Kibby Basin Lithium Update

Golden Metal Resources PLC

16 February 2024

 

16 February 2024

Golden Metal Resources plc

("Golden Metal" or the "Company")

Kibby Basin Lithium Update

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, lithium, gold, copper and silver within Nevada, USA, is pleased to announce an update from its Kibby North and Kibby South lithium brine properties (collectively the "Lithium Properties") located in mining friendly Nevada, USA (see Figure 1).

The Company's technical team has completed a further review (the "Review") of the available historical datasets together with liaison with multiple groups who have conducted work on the nearby third party held lithium claims (see Figure 2 below; grey square outline) leading to significant findings regarding the Lithium Properties, which are detailed below.  

Highlights:

-      The strong lithium mineralisation encountered in both brines and clays in Marquee drillhole KM22-02, located only 250m from Golden Metal's Kibby South Licence boundary (see Figure 2 below), was intersected above the main geophysical conductive (low resistivity <2 Ohm.m) brine aquifer linked anomaly.^1,2

-      Further work undertaken has shown that the main target conductor was never adequately tested by KM22-02 (due to drilling rig limitations for the then operator). This conductor is believed to be the main lithium brine target within the entire Kibby Basin.

-      Considering the lithium enrichment encountered in brines and clays in KM22-02 above the main target conductor which demonstrate the prospectivity of the entire basin, Golden Metal considers there is compelling evidence indicating a high likelihood that the untested target conductor (Figure 3) is also caused by lithium brine mineralisation.

-      With the main target conductor now determined to be untested by historical drilling, Golden Metal is reviewing all exploration options available to determine the optimal way to push the Lithium Properties forward.

Oliver Friesen, CEO of Golden Metal, commented: 

"Today's announcement follows a further analysis of all available datasets by our technical team who were able to conclude that the main target conductor within the Kibby Basin has never been adequately drill tested.

"Considering the relative depths of the very strong lithium-in-clay and lithium-in-brine mineralisation encountered by nearby drillhole KM22-02, we believe the findings presented today point to the likelihood of a significant lithium brine target at a deeper depth within the basin, on ground 100% owned by Golden Metal.

"Equipped with these new findings, we are actively working behind the scenes with our technical team and management to determine next steps for our promising Lithium Properties."

Media

Figure 1 - Major Lithium Projects and Deposits within Nevada, USA.

Figure 2 - Location of the Lithium Properties relative to the untested conductive anomaly (red). Cross-section line A-A' shown at bottom of map which corresponds to Figure 3.

 

Figure 3 - The above cross-section line (A-A') cuts directly through the centre of the Kibby South Lithium Property and the conductive anomaly (dark pink/red) was never adequately tested by drilling undertaken by Belmont resources in 2022. Considering the strong lithium mineralisation in clays and brines noted above the conductor, this provides compelling evidence that the main conductive target may be caused by a significant lithium brine target.

References

1.     Report: Quantec Geoscience Ltd, Geophysical Report for Spartan Mt Survey Over the Kibby Basin Area (Hawthorne, Nevada) on Behalf of Belmont Resources Inc., dated 28 February 2018
( https://belmontresources.com/wp-content/uploads/2021/02/Belmont-Kibby-Basin-MT-Survey.pdf )

2.     Marquee Resources Ltd ASX announcement, Complete Sampling Results - Kibby Basin Lithium Project, dated 25 January 2023
( https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02624028-6A1133064?access_token=83ff96335c2d45a094df02a206a39ff4 )

Property Ownership

Golden Metal holds a 100% interest in the Lithium Properties through its wholly-owned Nevada-based 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.

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 Oliver Friesen (CEO)	Tel: [phone]
Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O'Driscoll	Tel: [phone]
First Equity Limited Broker Jonathan Brown/Jason Robertson	Tel: [phone]

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.

 

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