Golden Metal Resources PLC (AIM:GMET, OTCQB:GMTLF) (GMR) said its Pilot Mountain project in Nevada might hold "a considerable quantity" of garnet in addition to the main tungsten resource.
Historical studies showed that the dominant form of industrial garnet at Pilot Mountain is the mineral species Andradite with a lesser proportion reported as the Grossular garnet species, GMR said.
Exploration work it undertook last year identified five compelling target areas that show potential for significantly greater in-ground resources than currently stated, said a statement.
Technical reviews have now demonstrated that the industrial mineral garnet comprises approximately 40% of the mineralised intervals across the known deposit areas, it added.
Based on the current mineral resource of 12.5Mt of mineralised material, GMR considers that subject to commissioning appropriate studies, a significant quantity of garnet likely exists at Pilot Mountain.
Oliver Friesen, GMR’s chief executive, commented: "I believe that Pilot Mountain has taken another significant, yet unexpected, step forward as the potential scale of the contained garnet and its potential impact on future project economics is becoming apparent."
A tonne of garnet imported into the US in 2023 traded at an average price of US$190 with domestic garnet trading at a premium price of US$220 per tonne.
“The tungsten, copper, silver and zinc within the MRE [mineral resource estimate] is considered recoverable based on the metallurgical work previously completed on Pilot Mountain, however, the industrial garnet potential was not previously considered,” GMR noted.
Friesen said: "Whilst it is the tungsten MRE and its potential scalability that excites us most about Pilot Mountain, especially given tungsten is on the United States critical minerals list, all recoverable materials have the potential to supplement future overall project economics.
"The potential economic implications cannot be understated, not only because it [garnet] could represent a fifth recoverable and saleable product from Pilot Mountain, but also for several other factors.
“The company considers it likely that the garnet could be recovered via gravity and/or magnetic separation methods prior to the grinding and flotation stages - therefore significantly decreasing the wear and tear on the overall processing circuit and therefore the potential operating costs.”