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24 Nov 2020 15:55
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
* 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 Exploration Programme |
The due diligence work programme previously 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 (£14,512) and the amount expended will be deducted from Power Metal's 12 month Project exploration spend commitment of C$250,000.
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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 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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