29 May 2024

Golden Metal Resources plc

('Golden Metal' or the 'Company')

Pilot Mountain Nevada - Project Development Update

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

In parallel with accelerated exploration, notably diamond drilling of key targets which is now underway at Pilot Mountain, the Company is looking to also accelerate development of the Project, using the current Mineral Resource Estimate ("MRE") as the initial basis for planning.

HIGHLIGHTS

§ Golden Metal has now engaged a consortium of Bara Consulting Ltd ("Bara Consulting"), Snowden Mining Industry Consultants Ptd Ltd ("Snowden Optiro") and Bomenco Minerals Engineering Corp ("Bomenco Engineering") with Bara Consulting acting as the lead (collectively the "Consortium").

§ The Consortium has been engaged to evaluate existing technical information and provide a roadmap, comprised of actions, a schedule and a budget estimate to prepare for a Preliminary Feasibility Study ("PFS") on the Desert Scheelite deposit within the Pilot Mountain Project.

§ The Consortium will be providing a select list of drillhole locations which specifically relate to resource upgrade as well as geotechnical engineering studies. Multiple of the proposed drillholes will be completed as part of the current diamond drilling campaign and will directly lead into the planned PFS.

§ Golden Metal has also now engaged Westland Engineering & Environmental Services Inc. ("Westland") to lead next stage permitting efforts including a Plan of Operations ("POO") at Pilot Mountain. Westland's team of highly experienced geologists, biologists, botanists, archaeologists, and environmental specialists will assist the Company with National Environmental Policy Act permitting requirements and associated baseline data collection and reporting.

§ This includes, in coordination with the Bureau of Land Management ("BLM"), re-initiating baseline environmental studies required to support the POO. A baseline biological survey report was published in October 2013, which identified no impediments to development. The historical baseline report will form the basis of the updated report now in progress.

§ The POO will allow for greater disturbances across the designated project area, paving the way for the Company to progress project development, as well as pre-construction and various development workstreams.

§ Drilling at Pilot Mountain is progressing well and the Company will provide further updates in due course.

Oliver Friesen, CEO of Golden Metal, commented: 

"We are very pleased to officially have Bara Consulting, Snowden Optiro, Bomenco Engineering and Westland engaged as we continue pushing our flagship Project forward at pace. While the exploration and drilling workstreams have taken centre stage over the last few months, in the background we have been working on various development workstreams and can now confirm that they are moving forward in parallel with the ongoing exploration initiatives, including active drilling. 

"The tungsten landscape continues to evolve rapidly and there have been several developments over the last few weeks and months which have further increased our excitement surrounding our flagship tungsten Project. Tungsten prices have not only increased substantially and are currently sitting at an impressive $365.5 USD/mtu WO₃ but more recently, the US announcing a 25% tariff on Chinese tungsten imports (with effect from 1 August 2024), further increasing the attractiveness of American mined and processed tungsten.

"We look forward to providing more updates on the various development workstreams as well as the ongoing exploration & development drilling which is progressing well."

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.

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 (3,904.1 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 9.18 km2 (2,268 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.