Source - Alliance News

Great Western Mining Corp PLC on Tuesday warned of a delays in the construction of its precious metals mill in Nevada, citing a dearth of local contractors as it aims to meet environmental requirements.

More positively, the mineral exploration and development company with gold, silver and copper assets in the US said project costs remain within budget.

Great Western said the process equipment was assembled adjacent to the site and ready to install. However due to environmental requirements, ‘the final concrete pour cannot be carried out piecemeal and requires a continuous pour with several concrete mixer trucks operating in tandem, the closest contractor being a two-hour drive from its base to the Western site.

‘Due to high construction demand in the area and a scarcity of local contractors, it has not so far been possible to organise this final pour except at an unacceptable premium to normal market rates.’

Great Western Mining shares fell 6.0% in response to 0.047 pence each on Tuesday morning in London.

The company said there is no agreed date for the operation albeit it being ‘a very high priority’ to carry out as soon as possible.

Chair Brian Hall said: ‘Delays are always disappointing but in this case have been beyond the company’s control. All the ingredients are in place to move forward and the Western Milling joint venture remains an exciting project and a top priority for the Great Western. Costs are being carefully controlled and we plan to be ready for first production by the time regulatory approval has been secured. We cannot guarantee the timing of this approval but our aim is to be on production this year.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Related Charts

Great Western Mining Corporation PLC (GWMO)

0p (0.00%)
delayed 16:06PM