1 May 2024

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Pilot Mountain - Porphyry Target Confirmed

Geophysical Results Highlight Strong Magnetic High Anomaly Confirming Porphyry Potential

Golden Metal Resources plc (LON:GMET, OTCQB:GMTLF), a strategic development and mineral exploration company focused in Nevada, USA, is pleased to announce an exploration update at the Company's 100% owned flagship Pilot Mountain Project ("Pilot Mountain" or the "Project") located within the prolific Walker Lake Mineral Belt in Nevada, USA.

HIGHLIGHTS

§ Magnetic geophysics survey successfully delineates two significant magnetic high anomalies within the 'Porphyry South' target area, the most significant of which measures approximately 500 m x 750 m (open to east).

§ Importantly, the two anomalies are strongly coincident with the resistivity and chargeability high anomalies identified during the Company's 2022/2023 induced polarisation ("IP") geophysics survey which originally defined the 'Porphyry South' target.

§ Stacked profile modelling of the coincident magnetics and chargeability/resistivity data suggests the existence of a large buried magnetic body at depth.

§ Coincident anomalies provide further support for the interpretation that the significant tungsten (W) - copper (Cu) - silver (Ag) - zinc (Zn) skarn-type mineralisation found at surface at Pilot Mountain and within Desert Scheelite is related to a buried causative porphyry system(s).

§ One drillhole into the 'Porphyry South' target was permitted based on the previous IP survey results, the latest survey results now show that the permitted drill site also provides an optimal location to test the eastern magnetic anomaly, the largest of the two new magnetic anomalies (see Figure 1).

NEXT STEPS

§ Golden Metal is very encouraged by the results and has immediately requested three dimensional ("3D") inversions of the magnetic dataset which will provide a 3D model of the 'Porphyry South' magnetic targets.

§ During the planned upcoming drilling campaign, the Company will be testing the 'Porphyry South' target with at least one drillhole.

Oliver Friesen, CEO of Golden Metal, commented: 

"When we first conducted the Pilot Mountain Project due diligence, prior to acquiring it in August 2021, we were drawn to the possibility of finding a porphyry system which could be causative of the strong skarn-type mineralisation mapped at surface.

"The new magnetic geophysics results are highly encouraging, bolstering the findings of our previous IP survey over the Project's Porphyry South area. The juxtaposition of the magnetic and IP survey anomalies strongly support the need to drill test this promising porphyry style target.

"As we move quickly towards the start of the Pilot Mountain drilling programme, the 3D inversion modelling results will assist us in refining the strike and dip of the planned 'Porphyry South' drillhole for maximum impact.  

"We very much look forward to finally drill testing this exciting target, which is just one of many others on our 100% owned flagship asset."

MAGNETIC GEOPHYSICS SURVEY DETAILS

The ground magnetic geophysics survey was undertaken by SJ Geophysics Ltd. over the period 22 - 26 and 28 March 2024 using two GEM-Systems GSM-19W Overhauser magnetometers in a survey and base station configuration.

The survey was conducted along parallel north-south orientated survey lines at 100m spacing for a total reported survey length of approximately 22.5-line km.  

The resulting data has been processed for Total Magnetic Intensity (TMI; Figure 1), First Vertical Derivative (1VD), Reduction to Pole (RTP) and Analytical Signal (AS) mapping products. The Company has now commissioned SJ Geophysics Ltd to undertake three-dimensional inversion modelling of the magnetic field data.

Figure 1:  Pilot Mountain Project 2024 ground magnetic geophysics survey results showing two significant TMI anomalies at the 'Porphyry South' target

PROPERTY OWNERSHIP

Golden Metal holds a 100% interest in the Pilot Mountain Project through its wholly-owned Nevada-based operating companies BFM Resources Inc and Pilot Metals Inc.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Golden Metal Resources plc to provide technical support.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events. 

Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

For further information visit www.goldenmetalresources.com or contact the following:

THE PROJECTS

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.

Garfield Project

The Garfield Project is an exciting copper-gold-silver prospect consisting of 65 lode mining claims covering 5.4 km² (1,338 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah. Exploration to date has included detailed geochemical sampling and follow up analysis which highlighted the presence of both porphyry and skarn-type mineralisation and alteration at the 'High-Grade Zone'. Further to this, mapping, prospecting and rock sampling was recently completed with results confirming presence of high-grade copper, silver and gold mineralisation as well as leading to the bedrock discovery of the Pamlico Au Zone with individual rock samples up to 18.35g/t Au, 1,225g/t Ag & 1.89% Cu. Following this, geochemical analysis of the full suite of data confirmed the strong presence of porphyry style mineralisation across the Project, as well as potentially overprinting epithermal style mineralisation leading to increased gold-silver prospectivity.

Kibby Basin Lithium Project

The Kibby Basin Project covers two claim packages which are prospective for lithium brine mineralisation. The southern claim package is less than 250m from a 2022 drillhole which returned a significant interval (169m) of lithium brine mineralisation which was determined to be open in all directions. The Project is less than 5km to the southeast of the Company's flagship Pilot Mountain Project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain - Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.