23 January 2024

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Garfield Update - Bonanza Silver & Uranium Target

Significant Porphyry & Epithermal Potential Confirmed; Bonanza Silver Grade Returned; Uranium Target

Golden Metal Resources plc (LON:GMET, OTCQB:GMTLF), a strategic development and mineral exploration company focused on Nevada, USA, is pleased to announce an exploration update at the Company's 100% owned Garfield project located within the prolific Walker Lane Mineral Belt in Nevada, USA ("Garfield" or the "Project").

The update follows on from the recent high-grade gold-silver-copper bedrock discovery made at Garfield which returned results up to 22.7g/t gold ("Au"), which the Company announced on 09 January 2024¹.

HIGHLIGHTS

§ Detailed analysis of the geological mapping and rock sampling analytical results received to date now completed.

§ Magnetic Bullseye anomaly (often associated with intrusive porphyry centres) identified at the Project's High-Grade Zone.

§ Now postulated that epithermal mineralisation overprints earlier porphyry mineralising event, increasing the overall prospectivity and most importantly the gold-silver potential of the 4km² mineralised area.

§ Bonanza silver (Ag) grades confirmed at Pamlico Gold Zone up to 1,225g/t Ag (incl. 18.35g/t Au & 1.89% copper).

§ Uranium target identified near High-Grade Zone overlapping magnetic bullseye (see Figure 1 below).

Oliver Friesen, CEO of Golden Metal, commented: 

"The results announced today are highly significant as we have gone from high-grade copper-gold-silver results achieved over a large footprint to now multiple overlapping geological datasets which strongly confirm the presence of a significant porphyry style system driving mineralisation across the Project.

"We also believe the provenance of the high gold and silver mineralisation looks to be related to overprinting epithermal style mineralisation, which is not typical of porphyry style systems and materially increases the overall prospectivity of the Project by greatly improving the gold-silver potential.

"The typical next stage when exploring for porphyry deposits is to search for a geophysical anomaly which could represent a porphyry centre at depth. To our excitement, this was identified by a third party survey and is located within the High-Grade Zone, which happens to be broadly overlapping the uranium target identified during the same exploration programme.

"With these transformational latest results in hand, the Company is quickly moving towards determining optimal next exploration steps to continue to drive this very exciting Project forward."

FURTHER INFORMATION

Detailed analysis of recently collected rock sample geochemical assay data shows that mineralisation has strong porphyry/intrusion related geochemical association (e.g. with silver, bismuth, gold).

Importantly, higher-grade gold-silver mineralisation now shown to have epithermal deposit geochemical signatures - representing a new deposit style not yet recognised at Garfield. It is postulated that epithermal gold-silver mineralisation locally overprints the original porphyry system within Garfield leading to very high gold-silver grades not typically associated with porphyry systems.

The Company recently became aware that a uranium focused exploration company, conducted an unmanned aerial vehicle ("UAV") magnetic and radiometric survey and ground spectrometer prospecting over part of the southern portion of the Garfield Project ³. Significantly, these results highlighted a strong radiometric as well as magnetic bullseye geophysical anomaly within the High-Grade Zone.

Magnetic bullseyes are often associated with intrusive porphyry centres. Additionally, based on the full suite of results obtained by Kraken, a uranium target which also falls within Garfield was identified - near the southern edge of the High-Grade Zone as highlighted in Figure 1 below.

Nevada State geological maps highlight two at surface intrusive units mapped as quartz monzonites to granodiorite, which are typical rock assemblages associated with porphyry deposits including the nearby Pumpkin Hollow Copper Mine owned by Nevada Copper (385.7Mst at 0.47% copper ("Cu"), 0.05g/t Au, 1.6g/t silver ("Ag"))². These two mapped units crosscut both the High-Grade and Pamlico Au Zones. These mapped units are corroborated by field notes taken during the recently completed campaign which confirm many of the samples obtained were described as various granitoid (intrusive) rocks.

High-grade copper-gold-silver mineralisation has now been defined over a circa 4km² area, within the 100% Golden Metal owned project claim footprint with confirmed strong associations to both porphyry (intrusive), epithermal and related-skarn mineral deposits.

In addition, final overlimit silver assay results from ALS USA Inc laboratory (using aqua regia assay method Ag-OG46) have now been received with results returning up to bonanza grade silver (1,225g/t Ag). The complete gold-silver-copper results achieved at the 'Pamlico Gold Zone' are outlined below and point to a very exciting newly staked target area for the Company:

MEDIA

Figure 1 - Garfield Project showing the location of USGS mapped intrusive units which cross-cut both the High-Grade and Pamlico Au Zones. The uranium target recently identified is also shown in yellow and will be investigated during subsequent exploration campaigns.

PROPERTY OWNERSHIP

Golden Metal holds a 100% interest in the Garfield Project through its wholly-owned Nevada operating company, Golden Metal Resources LLC. A 2% Net Smelter Return Royalty ("NSR Royalty") Interest, of which 1% can be bought back at any time for US$1,000,000, is payable to Sunrise Resources plc (LON:SRES). The NSR Royalty covers the original Garfield Project claims as well as a 1 mile radius outside of those claims which covers roughly half of the current 'High-Grade Zone' footprint. The Pamlico Au Zone is entirely royalty free.

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.

REFERENCES

1              Company announcement, 'Garfield Project Bedrock Discovery' dated 09 January 2024. https://www.londonstockexchange.com/news-article/GMET/garfield-project-bedrock-discovery/16280300

2              https://nevadacopper.com/projects/reserves/

3              https://krakenenergycorp.com/news/2023/kraken-energy-identifies-multiple-additional-priority-drill-targets-garfield-hills/

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.

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.