Great Western Mining upbeat on sample production from Rock House

The AIM-traded firm explained that in early 2019, its geologists identified possible mineralisation at the Rock House Group through a study of satellite imagery and ground-based geological mapping.

It said the group is within the area of its existing claims in Mineral County, Nevada, and had never previously been mined.

In late 2019, an independent analysis of soil samples from the Rock House Group indicated the presence of both gold and silver, which was announced in January.

During the current trenching programme at Rock House, which was expected to end this week, a company geologist collected a small surface float sample located in the vicinity of one of the trenches, weighing 550 grams, which was taken to a laboratory for analysis.

That rock was crushed and processed through a small gravity circuit, resulting in the production of two small 'buttons' of high-purity gold.

The amount of gold produced was not material, the board said, as it was taken from a very small sample.

However, it was the first pure gold ever produced by Great Western, and as such represented a “significant milestone” for the company.

During the trenching exercise, in preparation for drilling, further rocks would be collected and tested, although at the current stage there was no certainty that further high grade material would be discovered.

“We are very pleased to have been able to produce these small gold 'buttons', which symbolise our re-focus on precious metals over the past year,” said executive chairman Brian Hall.

“On two of our other claim groups, the Black Mountain Group - which includes the Mineral Jackpot group of mines - and the Olympic Gold Project, we already have proof of the presence of gold as they have been mined in the past.

“However, the Rock House Group has never previously been explored or exploited, so producing gold from a random surface sample is a very exciting result for the company and a tribute to the painstaking work of our geologists in identifying this completely new prospect.”

At 0836 BST, shares in Great Western Mining were up 13.13% at 0.13p.