TIDMPOW
RNS Number : 4008Y
Power Metal Resources PLC
09 September 2020
9 September 2020
Power Metal Resources plc ("Power Metal" or the "Company")
Canadian Silver Project - Exploration Update
Power Metal Resources plc (LON:POW) the AIM listed metals
exploration and development company is pleased to announce an
update in respect of 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:
- Due diligence silver focused exploration programme announced
on 25 August 2020 has been safely and successfully completed
- A total of 11 channel samples were taken from the Victoria
vein faces exposed in the cliffs and open stopes located vertically
above the Victoria adit. Samples have been submitted to the
accredited laboratory, ALS Global in Vancouver, for expedited assay
testing, with results to follow;
- Power Metal technical team are reviewing the exploration work
undertaken and the initial findings, subject to augmentation of
findings with assay data;
- A photograph and video gallery has been established on the
Power Metal website where images of the Project during the
exploration programme have been uploaded with further images to
follow. The gallery may be accessed through the following link:
https://www.powermetalresources.com/p/220/gallery
- Further update to the market will follow with due diligence
findings and option exercise decision in the near term in line with
the 30-day option period.
CHIEF EXECUTIVE OFFICER'S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented
"We are pleased to report the completion of the sampling work on
the Victoria vein, one of two main veins located at the Silver Peak
Project in British Columbia, Canada.
The exploration work focussed on representative sampling of vein
exposures located in the cliffs and workings situated vertically
above the Victoria adit of the Eureka-Victoria Silver Mine. The
work was conducted by contract geologist and technicians in
challenging conditions and was documented by photographs, video and
drone footage. A selection of these images and videos are being
made available on the Power Metal website."
FURTHER INFORMATION
Sampling Process
The samples which were cut across the width of the vein,
perpendicular to the vein strike, using a petrol driven water
cooled disk cutter, were taken from vein material deemed to be
representative of the silver mineralisation at the location.
Sampling exercise on exposed vein faces was conducted safely by
contractors using ladders and rope access techniques in the steeply
dipping terrain. Sampling work was photographed and videoed for the
purposes of work verification given the current travel
restrictions;
Option Agreement and Due Diligence Exploration Programme
Background On 17 August 2020 the Company announced an
option agreement (the "Option Agreement") in
respect of the Project.
The Option Agreement provides Power Metal an
option (the "Option") of a 30-day exclusivity
period for due diligence in respect of the
Project. Should Power Metal decide to exercise
the Option it will secure a right to earn-in
to a 30% interest in the Project.
As part of this due diligence process the Company
has undertaken an exploration programme at
the Project to gather further information and
to assist the Company in its assessment of
project prospectivity and potential.
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 The work programme included various elements
Exploration Programme but is centred on 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 (GBP14,512)
and should Power Metal exercise the Option,
the amount expended will be deducted from the
C$250,000 12-month project exploration spend.
-----------------------------------------------------------
Targeted Outcome Gather additional positive field exploration
data and evidence to support due diligence
review of the Project.
-----------------------------------------------------------
Detailed Project Information
The Silver Peak Project consists of a portfolio of mineral
claims covering an area of approximately 46.02 km(2) , 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.
The Project is located on Silver Peak Mountain which is 6 km
south of the paved TransCanada Highway and the town of Hope. A good
quality gravel municipal road along Silver Creek, passes by the
entrance to the project mine access road. A logging/mining road
which was upgraded in 2011, then extends upwards to the
workings.
Originally discovered in the late 1860s the Silver Peak mines
reportedly exploited near-surface oxide material ranging 500 to 658
oz/ton silver, via underground adits on two main veins varying in
width from 1.5 to 6 m. Mining continued intermittently on a small
scale under various ownership until 1981.
The property was subject to minor surface and underground
sampling and mapping programmes between 2009 and 2011, confirming
the tenor and extent of high grade silver mineralisation in the
Eocene age conglomerate hosted siderite-tetrahedrite veins, with
grab sample assays up to 22,600 g/t Ag(1) .
Underground sampling in 2011 along the strike of the Victoria
Vein returned a grade of 8,889 g/t Ag, with a grab sample from the
Victoria Vein face assayed at 15,517 g/t Ag, 4.3% Pb, 2.94% Cu and
2,756ppm Bi. Bench scale metallurgical testwork in 2011 returned
silver leach recoveries of up to 80% using a 0.4% Ag (4,000g/t)
feed sample.( [1] )
Exploration Potential
Whilst the Project can demonstrate a long history of high grade
silver production, the resource potential of the Eureka and the
Victoria vein systems, which each range over 625m long, has never
been formally assessed or drill tested at depth or along
strike.
A systematic phased exploration programme is envisaged to test
the resource potential of the Eureka and Victoria vein systems at
depth and along strike.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, 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 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.
[1] Data as reported in the National Instrument 43-101 Technical
Summary Report on the Eureka-Victoria Mine Property 10.3.13
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