Great Western Mining Corporation PLC (AIM:GWMO) has laid out its plans and targets for the coming months, including the expected commissioning of a production mill in Nevada for its Western Milling joint venture in the first half of the year.
However, the company noted that production can only begin after the receipt of a permit from the Nevada Department of Environmental Protection (NDEP), with which a meeting is scheduled for mid-January to review plans and incorporate any modifications required by the NDEP.
The AIM-listed company said the aim of the meeting is to give the Western Milling joint venture the confidence to start construction, and if this is the case, groundwork will begin at the end of February, if weather conditions allow.
As stated when the joint venture was announced in September, Western Milling will aim to produce first precious metals this year from tailings, spoil heaps, stockpiles of pre-mined material and shallow ore at the OMCO mine at the Olympic Gold project and other claims, with materials also acquired from third parties once the mill is up and running.
In a statement, Great Western chairman Brian Hall said: "The company has made great strides over the last year and we look forward to building on this momentum in 2023. We expect to commission the processing mill in the first half of 2023 and we have an ambitious programme of exploration to follow up on successful drilling results achieved over the last two years.”
The provisional work programme for 2023 has been sketched out, with the first phase including further drilling at OMCO and Mineral Jackpot, as well as fieldwork and sampling of potential new prospects.
Laboratory results from the three holes drilled at the Trafalgar Hill site last summer revealed no high grades, but the company said they “show that the Trafalgar Hill system remains open to the south and it will be further explored”.
An IP geophysical survey over the Trafalgar Hill prospect is planned as part of the second phase, along with follow-up drilling at the Mineral Jackpot group of five claims in Mineral County, Nevada, where shallow intercepts were shown from four holes drilled in the summer.
“Depending on the results, and subsequent successful estimation of resources and reserves, small-scale mining would be relatively straightforward at these depths and material recovered could be processed through the milling joint venture,” Great Western said, with a process to access the potentially hazardous historical underground workings underway with a specialist contractor.
An in-house geological review of copper exploration at the Huntoon claims has identified the HUN Group claims near to the company’s existing resource, with work continuing and drilling of additional holes part of the third phase and also possibly an IP survey, an airborne magnetic survey and staking new claims.
A larger industry partner is also being sought “to help develop a potentially major copper project and the recent in-house work, still ongoing, should make for a much more interesting farm-out package”, the company said.
The copper exploration work has also revealed “elevated and measurable” levels of rare earths, and the company “will be pursuing this avenue of exploration”.
Hall noted: “The transition into a revenue-generating precious metals producing entity, underpinned by an exceptional portfolio of assets, will be a significant milestone for the company. We have a targeted work programme in place for the coming year, on which we expect to deliver, pending developments, during the period.
“We believe that the company provides a well-balanced blend of production and exploration across a variety of metals at the same time as a number of catalysts for a potential rerating."