Canadian Silver Project - Drill Programme Underway

RNS Number : 5873G

Power Metal Resources PLC

27 July 2021

 

27 July 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Canadian Silver Project - Diamond Drill Programme Underway

Diamond Drill Programme Recommenced at the Silver Peak Project in British Columbia, Canada, Targeting High-Grade Silver Extensions of the Victoria Vein

Power Metal Resources PLC (LON:POW) a AIM listed metals exploration and development announces the recommencement of the 2020 diamond drilling exploration programme at the Silver Peak Project ("Silver Peak" or the "Project") located in British Columbia, Canada. The Project includes the Eureka-Victoria Silver Mine which is covered by the first ever Crown-granted mineral claim within the Province.

The Project is located on Silver Peak Mountain, which is 6km south of the TransCanada Highway and the town of Hope, British Columbia. The Project and the historic mine workings are accessed via recently upgraded mine access roads which connect to the TransCanada Highway.

HIGHLIGHTS:

· Due diligence sampling completed summer 2020 by Power Metal, testing the Victoria Vein from the Upper Portal, returned bonanza silver (Ag) with significant copper (Cu) and lead (Pb) credits from two surface channel samples including:

-  0.50m of 10,718g/t silver (345 troy Ag oz/tonne), 2.14% Cu, and 2.99% Pb and;

-  0.50m of 14,937g/t silver (480 troy Ag oz/tonne), 3.05% Cu and 11.95% Pb.

· A follow up diamond drilling programme commenced in late 2020 however inclement weather conditions led to a significant curtailment of the programme.  The programme was designed to test the extension of selected due diligence channel sample intercepts along strike and at depth. The highlight result from that programme was 0.31m of 5,270 g/t Ag (169.5 troy oz/t).

· Diamond drilling has now recommenced, utilising a portable electric drive Shaw drill, to test for the extensions of the Victoria Vein along strike and down dip. Current planned programme entails shallow drilling of approximately 20 holes of circa 10 metre depth targeting high-grade vein intersections (the "Phase I programme").

· Following receipt of the Phase I drilling results, the planned next exploration step is a Phase II programme which will include mapping and prospecting, as well as the Project's first ever deep diamond drilling of >100 metre depth per hole planned to assess the vertical extent and geological controls on the bonanza silver mineralisation at depth.

· The Company will update the market with further progress from the ongoing Phase I programme, including drilling results from the holes completed once they have been compiled, assayed, and interpreted by Power Metal personnel.

· Power Metal holds a 30% interest in the Silver Peak Project and the costs of the Phase I programme have been previously paid in full as outlined in our Project Commercial Update in March 2021 a link to which is provided below.

· Work continues with regard to the planned initial public offering ("IPO") for Silver Peak as previously announced.  However, the Company notes that commercial interest has also been shown in the project from third parties with regard to outright acquisition.  Discussions continue in this regard.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:

"It is great to be back exploring and drilling at the high-grade Silver Peak project. 

The bonanza silver grades of up to 480 troy silver ounce per tonne over 0.5m identified during the summer 2020 sampling programme were exceptional, and the follow up diamond drilling in late 2020, although curtailed, managed to confirm 169.5 oz troy silver per tonne over 0.31m in one assay.

With the diamond drilling programme announced today, we are targeting 20 individual high-grade vein intersections and very much looking forward to the findings.

The exploration work, especially drilling, can add considerable value to the project and as a result we are pushing on with our Phase I programme whilst also carefully managing commercial developments in respect to the Project."

POWER METAL INTEREST

The original agreement in respect to the Silver Peak Project was announced 14 September 2020 and may be viewed through the following link:

Canadian Silver Project - Option Exercised - 13:30:02 14 Sep 2020 - POW News article | London Stock Exchange

Due to the positive results achieved during the due diligence programme and follow up 2020 drilling programme, the Company announced on 15 March 2021 that it had accelerated the earn-in on the Project and now holds a 30% interest, the details of which may be viewed through the following link:

Canadian Silver Project - Commercial Update - 07:00:07 15 Mar 2021 - POW News article | London Stock Exchange

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.

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)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries.

The Company has a global portfolio of project interests including precious and base 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.

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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