Last checked at 22 Sep 2020 07:00
22 September 2020
Power Metal Resources plc ("Power Metal" or the "Company")
Canadian Silver Project - Bonanza Silver Grades from Due Diligence Sampling
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the assays results from the due diligence sampling programme at the Silver Peak Project (the "Silver Peak Project" or the "Project") in British Columbia, Canada. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.
HIGHLIGHTS:
· Ten channel sample and one grab sample assay results received from ALS Canada laboratories for the recently completed due diligence sampling on the Victoria Vein at the Silver Peak Project (programme completion reported on 9 September 2020). Sampling was conducted by a contract geologist and was documented for Power Metal by photographs and video.
· The purpose of the sampling was to validate historic reports of vein grade and the results received have satisfied Power Metal that historic data appears representative.
· Bonanza silver (Ag) and significant copper (Cu) and lead (Pb) grades returned from two 0.5m long channel samples taken across the Victoria Vein;
Ø SP-20-001: 0.50m @ 10,718 g/t Ag, 2.14 % Cu & 2.99 % Pb; and
Ø SP-20-006: 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb
· Other standout channel sample assay results include:
Ø SP20-005: 0.70m @ 7,880 g/t Ag, 1.64 % Cu & 3.16 % Pb; and
Ø SP20-003: 0.50m @ 7,530 g/t Ag, 1.57 % Cu & 2.07 % Pb.
· Average silver grade across all 11 samples >6,000g/t silver. Full results summary set out in Table 1 below.
· Channel samples were cut across the width of the vein, perpendicular to the vein strike, using a petrol driven water cooled disk cutter, sample sites were selected where vein material was deemed to be representative of silver mineralisation;
Ø Channel Samples SP-20-001 to 007 were taken as a series of parallel channel samples taken across the Victoria Vein over a circa 4m strike length; and
Ø Channel samples SP-20-008 - 010 were taken as a series of parallel samples across the Victoria Vein at a point circa 16m along strike from samples 1-7. Grab sample SP-20-011 was taken at an intermediary point along the vein.
CHIEF EXECUTIVE OFFICER'S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented
"We are very pleased to report the assay results from Power Metal's recent due diligence sampling programme have confirmed the very high silver values historically reported on the Victoria vein, one of two main veins located at the Silver Peak Project in British Columbia, Canada.
Bonanza grades of silver with significant copper and lead have been confirmed by channel samples, assayed by ALS Global and these exciting results reinforce and confirm the historical reported assays and underpin Power Metal's decision to progress with the project earn-in.
With preparations currently being made on site to further upgrade access for equipment, we look forward to providing details of the follow-on programme plans at Silver Peak shortly."
ASSAY RESULTS
A summary of certificated assay results with analytical method, for the eleven samples submitted to ALS Canada Ltd 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 Length (m) | Ag (ppm)^ | Ag (ppm)#^ | Cu (%)* | Pb (%)* |
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 |
| - |
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* 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.
^ ppm is parts per million, and equivalent to g/t
FURTHER INFORMATION
Background | On 14 September 2020 the Company announced the exercise of the 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. As part of this due diligence process the Company undertook an exploration programme at the Project to gather further information and to assist the Company in its assessment of project prospectivity and potential. The assay results from this sampling work are outlined in the current release. |
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. |
Due Diligence Exploration Programme |
The work programme 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 work programme cost totalled C$25,000 (£14,512) and the amount expended will be deducted from the C$250,000 12-month project exploration spend as Power Metal has exercised the Option.
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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 |
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Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson | +44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
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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 drill ready prospects.
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.