18th Nov 2024 14:10
(Alliance News) - Guardian Metal Resources PLC shares surged on Monday, after it said work at Pilot Mountain "is progressing very well" and that next year looks set to be "transformational".
The stock was trading 22% higher at 28.77 pence on Monday afternoon in London.
The London-based metal exploration & development company, formerly known as Golden Metal Resources, also noted a Nikkei Asia report that China intends to "tighten export controls on key 'dual-use' technologies and items in two weeks, including raw materials and metals such as tungsten, graphite, magnesium and aluminium alloys used commonly in tech supply chains". The new rules will take effect from December 1.
"Guardian Metal finds itself focused on the right commodity, in the right jurisdiction, at precisely the right time," commented Chief Executive Officer Oliver Friesen, "and the news reported over the weekend further enhances our confidence in our tungsten projects, their importance to U.S. national & economic security, and our decision to apply considerable resources to their accelerated development."
Friesen added: "While we await more details on the tungsten export restrictions...it is clearer than ever that the time is now for the US to build out its upstream tungsten supply chain capabilities, and we at Guardian Metal are looking to play a significant role in these important endeavours."
Guardian Metal, which has an exclusive focus on tungsten assets in the US state of Nevada, also said its diamond drilling campaign at Pilot Mountain "is progressing very well".
It said results for the first 13 drill holes included Pilot Mountain's "best ever intercept" which returned 39.3 metres at 0.735% tungsten trioxide, 39.7 grams per tonne of silver, 0.44% copper and 0.30% zinc from 66 metres downhole.
Guardian said it expects the next batch of results in the coming weeks, and that it is using the new information to re-model the deposit and has started developing an optimised mine plan.
"Detailed planning with consulting engineers is underway to set the detailed scope for the [pre-feasibility] study," Guardian Metal added.
CEO Friesen also said due diligence work on the Tempiute Tungsten Mine & Mill project, of which it has agreed to acquire 100%, "is progressing rapidly".
Going forward, Friesen said: "As a team we are looking forward to finishing 2024 strongly, and going forward, 2025 is shaping up to be a transformational year for the Company as we continue to grab the US tungsten mantle and work towards supporting the US tungsten onshoring efforts."
By Emma Curzon, Alliance News reporter
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