
mineralisation. A detailed geological mapping and sampling
programme is planned for 2019.
The Tun Group of Claims
The M6 Gold-Silver Prospect lies within the Tun Group. The M6
prospect is a parallel system of multiple, oxide and sulphide,
gold-silver veins and veinlet stockworks. Relatively small tonnages
of supergene, multi-ounce, high-grade, bonanza-style ores have been
mined in the past at M6. However, the potential remains for
moderate-sized deposits of shallow, oxidized stockworks and veins
and deeper sulphide ores in the immediate vicinity of the historic
M6 workings. Gold value from previous sampling varied from 4,147
ppb Au to 9,839 ppb Au. Silver varied from 337 ppm Ag to 757 ppm
Ag, while Arsenic (As) and Antimony (Sb) were also strongly
anomalous. During 2018 the Group conducted desk-top studies on M6,
which has been identified as a high priority target for field
exploration in 2019, when a detailed mapping and sampling programme
is planned.
The RH Group of Claims
The M7 Silver Prospect lies within the RH Group. M7 is a
circular lineament associated with a magnetic low which occurs
adjacent and immediately south of the Golconda thrust fault, a
major structural feature spanning the length of Nevada. The area is
characterised by intense argillic and sericitic alteration, strong
silification and iron oxides. The anomalous area is contained
within a circular feature with a diameter of 1800 metres. The area
is considered very prospective for Candalaria type mineralisation,
and a detailed mapping and sampling programme is planned for
2019.
Main trends and factors likely to impact future business
performance
The Group considers the general commodity cycle to be the key
trend and factor that is likely to impact future business
performance. Commodity prices have generally improved from a low
point in early 2016, but prices for many commodities have recently
fallen, in particular copper, in the second half of 2018. The Board
maintains a longer-term positive outlook for copper price
fundamentals because:
-- Global mine supply remains constrained - declining grade and
continued project deferrals forecast going forward
-- Further demand growth upside forecast through electric vehicles, renewable energy and infrastructure investment
-- Future base demand will not be met without significant
investment - these investments take time to come to market
Forward to 2019
2019 promises to be a busy and exciting year for Great Western
Mining and in preparation for the recommencement of drilling, the
Group has planned an aggressive Spring field campaign of geological
mapping and sampling commencing at the beginning of April. In the
Summer a drill programme on M4 is planned to follow up on the
successful results of 2018, while at M2 the objective of the Spring
campaign is to identify the best route to return to the Sharktooth
target and drill-test the source of the copper oxides at M2.
David Fraser
Chief Executive Officer
Consolidated Income Statement
For the year ended 31 December 2018
Notes 2018 2017
EUR EUR
Administrative expenses (995,260) (707,241)
Finance income 4 2,486 10,947
------------------------------------- ------ ------------------------ -----------------
Loss for the year before tax 5 (992,774) (696,294)
Income tax expense 7 - -
------------------------------------ ------ ------------------------ -----------------
Loss for the financial year (992,774) (696,294)
Loss attributable to:
Equity holders of the Company (992,774) (696,294)
===================================== ====== ======================== =================
Earnings per share from continuing
operations
Basic and diluted loss per share
(cent) 8 (0.002) (0.001)
------------------------------------- ------ ------------------------ -----------------
Consolidated Statement of Other Comprehensive Income
For the year ended 31 December 2018
2018 2017
EUR EUR
Loss for the financial year (992,774) (696,294)
Other comprehensive income
Items that are or may be reclassified
to profit or loss: 140,736 (404,604)
------------------------------------------ ---------- -------------------
Currency translation differences 140,736 (404,604)
Total comprehensive expense for
the financial year
attributable to equity holders
of the Company (852,038) (1,100,898)
========================================== ========== ===================
Consolidated Statement of Financial Position
For the year ended 31 December 2018
Notes 2018 2017
EUR EUR
Assets
Non-current assets
Intangible assets 10 5,888,165 3,424,504
-------------------------------- ------ ----------------- ------------------
Total non-current assets 5,888,165 3,424,504
Current assets
Trade and other receivables 11 123,174 154,902
Cash and cash equivalents 12 884,452 2,678,276
-------------------------------- ------ ----------------- ------------------
Total current assets 1,007,626 2,833,178
Total assets 6,895,791 6,257,682
================================ ====== ================= ==================
Equity
Capital and reserves
Share capital 14 67,767 2,681,023
Share premium 14 9,491,437 8,328,238
Share based payment reserve 15 279,739 218,200
Foreign currency translation
reserve 446,851 306,115
Retained earnings (3,707,653) (5,342,764)
-------------------------------- ------ ----------------- ------------------
Attributable to owners of the
Company 6,578,141 6,190,812
Total equity 6,578,141 6,190,812
Liabilities
Current liabilities
Trade and other payables 13 317,650 66,870
-------------------------------- ------ ----------------- ------------------
Total current liabilities 317,650 66,870
Total liabilities 317,650 66,870
Total equity and liabilities 6,895,791 6,257,682
================================ ====== ================= ==================
Consolidated Statement of Changes in Equity
For the year ended 31 December 2018
Share Foreign
based currency
Share Share payment translation Retained
capital premium reserve reserve earnings Total
EUR EUR EUR EUR EUR EUR
Balance at 1
January 2017 2,660,738 5,173,692 44,448 710,719 (4,324,615) 4,264,982
Comprehensive
income for the
year
Loss for the
year - - - - (696,294) (696,294)
Currency
translation
differences - - - (404,604) - (404,604)
---------------- ---------------------- ---------------------- -------------------------- ---------------------- ------------------------------ ---------------------------
Total
comprehensive
income for
the year - - - (404,604) (696,294) (1,100,898)
Transactions
with owners,
recorded
directly in
equity
Shares issued 20,285 3,154,546 - - (225,908) 2,948,923
Share warrants
granted - - 95,947 - (95,947) -
Share options
granted - - 77,805 - - 77,805
---------------- ---------------------- ---------------------- -------------------------- ---------------------- ------------------------------ ---------------------------
Total
transactions
with owners,
recorded
directly in
equity 20,285 3,154,546 173,752 - (321,855) 3,026,728
Balance at 31
December 2017 2,681,023 8,328,238 218,200 306,115 (5,342,764) 6,190,812
================ ====================== ====================== ========================== ====================== ============================== ===========================
Balance at 1
January 2018 2,681,023 8,328,238 218,200 306,115 (5,342,764) 6,190,812
Comprehensive
income for the
year
Loss for the
year - - - - (992,774) (992,774)
Currency
translation
differences - - - 140,736 - 140,736
---------------- ---------------------- ---------------------- -------------------------- ---------------------- ------------------------------ ---------------------------
Total
comprehensive
income for
the year - - - 140,736 (992,774) (852,038)
Transactions
with owners,
recorded
directly in
equity
Shares issued 8,500 1,163,199 - - (78,859) 1,092,840
Share warrants
charge - - 23,554 - (23,554) -
Share warrants
exercised - - (108,542) - 108,542 -
Share options
charge - - 152,421 - - 152,421
Share options
cancelled - - (5,894) - - (5,894)
Cancellation of
deferred share
capital (2,621,756) - - - 2,621,756 -
---------------- ---------------------- ---------------------- -------------------------- ---------------------- ------------------------------ ---------------------------
Total
transactions
with owners,
recorded
directly in
equity (2,613,256) 1,163,199 61,539 - 2,627,885 1,239,367
Balance at 31
December 2018 67,767 9,491,437 279,739 446,851 (3,707,653) 6,578,141
================ ====================== ====================== ========================== ====================== ============================== ===========================
Consolidated Statement of Cash Flows
For the year ended 31 December 2018
Notes 2018 2017
EUR EUR
Cash flows from operating activities
Loss for the year (992,774) (696,294)
Adjustments for:
Interest receivable and similar
income 4 (2,486) (10,947)
Movement in trade and other receivables 31,728 (26,054)
Movement in trade and other payables 250,780 (5,564)
Equity settled share-based payment 15 152,421 77,805
Equity settled share-based cancelled 15 (5,894) -
------------------------------------------ ------ ------------------ ------------------------
Net cash flows from operating
activities (566,225) (661,054)
Cash flow from investing activities
Expenditure on intangible assets 10 (2,322,116) (307,480)
Interest received 4 2,486 10,947
------------------------------------------ ------ ------------------ ------------------------
Net cash from investing activities (2,319,630) (296,533)
Cash flow from financing activities
Proceeds from the issue of new
shares 14 1,126,555 3,008,205
Proceeds from the exercise of
warrants 14 - 166,626
Proceeds from the exercise of
share options 14 45,144 -
Commission paid from the issue
of new shares 14 (78,859) (225,908)
------------------------------------------ ------ ------------------ ------------------------
Net cash from financing activities 1,092,840 2,948,923
Increase/(decrease) in cash and
cash equivalents (1,793,015) 1,991,336
Exchange rate adjustment on cash
and cash equivalents (809) (25,333)
Cash and cash equivalents at
beginning of the year 12 2,678,276 712,273
Cash and cash equivalents at
end of the year 12 884,452 2,678,276
========================================== ====== ================== ========================
Notes to the Financial Statements PDF link:
http://www.rns-pdf.londonstockexchange.com/rns/9121U_1-2019-4-2.pdf
This information is provided by RNS, the news service of the
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