TIDMPOW
RNS Number : 3745G
Power Metal Resources PLC
24 November 2020
24 November 2020
Power Metal Resources plc ("Power Metal" or the "Company")
Silver Peak - Exploration Update
Power Metal Resources plc (LON:POW) the AIM listed metals
exploration and development company is pleased to announce an
exploration update from the Silver Peak silver project (the "Silver
Peak Project" or the "Project") in British Columbia, Canada.
CHIEF EXECUTIVE OFFICER'S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:
"In what continues to be a highly active period at Power Metal
Resources, I am pleased to announce the safe completion of a
revised drill and sampling programme at the Silver Peak Project
notwithstanding very challenging operating conditions as described
below.
Our summer due diligence review at Silver Peak clearly
highlighted the Project's potential, as validated by bonanza grade
silver (including channel samples yielding up to 14,937 g/t Ag) and
significant copper and lead we identified from our summer due
diligence channel sampling programme.
We wanted to follow up expeditiously with further work before
the weather window closed, gathering additional information to aid
preparation for the Project's next stage of development. To do this
we have worked closely with our partners to adapt very rapidly to
changeable weather forecasts.
I would like to thank the exploration team for persevering
despite the stormy conditions, followed up by snowfall, the
heaviness of the latter bringing the work programme to an early
conclusion.
The additional work undertaken by the team has added to our
geological understanding of the silver mineralisation and we have
secured samples which have now been delivered to the laboratory for
assay testing.
Given the highly positive project data, reinforced by
exploration to date, we are working closely with our partners to
determine next steps for Silver Peak, from both exploration and
corporate perspectives. There is palpable demand for high grade
silver projects in the market at present."
SUMMARY OF REVISED DRILL AND SAMPLING PROGRAMME
-- The team undertook a rock chip sampling programme at the
Project and despite challenging weather conditions completed six
diamond drill holes utilising man-portable drilling equipment to an
average depth of 12 feet per hole.
-- Forecast heavy snowfall, resulted in an early cessation of
the programme and the team safely left the site, with all equipment
and samples collected, before the snows fell.
-- In total 10 diamond core samples were prepared for testing
from the 6 holes drilled and 11 rock chip samples have been
prepared from the field work and all samples have been delivered to
ALS laboratory in North Vancouver, British Columbia for assay
testing.
-- During the programme vital information was collated on the
nature of the bifurcating vein system across different levels of
the system. This information will be utilised to develop future
project exploration programmes.
EVENTS LEADING INTO THE REVISED PROGRAMME
-- On 22 October 2020 Power Metal announced the signing of the
drilling contract for an initial 500m confirmatory diamond core
drill programme to test the Victoria Vein at the Silver Peak
Project. The Project includes the Eureka-Victoria Silver Mine, the
first Crown-granted mineral property in British Columbia.
-- On 30 October 2020 Power Metal announced that the drilling
contractor had mobilised the drilling rig, bulldozer and ancillary
equipment from northern British Columbia to the local town of Hope
where the Silver Peak Project is based and then the planned
movement of the drilling rig and support equipment from Hope up the
valley, on the upgraded access, to the project and the first
drilling pad.
-- The mobilisation was attempted but the area had experienced
significant poor weather which caused a degradation in conditions
at the project and limited access to the property. Some of the
impacts were dealt with, including the removal of fallen trees,
however given the size of the rig and supporting equipment and the
conditions encountered it was not considered safe to proceed with
the original plan of moving the larger rig up onto the drilling
pad.
-- As announced on 10 November 2020 rather than not proceeding
and delaying the drill programme entirely Power Metal's local
partners secured smaller man-portable drill equipment and this,
together with associated support equipment was installed at the
Project and the team commenced drilling.
-- The local team were aiming to drill test at least twenty vein
intersections, with hole depths of circa 6m/20 feet (120m of
drilling overall) in a 6 to 8-day programme dependent particularly
on weather conditions in the Project area.
-- Given the depreciation in local weather, conditions for
drilling worsened, and 6 holes were completed to around 60% of
planned depth. Working time on-site was reallocated to the
collection of rock chip samples from accessible veins and
assessment of the property to gather additional geological
information.
-- The team safely left the site due to a forecast of heavy
snowfall, with all equipment and rock samples. The site was
subsequently covered in significant snow.
PROJECT BACKGROUND AND EARLIER DUE DILIGENCE PROGRAMME
FINDINGS
Background On 14 September 2020 the Company announced
the exercise of an option agreement announced
17 August 2020 (the "Option Agreement") in
respect of the Silver Peak Project, gaining
the right to earn-in to a 30% interest in the
Project.
Prior to option exercise the Company undertook
a due diligence exploration programme including
sampling at the Project to gather further information
and to assist the Company in its assessment
of project prospectivity and potential.
The assay results from the due diligence channel
sampling were reported on the 22 September
2020 and are set out in Table 1 below:
Table 1: Summary of assay results for samples
taken during Power Metal Due Diligence sampling
on Victoria Vein, Silver Peak Project ALS Global Analytical
Method Ag-GRA22 Ag-CON01 Cu-OG46 Pb-OG46
--------- --------- --------
Sample ID Channel Sample Ag Ag Cu Pb
Length (ppm) (ppm)# (%)* (%)*
(m)
SP20-001 0.50 >10,000 10,718 2.14 2.99
SP20-002 0.50 6,010 1.71 2.87
SP20-003 0.50 7,530 1.57 2.07
SP20-004 0.60 5,540 1.38
SP20-005 0.70 7,880 1.94 3.16
SP20-006 0.50 >10,000 14,937 3.05 11.95
SP20-007 0.80 5,330 1.26
SP20-008 0.55 1,595 1.78
SP20-009 0.45 4,110 -
SP20-010 0.65 1,755 1.71
SP20-011 N/A Grab sample 660 -
* Cu and Pb results rounded to two decimal
places.
# Two over limit silver samples were analysed
>10,000 ppm Ag by method Ag-GRA22 were reanalysed
using method Ag-CON01.
Project Overview The Silver Peak Project consists of a portfolio
of mineral claims (the "claims") over a system
of high grade, intrusion related, polymetallic
Ag-Pb-Zn-Cu veins, part of the historical Eureka-Victoria
Silver Mine, at Silver Peak in southern British
Columbia, Canada.
-----------------------------------------------------------------------------------
Earlier Due Diligence The due diligence work programme previously
Exploration Programme conducted by Power Metal included various elements
including channel sampling at close intervals
perpendicular to the existing known high-grade
veins and grab samples from a main target area
between the lower elevations and the Victoria
Adit.
The work also included enhancement of road
accessibility to the exploration area, and
the collation of detailed photographic and
video evidence of the project area for cross
referencing to existing project technical information.
A portable X-ray fluorescence analyser ("pXRF")
was utilised to provide in-field, geochemical
analyses, in conjunction with confirmatory
laboratory assay testing where appropriate.
The due diligence work programme cost totalled
C$25,000 (GBP14,512) and the amount expended
will be deducted from Power Metal's 12 month
Project exploration spend commitment of C$250,000.
-----------------------------------------------------------------------------------
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Competent Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration and development company seeking a large scale metal
discovery.
The Company has a global portfolio of project interests
including precious metal exploration in North America and Australia
together with base metal exploration in Africa. Project interests
range from early stage greenfield exploration to later stage
prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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END
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