24 July 2023

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Tungsten Focused MoU and Key Appointment

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, lithium, gold, copper and silver within Nevada, USA, announces updates which relate to its 100% owned flagship Pilot Mountain Project ("Pilot Mountain" or the "Project") located within the prolific Walker Lane Mineral Belt in Nevada, USA.

Memorandum of Understanding - Tungsten Critical Metal Pathway:

-      The Company has signed a Memorandum of Understanding (MOU) with Oxford Sigma Limited ("Oxford Sigma"), a nuclear fusion technology company based in Oxfordshire, UK.

-      As 100% owner of what is believed by the Company to be the largest undeveloped tungsten deposit in the USA, the Company has entered into a non-binding  MOU with Oxford Sigma which outlines how the two parties will collaborate to explore and develop critical metal supply pathways for tungsten alloy and tungsten containing materials within the fusion industry.

-      Fusion energy has the potential to be a near-limitless source of carbon-free energy for the future in which tungsten will likely be a key metal as it is a requirement for radiation shielding and plasma-facing materials.

-      Over US$6.2billion (as of 2023) of private investments have been made worldwide, targeting the fusion industry as its development towards commercialisation continues at pace. However, without the development of suitable and politically friendly tungsten supply pathways, this important technology may face significant delays.

Pilot Mountain Technical Key Appointment:

-      The Company has engaged Allan V. Moran, a highly respected modelling geologist with extensive previous working experience in the state of Nevada and western United States.

-      Mr. Moran has been engaged specifically to model existing tungsten-copper-silver-zinc mineralisation found at the Company's 100%-owned Pilot Mountain Project - with a specific focus on the Desert Scheelite Zone where the majority of the in-ground resource at Pilot Mountain is found. 

-      The goal of Mr. Moran's work is to plan resource infill as well as step out (down-dip and along strike) drilling in advance of future exploration on the Project and with a specific focus on drill density required to complete future economic studies over the Project (e.g. PEA/PFS).

-      In tandem, further analysis and drill planning is also in progress relating to the five new priority exploration targets as announced  by the Company on 20 July 2023.¹

Oliver Friesen, CEO of Golden Metal, commented: 

"We are delighted to be working with  Dr. Thomas Davis and the Oxford Sigma team who are highly respected in the fusion energy industry within the United Kingdom and abroad. It is likely that large amounts of tungsten  will be required within the fusion energy industry and in conjunction with Oxford Sigma we intend to work collaboratively in order to develop critical metal supply pathways between friendly countries in order to help meet the future tungsten requirements within this extremely important developing technology.

"This MOU with Oxford Sigma in combination with the LOI off-take agreement recently signed with Global Tungsten & Powders signifies not only how critical our Pilot Mountain Project is, but more importantly, how imperative the establishment of a western world supply chain for tungsten is given the current global political landscape.

"While the above commercial milestones continue to make headlines, our work with Mr. Allan Moran will continue in the background and the analysis being undertaken represents a very important one as we look to continue pushing exploration and development forward across the four deposit areas at Pilot Mountain."

Dr Thomas Davis, CTO of Oxford Sigma, commented: 

"Commercial fusion power stations are on the path to become the ultimate terrestrial energy source. We are excited to partner with Golden Metal Resources Plc to connect the fusion community with the strategic raw tungsten supply necessary to make fusion work. Most of the approaches to fusion that Oxford Sigma is supporting depend on large quantities (hundreds of tonnes) of raw tungsten for various applications (radiation shielding and plasma-facing components). By collaborating with Golden Metal Resources, Oxford Sigma is on the path to establishing a sustainable tungsten supply for the world's growing fusion industry."

About Oxford Sigma

Oxford Sigma tackles energy security and climate change by accelerating the commercialisation of fusion energy. Oxford Sigma's mission is to deliver materials technology, materials solutions, and fusion design services in order to accelerate the commercialisation of fusion energy. Oxford Sigma is internationally recognised as a key fusion materials and technological leader within the market. The company operates in the United States, United Kingdom, European Union, Canada, and Japan.

About Allan V. Moran

Mr. Moran, a geologist, has spent his 45-year plus career in mineral exploration, exploration management, and support of corporate acquisitions for both major and junior mining companies. Moreover, Mr. Moran specializes in geological evaluations of metal projects with a focus on 3D geological modelling (Leapfrog software), database evaluations, and geological inputs to resource estimation; from due diligence audits to feasibility studies; exploration properties to mining operations.

Mr. Moran has a B.Sc. in Geological Engineering from the Colorado School of Mines and is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists (AIPG).

References

¹https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-further-targets-identified/16005627

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.

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.

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.