11 September 2023

Golden Metal Resources plc

("Golden Metal" or the "Company")

Kibby Basin Lithium Project- Significant Conductor Identified

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 the identification of a significant 10km² conductive zone at its Kibby Basin lithium project in Nevada, USA.

Highlights:

-      During recent weeks the Company's technical team has conducted a full historical data compilation review (the "Review") over its Kibby North and Kibby South lithium brine Properties (collectively the "Lithium Properties") (see figures 1 & 2 below).

-      The Review included detailed examination of the Quantec Geoscience Ltd magnetotelluric ("MT") geophysics survey report dated 28 February 2018 which covers the majority of the Kibby Valley Basin, and which was commissioned by Belmont Resources Inc. ("Belmont").¹

-      The MT survey highlighted a distinct conductive (low resistivity <2 Ohm.m) brine aquifer linked anomaly totalling circa 10km², of which approximately 3.1km² is now covered by the Lithium Properties.

-      Two widely spaced drill holes outside the Lithium Properties subsequently completed by Belmont's joint venture partner Marquee Resources Ltd ("Marquee") in 2022, demonstrated that the MT anomaly is coincident with significant lithium brine mineralisation including intervals containing up to 924 ppm lithium (Li) with greater than 300ppm Li over thicknesses in excess of 450m.

-      Marquee drillhole KM22-02, which is located only 250m from the Golden Metals Kibby South licence boundary (see figure 2 below), intersected lithium mineralisation averaging 558ppm Li (and a high of 860 ppm Li) over 169m from the top of the aquifer at 365m, with open lithium mineralisation continuing to the bottom of the hole, averaging 379 ppm Li over 451m, from drill core assays. Brine water sampling analyses from the hole correlated with the core assay samples with total dissolved lithium content increasing exponentially with depth to a peak of 27 mg/L at 549m.²

-      Golden Metal believes that there is a very high likelihood of lithium brine continuity into the Company's Lithium Properties (see Figure 3) which will be the subject of expedited follow-up exploration.

Oliver Friesen, CEO of Golden Metal, commented: 

"The results of the Review have proven the highly prospective nature of our recently acquired Lithium Properties. In my opinion, this is best demonstrated by Figure 3 which clearly shows the presence of a large and sizeable conductor - known to be caused by significant lithium-brine mineralisation elsewhere in the survey area - located directly in the centre of our Kibby South licence.

"We are extremely pleased with this outcome as it further demonstrates the quality of our technical team and their ability to identify significant opportunities. Also important is the speed at which the Company has been able to move to secure this opportunity for our shareholders.

"As a Company we have been watching lithium with great interest, especially in Nevada where some of the largest deposits in the U.S. are found - and with the 100% owned Lithium Properties now secured, as well as the Review results in hand, we can swiftly move to determine next steps in order to  further advance this exciting acquisition.

"A further announcement to follow in due course outlining next steps."

Further Detailed Highlights:

-      The Kibby Valley Basin (the "Basin"), which covers a total area of 54km², is located less than 5km from the Company's Pilot Mountain Project 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 include a combined 47 placer claims with a combined area of 3.74km2 (923 acres) which cover the rights for any and all lithium brine enrichment found within the claim boundaries.

-      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.

-      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. Lithium in Nevada is found predominantly within brines & clays (as opposed to pegmatites; see figure 1).

-      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. 

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

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

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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) is known to be caused by lithium brine mineralisation on the survey line immediately north, providing what the Company believes to be compelling evidence to demonstrate a high likelihood of lithium brine mineralisation across the Kibby South licence.

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:

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.