Company Announcements

8 February 2024

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Pilot Mountain Project: Significant Garnet Potential

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

Pilot Mountain hosts what the Company believes to be the largest undeveloped tungsten resource in the United States, with a Mineral Resource estimate ("MRE") of 12.53Mt at 0.27% WO₃ with significant copper-silver-zinc credits, published in 2018. Exploration work undertaken by the Company in 2023 identified five compelling target areas that show potential for significantly greater in-ground resources than currently stated.  Further information in this regard is available in the Company's announcement linked below:

https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-further-targets-identified/16005627

In addition to the advancements made regarding the Project's exploration potential, work has been undertaken to further the Company's understanding of the potential for a garnet industrial mineral resource at Pilot Mountain, which is the focus of this announcement.

HIGHLIGHTS

§ From technical review of historical drilling logs and metallurgical test reports (and the significant evidence of garnet composition homogeneity across mineralised intervals) it is demonstrated that the industrial mineral garnet comprises approximately 40% of the mineralised intervals across the known deposit areas (Desert Scheelite & Garnet).^1,2

§ Assuming approximately 40% garnet and based on the current MRE of 12,530,000t of mineralised material, Golden Metal considers that, subject to commissioning appropriate studies, a significant quantity of garnet likely exists at Pilot Mountain.

§ The historical studies report that the dominant form of industrial garnet at Pilot Mountain is the mineral species Andradite with a lesser proportion reported as being the Grossular garnet species ^1,2. A tonne of garnet imported into the USA in 2023 traded at an average price of USD $190 with domestic garnet trading at a premium price of $220 per tonne.³

§ The tungsten, copper, silver and zinc within the MRE is considered recoverable based on the metallurgical work previously completed on Pilot Mountain, however the industrial garnet potential was not previously considered.  Based on the work undertaken and the above data points, the contained garnet at Pilot Mountain could be very material to the overall economics of Pilot Mountain, subject to the completion of appropriate studies.

§ The Company is now seeking to appoint a garnet specialist to complete a detailed market and project specific analysis.

§ In additional, drill permits applications for Pilot Mountain are being finalised and will be submitted to the local Bureau of Land Management ("BLM") office shortly. Permits will cover a range of exploratory and infill drill pad locations.

Oliver Friesen, CEO of Golden Metal, commented: 

"I believe that Pilot Mountain has taken another significant, yet unexpected, step forward as the potential scale of the contained garnet and its potential impact on future Project economics is becoming apparent.

"Whilst it is the tungsten MRE and its potential scalability that excites us most about Pilot Mountain, especially given tungsten is on the United States critical minerals list, all recoverable materials have the potential to supplement future overall Project economics.

"The potential economic implications cannot be understated, not only because it could represent a fifth recoverable and saleable product from Pilot Mountain, but also for several other factors. Subject to commissioning appropriate studies, the Company considers it likely that the garnet could be recovered via gravity and/or magnetic separation methods prior to the grinding and flotation stages - therefore significantly decreasing the wear and tear on the overall processing circuit and therefore the potential operating costs.

"The findings to date are very positive, and we look forward to working with a garnet market specialist as we start the process of better understanding the broader implications the contained garnet has on the Project economics and on our business as a whole."

FURTHER INFORMATION

Industrial garnet is used in a wide array of industries including abrasive blasting, water-filtration media, water-jet-assisted cutting, in abrasive powders, nonslip coatings and sandpaper.³ The industries that are known consumers of industrial garnet include aircraft and motor vehicle manufacturers, ceramics and glass producers, electronic component manufacturers, filtration plants, glass polishing, petroleum industry, shipbuilders, textile stonewashing as well as wood-furniture finishing operations.³ The global abrasives market was valued at USD 35.5B in 2022 and is projected to grow at a CAGR of 4.5% from 2024 -2030.⁴

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.

REFERENCES

1              The Development of Separation Technology from the Pilot Mountain Tungsten Project, Nevada, USA (2013). Zhang, J., Liu, Jianguo., Liang, D., Hong, Q.

2              Report on Laboratory Test on W03-Cu-Zn Ore Samples from the Pilot Mountain Tungsten Project, USA (2019).

3              United States Geological Survey (USGS), Mineral Commodity Summaries 2024.

4              https://www.marknteladvisors.com/research-library/global-abrasives-market.html

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:

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 km² (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.

Garfield Project

The Garfield Project is an exciting copper-gold-silver prospect consisting of 65 lode mining claims covering 5.4 km² (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 km² (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 km² (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.