Great Western Share News (GWMO)

(Sharecast News) - Great Western Mining updated the market on its recently-acquired option over the Olympic Gold Project in Nevada on Thursday, reporting that among the four potential targets so far identified, a preliminary assessment has been completed on the OMCO Mine Extension prospect, confirming the potential of the claim area.

The AIM-traded firm said the OMCO mine had been "prolifically worked" for gold and silver in the past, and was underlaid by felsic tuffs.

Faulting, which occurred post-mineralisation, had the effect of cutting the Olympic vein to the west and south, but Great Western said the previous mine operator only exploited the vein up to the limits defined by the faults.

It did not attempt to locate or follow the continuation of the vein on the far side of the faults, it explained.

Great Western said the Olympic vein has platy quartz pseudomorphs of calcite, which indicate boiling of the hydrothermal fluid - an "important process" for the deposition of gold in epithermal systems.

Samples collected by the company in recent weeks from both surface dumps and collapsed stope material were taken to an independent laboratory for analysis, and ranged in gold values from 0.09 to 21.50 parts per million.

The samples were individually crushed until at least 70% of the material was greater than two millimetres in size.

A subsequent 250 gram split portion of each sample was then pulverised until 85% of the material was less than 75 microns in size.

Great Western said a 30 gram split of the pulverised rock was then analysed for gold by fire assay with atomic absorption finish, and a 0.5 gram split was partially dissolved in aqua regia, and analysed for 33 trace elements, including silver, by inductively coupled plasma optical emission spectrometry (ICP-OES).

Veins on the east side of the OMCO area could also have potential for precious metal mineralisation, the company claimed, and would be reviewed in due course.

One vein exposed in a small adit in the east displayed platy textures, comparable to those seen in the Olympic vein.

Previous drilling to the north-west of the former Olympic workings encountered a "thick zone" of silicification, with conspicuous pyrite throughout.

That vein, dubbed the Cosmos vein, although low grade where sampled, had potential elsewhere and would be followed up, the board said.

Great Western said its targets for immediate follow-up were the continuation of the Olympic Vein to the east of the OMCO fault, likely using a ground magnetic survey to define a drill target, and continuation of the Olympic vein to the south.

It would also assess the Cosmos vein potential, explaining that locations in the footwall of the west fault were likely shallower than those tested to the east.

Tests for the Cosmos vein could be combined with tests of the Olympic vein, south of the main workings, or north-east of the OMCO fault.

"Despite the constraints of current operating circumstances, we are very pleased to have been able to make a proper assessment of the Olympic Gold Prospect on the ground and to have analysed physical rock samples in an independent laboratory, which fully justifies our participation in this exciting gold play," said executive chairman Brian Hall.

"In addition to the OMCO mine extension we are finalising analysis of other targets on the Olympic Gold property and will report on the results shortly.

"Elsewhere, Great Western is gearing up for the delayed work season at its Mineral Jackpot and RH Group gold and silver projects in Nevada and we will update shareholders as soon as we have progress to report."

At 0914 BST, shares in Great Western Mining Corporation were down 4.35% at 0.11p.