Great Western Mining reports positive M1 results, raises £0.5m

Great Western Mining updated the market on the M1 prospect on Monday, following a second soil and rock chip sampling programme during the spring and early summer to consolidate the “very encouraging” results of the previous year.

The AIM-traded firm said the programme has taken a total of 215 soil samples at 40 metre intervals, and 70 randomly selected rock samples, and sent these to Bureau Veritas, Reno for analysis.

It said the sampling programmes have been designed by Dr Tom Molyneux, GWM's geological advisor, in order to determine the existence of a mineralised zone below the NE-SW trending magnetic anomaly identified in previous aeromagnetics and ASTER satellite surveys carried out by the company.

The programme has revealed widespread anomalous mineralisation, the board reported.

In particular, gold seems to constitute a geochemical anomaly, with sample readings above 240 ppb Au, spanning two separate soil grid lines, approximately 350 metres apart.

Anomalous readings of silver, 1383 and 1986 ppm Ag, and lead, 4434 ppm Pb, have also been found in these locations, it explained, with the board saying it views the area as a potential drilling target zone.

The drilling target zone is just to the north east of the area held by neighbouring claim holder Crown Point Gold & Silver Mining, and is within the 34 claims held by GWM that form part of the Huntoon Mine Area Cooperation Agreement, signed with Crown Point in August.

“Further field work is necessary to investigate this precious and base metal anomaly, but if a trend can be established for this mineralisation some inclined drilling would be justified,” said Dr Molyneux.

Chief executive David Fraser said the 2016 field work on M1 confirmed and extended the widespread anomalous mineralisation found in 2015.

“The company is currently assessing an exploratory level drilling programme for the target zone for gold and silver that has been identified.

“We look forward to updating shareholders with further results as work is completed.”

In a separate announcement on Monday morning, Great Western Mining also announced it has raised £0.5m before expenses, via the placing of 125 million new ordinary shares at a price of 0.4p each.

“The net proceeds of the placing will provide the company with additional working capital to fund its pre-development activities on the M2 Copper-Gold target, and to initiate joint development work on M1 with Crown Point under the terms of the Huntoon Mine Area Cooperation Agreement,” the company’s board said in a statement.