Great Western Regulatory News (GWMO)

Great Western Mining Corporation PLC

("Great Western", "GWM" or the "Company")

Half Yearly Report and Unaudited Condensed Financial Statements

Financial Highlights:

· Loss for period €448,652 (30 June 2021: loss of €427,590 and December 2021: loss of €535,960)

· Basic and diluted loss per share 0.0001 cent: (30 June 2021: 0.0004 cent and 31 December 2021: €0.001 cent)

· Net assets at 30 June 2022: €9,191,466 (30 June 2021: €8,711,124 and 31 December 2021: €8,945,631)

Operational Highlights:

· Completed drilling programmes at Rock House ("RH") and Trafalgar Hill (TH")

o  Three holes completed RH totalling 488 m with positive indicators of alteration

o  Three holes drilled at TH with a combined length of 436 m,

· Grab sampling results from 51 spoil heaps at Mineral Jackpot ("MJ")

Post period End:

· OMCO drilling assays received

o  Extension to OMCO Mine now established

o  Gold recorded over 6.1 metre interval including a best intercept of 8.1 grams/tonne over 1.5 metres

· RH and MJ assay results highlighted strong project dynamics

o  High grades of silver at MJ providing potential for shallow drilling and ore to be produced through milling JV

o  Reportable, anomalous gold values were encountered at RH with clear evidence of a continuing gold mineralising system

o  New zone of anomalous copper identified beneath a surface gossan at RH

· Completed OMCO Mine MJ drilling programmes

o  Ten holes totalling 1,339 metres drilled in the OMCO Mine area

o  Four holes totalling 536 metres drilled in the Mineral Jackpot main workings area

· Signed a 50-50 joint venture agreement with Muletown Enterprizes LLC to form Western Milling LLC for construction of a mill to recover gold and silver from pre-mined material and shallow ore

o  Manager appointed and the first stage design of a processing mill for secondary recovery of gold and silver from mining waste is now complete

Brian Hall, Executive Chairman, commented: "We are very pleased with the progress made during the period. We set out our stall with an ambitious drilling programme, completed on time and on budget, with positive results received to date. Our transition to near-term production of gold and silver has taken a step closer today following signing of an agreement with Muletown Enterprizes LLC to create a processing mill in Nevada which will ultimately process third party material as well as our own.

 "We have been able to highlight the strength of our portfolio, which is proving increasingly prospective, and we continue to believe that our assets underpin long-term value, while the potential for near-term revenue generation will help separate us from the crowd."

For Further Information:

Interim Report

For the six months to 30 June 2022

Below are Great Western Mining Corporation PLC's Annual Report and Financial Statements for the half year ended 30 June 2022.

Great Western Mining Corporation PLC ("Great Western" or "the Company") explores for, appraises and develops mineral resources on its claims in the state of Nevada, USA but currently has no revenues from its operations. Accordingly it is reporting a loss of €448,652 for the half year ended 30 June 2022 (30 June 2021: €427,590; 31 December 2021: €535,960). At the end of the period Great Western's net assets were €9,191,466 (30 June 2021: €8,711,124; 31 December 2021: €8,945,631) with no debt apart from trade creditors in the normal course of business.

During the half year, Great Western launched a drilling campaign over four of its claim groups in Mineral County, Nevada which continued into the second half, constructed a 14 km mountain road to provide access to its high altitude Mineral Jackpot group of historic mines and created a provisional joint venture with a locally-based contractor to process spoil heaps from previous mining operations, tailings and stockpiles of mined but unprocessed material, all of which are present on its claims.

Drilling Activities

The four claims groups selected for drilling were the Southern Alteration Zone at Rock House (SAZ), the Trafalgar Hill prospect at the Olympic Gold Project, the area around the abandoned OMCO Mine at the Olympic Gold Project and Mineral Jackpot. Rock House and Trafalgar Hill were drilled during the period ended 30 June 2022 and the OMCO Mine and Mineral Jackpot were drilled post period and included in the report for completeness.

Rock House Group: The SAZ was first drilled by Great Western in 2021, having been identified along with other prospects at Rock House through satellite imagery and then extensively soil and rock chip sampling. In 2021, two holes graded vein material of approximately 8 grams/ton Au and 2 grams/ton Au respectively. Ambitious step out drilling this year aimed to find a coalescing of several thin veins but this was not achieved. However, assay results provided evidence of copper which had not been anticipated and drilling has constructively added to knowledge of the prospects which will be used in designing future drilling activity.

Trafalgar Hill at the Olympic Gold Group: Three holes were drilled with an aggregate length of 436 metres at the shallower zone in the southern part of the Trafalgar Hill claims to follow up the positive results achieved in the 2021 drilling programme. The Company has developed a geological model based on last year's drilling results and was able to predict the lithology and alteration features intersected in the three holes with great accuracy. Assay results for the three holes are pending as the Company has decided to expand the assay testing to include screen fire assay techniques which will test for coarse nuggety gold potentially identified within the system.

The OMCO Mine at the Olympic Gold Project: The OMCO Mine produced gold from shallow depths for roughly four decades before being abandoned during the Second World War. The principal east-west vein is interrupted by a north-south fault and one of Great Western's objectives is to find a continuation of the vein on the eastern side of this fault. Magnetometry and drilling in 2021 identified mineralisation compatible with the OMCO vein but did not find a continuation of the vein itself. 

Drilling this year has been focused on possible unmined continuations of the vein on the west side of the fault. This proved successful as hole OMRC015 intercepted compatible vein material, proving up a continuation of the OMCO vein. OMCR0015 intercepted 6.10 metres from 38.10 metres in the hole grading at 2.682 grams/ton Au average, including 8.110 grams/ton Au over 1.52 metres from 39.62 metres and 1.747 grams/ton Au over 1.52 metres from 41.15 metres. Pursuing this vein will be a primary objective of the next drill campaign.

Mineral Jackpot in the Black Mountain Group: Although the five historic mines making up Mineral Jackpot produced gold and silver for some years before and after the turn of the 19th-20th century, access had only been by mule track and until this year none of the prospects had ever been drilled. Great Western has carried out soil surveys over the last three years, collected rock chip samples and conducted magnetometry surveys, on foot where possible and by specialist drones in the less accessible areas. The new 14 km road was constructed during the reporting period, with the dual objectives of providing access for a drill rig and a route for offloading numerous spoil heaps of mining waste for secondary recovery of gold and silver. Four holes have been drilled since the end of the period. One hole, MJRC004, intercepted a 7.62 metre zone from 4.57 metres in the hole, grading at 180.94 grams/ton Ag and 0.315 grams/ton Au, contained within which was a high-grade silver zone hosted in quartz vein of 3.04 metres at 418.00 grams/ton Ag and 0.554 grams/ton Au, starting at 6.10 meters drilled depth. There is scope for extensive further drilling all over the Mineral Jackpot claims but the immediate focus is likely to be on shallow drilling with a small rig in the vicinity of the recent discovery.

Planned Processing Operations

Over the last two years, Great Western has been researching the optimum means of processing mining waste for recovery of gold and silver. Originally this was planned to be a simple gravity separation process for spoil material from Mineral Jackpot, where there are 51 known spoil heaps. The concept was expanded once work began in earnest on the newly acquired Olympic Gold Project option in 2021, where extensive tailings, spoil heaps and a stockpile of material had been mined but never processed. During the period the Company concluded a way forward and has now signed a 50-50 joint venture agreement with Muletown Enterprizes LLC, a Nevada based contractor, to construct a processing mill on private land owned by Muletown. The joint venture company will be known as Western Milling LLC.

Copper Projects

In addition to its gold and silver operations, Great Western has already drilled and established a partly inferred, partly indicated copper resource of 4.3 million tonnes at a grade of 0.45% at its M2 project in the Black Mountains group. This was a considerable achievement, with the potential to lead to the discovery of a much larger copper resource. Great Western believes there is untested potential in both directions along strike, on a structure of up to 5 km, supported by historical mine workings to the northeast, and an IP anomaly to the southwest.

Great Western's copper resource at the M2 project is complemented by copper potential on other claim groups. As referenced above, drilling at Rock House during the period intercepted a surface gossan with underlying long intercepts of elevated copper grades. Also, during the period hill-cuts at the M4 project were chip sampled, resulting in 16 m at 0.2% and 0.28% Cu respectively. An IP survey was conducted over the Company's Eastside Mine group of claims revealing IP anomalies with promising copper potential. Further, the Company has in the past drilled a single hole on the Huntoon claims which assayed at 0.35% Cu over 27.4 metres and this will be followed up in due course. Finally, there is further copper potential at the Tun Group. 

A major copper project is too large an undertaking for a company of Great Western's size and so a larger partner is being sought. There have been several expressions of interest so far, but none has met Great Western's objectives. Although no firm decision has been made, Great Western may restart a limited drill programme to prove up the copper potential at M2 as well as reviewing exploration opportunities at the other claim groups to provide a broader base of copper potential for an incoming industry partner.

Looking Forward

Since 30 June 2022, Great Western has completed drilling activity at OMCO and Mineral Jackpot as reported above. The Company has also undertaken significant reclamation work at Rock House, the OMCO Mine, the M2 Project and Sharktooth to ensure that regulatory commitments are met and to release permitted acreage ready for further drilling activity in 2023.

Looking forward, in the final quarter of 2022 and early 2023 Great Western will focus on planning, constructing and operating the proposed process mill with the objective of transitioning from pure exploration alone to a combination of exploration and commercial production. This includes the commissioning of a JORC-compliant resource estimate for the tailings at the OMCO mine, which is expected to include defined exploration targets for other available material. The study is currently under way. Finally, the Company is preparing a shallow drilling programme to follow up on the successful results at Mineral Jackpot and in the OMCO Mine area. Shareholders will be kept informed on progress.

Unaudited Condensed Consolidated Income Statement

For the six months to 30 June 2022

All activities derived from continuing operations. All losses are attributable to the owners of the Company.

Unaudited Condensed Consolidated Statement of Other Comprehensive Income

For the six months to 30 June 2022

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2022

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2022

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2022

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2022

Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2022

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2022

1. General information

Great Western Mining Corporation PLC ("the Company") is a company domiciled in the Republic of Ireland. The Half Yearly Report and Unaudited Condensed Consolidated Financial Statements ('the half yearly financial statements') of the Company for the six months ended 30 June 2022 comprise the results and financial position of company and its subsidiaries ("the Group").

The Group half yearly financial statements were authorised for issue by the Board of Directors on 29 September 2022.

Basis of preparation

The half yearly financial statements for the six months ended 30 June 2022 are unaudited. The financial information presented herein does not amount to statutory financial statements that are required by Chapter 4 part 6 of the Companies Act 2014 to be annexed to the annual return of the company. The statutory financial statements for the financial year ended 31 December 2021 were annexed to the annual return and filed with the Registrar of Companies. The audit report on those financial statements was unqualified.

The Group half yearly financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

The financial information contained in the half yearly financial statements have been prepared on the historical cost basis, except for the decommissioning provision, share-based payments and warrants, which are based on fair values determined at the grant date. The accounting policies have been applied consistently in accordance with the accounting policies set out in the annual report and financial statements for the year ended 31 December 2021 except as outlined below.

Accounting policies

The accounting policies adopted are consistent with those of the annual Financial Statements for the year ended 31 December 2021. New and amended standards that became applicable for the Group in the current reporting period have not resulted in changes to accounting policies or retrospective adjustments.

Use of estimates and judgements

The preparation of half-yearly financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

In particular, significant areas of estimation uncertainty in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following area:

• Note 13 - Share warrants - financial liability

• Note 15 - Share based payments, including share option and share warrant valuations

In particular, significant areas of critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following areas:

• Note 8 - Intangible asset; consideration of impairment of carrying value of claim groups

• Note 8 - Intangible asset, consideration of impairment relating to net assets being lower than market capitalisation

• Note 12 - Decommissioning provision

2. Going concern

The financial statements of the Group are prepared on a going concern basis.

In order to assess the appropriateness of the going concern basis in preparing the financial statements for the six months ended 30 June 2022, the Directors have considered a time period of at least twelve months from the date of approval of these financial statements. 

The Group incurred an operating loss during the period ended 30 June 2022. As the Group is not generating revenues, an operating loss is expected for the next twelve months. However at the balance sheet date, the Group had cash and cash equivalents amounting to €1.16 million which the Board considers will enable the Group to meet continuing operating expenditure and the planned work programme for at least twelve months from the date of approval of these financial statements.

The future of the Company is dependent on the successful outcome of its exploration activities and implementation of revenue-generating operations. The Directors believe that the Group's ability to make additional capital expenditure on its lode claims in Nevada, including a final investment decision on the reprocessing of historical spoil heaps and tailings, can be assisted if necessary by raising additional capital, the deferral of planned expenditure and other cost saving actions, loan facilities for revenue-generating operations or from future revenues. The Directors have taken into consideration the Company's successful completion of placings and the exercise of warrants and options over the last 24 months to provide additional cash resources. 

The Directors concluded that the Group will have sufficient resources to continue as a going concern for the future, that is for a period of not less than 12 months from the date of approval of the condensed consolidated financial statements.

However, there exists a material uncertainty that may cast significant doubt over the ability of the Group to continue as a going concern. The Group may be unable to realise its assets and discharge its liabilities in the normal course of business if it is unable to raise funds for further exploration on and development of its exploration assets. The condensed consolidated statements have been prepared on a going concern basis and do not include any adjustments that would be necessary if this basis were inappropriate.

3. Segment information

The Group has one principal reportable segment, Nevada, USA, which represents the exploration for and development of copper, silver, gold and other minerals in Nevada, USA.

Other operations "Corporate Activities" includes cash resources held by the Group and other operational expenditure incurred by the Group. These assets and activities are not within the definition of an operating segment.

In the opinion of the Directors the operations of the Group comprise one class of business, being the exploration and development of copper, silver, gold and other minerals. The Group's main operations are located within Nevada, USA. The information reported to the Group's chief executive officer (the Executive Chairman), who is the chief operating decision maker, for the purposes of resource allocation and assessment of segmental performance is particularly focussed on the exploration activity in Nevada.

Information regarding the Group's results, assets and liabilities is presented below.

Segment results

Segment assets

Segment liabilities

Geographical information

The Group operates in three principal geographical areas - Ireland (country of residence of Great Western Mining Corporation PLC), Nevada, USA (country of residence of Great Western Mining Corporation, Inc., a wholly owned subsidiary of Great Western Mining Corporation PLC) and the United Kingdom (country of residence of GWM Operations Limited, a wholly owned subsidiary of Great Western Mining Corporation PLC).

The Group has no revenue. Information about the Group's non-current assets by geographical location are detailed below:

4. Finance income

5. Income tax

The Group has not provided any tax charge for the six months periods ended 30 June 2022 and 30 June 2021 or the year ended 31 December 2021. The Group has accumulated losses which are expected to exceed profits earned for the foreseeable future.

6. Loss per share