06 July 2023

Golden Metal Resources plc

("Golden Metal" or the "Company")

Claims Staked at Kibby Lithium Basin Project

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, gold, copper and silver within Nevada, USA, is pleased to announce the Company has staked claims over a significant footprint within the Kibby Basin, where lithium brine discoveries were recently made. 

The claims acquired sit very near to the Company's 100% owned flagship Pilot Mountain Project ("Pilot Mountain", "PM" or the "Project"), located within the prolific Walker Lake Mineral Belt in Nevada, USA.

Highlights:

-      Nevada is a well-established lithium jurisdiction which hosts some of the United States and World's largest lithium deposits including Thacker Pass and Silver Peak. Within the State, lithium is found predominantly within brines & clays (as opposed to pegmatites; see fig. 1).

-      The criticality of the Company's Nevada focussed portfolio has increased materially with the acquisition via claim staking of the Kibby North and Kibby South lithium brine Properties (collectively the "Lithium Properties") located less than 1.5 and 3.5km from the Company's Pilot Mountain Project (see fig. 2).

-      Both tungsten and lithium are included in the latest United States Geological Survey's Critical Minerals List, positioning Pilot Mountain and the Lithium Properties as a strategically important exploration and development opportunity.  

Oliver Friesen, CEO of Golden Metal, commented: 

"Investors familiar with our work in Nevada, USA will have seen that progress has recently been made at our 100%-owned Pilot Mountain Project, especially as its tungsten exploration and development potential has grown significantly over the last few weeks.  This has been evidenced with the announcement of five newly identified exploration targets as well as the signing of a LOI off-take agreement for tungsten concentrates with Global Tungsten & Powders LLC.

"The staking of the claims at the Lithium Properties, which are located only a few kilometres from Pilot Mountain, is a positive step for our Nevada business, especially as the footprint now within the Lithium Properties includes an area less than 250m from one drill hole, which encountered a 169m thick zone of lithium brine mineralisation that was determined to be open in all directions.

"We are looking forward to informing the market as to next exploration steps on our newly acquired Lithium Properties."

Further Detailed Highlights:

-      The Kibby Valley Basin (the "Basin") covers a total area of 54km² which is bound by the Pilot Mountains to the west. The Basin is located less than 60km north of the prolific Clayton Valley Basin which hosts the Silver Peak Lithium Mine, owned and operated by Albemarle Corp.

-      The Lithium Properties cover a combined 923-acres for a total of 47 placer claims which cover the rights for any and all lithium brine enrichment found within the claim boundaries.

-      Lithium brines are highly conductive (due to their high salt contents). A magnetotelluric ("MT") geophysical survey was completed in 2021 over the entirety of the Kibby Valley Basin and a 34km² significant conductive anomaly was identified. Subsequent drilling confirmed a c169m thick zone of lithium brine mineralisation in KB22-02 which was determined to be open in all directions.¹ KM22-02 is located approximately 250m away from Kibby South (see fig. 2).

-      The conductivity anomaly extends in a north-south direction and the Lithium Properties cover some of the strongest parts of the conductor which have never been drill tested to date. 

-      The Lithium Properties are transected by multiple trails and roads providing suitable access for future exploration. Other ideal infrastructure includes a power line located less than 5km away. The Lithium Properties, like Pilot Mountain, are less than 30km (straight-line distance) from the town of Mina, Nevada which is accessible by well maintained roads.

-      Further technical details about the Lithium Properties acquired, as well as the areas which possess the potential for the discovery of additional lithium brine mineralisation, including detailed technical maps outlining the location of the major conductor within the Kibby Basin will be announced in a subsequent RNS.

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

 Figure 2  - Location of the Kibby Lithium Properties as well as the Company's Pilot Mountain tungsten Project. 

References

¹https://belmontresources.com/belmont-resources-jv-partner-marquee-resources-intercepts-thick-lithium-bearing-sediments-at-kibby-basin-nevada/

Property Ownership

Golden Metal holds a 100% interest in the Pilot Mountain Project and the Lithium Properties through its wholly-owned Nevada-based operating companies BFM Resources Inc, Pilot Metals Inc, and 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:

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.