Power Metal Resources plc

10/30/2020 | Press release | Distributed by Public on 10/30/2020 04:40

Canadian Silver Project – Drill Mobilisation Update

Canadian Silver Project - Drill Mobilisation Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drill mobilisation update from the Silver Peak silver project (the 'Silver Peak Project' or the 'Project') in British Columbia, Canada.

HIGHLIGHTS:

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.

The drilling contractor has now 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.

The drilling rig and support equipment is being moved from Hope up the valley, on the upgraded access, to the first drill pad during the course of today with a view to commencing diamond core drilling before the end of the week.

CHIEF EXECUTIVE OFFICER'S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented
'Following the logistics involved with shipping the drilling rig and equipment from northern British Columbia to the local town of Hope and finishing the final access from the road head to the drill pads, the team is mobilising up the valley and orientating the drill rig ready to commence the first hole during the course of today.

This is an exciting time for the Power Metal team and our partners as we launch our first silver focused drill programme.

We are targeting the Victoria Vein where Power Metal due diligence sampling returned bonanza silver grades (up to 480 troy oz/tonne) with significant copper and lead grades. The information which will be secured from this drilling programme will be key to directing the next development steps for the project.
Further updates to market in respect of this exciting silver project opportunity are expected in the near term.'

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:

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.

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.

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