Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of the Silver Peak Project (the “Silver Peak Project” or the “Project”) in British Columbia, Canada. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.
HIGHLIGHTS:
– Due diligence silver focused exploration programme announced on 25 August 2020 has been safely and successfully completed
– A total of 11 channel samples were taken from the Victoria vein faces exposed in the cliffs and open stopes located vertically above the Victoria adit. Samples have been submitted to the accredited laboratory, ALS Global in Vancouver, for expedited assay testing, with results to follow;
– Power Metal technical team are reviewing the exploration work undertaken and the initial findings, subject to augmentation of findings with assay data;
– A photograph and video gallery has been established on the Power Metal website where images of the Project during the exploration programme have been uploaded with further images to follow. The gallery may be accessed through the following link:
https://www.powermetalresources.com/p/220/gallery
– Further update to the market will follow with due diligence findings and option exercise decision in the near term in line with the 30-day option period.
CHIEF EXECUTIVE OFFICER’S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented
“We are pleased to report the completion of the sampling work on the Victoria vein, one of two main veins located at the Silver Peak Project in British Columbia, Canada.
The exploration work focussed on representative sampling of vein exposures located in the cliffs and workings situated vertically above the Victoria adit of the Eureka-Victoria Silver Mine. The work was conducted by contract geologist and technicians in challenging conditions and was documented by photographs, video and drone footage. A selection of these images and videos are being made available on the Power Metal website.”
FURTHER INFORMATION
Sampling Process
The samples which were cut across the width of the vein, perpendicular to the vein strike, using a petrol driven water cooled disk cutter, were taken from vein material deemed to be representative of the silver mineralisation at the location.
Sampling exercise on exposed vein faces was conducted safely by contractors using ladders and rope access techniques in the steeply dipping terrain. Sampling work was photographed and videoed for the purposes of work verification given the current travel restrictions;
Option Agreement and Due Diligence Exploration Programme
| Background | On 17 August 2020 the Company announced an option agreement (the “Option Agreement”) in respect of the Project.The Option Agreement provides Power Metal an option (the “Option”) of a 30-day exclusivity period for due diligence in respect of the Project. Should Power Metal decide to exercise the Option it will secure a right to earn-in to a 30% interest in the Project.As part of this due diligence process the Company has undertaken an exploration programme at the Project to gather further information and to assist the Company in its assessment of project prospectivity and potential. |
| 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. |
| Due Diligence Exploration Programme | The work programme included various elements but is centred on 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 work programme cost totalled C$25,000 (£14,512) and should Power Metal exercise the Option, the amount expended will be deducted from the C$250,000 12-month project exploration spend. |
| Targeted Outcome | Gather additional positive field exploration data and evidence to support due diligence review of the Project. |
Detailed Project Information
The Silver Peak Project consists of a portfolio of mineral claims covering an area of approximately 46.02 km2, 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.
The Project is located on Silver Peak Mountain which is 6 km south of the paved TransCanada Highway and the town of Hope. A good quality gravel municipal road along Silver Creek, passes by the entrance to the project mine access road. A logging/mining road which was upgraded in 2011, then extends upwards to the workings.
Originally discovered in the late 1860s the Silver Peak mines reportedly exploited near-surface oxide material ranging 500 to 658 oz/ton silver, via underground adits on two main veins varying in width from 1.5 to 6 m. Mining continued intermittently on a small scale under various ownership until 1981.
The property was subject to minor surface and underground sampling and mapping programmes between 2009 and 2011, confirming the tenor and extent of high grade silver mineralisation in the Eocene age conglomerate hosted siderite-tetrahedrite veins, with grab sample assays up to 22,600 g/t Ag(1).
Underground sampling in 2011 along the strike of the Victoria Vein returned a grade of 8,889 g/t Ag, with a grab sample from the Victoria Vein face assayed at 15,517 g/t Ag, 4.3% Pb, 2.94% Cu and 2,756ppm Bi. Bench scale metallurgical testwork in 2011 returned silver leach recoveries of up to 80% using a 0.4% Ag (4,000g/t) feed sample.([1])
Exploration Potential
Whilst the Project can demonstrate a long history of high grade silver production, the resource potential of the Eureka and the Victoria vein systems, which each range over 625m long, has never been formally assessed or drill tested at depth or along strike.
A systematic phased exploration programme is envisaged to test the resource potential of the Eureka and Victoria vein systems at depth and along strike.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.
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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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.