Canadian Silver Project - Exploration Update

RNS Number : 6255H

Power Metal Resources PLC

05 August 2021

 

5 August 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Canadian Silver Project - Phase I Diamond Drilling Programme Update

Diamond Drilling Programme Continues at Pace at the Silver Peak Project in British Columbia, Canada; High-grade Victoria Vein Successfully Intersected in all Holes Completed.

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update on the ongoing 2021 Phase I diamond drilling exploration programme on the Silver Peak Project ("Silver Peak" or the "Project") located in British Columbia, Canada.

Silver Peak 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 multiple well-maintained and recently upgraded mining/logging access roads which connect to the TransCanada Highway.

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

"Excellent progress has been made thus far in the 2021 diamond drilling at Silver Peak with 12 holes now completed, high core recovery and evidence that the drill core is extremely oxidised.

Heavily oxidised core was the characteristic of samples previously tested which delivered the bonanza grade silver results from the due diligence channel sampling undertaken last summer.

The data collected from this programme will provide valuable information on the Project which will be critical as we prepare for our planned Phase II deep drilling programme targeted for late summer 2021."

HIGHLIGHTS:

· 25 diamond drill holes are now planned, and to date 12 holes have been successfully cored and completed. Drilling is currently progressing on the 13^th hole.

· The 25 hole programme is planned from individual drill sites, with some sites having two holes per site drilled at 55° and 75°, respectively. These will provide two vein intersections at different orientations, giving the Company important structural information on the Victoria Vein.

· The Victoria Vein has been intersected in all holes drilled to date.

· Based on visual inspection of core box photographs Power Metal has received, and from reports provided by the drilling team, the drill core obtained from the Victoria Vein is extremely oxidized, similar to outcrops of the Victoria Vein found within the upper and lower portals on the Project, including due diligence samples collected by Power in 2020 which returned 0.50m of 14,937g/t Silver (480 troy Ag oz/tonne), 3.05% Cu and 11.95% Pb.

· The Shaw and Hilti portable drills being utilised for the Phase I drill programme have provided excellent core recoveries through the Victoria Vein thus far, averaging 90% across all holes (minimal loss noted in one of the holes, where recoveries of 80% were logged).

· The Phase I drilling is expected to be completed by mid-August.

The Company looks forward to providing further updates when the ongoing Phase I drilling is completed, and once the drill core sample assay results have been received and interpreted by Power Metal's technical team.

POWER METAL EARN-IN

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 sampling and follow up 2020 drilling programme, the Company announced on 15 March 2021 that it has 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 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 principle focus on opportunities offering district scale potential across a global portfolio 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.

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.

 

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