Great Western Mining Corporation PLC (LON:GWMO) said a follow-up magnetic survey at its Olympic gold project in Nevada has indicated where a previous productive gold vein might lie.
A strong anomaly was detected on the prospect to the west of the former OMCO mine, which stopped producing in the 1940s, and has provided enough information to start drilling, the company said.
The survey also indicated a strong magnetic anomaly underneath the Trafalgar Hill target at Olympic and money for drilling in both areas is in the budget for this year subject to coronavirus (COVID-19) restrictions.
Elsewhere, testing of the pilot sample from the Mineral Jackpot, also in Nevada, is ongoing in the UK to decide the optimum combinations to produce gold though the winter weather has affected trial processing in the region.
In a statement Brian Hall, Great Western Mining's chairman, said: "During the harsh winter in northern Nevada we have managed to take advantage of weather windows, both to produce our first precious metals under a small pilot scheme and also to carry out a highly successful survey over the Olympic Gold Project, which we are optimistic may have unlocked the location of the OMCO Mine extension.
“During this period we have also identified the presence of gold-bearing material from the trenching we carried out last summer in the Eastern Shear Zone at RH, which is a completely new and undrilled group of claims.”