Golden Metal Resources - Operational Update

RNS Number : 4229X

Power Metal Resources PLC

26 August 2022

 

26 August 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources - Operational Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from Golden Metal Resources PLC ("Golden Metal"), the Company's 83.13% owned subsidiary, which is planning to list on the London capital markets.

Golden Metal holds a 100% interest in three projects (Pilot Mountain, Garfield and Stonewall) and a right to earn-in to a 100% interest in one further project (Golconda). All projects are situated in Nevada USA, ranked number 3 in the Fraser Institute Survey of Mining Companies 2021 - Investment Attractiveness Index.¹

The most recent update from Golden Metal was released on 19 July 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15547371

Subsequent to the above release, follow up operational updates are highlighted below.

HIGHLIGHTS:

-  The field-based component of the 3D induced polarisation ("IP") geophysics survey over Golden Metal's 100% owned flagship Pilot Mountain project is now complete, representing a significant milestone. The IP survey enables the sub-surface geological structures to be correlated with known deposits on the property, and for potential new areas of mineralisation to be more clearly identified.  As a result, the results, once available, will enable a more detailed assessment of high priority targets, with follow up drilling planned to commence following the planned listing in 2022 where additional tungsten (W), copper (Cu), silver (Ag) and zinc (Zn) resources are being targeted.

-  High-resolution soil geochemical survey over the Garfield project is now complete during which a total of 453 soil samples were collected. All samples have been delivered to ALS Ltd's assay laboratory located in Reno, Nevada, where they are currently undergoing multi-element analysis. Once available, the soil survey assay results will help Golden Metal in targeting additional copper-gold-silver mineralisation building on the significant evidence of skarn-type mineralisation established to date.

-  A long form technical video was completed covering the work completed at Garfield and has been published on Golden Metal's website accessible through (see 'Investor Technical Guide: Garfield Project'): https://www.goldenmetalresources.com/investors/media/

-  Both the Pilot Mountain and Garfield work programmes were completed on time and on budget, highlighting Golden Metal's ability to successfully operate in country.

Oliver Friesen, Chief Executive Officer of Golden Metal Resources PLC, commented:

"I am very pleased to have completed the 3D IP survey over our 100% owned flagship Pilot Mountain Project - which hosts one of the largest undeveloped tungsten resources in the United States of America.  

As soon as I was introduced to Pilot Mountain, I was convinced that this important survey could be the key to unlocking additional W-Cu-Ag and Zn prospective targets. Between the four main deposit areas on the Property, despite several historical reports highlighting the areas prospectivity, very little historical work has been carried out. This is mainly because of the thin post-mineral sedimentary sand cover that blankets this area.

With the geophysics work now completed, we will be the first company to image under this  sand cover, looking for additional targets to explore during our planned 2022 drilling programme.

I encourage investors to keep an eye on Golden Metal Resources over the coming weeks and months as we announce further corporate and technical updates."

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

"The strategic importance of Pilot Mountain is clear, offering an advanced asset for expeditious development.

So far, we have articulated the potential, through diligent exploration, of expanding our knowledge of the Pilot Mountain geology and seeking an increase in scale of the deposit there.

Of particular importance given the demand for homeland security of critical minerals at this time, is effective marketing and communications in-country with parties interested and able to engage with the project, something which is very much at the forefront of our thinking as we move forward."

Reference

¹   https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2021.pdf

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 - 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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme underway at 3 properties.  Continuing data analysis across the property portfolio.	Results from ground exploration including spectrometer analysis, sampling and mapping.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Final preparations for the launch of K1-6 conductor target drilling and MLEM surveys over T1-6, T1-14, T1-3 and T2-3 targets.	Commencement of T1-6 drill programme and findings therefrom plus results from MLEM surveys.
Tati Project	Botswana	100%	RC drilling underway and previously sampling of mine dumps complete.	Review of mine dumps sampling, and processing potential.  Results from RC drill programme.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below:

Company	Status/Operations	Link
First Class Metals PLC	Investment - POW 28.19% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
First Development Resources P LC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
Kavango Resources PLC	Investment - POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22) Exploration in Botswana	www.kavangoresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .

 

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