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.
Great Western Mining Corporation Plc (“Great Western” or the “Company”), the Nevada based mineral exploration Company, to manage communications with the financial media, research analysts and investors.
Great Western floated on AIM as part of an IPO raising £1 million in August 2011, before also joining Dublin’s Enterprise Securities Exchange in November 2011 to take advantage of the growing investor base in Ireland.
A Competent Person's Report published with the move to AIM identified the presence of potentially bulk quantities of copper and silver across the Company’s claims. To this end, the Company began their extensive programme of exploration across its assets; with the goal of delivering shareholders a series of resource estimates leading to a bankable study.
The Company has just announced the appointment of a new Chairman, Brian Hall, who was previously a Non-Executive Director, and recently appointed David Fraser as Chief Executive. This is the first development in a planned ramp up in activities for the Company.
“Great Western has the potential to deliver significant value to shareholders, subject to proving up its mineral claims. The Company is operating in one of the safest mining jurisdictions possible, in an area well known for mineral discoveries. We look forward to assisting the Company as it looks to ramp up its City activity, and engagement with shareholders around increased news flow.”
The 'super major' has requested that GWM "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.
GWM, 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.
The Road Ahead
A Competent Person’s Report is being currently drafted which will update the work carried out up to June 2012.
Last year's (June 2011) CPR gave the following:
Potential Target Models
Model Mass Tons Grade
Disseminated Silver 25 Million 102.9 g/t Ag
Disseminated Oxide Copper 25 million 0.6 % Cu
Epithermal Silver Vein 3 Million 514.3 g/t Ag
Your Board of Directors believe that a joint venture business plan
may be the most effective development strategy for a non-revenue generating exploration company. By adopting such a plan, the Company accepts a certain dilution in an exploration property rather than dilution to our existing
shareholders in all our prospects. GWM 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. This would be a medium term development in terms of funding and timing. 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. |
