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:

¹Summary 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:

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.

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.

Garfield Project

The Garfield project is an early exploration stage copper, gold and silver property consisting of 39 lode mining claims covering 3.23 km² (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 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.