Guardian Metal Resources PLC: Pilot Mountain Garnets - A Potential Game Changer

Guardian Metal Resources PLC (LON:GMET, OTCQX:GMTLF), a mineral exploration company focused on tungsten, copper, silver, gold, and lithium within Nevada, USA, has recently announced significant results from its industrial garnet processing study at the 100% owned flagship Pilot Mountain Project. The project, located within the Walker Lake Mineral Belt in Nevada, has shown promising potential for a significant garnet resource, which could significantly impact the overall economics of the project.

The initial processing characterisation results based on a 100kg split of the 300kg composite sample returned combined size fractions comprising 58.3% garnet and 0.37% scheelite by mass. This result far exceeds the Company's initial expectations and offers strong potential for a significant garnet resource to be established at Pilot Mountain. Given the current Mineral Resource estimate (MRE) tonnage of 12.53Mt and assuming a homogeneous garnet distribution across the Project, the characterisation results offer strong potential for a significant garnet resource to be established at Pilot Mountain.

The successful garnet liberation of 58.5% by mass at the relatively coarse 425 µm grind size highlights the possibility of the following downstream cost savings: reduced comminution (grinding) costs, savings related to reduced power requirements and reagents in flotation, and smaller tailings dam requirements. The potential for removal of garnets via gravity separation, followed by magnetic separation to then separate garnet from scheelite, further enhances the economic viability of the project.

Industrial garnet imported into the USA in 2023 traded at an average price of US$190/tonne with US domestic garnet trading at a premium price of US$220/tonne. Over the last 2 years, the USA imported >65% of its garnet requirements for industrial use. Given the significant proportion of garnet identified in the sample and the very good liberation noted for scheelite and garnet at a relatively coarse grind size, the Company has instructed SGS to immediately continue gravity and magnetic separation tests of the remainder of the bulk sample material. Marketing and further characterisation studies have been actioned by the Company's technical and marketing team which will aid in the determination of the suitability of Pilot Mountain garnets (and potential pricing) for various industrial applications.

The global abrasives market was valued at US$35.5B in 2022 and is projected to grow at a compound annual growth rate of 4.5% from 2024 to 2030. Industrial garnet is used in a wide array of industries, including abrasive blasting, water-filtration media, water-jet-assisted cutting, in abrasive powders, nonslip coatings, and sandpaper. The industries that are known consumers of industrial garnet include aircraft and motor vehicle manufacturers, ceramics and glass producers, electronic component manufacturers, filtration plants, glass polishing, petroleum industry, shipbuilders, textile stonewashing, and wood-furniture finishing operations.

In conclusion, the garnet processing results at the Pilot Mountain Project have the potential to significantly impact the overall economics of the project. The high proportion of garnet identified in the sample, the successful liberation at a relatively coarse grind size, and the potential for cost savings in processing and management all contribute to a positive outlook for the project. As the Company continues to evaluate the potential of the garnet resource at Pilot Mountain, investors should keep a close eye on the developments at this strategic mineral exploration and development company.