Guardian Metal Resources plc (AIM: GMET, OTCQX: GMTLF), a mineral exploration company focused on tungsten in Nevada, has made significant strides in advancing its flagship Pilot Mountain Project. The company has finalized an agreement to acquire essential water rights that are critical for the project’s development, marking a key milestone in its efforts to bolster domestic tungsten production in the United States.
The newly acquired water rights pertain to Permit 87850, located in the Kibby Basin Valley, adjacent to the Pilot Mountain Project. This acquisition is pivotal as it allows for the production of approximately 1,447.94 acre-feet of water annually, with an allocated consumptive use of 130.055 acre-feet per year for mining, milling, and domestic purposes. The proximity of the water source, less than three kilometers from where the mining infrastructure will be established, enhances the project’s viability and operational efficiency.
Water access is a fundamental requirement for mining operations, particularly in arid regions like Nevada. The acquisition of Permit 87850 not only secures a vital resource but also significantly mitigates risks associated with project development. Oliver Friesen, CEO of Guardian Metal, emphasized the importance of this acquisition by stating, “Water rights are a crucial requirement for mine development and ongoing operations.” He noted that securing these rights represents a major derisking step for their flagship asset.
The financial terms of the agreement include an initial payment of $350,000 to Belmont Resources Inc., with an additional $200,000 due upon completion by January 31, 2025. Upon completion, all rights associated with Permit 87850 will be fully transferred to Guardian’s subsidiary, Pilot Metals Inc.
The Pilot Mountain Project is located within the Walker Lane Mineral Belt and is regarded as one of the largest undeveloped tungsten deposits in the U.S. As global supply chains face increasing scrutiny and challenges, particularly concerning reliance on foreign sources for critical minerals, Guardian Metal aims to play a crucial role in re-establishing domestic tungsten production. Tungsten is essential for various industrial applications and military uses, making its domestic availability vital for national security.
The U.S. government has been actively seeking to reduce dependence on foreign minerals through initiatives aimed at strengthening domestic supply chains. This aligns with Guardian Metal’s objectives as it progresses through pre-feasibility studies and prepares for future mining operations.
Guardian Metal Resources has made significant strides in its efforts to establish a reliable source of tungsten production in the U.S. This includes securing vital water rights and reporting promising drilling results from its Pilot Mountain site earlier this year, which revealed high-grade tungsten and copper deposits. These advancements are anticipated to improve the company’s mineral resource estimates and enhance its mine planning initiatives.
