TIDMPOW
RNS Number : 9257T
Power Metal Resources PLC
29 November 2021
29 November 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Golden Metal Resources - Exploration Update
Major Gold, Tungsten and Copper Targets Identified
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces a exploration update in
respect of its wholly-owned subsidiary Golden Metal Resources
Limited ("Golden Metal"), focused on Nevada, USA and which is
currently seeking an independent listing on the London markets.
LATEST EXPLORATION HIGHLIGHTS:
Project Technical Findings
Pilot Mountain
* Multiple untested chargeability and gravity highs
identified east & southeast of main Desert Scheelite
tungsten deposit.
* Underexplored copper rich zones identified near
eastern most extent of historic drilling at Desert
Scheelite and Good Hope deposits.
* Several tier 1 and tier 2 exploration targets located
primarily between the four main deposit areas with
potential to substantially increase the existing
resource.
------------------------------------------------------------------
Golconda Summit
* Hydrothermal fluids believed to have caused
remobilisation of significant gold mineralisation
(including 7.6m at 24.0g/t gold & 15.2m at 8.6g/t
gold - in historical trenches) into the Havallah
Sequence (upper Golconda Thrust plate) rocks from the
underlying thrust plate units.(1)
* Significant potential exists for further gold
mineralisation within the Antler/Edna Peak Mountain
limestones (lower Golconda Thrust plate strata),
which are virtually untested by historical drilling.
------------------------------------------------------------------
Garfield
* Historic rock sampling of surface gossans highlighted
up to 6% copper, 3.5g/t gold and 124 g/t silver.(2)
* Remote sensing studies including Advanced Spaceborne
Thermal Emission and Reflection Radiometer and
European Space Agency Sentinel-2 datasets highlighted
considerable additional prospective ground (now
staked).
------------------------------------------------------------------
Stonewall
* Highly experienced epithermal gold deposit geologist
commissioned to undertake a comprehensive historic
data analysis at the Stonewall Project.
* Favourable structural zones for potential epithermal
gold mineralisation identified near eastern and
western end of exposed Stonewall vein, representing
compelling high-priority exploration targets going
forward.
------------------------------------------------------------------
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"It is abundantly clear from our exploration work to date that
the Golden Metal project portfolio hosts several underexplored,
highly prospective, gold, tungsten, copper and silver exploration
targets.
We believe that the Pilot Mountain project holds the potential
to substantially increase the existing JORC (2012) compliant
Resource and also the potential to expand on the multiple
copper-rich zones identified by limited historical drilling to the
east of Desert Scheelite and Good Hope.
Golconda Summit, positioned in a neighbourhood of dramatic scale
Carlin-type gold deposits, has the potential for another major gold
discovery within the underexplored Golconda Thrust lower plate
strata on the Project; evidenced by the considerable gold
mineralisation found historically within the thrust's upper plate
rocks on the Golconda Summit Project - which are not typically
known as good hosts for Carlin-type gold mineralisation across
Northern Nevada . As a result, our main goals are to test the
favourable lower thrust plate rocks on the Golconda Summit Project
as soon as possible.
Whilst our focus justifiably will be on Pilot Mountain and
Golconda Summit, we are also seeing extremely strong findings from
our work at the Garfield and Stonewall projects. There is clearly
also great value in both projects and we will ensure sufficient
work is undertaken expeditiously to better understand the potential
offered by each.
Power Metal is preparing for the listing of Golden Metal
Resources in London, and corporate work in this regard is
progressing at pace. A further corporate update will follow in due
course."
DETAILED PROJECT SPECIFIC UPDATES
Key
Gold "Au", Silver "Ag", Tungsten "WO(3) ", Zinc "Zn", Copper
"Cu"
Pilot Mountain
The Pilot Mountain tungsten-copper-silver-zinc Project ("Pilot
Mountain") is 100% owned by Golden Metal. The details of the
transaction can be found at the link below:
https://www.londonstockexchange.com/news-article/POW/strategic-option-agreement-pilot-mountain-nevada/15117136
Pilot Mountain represents a strategic asset for Golden Metal as
it hosts a robust JORC (2012) compliant Mineral Resource of 12.53Mt
at 0.27% W0(3) with significant Cu-Ag-Zn credits(3) . Tungsten was
added to the 2020 United States Geological Survey ("USGS") Critical
Minerals List - a list of 50 non-fuel mineral or mineral materials
deemed essential to the economic or national security of the USA;
there is currently no known domestic production of tungsten within
the USA.(4)
On the back of surging global energy and transportation costs,
the price of tungsten has risen >40% in the past year, from US
$22,000/t to over US$31,000/t.(5)
Since acquiring Pilot Mountain, Golden Metal has hosted several
technical planning meetings in order to determine the exploration
direction for the asset post-listing. Golden Metal's exploration
strategy going forward can be summarised into three main focus
areas which include:
1) Targeting underexplored blue-sky exploration opportunities
across the Pilot Mountain Project - including multiple untested
chargeability and gravity highs identified during a 2013 induced
polarisation ("IP") and gravity survey; the untested geophysical
anomalies are located east and southeast of the Desert Scheelite
Deposit. The 2013 geophysical report highlighted a 'strong IP
conductor much larger than the known mineralisation', and noted
that the IP conductor identified 'indicated mineralisation is
likely to extend further to both the east and north' of the Desert
Scheelite Deposit.(6) Additional geophysical surveys will also be
undertaken, which may include airborne magnetics, as well as
ground-based IP and gravity surveys focusing on the area east and
southeast of the survey conducted in 2013, as well as the 1500m
zone between the Desert Scheelite and Good Hope deposits where the
Company believes there to be considerable exploration upside.
2) Targeting copper rich zones originally identified during the
2012 and 2017 drilling campaigns. This is highlighted by the most
easterly hole drilled during the 2012 drill programme which
intersected exceptionally strong mineralisation of 13.9m averaging
0.89% W0(3) , and 1.75% Cu at only 130m true vertical depth.
Similarly, drilling at Good Hope in 2017 returned 26.6m averaging
0.21% WO(3) , 1.0% Cu, and 1.2% Zn starting at only 0.8m
downhole.(7) As previously mentioned, Good Hope is located 1,500m
north of Desert Scheelite and the high-grade copper intercepts
encountered at both deposits may represent the transition to a more
copper rich zone towards the east, an area that was largely
untested by any previous operators.
3) Targeting several tier 1 and tier 2 exploration targets
located primarily between the four main deposit areas (Desert
Scheelite, Garnet, Gunmetal, and Good Hope), which have been
generally overlooked because of thin post-mineral volcanic and
sedimentary cover obscuring any outcropping mineralisation within
this area. A previous operator highlighted the potential to
increase the size of the Pilot Mountain JORC (2012) compliant
Resource substantially by drilling these various exploration
targets (many of which have historic tungsten rich drill
intercepts). The Company will prioritise the highest ranked targets
for drilling, with the aim of significantly de-risking the asset by
building out and upgrading the existing Resource.
Golconda Summit
Golden Metal has the option to earn 100% of the Golconda Summit
Carlin-type gold Project which is located 15km east of Winnemucca,
NV, at the confluence of the prolific Battle Mountain-Eureka and
Getchell trends. The details of the transaction can be found at the
link below:
https://www.londonstockexchange.com/news-article/POW/agreement-golconda-gold-property-nevada-usa/14998042
The Project is underlain by a thrust faulted Palaeozoic
sedimentary package which has been transported eastward to its
present day location along the major Golconda Thrust fault. The
preserved stratigraphic section includes the Antler Peak Limestone,
Edna Mountain Formation and the Preble Formation (collectively
"lower thrust plate rocks"), which are structurally capped by the
Havallah Sequence ("upper thrust plate rocks"). Previous work has
been primarily focused on surface anomalies within the overlying
upper plate rocks, which are not a known host of Carlin-type
mineralisation within Nevada; despite this, previous work by Nerco
Mineral Company in 1989 encountered significant gold mineralisation
within upper thrust plate rocks including trench results of 7.6m @
24.0g/t Au and 15.2m @ 8.6g/t Au, as well as shallow drilling
results of 10.7m @ 3.9g/t Au.(1)
These exceptional results were believed to be caused by
hydrothermal fluids remobilising gold mineralisation from
favourable lower thrust plate strata along sub-vertical fault
structures, and depositing it in the upper plate rocks found at
surface today. This hints at the significant potential that exists
within the virtually untested lower plate rocks found across the
Project, directly below the Havallah Sequence. Most of the previous
exploration at Golconda consisted of shallow, vertical drill holes
which were terminated short of the more favourable lower plate host
rocks. Only two holes penetrated through the Golconda Thrust fault
testing only a short section of the upper Edna Mountain
Formation.
The Antler Peak Limestone and its stratigraphic equivalents are
known host rocks for both Carlin-type (Chimney Creek Mine) and
replacement-skarn deposits (Fortitude and Phoenix Mines), the Edna
Mountain Formation is known host rock for the nearby Lone Tree
Mine, and the Preble Formation is host to the nearby Preble Mine,
located less than 10km from the Project.
Since acquiring the asset, Power Metal has successfully obtained
trenching permits from the United States Bureau of Land Management
("BLM"). Additionally, the Company has employed various geological
consultants to review the historic data files and provide comment.
The work completed has resulted in many important highlights about
the project which will factor heavily into the decisions towards
future work programmes including:
1) Trenching targeting the exceptional historical results
obtained within the Havallah Sequence rocks. To date, the location
of the permitted trenches has been marked by stakes, allowing the
Company to carry out when ready, regardless of snow cover at the
time. A highly regarded Nevada based full-service geological
consulting company ("Nevada Co") has been selected to carry out
this work, as well as various other work programmes across the
portfolio.
2) A proposal has also been received by Nevada Co to carry out a
high-density soil sampling survey across the property, including
75m x 75m spaced samples for a total of 546 samples. A
comprehensive soil sampling survey has never been completed across
the Golconda Summit Project, and the results will aid Golden Metal
with structural and alteration mapping within the upper plate
rocks, with the main goal of identifying structural zones and
sub-vertical faults which may be acting as feeder structures from
the more favourable lower plate strata.
3) Various ground-based geophysical surveys are also being
contemplated, as no known modern geophysical surveys have ever been
carried out on the Golconda Summit Project. The goal of the
geophysical programmes will be to help map the various favourable
host units contacts at depth.
4) All preparatory surveys are being completed in order to
better refine drill targets for the planned 2022 deep drilling
campaign. This drilling campaign is planned to be the first ever to
target the various favourable lower plate rocks on the Goldconda
Summit Project, which are known hosts for many nearby past
producing, and currently operational gold mines.
Garfield
The Garfield copper-silver-gold Project ("Garfield") is 100%
owned by Golden Metal. The details of the transaction can be found
at the link below:
https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989
Garfield was originally staked to cover a small area of gossan
occurring at surface and discovered in 2015. Initial sampling over
the gossan returned rock results up to 6% Cu, 3.5g/t Au, and 124g/t
Ag. A single 26m trench was oriented over part of the gossan in
2016 and returned an interval of 22m of 0.33% copper, including a
2m sub-interval grading 2.18% copper (16m-18m), and a separate 2m
sub-interval grading 1.2g/t Au.(2) The trench ended in
mineralisation and remains open along strike. No additional follow
up work had been completed on the Project.
Since acquiring the asset the Company undertook a Remote Sensing
study including the analysis of Advanced Spaceborne Thermal
Emission and Reflection Radiometer ("ASTER") and European Space
Agency Sentinel-2 datasets. Positive results generated by the
programme led to the staking of additional claims. The details of
the work programme are highlighted at the link below:
https://www.londonstockexchange.com/news-article/POW/new-copper-anomalies-identified-garfield-nevada/15175582
Following the successful results generated, the Company has
undertaken a thorough review of all historic data available. As a
result of the analysis completed, Golden Metal has developed a
exploration strategy for the Garfield going forward following the
planned listing in London which will include:
1) Nevada Co provided Golden Metal with a proposal for a
geochemical soil survey consisting of 802 total samples collected
at 200m x 200m spacing. This work programme has been scheduled for
late Q1, which coincides with the targeted IPO date of Golden
Metal. Several other high-priority copper anomalies identified by
the Remote Sensing Study will be the target of this geochemical
survey - along with multiple other historic mines and copper
occurrences identified in various USGS datasets.
2) Various geophysical surveys are also being contemplated, as
no known modern geophysics has been completed near to, or over
Garfield. Geophysics, in conjunction with the planned geochemical
surveys will allow the Company to position Garfield as a more
regional type skarn-style exploration play with vastly increased
discovery potential.
Stonewall
The Stonewall gold-silver Project ("Stonewall") is 100% owned by
Golden Metal. The details of the transaction can be found at the
link below:
https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989
The focus of the Stonewall gold-silver Project is a >1.2km
long Au/Ag-bearing low sulphidation epithermal vein & stockwork
system on the northern side of Stonewall Mountain within the
prolific Walker Lane Mineral Belt. IMC Minerals, the most recent
project operator who undertook drilling at Stonewall, targeted less
than 400m of the exposed more than 1,200m of strike length along
the Stonewall vein. Drill pads were chosen within this limited
section primarily because of accessibility of flat ground where
drill pads could be excavated in a time efficient manner.
Golden Metal recently contracted experienced epithermal gold
deposit geologist to undertake a comprehensive historical data
analysis on Stonewall, with the goal of helping direct future
exploration initiatives on the Project post listing. The recent
report commissioned, concluded that the structurally complex
"horsetailed" segments at the eastern end of the vein are probably
dilational sites which are favourable hosts for epithermal Au-Ag
mineralisation.
Additionally, he determined that the carbonate-rich northwest
trending veins at the western end of the vein system have not been
unroofed, representing a compelling underexplored exploration
target. He concluded that there remains significant potential for
locating ore shoots of bonanza grade Au-Ag at Stonewall . Based on
the analysis completed by Golden Metal at Stonewall to date, the
Company's exploration plans going forward will include:
1) Detailed geological mapping and surface sampling/chip
sampling will be undertaken over several of the prospective areas
detailed in the report, including the eastern "horsetailing" zone
and western vein-stockwork zone - both of which were underexplored
by previous operators. Petrographic work may also be carried out on
collected samples to confirm the presence of adularia and
sulphide/sulphosalts minerals, which are general indicators of
epithermal boiling zones.
2) All preparatory work will be completed in order to refine
drill targets for a planned deep drilling campaign at Stonewall.
Contingent on geological mapping and surface sampling/chip sampling
results, the drilling will focus on the underexplored eastern and
western portions of the Stonewall vein. Planned holes will designed
to test to a true vertical depth of at least 150-250 meters,
representing a depth where the postulated Au-Ag rich boiling zone
may be found.
Conclusion
In conclusion, Golden Metal has several exciting exploration
initiatives that are being planned across the portfolio. Whilst the
listing process is ongoing, additional preparatory and desktop
analyses are planned in order to give the company the best chance
of success post listing. Significant exploration news flow,
including planned drilling programmes at Pilot Mountain and
Golconda, as well as high-impact grassroots geochemical and
geophysics programmes at Stonewall and Garfield, could act a
catalysts for the company post completion of its planned initial
public offering.
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.
Reference Notes:
1 Brook, Ken (2006): Summary Report for the Golconda Summit Property (April, 2006)
2 Sunrise Resources PLC AIM Announcement (26 July 2016) -
Garfield Copper-Gold Project Update
3 JORC (2012): The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves ('the JORC
Code') is a professional code of practice that sets minimum
standards for Public Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves. The current edition of the JORC
Code was published in 2012, and is available at
http://www.jorc.org/docs/JORC_code_2012.pdf
4
https://www.usgs.gov/news/usgs-seeks-public-comment-draft-list-50-minerals-deemed-critical-us-national-security-and
5
https://www.mining.com/web/tungsten-suppliers-havent-been-able-to-profit-from-meme-fueled-cube-craze/
6 Pilot Mountain Tungsten Project Information Memorandum (August, 2021)
7 Godfrey, Stephen (2018): Pilot Mountain Desert Scheelite
Deposit Resource Estimation (November, 2018)
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering
district scale potential across a global portfolio including
precious, base and strategic metal exploration in North America,
Africa and Australia.
Project interests range from early-stage greenfield exploration
to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through
strategic joint ventures until a project becomes ready for disposal
through outright sale or separate listing on a recognised stock
exchange thereby crystallising the value generated from our
internal exploration and development work.
Value generated through disposals will be deployed internally to
drive the Company's growth or may be returned to shareholders
through share buy backs, dividends or in-specie distributions of
assets.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway,
with results awaited, as outlined below:
Project Location POW % Work Completed Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field results from
Project to 75% test pits and mapping on-site work programme.
& sampling.
---------- --------- -------------------------- -------------------------
Athabasca Canada 100% Phase I field exploration Laboratory assay
Uranium completed results of samples
collected for uranium
and REEs
---------- --------- -------------------------- -------------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- --------- -------------------------- -------------------------
Silver Peak Canada 30% Following drill Overlimit analysis
programme demonstrating results
bonanza grade silver,
overlimit testing
being undertaken
where sample grade
exceeded previous
assay method detection
limits
---------- --------- -------------------------- -------------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- --------- -------------------------- -------------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- --------- -------------------------- -------------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- --------- -------------------------- -------------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across 848km(2) programme including
of granted exploration drill targets for
licences near term drilling
---------- --------- -------------------------- -------------------------
Wallal Gold/Copper Australia 83.33% Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- --------- -------------------------- -------------------------
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