Guardian Metal Resources plc looks to grow its portfolio with a binding letter of intent for an option to acquire the Tempiute tungsten mine and mill in south-central Nevada, US.
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The potential acquisition from Hinkite Resources LLC lies 290km by road from the company’s flagship Pilot Mountain tungsten project and less than 240km north of Las Vegas.
Tempiute, formerly known as the Emerson tungsten or Black Dog mine, was intermittently explored and mined for tungsten, silver and zinc over the last century.
The majority of the known mineralisation is within 10 patented claims providing “exclusive ownership of the land, minerals and all resources”.
The project also comprises six unpatented Bureau of Land Management mill site claims, four BLM lode claims as well as two BLM placer claims over historic tailings 1.5km away.
The tailings measure 300m by 300m and are believed to be circa 10 to 15m thick.
Additionally, six high-grade stockpiles remain from the 1980s. These were unprocessed because the technology at the time was unable to process efficiently sulphide-rich material, added Guardian.
Tempiute has “multiple” historical resource estimates, although any relevant documentation has yet to be found.
A previous owner’s report outlined a combined measured, indicated and inferred estimate of eight million tons grading 0.43% W03.
Chief executive Oliver Friesen has taken 17 due diligence samples from the stockpiles, exposed surface showings and the tailings which are now under analysis.
He said the company had over the past three years increased its knowledge of the tungsten sector and formed relationships within the United States and internationally.
“Through this, we have come to the conclusion that the macro setup for this key defence metal warrants our investment decision to gain more exposure to this critical commodity.
“Tempiute, being a significant tungsten producer as recently as the late 1980s, along with the extensive in-place infrastructure and its location almost entirely within patented, wholly owned claims, makes it an extremely attractive project.
“While on my recent site visit I was able to tour Tempiute with the optionor and was very impressed by what the project offers.”
Guardian has 90 days to compete due diligence.
If the company decides to acquire the option it will pay the vendors in cash, shares and net smelter return royalty.