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Golden Metal Resources #GMET – First Equity Limited rates as Buy

ImagePilot Mountain – Significant Exploration Targets
Golden Metal Resources plc (GMET.L) this morning announced the results of
a high-resolution Induced Polarisation (IP) Survey over its flagship Pilot Mountain
tungsten project, which combined with the analysis of historic IP data from 2012,
revealed three large undrilled exploration targets. Along with being prospective
for tungsten, these are also believed to host potential copper, silver and zinc
mineralisation. The CEO Oliver Friesen bullishly commented that the results
“exceeded our expectations with three significant high-priority untested zones”.

FE Comment
Today’s news underlines the potential to improve the size of what is already a
sizeable deposit at Pilot Mountain in Nevada, USA, which has an existing Mineral
Resource Estimate (MRE) of 12.53mt at 0.27% tungsten tri-oxide, with 34,290
tonnes of contained tungsten, along with significant silver, copper and zinc
GMET.L – First Equity Limited Comment 6 June 2023

Within the US, Pilot Mountain could attract a government grant to support
development as tungsten is classified as a key strategic and defence industry
metal. Moreover, with no current tungsten production in the US, the development
of Pilot Mountain into a potential mine would provide the country with a vital
domestic source of much needed tungsten.
China is currently the largest producer of tungsten in the world, dwarfing output
from all other countries. Since 2017, China has been the main source of tungsten
imported into the US, accounting for around 30% of imports. With rising tensions
between China and the US regarding the status of Taiwan and high-altitude
balloon incidents over North American airspace in February, there is a risk China
may stop exporting tungsten to the US, given the critical metals use in military
applications. Such a scenario could then lead to Pilot Mountain being fast
tracked towards production or an enhanced asset crystallisation event being
achieved in the short term.

The above opportunities seem to have been completely overlooked by investors,
given the current market cap of £6m and with the shares trading at a discount of
around 20% to the 8.5p IPO price last month. For the compelling reasons
explained above, we recommend the shares in Golden Metal Resources as a

Jason Robertson
D: +44 (0)20 7330 1883 E:jasonrobertson@firstequitylimited.com
*First Equity Limited acts as Broker to the Company. First Equity Limited, its clients and
staff members may be share and warrant holders in Golden Metal Resources plc.

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