(GWMO) Great Western Mining,existing substantial resource and many paths to significant potential upside
The mineral exploration company with 73 square kilometres of mineral claims in south-west Nevada,It has now finished a second drilling programme to try and establish an inferred resources over the M2-Smith copper target, as well as a first drilling programme over the Target 4 copper-gold prospect.
With results due anyday we are now hearing Rio Tinto are now looking at acquiring the UK minnow, analysts at Beaufort Securities view:
Great Western Mining Corporation announced an update on its drilling work at the M2-Smith copper target in Nevada, US. Under second phase of the drilling programme, by 28th May 2014, nine holes (M2-010 to 018) were completed at an average depth per hole of 694 feet and five new discovery grade and thickness intercepts were indicated. These five intercepts had grade thicknesses of over 45,000 parts per million (ppm) copper and include a 55 ft interval with 0.36% copper grade (M2-018 hole) and a 40 ft interval with 0.41% copper grade (M2-015 hole). Including the results of the first phase of the drilling programme, the M2 site has delivered a total of eight discovery grade intercepts so far over a strike length of 2,600 ft. The construction of a 5,000-ft access road from M2-018 to the top and centre of nearby Bass Mountain is now heading towards completion, Great Western reported. The company is planning to drill multiple deep holes around 7,260 feet from the M2-018 prospect.
 Beaufort Securities view: Great Western Mining continues to deliver tangible value for its shareholders with further progress of its operations in Nevada. Both the phases of its drilling programme at the M2 site have returned encouraging results. The results of first phase of drilling at the prospect include: 70 feet of 0.16% copper at M2-001, 60 feet of 0.50% copper at M2-004 and 35 feet of 0.98% copper at M2-005. The planned drilling of deep holes near the M2-018 prospect could offer additional upside. In light of these factors and the upcoming drill programme at Bass Mountain, we believe that the company could establish a strong JORC-compliant inferred resource base along the strike length of the M2 site. We maintain a Speculative Buy rating.
https://www.beaufortsecurities.com/videos/Great-Western-Mining_S.pdf
SpeculativeBuy
Target:20p
PLUS:GWMO
Sector:Mining&metals
GreatWesternMininghasanextraordinaryrangeofminingclaimslocatedin
three separategroupsinNevada (USA),with exploration focusedon copper,
silver,uraniumandotherminerals.Althoughexplorationisnotyetsufficiently
advanced to justify a JORCcompliant statement of the mineral assets, the
companyhasreleasedanindependent“CompetentPerson’sReport”outlining
the potential of the mining claims which the company owns. This covers
samples, metallurgical testing, aeromagnetic surveys, and infrared imagery
collectedovertheperiod2006tothepresent.GreatWesternisraisingalmost
£1m to progress the exploration of its multiple targets, and the shares will
transferfromthePLUStotheAIMmarketaftertheissue.
Founded in 2004, and listed on PLUS since 2006, Great Western was
originallyestablishedasagoldandsilverplaybasedonoldclaimdatafrom
thefilesofadeceasedprospector.Furthersurfacemappingofthecompany’s
claims resultedin the discovery of separate uranium, preciousmetal, high
gradeoxidisedcopper,andlowgradebulksulphidetargets.
GreatWestern’spropertiescoversome73sq.kilometres(28.2sq.miles).In
totalthereare848fullclaimsand48fractionalclaims.
The firsttwoclaimgroups,intheBlackMountainandHuntoonareas,have
shownwidespreadoccurrenceofhighgradeoxidisedcopper.Somemayalso
contain economic concentrations of silver. Uranium mineralisation also
appears to be widespread in the northeastern area of the BlackMountain
group. The third group, in the Golconda Thrust fault, has been associated
withlargedisseminatedsilverdeposits.
The company’s programme will comprise two phases. The first, mapping,
drilling and sampling, is expected to identify the key targets for a further
moreextensivephaseofsamplinganddrilling,inpreparationforthesecond
phase. The latter should lead to a resource estimate and production of a
preliminaryfeasibilitystudyformining.Thefundsbeingraisedintheplacing
areaimedatcompletionofthefirstphase.
Managementis headed byEmmettO’Connell,who founded the forerunner
of Aminex and has also led several successful ventures in the oil and gas
sector.TheCEO,MelvynQuillerisamechanicalengineerwithasoundtrack
recordofoverseasprojectmanagement,whileRobertO’Connell,Operations
Directorisaqualifiedgeologistwithovertenyears’experience.
KInvestmentcase
GreatWesternMiningCorporationisanearlystagemineralexplorationcompany,andassuchthecase
forinvestmentrestsprimarilyonthegeologicalandmineralogicalevidencesuppliedbythecompany’s
independentadvisors,WTCohan&Associates,ontheminingclaimswhichthecompanyhasstaked.
Atotalofeighttargetshavesofarbeenidentifiedfromtheclaimsownedbythecompany,andthedata
gatheredsofarhassuggestedthefollowingpossibleminerals:
GreatWesternMining:potentialtargets
Model Mass
(tonnes)
Grade
Disseminatedsilver 25m 102.9g/tAg
Disseminatedoxidecopper 25m 0.6%Cu
Epithermalsilvervein 3m 214.3g/tAg
Therealsoareshowingsofnarrowveinhosteduraniumandpreciousmetalsmineralizationthatmight
befeasibleforexploitationbyundergroundminingandheapleaching.
Theseestimatesofthepotentialtargetshavebeenderivedfrompublisheddataandaresupportedby
theknownpropertiesofneighbouringminesatCandalaria,SantaFeandTonopah,Nevada.
Therecommendedfutureexplorationprogrammesconsistofgeologicalmappingtodefinetargetsand
detailed sampling and exploration by surface drilling. Additional geophysical surveys, in the form of
landbasedinducedpolarizationandmagneticsurveys,arebeingimplemented.Aprogramofacquiring
additionallandtenureonrecentlyidentifiedgeophysicaltargetsofinteresthasnearlybeencompleted.
Theestimatedcostsof the futureexplorationprogramsareUS$5.2m for the firstphaseandUS$5.6m
forthesecondphase.Thecurrentplacingisexpectedtocoverexploratoryworkontwoofthefirsteight
targets,aswellasthecostsofAIMlisting.Afurtherfundraisingpossiblylaterthisyearwillcoverthe
remainingexpectedcostofthefirstphase,andtherewouldthenbeanotherroundoffundinglaterin
2012forphasetwo.
The two phases are expected to define one or more of the identified geological anomalous areas
sufficientlytocompleteaninitialestimateofresourcesandpreliminaryfeasibilitystudy.Theestimated
durationofbothphasesistwotothreeyears,dependinguponpermittiminganddrillingproductivities.
Investorswhotakeastakeinthecompanyatthisstagecouldexpectthecompanyvaluationtoincrease
by a significant factor if the target resources are proven. A regular flow of information on the
explorationshouldbehelpfultoshareprices,andgivesrisetoour12monthtargetpriceof20p.
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