One of the world’s biggest mining companies has made an initial approach to Great Western Mining(GWMO) in relation to its Nevada copper prospect, it is understood.The ‘super major’ has requested that GWMO “keep it informed and up-to-date on its progress”,said a well-informed source.Dublin-based GWM, run by serial mining entrepreneur Emmett O’Connell,
GWMO, through its precursor Eglington Exploration, has been working in this area of Nevada since the mid-1980s and its block of claims is one of the largest of any explorer in Mineral County in the south west of the state.One source suggested that the company has found itself “in a major position but with the budget of a mouse.”
“If the drilling is successful and is copper-oriented, it is likely to attract one of the mining majors to farm into the claims,”” said the source.A number of major copper suppliers are already active in the area and securing a development partner if the drilling programme is successful will be key to the project.Any such deal is likely to involve a major partner paying the costs of developing a mine, while Great Western Mining would seek up to 50 per cent of the revenue, said a source.Apart from the possibility of a major find, GWMO may also mine copper at the site independently using a relatively simple method with which it has experience known as heap leaching, which could give it an immediate cashflow, it is understood.
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GWMO holds 100% working interest in all seven existing prospects, any one of which may hold an attraction to another mining company willing to pay for development expenses to discovery or abandonment in return for part interest. A mineral discovery on any prospect in our portfolio even at a 50% participation level, will translate meaningfully into shareholder value through tighter shareholder structure in remaining prospects.Although early days yet, studies are underway examining the efficacy of installing a heap leach copper recovery system in the area of the Company’s interest. It is important therefore, to keep in mind that 100% of Great Western Mining Corporation’s efforts and mining assets are located in the mining friendly and politically secure environment of Nevada, U.S.A., just 10 miles or so from the California border with access to modern highway systems and rail connections to Pacific Ocean Ports. It is worth remembering that one customer, China, takes 40% of world copper production outside China.
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