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Power Metal Resources #POW – Silver Peak Canada – Overlimit Assay Results
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces overlimit assay results from its recently completed 2021 diamond drilling exploration programme on the Silver Peak Project (“Silver Peak” or the “Project”) located in British Columbia, Canada. The original silver assay results for the 2021 drill programme were announced 12 November 2021 and can be viewed at the following link:
Programme Highlights:
· A total of 19 short cored drill holes were completed as part of the Phase I programme and all drill core was logged, catalogued and split by independent geological consultants prior to being sent to ALS Canada Ltd in Vancouver, British Columbia, for accredited laboratory assay analysis. The holes were undertaken utilising either Shaw or Hilti portable drills producing 34mm diameter core samples.
· Overlimit assays were completed on all copper, antimony and lead results which returned >10,000 ppm (1%) from the original laboratory results. The overlimit reported herein include individual results up to 7.76% copper (Cu), 9.45% lead (Pb), and 8.63% Antimony (Sb).
· Updated highlight intercepts which are now calculated as AgEq* and include Cu, Sb and Pb results (complete collar and assay tables available at the bottom of this release):
o 0.9m of 4,649g/t AgEq from DDH21-1 (including 0.3m of 10,649g/t Ag, 2.28% Cu, 6.53% Sb, and 5.53% Pb)
o 0.76m of 10,131g/t AgEq from DDH21-2 (including 0.35m of 12,373g/t Ag, 3.44% Cu, 9.45% Sb, and 8.63% Pb)
o 1.75m 3,072g/t AgEq from DDH21-7 (including 0.25m of 17,016g/t Ag, 4.10% Cu, 8.26% Sb, and 6.05% Pb)
o 1.52m of 3,244g/t AgEq from DDH21-8
o 2.44m of 1,306g/t AgEq from DDH21-12
o 2.43m of 2,068/t AgEq from DDH21-13
o 2.59m of 1,740/t AgEq from DDH21-15
· The high-grade Cu, Sb and Pb results led to an average increase in grade of 18.8% from Ag to AgEq for the calculated intervals. Considering these extremely high Cu, Sb and Pb results, the updated silver equivalent values further highlight the silver rich nature of the veins on the Silver Peak Project.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The bonanza grade silver results from Silver Peak are further strengthened today with the overlimit analysis demonstrating significant copper, antimony and lead grades and increasing the average silver equivalent grade considerably.
Overall, the results are highly impressive and demonstrate the incredibly silver rich veins at Silver Peak. Without question this is an important asset for Power Metal and our partners, particularly in a world where high quality silver projects are hard to secure.”
Programme Data:
Silver Peak 2021 Drill Programme Assay Table
|
Hole ID |
From (m) |
To (m) |
Interval (m) |
Ag (g/t) |
Cu (%) |
Sb (%) |
Pb (%) |
AgEq* |
|
DDH21-1 |
0 |
0.9 |
0.9 |
3,998 |
1.24 |
2.54 |
1.89 |
4,649 |
|
Incl. |
0 |
0.3 |
0.3 |
10,649 |
2.28 |
6.53 |
5.53 |
|
|
DDH21-2 |
0 |
0.76 |
0.76 |
8,692 |
2.24 |
5.82 |
5.15 |
10,131 |
|
Incl. |
0 |
0.35 |
0.35 |
12,373 |
3.44 |
8.63 |
9.45 |
|
|
DDH21-3 |
0 |
0.55 |
0.55 |
2,725 |
0.9 |
1.87 |
0.72 |
3,182 |
|
Incl. |
0 |
0.15 |
0.15 |
9,470 |
2.14 |
6.49 |
2.51 |
|
|
DDH21-4 |
0 |
0.46 |
0.46 |
3,522 |
1.23 |
2.24 |
0.33 |
4,072 |
|
Incl. |
0 |
0.2 |
0.2 |
7,710 |
1.98 |
4.74 |
0.71 |
|
|
DDH21-5 |
0 |
0.38 |
0.38 |
1,199 |
0.63 |
0.56 |
0.12 |
1,380 |
|
Incl. |
0 |
0.15 |
0.15 |
2,810 |
0.71 |
1.17 |
0.19 |
|
|
DDH21-6 |
0 |
0.84 |
0.84 |
79 |
0.08 |
0.17 |
0.01 |
93 |
|
DDH21-7 |
0 |
1.75 |
1.75 |
2,669 |
1.18 |
1.31 |
0.88 |
3,072 |
|
Incl. |
1 |
1.25 |
0.25 |
17,016 |
4.1 |
8.26 |
6.05 |
|
|
DDH21-8 |
0 |
1.52 |
1.52 |
2,808 |
1.37 |
1.49 |
0.18 |
3,244 |
|
DDH21-9 |
No Significant Values |
|||||||
|
DDH21-10 |
No Significant Values |
|||||||
|
DDH21-11 |
No Significant Values |
|||||||
|
DDH21-12 |
4.26 |
6.7 |
2.44 |
1,060 |
1.03 |
0.48 |
0.98 |
1,306 |
|
DDH21-13 |
3.66 |
6.09 |
2.43 |
1,632 |
1.83 |
1.07 |
0.52 |
2,068 |
|
Incl. |
4.11 |
4.42 |
0.31 |
7,620 |
7.76 |
5.13 |
2.61 |
|
|
DDH21-14 |
No Significant Values |
|||||||
|
DDH21-15 |
6.55 |
9.14 |
2.59 |
1,438 |
1.19 |
0.84 |
0.15 |
1,740 |
|
DDH21-16 |
0.6 |
3.66 |
3.06 |
39 |
0.03 |
0.02 |
0.04 |
48 |
|
DDH21-17 |
No Significant Values |
|||||||
|
DDH21-18 |
2.59 |
3.35 |
0.76 |
281 |
0.39 |
0.1 |
0.07 |
350 |
|
DDH21-19 |
3.2 |
3.43 |
0.23 |
276 |
0.22 |
0.08 |
0.09 |
322 |
* Silver equivalent (“AgEq”) calculated using metal prices of US$22.8/oz Ag ($332.5/lb), US$4.36/lb Cu (ratio 0.0131), US$5.6/lb Sb (ratio 0.0168), and US$1.06/lb Pb (ratio 0.0032).
AgEq= Ag + (0.0131Cu) + (0.0168Sb) + (0.0032Pb)
Silver Peak 2021 Drill Programme Collar Table
|
Drill hole ID |
Dip |
Azimuth |
Hole Depth (m) |
Northing** |
Easting** |
|
DDH21-01 |
-85° |
325° |
2.95 |
5462567.8 |
611652.1 |
|
DDH21-02 |
-80° |
285° |
2.44 |
5462567.0 |
611652.0 |
|
DDH21-03 |
-63° |
285° |
2.13 |
5462567.5 |
611653.0 |
|
DDH21-04 |
+4° |
50° |
2.13 |
5462567.5 |
611654.0 |
|
DDH21-05 |
-22° |
25° |
1.07 |
5462567.8 |
611654.5 |
|
DDH21-06 |
-39° |
310° |
1.98 |
5462568.0 |
611655.0 |
|
DDH21-07 |
-88° |
260° |
2.90 |
5462568.0 |
611655.0 |
|
DDH21-08 |
-48° |
275° |
1.52 |
5462566.0 |
611649.0 |
|
DDH21-09 |
-82° |
70° |
5.49 |
5462565.0 |
611648.0 |
|
DDH21-10 |
-55° |
108° |
4.11 |
5462566.0 |
611649.0 |
|
DDH21-11 |
-53° |
180° |
0.91 |
5462564.0 |
611656.0 |
|
DDH21-12 |
-65° |
120° |
3.66 |
5462565.0 |
611647.5 |
|
DDH21-13 |
-50° |
100° |
7.16 |
5462565.0 |
611647.5 |
|
DDH21-14 |
-50° |
105° |
3.66 |
5462562.5 |
611647.5 |
|
DDH21-15 |
-60° |
105° |
9.45 |
5462562.5 |
611647.5 |
|
DDH21-16 |
-68° |
125° |
4.27 |
5462559.0 |
611654.0 |
|
DDH21-17 |
-50° |
125° |
3.05 |
5462559.0 |
611654.0 |
|
DDH21-18 |
-42° |
25° |
3.66 |
5462554.0 |
611654.0 |
|
DDH21-19 |
-40° |
40° |
3.96 |
5462554.0 |
611654.0 |
** Projection: UTM Zone 10 North NAD83
Property Ownership
The original agreement in respect to the Silver Peak Project was announced 14 September 2020 and may be viewed through the following link:
Due to the positive results achieved during the due diligence sampling and follow up 2020 work programmes, 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:
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. Mr O’Reilly consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears.
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) |
+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 |
Power Metal Resources #POW – Canadian Silver Peak Diamond Drill Programme Delivers 10 holes With Bonanza Silver Grades, Including Highlight Intercept of 0.76m of 8,692.2g/t Ag (279.5 oz/t) from DDH21-2
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces results from its recently completed 2021 diamond drilling exploration programme on the Silver Peak Project (“Silver Peak” or the “Project”) located in British Columbia, Canada.
Programme Highlights:
· A total of 19 short cored drill holes were completed as part of the Phase I programme and all drill core was logged, catalogued and split by independent geological consultants prior to being sent to ALS Canada Ltd in Vancouver, British Columbia, for accredited laboratory assay analysis. The holes were undertaken utilising either Shaw or Hilti portable drills producing 34mm diameter core samples.
· 10 out of the 19 holes drilled drilled returned bonanza grade silver (>1,000g/t Ag) with significant copper, zinc, lead and antimony credits, and 14 of the 19 holes returned elevated silver mineralisation.
· Highlight intercepts include (complete collar and assay tables available at the bottom of this release):
o 0.9m of 3,998.2g/t Ag (128.6 oz/t) from DDH21-1 (including 0.3m of 10,648.5g/t Ag)
o 0.76m of 8,692.2g/t Ag (279.5 oz/t) from DDH21-2 (including 0.35m of 12,373g/t Ag)
o 1.75m 2,669.3g/t Ag (85.8 oz/t) from DDH21-7 (including 0.25m of 17,015.5g/t Ag)
o 1.52m of 2,808.2g/t Ag (90.3 oz/t) from DDH21-8
o 2.44m of 1,060.0g/t Ag (34.1 oz/t) from DDH21-12 (including 1.53m of 1,644.8g/t Ag)
o 2.43m of 1,631.5g/t Ag (52.5 oz/t) from DDH21-13
o 2.59m of 1,437.6g/t Ag (46.2 oz/t) from DDH21-15
· The results represent some of the best silver results (grade and width) achieved from the Silver Peak Project to date.
· The bifurcating (splitting) nature of the vein system originally observed above the lower Victoria Portal was also observed in the 2021 drilling area, providing important structural information which will be critical for the planning of future drill programmes.
· Additional interpretation of results underway, including overlimit analysis of select elements which is being contemplated. Overlimit analysis is undertaken where the sample grade exceeded the detection limits for the assay test procedures implemented, which occurred for copper, lead, zinc and antimony in certain of the samples reported in this announcement.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Phase I drill programme, was designed to test for frequency and extent of the high-grade silver mineralisation encountered in 2020, and has been a great success.
Our original decision to invest in the Silver Peak Project has been fully validated by each stage of exploration work and the bonanza silver grades, including a highlight intercept of 0.76m of 8,692.2g/t Ag, confirmed today represent the biggest step forward for the Project to date.
We now move to review the findings in further detail to determine next steps from both exploration and corporate perspectives.”
Programme Data:
Silver Peak 2021 Drill Programme Assay Table
|
Hole ID |
From (m) |
To (m) |
Interval (m) |
Ag (g/t) |
Ag (oz/t) |
|
DDH21-1 |
0 |
0.9 |
0.9 |
3,998.2 |
128.6 |
|
Incl. |
0 |
0.3 |
0.3 |
10,648.5 |
342.4 |
|
DDH21-2 |
0 |
0.76 |
0.76 |
8,692.2 |
279.5 |
|
Incl. |
0 |
0.35 |
0.35 |
1,2373 |
397.8 |
|
DDH21-3 |
0 |
0.55 |
0.55 |
2,724.6 |
87.6 |
|
Incl. |
0 |
0.15 |
0.15 |
9,470.0 |
304.5 |
|
DDH21-4 |
0 |
0.46 |
0.46 |
3,522.3 |
113.3 |
|
Incl. |
0 |
0.2 |
0.2 |
7710.0 |
247.9 |
|
DDH21-5 |
0 |
0.38 |
0.38 |
1,199.4 |
38.6 |
|
Incl. |
0 |
0.15 |
0.15 |
2,810.0 |
90.4 |
|
DDH21-6 |
0 |
0.84 |
0.84 |
78.9 |
2.5 |
|
DDH21-7 |
0 |
1.75 |
1.75 |
2,669.3 |
85.8 |
|
Incl. |
1 |
1.25 |
0.25 |
17,015.5 |
547.1 |
|
DDH21-8 |
0 |
1.52 |
1.52 |
2,808.2 |
90.3 |
|
DDH21-9 |
No Significant Values |
||||
|
DDH21-10 |
No Significant Values |
||||
|
DDH21-11 |
No Significant Values |
||||
|
DDH21-12 |
4.26 |
6.7 |
2.44 |
1,060.0 |
34.1 |
|
Incl. |
4.87 |
6.4 |
1.53 |
1,644.8 |
52.9 |
|
DDH21-13 |
3.66 |
6.09 |
2.43 |
1,631.5 |
52.5 |
|
Incl. |
4.11 |
4.42 |
0.31 |
7,620.0 |
245.0 |
|
DDH21-14 |
No Significant Values |
||||
|
DDH21-15 |
6.55 |
9.14 |
2.59 |
1,437.6 |
46.2 |
|
DDH21-16 |
0.6 |
3.66 |
3.06 |
39.4 |
1.3 |
|
DDH21-17 |
No Significant Values |
||||
|
DDH21-18 |
2.59 |
3.35 |
0.76 |
280.9 |
9.0 |
|
Incl. |
2.59 |
2.89 |
0.3 |
614.0 |
19.7 |
|
DDH21-19 |
3.2 |
3.43 |
0.23 |
276.0 |
8.9 |
Silver Peak 2021 Drill Programme Collar Table
|
Drill hole ID |
Dip |
Azimuth |
Hole Depth (m) |
Northing* |
Easting* |
|
DDH21-01 |
-85° |
325° |
2.95 |
5462567.8 |
611652.1 |
|
DDH21-02 |
-80° |
285° |
2.44 |
5462567.0 |
611652.0 |
|
DDH21-03 |
-63° |
285° |
2.13 |
5462567.5 |
611653.0 |
|
DDH21-04 |
+4° |
50° |
2.13 |
5462567.5 |
611654.0 |
|
DDH21-05 |
-22° |
25° |
1.07 |
5462567.8 |
611654.5 |
|
DDH21-06 |
-39° |
310° |
1.98 |
5462568.0 |
611655.0 |
|
DDH21-07 |
-88° |
260° |
2.90 |
5462568.0 |
611655.0 |
|
DDH21-08 |
-48° |
275° |
1.52 |
5462566.0 |
611649.0 |
|
DDH21-09 |
-82° |
70° |
5.49 |
5462565.0 |
611648.0 |
|
DDH21-10 |
-55° |
108° |
4.11 |
5462566.0 |
611649.0 |
|
DDH21-11 |
-53° |
180° |
0.91 |
5462564.0 |
611656.0 |
|
DDH21-12 |
-65° |
120° |
3.66 |
5462565.0 |
611647.5 |
|
DDH21-13 |
-50° |
100° |
7.16 |
5462565.0 |
611647.5 |
|
DDH21-14 |
-50° |
105° |
3.66 |
5462562.5 |
611647.5 |
|
DDH21-15 |
-60° |
105° |
9.45 |
5462562.5 |
611647.5 |
|
DDH21-16 |
-68° |
125° |
4.27 |
5462559.0 |
611654.0 |
|
DDH21-17 |
-50° |
125° |
3.05 |
5462559.0 |
611654.0 |
|
DDH21-18 |
-42° |
25° |
3.66 |
5462554.0 |
611654.0 |
|
DDH21-19 |
-40° |
40° |
3.96 |
5462554.0 |
611654.0 |
* Projection: UTM Zone 10 North NAD83
Property Ownership
The original agreement in respect to the Silver Peak Project was announced 14 September 2020 and may be viewed through the following link:
Due to the positive results achieved during the due diligence sampling and follow up 2020 work programmes, 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:
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) |
+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 – 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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal now has the following exploration completed with results awaited or exploration underway:
– Authier North Lithium Project(Canada) – soil & rock sampling completed (laboratory assay results awaited)
– Athabasca Uranium (Canada) – Phase I exploration commenced and field results, together with laboratory assay testing of samples collected, awaited.
– Tati Gold/Nickel Project (Botswana) – reverse circulation drilling completed (field results, together laboratory assay results awaited)
– Molopo Farms Complex (Botswana) – further samples being tested for nickel sulphide and platinum group elements (“PGEs”) from diamond drill programme completed (laboratory assay results awaited)
– Ditau Project (Botswana) – preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare earth elements and base metals
– Kalahari Copper Belt (Botswana) – results from ongoing exploration across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas
– Wallal Gold/Copper Project (Australia) – geophysics results from 2D seismic processing and passive seismic awaited
– Victoria Goldfields (Australia) – results from ongoing exploration across 848km2 of granted exploration licences
Power Metal Resources #POW – Phase I Diamond Drilling Programme Complete at the Silver Peak Project in British Columbia, Targeting High-Grade Extensions of the Victoria Vein
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces it has successfully completed its 2021 Phase I diamond drilling exploration programme on the Silver Peak Project (“Silver Peak” or the “Project”) located in British Columbia, Canada.
A total of 19 holes were completed as part of the Phase I programme and all cores are being logged, catalogued and split by independent geological consultants prior to being sent to ALS Canada Ltd in Vancouver, British Columbia, for accredited laboratory assay analysis.
Due to the steep terrain, the priority since the programme completion has been the safe removal of the team, equipment and drill cores from the Silver Peak Mountain; which were all completed successfully. Further specific information will be provided shortly in respect of the drill programme and the outcome of laboratory assay testing once results have been received and compiled by Power Metal personnel.
In addition, a new vehicle has been established “Silver Peak Resources Ltd” into which the Project claims are to be transferred in readiness for an anticipated public listing of the Project, or to enable the acquisition of the Project by a third party should there be interest in doing so.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Phase I drill programme, designed to test for frequency and extent of the high-grade silver mineralisation encountered in 2020, is a key step forward for the Silver Peak Project and we look forward to providing more technical information as well as assay results in respect of the drill programme in the coming weeks.
Importantly the programme was conducted safely and the team have now moved equipment and drill cores off the mountain for catalogue, logging, and analysis. We are grateful to the field operational team for a well executed programme which was completed on-time, and on-budget.
On visual inspection the extremely oxidised core appears very similar to that seen in samples collected during the summer 2020 channel sampling, w hich returned 0.50m of 14,937g/t Silver (“Ag”) (480 troy Ag oz/tonne), 3.05% Copper and 11.95% Lead.
We have been successful in intersecting the targeted Victoria vein and clearly, look forward to receipt, analysis and publication of the assay results.”
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:
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 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:
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) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
|
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
NOTES TO EDITORS
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 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.
Power Metal Resources #POW – Canadian Silver Project – Phase I Diamond Drilling Programme Update, 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 13th 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:
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:
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
|
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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 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.
Power Metal Resources #POW – 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:
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:
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
|
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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 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.
Power Metal Resources #POW – Business Operational Update
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to provide a business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“In the tables below you will see the Power Metal project portfolio, the key value drivers in our business and, the latest position regarding each project interest. The Company portfolio is focused on Africa, Australia and North America; all considered to be great exploration, development and mining destinations.
Whilst each project has individual qualities, many are targeting the discovery of large metal deposits with follow-on district scale potential. The key drivers for our project acquisitions have been positioning and timing, taking strategic footholds before regional popularity strikes.
As we have seen recently with our interests in the Kalahari Copper Belt Botswana, the Victoria Goldfields Australia and the Hemlo-Schreiber Greenstone Belt Canada, early positioning places the Power Metal business in an incredibly strong position.
We have in the last year undertaken extensive exploration with some notable results including significant nickel sulphide intersections from drilling at Molopo Farms Complex Botswana and bonanza grade silver (up to 14,937 g/t silver) from channel sampling at Silver Peak Canada.
We have extensive exploration planned in 2021 including drilling across much of our portfolio. It is worth noting that many of our projects now sit on the cusp of potential discoveries. An exciting time for any junior resources company.
Alongside exploration our corporate work continues at pace focused on the spin-out and IPO activities for certain project interests.
In summation we are, in my view, bursting at the seams with discovery potential and crystallisable value and the balance of 2021 is the proving ground for this opinion.”
Note: in addition to the material presented below, investors are guided to the Power Metal corporate presentation which is available on the Company’s website through the following link:
https://www.powermetalresources.com/presentation/
KEY VALUE DRIVERS
Table 1 below briefly summarises the key value drivers across the Company’s portfolio. Further detailed project information including supporting information behind the value drivers is provided in Tables 2, 3 and 4 later in the announcement.
Table 1 – Key Value Drivers by Project
|
Project |
Key Value Drivers |
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AFRICA |
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Molopo Farms Complex (Nickel – Copper – PGE) |
– Update following completion of technical work and review of initial drill programme data including testwork being carried out on holes K1-6, K1-14 and K1-11a sulphide mineralisation zones – Next steps exploration to understand the potential scale of the mineralisation identified |
|
South Ghanzi (Copper – Silver) |
– Planned exploration drilling at South Ghanzi targeting copper-silver discoveries subject to approval of the Environmental Management Plan – Updates regarding IPO of holding JV company Kanye Resources plc |
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Ditau Camp (Rare Earths) |
– Release of exploration findings – Subject to exploration results, drilling of carbonatite and rare earth deposit targets |
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Tati Project (Gold – Nickel) |
– Results from due diligence exploration programme including infill geochemical surveys targeting newly identified significant gold and nickel anomalies |
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Kisinka (Copper – Cobalt) |
– Exploration drilling at Kisinka targeting a copper-cobalt discovery |
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Haneti Project (Polymetallic) |
– Exploration drilling at Haneti targeting a nickel sulphide discovery |
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AUSTRALIA |
|
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Paterson Province (Gold – Copper) |
– Release of exploration findings including technical comparisons of Wallal targets with regional discoveries including the Winu and Havieron deposits – Updates regarding IPO of UK holding company |
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Victoria Goldfields (Gold) |
– Exploration programme initial results – Updates regarding IPO of core interests |
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NORTH AMERICA |
|
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Hemlo-Schreiber (Gold – Nickel) |
– Exploration updates |
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Silver Peak (Silver) |
– Completion of Silver Peak drill programme (commenced Q4 2020 but halted due to poor weather) – Updates regarding IPO of Silver Peak on a recognised stock exchange |
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Golconda Summit (Gold) |
– Launch of ground exploration targeting near surface high grade gold mineralisation to validate historic work following receipt of permits |
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Garfield/Stonewall (Gold – Copper – Silver) |
– Launch of exploration programmes |
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Alamo (Gold) |
– Launch of next stage exploration following receipt of permits |
PROJECT OPERATIONAL UPDATE
Tables 2, 3 and 4 below summarise the latest status of each project within the Company’s portfolio.
Table 2 – African Projects – Latest Position
|
Project |
Latest Position |
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Molopo Farms Complex Project Botswana (Nickel – Platinum Group Elements (PGEs)) POW: Effective Economic Interest 50.8% |
Power Metal participated in the Molopo Farms Complex (MFC) Project as it provided exposure to a new nickel sulphide – Platinum Group Elements (“PGE”) project in south-west Botswana. The layered ultramafic-mafic intrusion constituting the Molopo Farms Complex holds the potential for a significant nickel discovery, and the ground held within the project licences is interpreted as the feeder zone. Exploration diamond drilling commenced in Q4 2020 and to date the Company has announced significant nickel sulphide intersections from the second hole drilled, K1-6 . To encounter intervals with the highest nickel grades found to date in the MFC so early in the initial 3 hole drill programme was an outstanding result reflecting the significant investment in preparatory research and exploration prior to drilling. Much ongoing technical work is being undertaken and further results will follow from testwork being carried out on holes K1-6, K1-14 and K1-11a with market updates expected in the near term. Following completion of the first drilling phase technical work the next stage of exploration is to build an understanding of the potential scale of the mineralisation identified and work towards defining a Mineral Resource. This next stage is perhaps the most exciting phase of the project exploration. It is now confirmed that the nickel sulphides sought are present, so now we must seek to delineate an economic deposit through further drilling, which is likely to be preceded by a soil geochemistry programme focussed on the area between K1-14 and K1-6. Clearly if successful, the value of this project may well be transformational for all parties with an ownership interest, including Power Metal. Power Metal holds its 50.8% effective economic interest through a direct 40% project stake and through an 18% interest in the orginal project holding company Kalahari Key Mineral Exploration (Pty) Limited, a private Botswana Company (“Kalahari Key”). As announced 6 May 2021 Kalahari Key is to be restructured to reflect the 40% Power Metal project interest and the Company is actively engaged on commercial work streams in respect of this restructuring. |
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South Ghanzi Project Botswana (Copper – Silver) POW: 50% |
The South Ghanzi Project covering a footprint of some 1,294 km2 provides Power Metal with exposure to potential copper – silver discoveries within the prolific Kalahari Copper Belt (“KCB”) alongside joint venture (“JV”) partner Kavango Resources plc (LON:KAV). Power Metal’s CEO Paul Johnson was CEO of Metal Tiger Plc in 2016 when they and ASX listed JV partner MOD Resources made the T3 Deposit discovery nearby in the KCB. The South Ghanzi Project is following a similar exploration methodology to the T3 discovery. Exploration work at South Ghanzi includes airborne electromagnetic (“AEM”) surveys that have identified eight anomalies representing targets for further ground based exploration. Follow up soil sampling work has so far has been focused on two targets, Acacia and Morula, with both targets showing significant zinc and copper in soils which closely follow the structures identified through the AEM work. Both targets present significant scale soil anomaly targets, Acacia measuring 4 km by 4 km and Morula about 2 km wide by 12 km long (open at both ends). They will both be subject to exploration drilling following approval of the project Environmental Management Plan (“EMP”). In addition on 29 March 2021 Power Metal and JV partners announced two conditional agreements to acquire a 100% interest in eight prospecting licences to significantly expand the KCB land footprint and work continues to finalise these transactions.
The South Ghanzi Project interest is held through JV vehicle Kanye Resources Pty Limited in Botswana, which is held outright by Kanye Resources plc, a UK public company. Currently the licences in respect of South Ghanzi are being transferred into Kanye Resources Pty Limited.
The JV partners are working on an initial public offering (“IPO”) of Kanye Resources plc in the UK capital markets.
|
|
Ditau Camp Project Botswana (Rare Earths) POW: 50% |
The Ditau Camp Project (“Ditau”) is a rare earths exploration project with licences covering a footprint of 1,386 km2 and held in JV with Kavango Resources plc, as with the South Ghanzi Project. Ditau provides Power Metal with exposure to a potentially large scale rare earths opportunity in a secure operating jurisdiction just at the time that secure and stable sources of rare earths are in demand globally. Exploration work continues at Ditau with soil sampling and ground magnetic surveys investigating ten potential carbonatite targets. Further market updates covering the results of exploration findings are expected in the near term.
Following completion of the current work programmes the JV partners expect to undertake shallow drilling to test for the presence of carbonatites and potential rare earth elements. The Ditau interest is held through the same JV holding company structure as the South Ghanzi Project above. |
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Tati Project Botswana (Gold – Nickel) POW: Option to Aquire 100% |
Power Metal announced on 6 May 2021 a 60 business day option (the “Tati Option”) to acquire a 100% interest in two gold-nickel focused exploration properties in the Tati Greenstone Belt area of eastern Botswana, subject to due diligence (the “Tati Project”). The properties comprise two prospecting licences covering 124 km2. A historical data compilation on the properties, completed as part of the due diligence process, has led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on both properties.
As a result, immediate ground based exploration is being undertaken to include infill geochemical survey grids, as well as mapping and prospecting over these newly delineated geochemical anomalies.
Further market updates will be provided in respect of this due diligence exploration programme in the near term.
Should Power Metal exercise the Tati Option, it will hold the interest in the Tati Project through the newly formed, 100% owned Botswana private subsidiary, Power Metal Resources Botswana Pty Limited. Upon the Tati Option exercise the plan would be to undertake exploration drilling at the project.
|
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Kisinka Project The DRC (Copper – Cobalt) POW: 70% |
Exploration work undertaken since 2019 has delineated a 6.8 km copper-cobalt soil anomaly through the heart of the single licence representing the Kisinka Project. It was previously planned to follow-up the recently completed ground magnetics survey with in an induced polarisation geophysics survey, however following a review of the data sets it is considered that progressing work straight to drill testing is warranted. This drill programme is being planned at present and a further update will be provided in due course. The Kisinka Project has secured a 25 year Permis d’Exploitation (or Production Licence) which will significantly enhance the value and flexibility of the project should drilling lead to a discovery. |
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Haneti Project Tanzania (Polymetallic) POW: 35% |
A Rotary Air Blast (“RAB”) 1,965m drill programme was successfully completed at the Haneti Project in early 2021 and the results announced on 7 April 2021. The project is held with JV partner Katoro Gold Plc (LON:KAT). The next step at the Haneti Project is deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation.
Power Metal is eager to undertake this diamond drill programme and is working with its JV partner to secure commencement of this at the earliest opportunity.
Further work is ongoing with regard to other opportunities at Haneti, which as a polymetallic opportunity also has prospectivity for gold, lithium and rare earths.
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Table 3 – Australian Projects Latest Position
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Project |
Latest Position |
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Paterson Province Western Australia (Gold – Copper) POW: 75%
|
First Development Resources Pty Limited (“FDR Australia”) is a private Australian company with 100% ownership (or the right to acquire 100% ownership) in five exploration licence interests (1 granted licence Ripon Hills and 4 licence applications namely Wallal, Wallal West 1, Wallal West 2 and Braeside West) in the Paterson Province, East Pilbara, Western Australia. Power Metal announced the conditional acquisition of FDR Australia on 28 April 2021 and is working with its Australian partners to finalise matters precedent on the acquisition including the grant of the Wallal licence application. Good progress is being made with all matters including finalisation of Heritage Agreements locally which are necessary prior to formal grant. FDR Australia will be acquired outright by a newly formed private UK company First Development Resources Limited (“FDR UK”) in which Power Metal will have a 75% interest. Following completion of the acquisition above, the intention is to IPO FDR UK in the London capital markets and we are taking preparatory steps to enable that proposed listing. Alongside the corporate work underway the Power Metal team have also been undertaking a detailed review of exploration data to date, planning principally for drilling of key gold-copper targets. The Paterson Province is well known for two recent and significant gold-copper discoveries, namely the Winu discovery by Rio Tinto and the Havieron discovery by Greatland Gold plc (LON:GGP). A desktop review has identified numerous geological analogues between the Wallal Project (comprising three licence applications) held by FDR Australia and both the Winu and Havieron discoveries. Notably, the magnetic properties of the Havieron discovery were evaluated in comparison to the Wallal Eastern magnetic anomaly which was identified during the recent desktop analysis. The magnetic amplitude and size of this anomaly was determined to be comparable (Havieron; diameter – 1 km, amplitude – 80nT, Wallal; diameter – 1.5 km, amplitude – 100nT). Additionally, the geological position of the Winu discovery was determined to be similar to that of Wallal, which includes a position along the western margin of a major shelf (Winu – Anketell Platform, Wallal – Wallal Platform). The Company is reviewing findings in conjunction with its partners in Australia and expects to release a market update in this regard in the near term. |
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Victoria Goldfields Victoria, Australia (Gold) POW: 49.9% |
This opportunity is held in JV with Red Rock Resources plc (LON:RRR) and represents one of the largest land footprints at the heart of the high profile Victoria Goldfields in Australia. The footprint totals some 2,334 km2 comprising an original sixteen licence applications from which, to date, seven licences covering 848 km2 have now been granted. Having licences granted enables ground exploration work to be launched and we now have an active programme of exploration underway including soil sampling and mapping across the granted licence areas. Historical data demonstrates the presence of gold mineralisation across all the licence areas, with evidence of historical mine workings across the properties. Programme planning which is being led by the exploration team, all of whom are residents of Victoria, is utilising the extensive regional and historical exploration datasets and mining records available, combined with local knowledge and land holder relationships. The holding company for the JV is Red Rock Australasia Pty Limited (“RRAL”) and RRAL is working on the IPO process for certain core interests of RRAL on the Canadian capital markets. This listing recognises the attractiveness of the Victoria Goldfields area amongst Canadian investors and institutions, with numerous listed companies on the Canadian Securities Exchange (“CSE”) and Toronto Stock Exchange (“TSX”) having achieved success on the markets with business models focused on exploration in the Victoria Goldfields. To facilitiate this listing process RRAL have previously completed a National Instrument 43-101 technical report on eight of the licence areas (four now granted licences and four licence applications) and this report will form a key part of the listing documentation. RRAL is working with advisors to complete the work streams necessary for the listing and will be providing further market updates in the near term in connection with this workflow. Based on the valuation of listed peers who have a focus on the Victoria Goldfields, Power Metal believe the Victoria Goldfields JV to hold considerable value for the Company and our partners Red Rock Resources plc. Note: in addition to the Victoria Goldfields interests described above RRAL has also submitted three licence applications in the Pilbara/Paterson region of Western Australia. Two applications (260 km2) are competing and therefore subject to ballot and one has RRAL as sole applicant (70 km2). The strategic plans for the three Western Australia licences are under review at present however it is likely that RRAL will seek to house these licences under a new vehicle in due course to allow the core interests of RRAL to move into the Canadian IPO process with focus on the Victoria Goldfields. |
Table 4 – North American Projects Latest Position
|
Project |
Latest Position |
|
Hemlo-Schreiber Project Ontario, Canada (Gold – Nickel) POW: 100% |
In Q1 2021 Power Metal moved quickly to secure a 100% interest in seven properties in the heart of the Hemlo-Schreiber Greenstone Belt in Ontario, Canada. All properties are held by Power Metal Resources Canada Inc. (“Power Metal Canada”) a newly formed wholly owned subsidiary of Power Metal. The seven properties have been allocated into five projects including Hemlo North, McKeller, Coco-East, Enable and Magical. Hemlo North is a package of three properties (Dotted East, Roger Lake and Olga Lake). London listed Panther Metals (LON:PALM) are planning to drill gold targets just to the west of Hemlo North and just to the East, Palladium One Mining (TSX:PDM) has recently announced excellent data from drilling, including significant nickel sulphide intersections. The accelerated building of the Hemlo-Schreiber Project has been validated by the level of interest shown in the area in 2021 with a number of companies securing ground in the area. The Hemlo-Schreiber Project has attracted interest already with third party approaches with regard to certain of the projects in the Hemlo – Schreiber portfolio held by Power Metal Canada. This further demonstrates the building interest in the region. Alongside any corporate discussions Power Metal Canada are planning to implement first stage exploration programmes for the five projects in the summer/early autumn period of 2021 and a further market update will be provided on this when appropriate. |
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Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
In September 2020 Power Metal exercised an option allowing it to earn-in to a 30% holding in the Silver Peak Project. The Company considered Silver Peak, incorporating a former high grade working silver mine, would be a valuable addition to the Power Metal portfolio. Exploration findings ratified that decision with assay results of up to 14,937 g/t silver from channel sampling from historically mined veins and up to 5,270 g/t silver from drill samples. On 15 March 2021 the Company announced it was to accelerate the earn-in and has now made all related payments and holds a 30% interest in the project. Power Metal and partners are working towards the planned IPO of the Silver Peak Project on a recognised stock exchange and work is underway in this regard. The Company is also working with our partners to complete the drill programme commenced in Q4 2020 but paused due to weather conditions in the project area. Further corporate and exploration updates are expected in respect of Silver Peak in the near future. |
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Golconda Summit Project Nevada, USA (Gold) POW: Earn-in to 100% |
On 1 June 2021 Power Metal announced the signing of an Assignment and Assumption agreement where the Company acquired an option enabling it to earn-in to a 100% interest in the Golconda Summit gold property (“Golconda”) in Nevada, USA. Golconda is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200 Moz.
Previous exploration work on the Golconda property encountered significant gold mineralisation including trench assay results of 7.6m @ 24.0g/t gold and 15.2m @ 8.6g/t gold, as well as shallow drilling results of 10.7m @ 3.9g/t gold. Reflecting all the above, the low cost of entry and modest ongoing costs Power Metal considered the acquisition of the Golconda interest was an important transaction for the Company, providing exposure to a highly prolific gold producing region in Nevada. Subject to the receipt of appropriate permits, ground exploration will commence shortly with a principle focus on the validation of the historic exploration findings and demonstration of high grade, near surface gold mineralisation. The Golconda property agreement is held by Golden Metal Resources Limited (“Golden Metal UK”), a UK private company and 100% owned subsidiary of Power Metal which will be the ultimate holding company for all Power Metal Nevada interests. |
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Garfield/Stonewall Projects Nevada, USA (Gold – Copper – Silver) POW: 100% |
The Company announced on 17 June 2021 the acquisition of a 100% interest in the Garfield and Stonewall Projects in Nevada USA. These are prospective for gold, copper and silver. The projects were acquired by Golden Metal Resources llc (“Golden Metal Nevada”) a newly formed 100% owned subsidiary of Golden Metal UK. Golden Metal Nevada will be the local operating company of Golden Metal UK. The Garfield and Stonewall Projects are located in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).
Taken with the Golconda Summit gold project above, Power Metal through its Golden Metal subsidiaries now has a trio of projects within its Nevada focused business model.
Exploration work is planned for the projects following completion of the work planned at Golconda. This includes soil chemical sampling, trenching and drilling.
|
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Alamo Project Arizona, USA (Gold) POW: Earn-in to 75% |
Power Metal signed an agreement in July 2020 to earn-in to a maximum 75% interest in the Alamo Project in Nevada USA where the project was considered prospective for gold following the discovery of native gold nuggests near surface in multiple locations across the property. Reflecting additional information acquired through the ground exploration work undertaken over the last year, additional claims have been added to increase the property size and to ensure coverage of prospective areas. A further planned exploration programme has been developed and will commence subject to the receipt of relevant permits. This programme is expected to include trenching on one area of the Alamo Project, with associated sampling, assaying and mapping and the drilling of a number of short percussion holes to test for gold and silver mineralisation. For this work to be completed a Notice Level Plan of Operations permit is required prior to commencement.
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ADDITIONAL OPPORTUNITIES
Power Metal has access to an extensive pipeline of new opportunities.
However, given the strength, depth and diversity of the Company’s existing portfolio Power Metal will only acquire further interests if there is a significant strategic reason to do so. That strategic reason could be the inherent substantial value of a new project or where an acquisition would fit well with other currently held interests, particularly if that would add value to a corporate spin-out package.
In this regard and at present, Power Metal is currently in discussions with third parties in respect of a lithium exploration project in Canada and potential new gold exploration opportunities in and around Nevada USA. Unless and until any formal transaction is agreed and announced there can be no certainty that any additional interests will be acquired.
Alongside the main Company acquisitions, it is noted that Power Metal has set up Power Capital Investments Limited (“Power Capital”) a new 100% owned resource project incubator subsidiary (announced 4 May 2021). This was formed to provide a means to continue engagement with smaller but potentially valuable resource opportunities.
A maximum investment level of £100,000 per opportunity has been set and a minimum 50% Power Capital holding interest in any opportunitiy following Power Capital’s investment.
A further update specifically in respect of Power Capital’s operations will be provided in due course.
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:
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Power Metal Resources plc |
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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 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.
Power Metal Resources #POW – Interim Results for 6 months ended 31 March 2021
Power Metal Resources plc the AIM listed metals exploration and development company is pleased to announce its unaudited interim results for the six months ended 31 March 2021.
Statement by Paul Johnson, Chief Executive Officer:
“In the six months ended 31 March 2021 we have pushed the Power Metal business to explore extensively across its project portfolio with, in our view, some excellent and very fortunate findings. We are seeking large scale metal discoveries with the emphasis on plural as we believe our portfolio is capable of delivering a number of discoveries.
Junior resource exploration is a high-risk endeavour, so investors in Power Metal rightly expect the potential for outsized returns that come with discoveries and to achieve them requires proactivity and investment in exploration.
Since October 2020 we have invested in exploration work in every single project we hold an interest in including three separate drill programmes across interests in Botswana, Canada and Tanzania. There are more planned drill campaigns in the coming months.
Notable exploration successes announced to date include the identification of extensive anomalies from the Kalahari Copper Belt, Botswana (held in JV with Kavango Resources plc), significant nickel drill intersections from Molopo Farms Complex Project, Botswana, and bonanza grade silver from the Silver Peak Project, Canada. These are by no means the only successes and as noted above we have been very fortunate with early exploration success across our portfolio.
Notwithstanding the exploration progress being made, and our search for large scale metal discoveries, we are also running a commercial enterprise that has to balance the books and generate working capital to fund its operations.
We recognise the value of the London capital markets providing access to additional finance and that is one of the principal reasons junior resource companies list. That said we are also looking to build our working capital organically through targeted growth in our investment portfolio and the spin-out of certain projects into their own listed vehicles.
Financial strength for a junior exploration company is important and as at 21 May 2021 Power Metal had working capital of circa £2.57 million, representing cash and listed company investments. This robust working capital figure was notwithstanding the material expenditure on exploration and corporate development in the half year ended 31 March 2021.
We seek size and scale in our business through metal discoveries in district scale exploration and innovative corporate activity. To do this we have recognised the need to build our operational team and now have an in-house Exploration Manager, Investor Relations Manager and Corporate Spin-Out Management. The expanded team is intensively engaged on delivering growth in our business through our project portfolio.
I would like to thank the board and Power Metal team for their determined dedication to our business objectives. The support we receive from our advisor network continues to be first rate and needs to be as Power Metal is a proactive company.
As always, and never to be left unsaid, I thank our shareholders for their support and commitment to the Power Metal business and its ambitions. It is easy to be ordinary, yet we have no such desire, and with the support of our shareholders we aim to make Power Metal a stand-out performer demonstrating how an ambitious, determined junior resource company can deliver.”
Power Metal Interests at today’s date:
|
Country |
POW % |
Project |
Resources Targeted |
|
Australia |
49.9% |
Victoria Goldfields |
Gold |
|
Australia |
75%(1) |
Paterson Province |
Copper – Gold |
|
Botswana |
50.8%(2) |
Molopo Farms Complex |
Nickel – Copper – Platinum Group Metals (PGMs) |
|
Botswana |
50% |
Kalahari Copper Belt |
Copper – Silver |
|
Botswana |
50% |
Ditau Camp |
Rare Earth Elements |
|
Canada |
30% |
Silver Peak |
Silver |
|
Canada |
100% |
Schreiber-Hemlo Projects |
Gold – Nickel |
|
The DRC |
70% |
Kisinka |
Copper – Cobalt |
|
Tanzania |
35% |
Haneti |
Nickel – Copper – PGMs – Gold – Lithium |
|
USA |
Earn-in up to 75% |
Alamo Gold |
Gold |
(1) Conditional agreement to acquire First Development Resources (Pty) Ltd.
(2) 50.8% reflects effective economic interest including 40% direct project interest and 10.8% indirect interest through shareholding in project holding company Kalahari Key Mineral Exploration Pty Ltd
Operational Highlights
In the Half Year to 31 March 2021:
Australia
· Further development of the Australian Gold Joint Venture focused on the Victoria Goldfields including notably the grant of the first three exploration licences announced in February 2021, a further two licences in March 2021 and the commencement of ground exploration across the granted licence ground.
· Option Agreement announced in January 2021 to acquire First Development Resources Pty Limited with interests in two copper-gold properties in the Paterson Province Eastern Pilbara, Western Australia. (Note this Agreement was subsequently superseded in April 2021 as outlined below).
Botswana
· Drilling commenced in October 2020 at the Molopo Farms Complex Project in Botswana with a 2,500m diamond drill programme targeting nickel sulphide and platinum group metal (“PGM”). By half year end 3 holes were complete with results sent for assay testing. Mineralogical studies confirmed the presence of nickel sulphides in drill core.
· Exploration work undertaken across the Botswana Joint Venture with Kavango Resources plc (LON:KAV) at the South Ghanzi (Kalahari Copper Belt), targeting copper-silver and the Ditau Project, targeting rare earth elements.
Canada
· A 500m diamond drill programme was launched in October 2020 at the Silver Peak Project in British Colombia, Canada, but access challenges and weather conditions led to a change in plans with a man-portable drill rig being used instead to undertake a shortened drill programme. Results announced December 2020 showed high grade silver and demonstrated mineralised vein continuity, with the full drilling programme planned to recommence in 2021.
· Acquisition of 7 exploration properties in the Schreiber-Hemlo region of Ontario.
The Democratic Republic of the Congo (The DRC)
· High grade copper and cobalt values announced November 2020 from assay testing on the 2020 pitting, mapping and sampling undertaken at the Kisinka Project in the DRC, which led to the commencement of ground geophysics in December 2020 to delineate targets for drilling.
Tanzania
· A rotary air blast drill programme commenced in December 2020 at the Haneti Nickel Project, held in joint venture with Katoro Gold plc (LON:KAT), to provide information leading into a subsequent planned diamond drill programme targeting nickel sulphide and Platinum Group Metals.
USA
· Exploration fieldwork undertaken at the Alamo Gold Project in Arizona USA, as announced in December 2020.
After 31 March 2021:
· The Rotary Air Blast drilling programme results from the Haneti Nickel PGM Project were announced in April 2021 and confirmed the move to deep diamond drilling;
· Assay results released in April 2021 from hole K1-6 at the Molopo Farms Complex Project in Botswana, confirming significant nickel intersections and later that month the Company confirmed the completion of its earn-in to a 40% direct project interest;
· Extensive exploration work continued at the Australian Gold Joint Venture in the Victoria Goldfields granted licences and a further update covering this was provided in April 2021, together with confirmation of a further two licence grants later that month;
· A conditional acquisition of First Development Resources Pty Limited was announced in April 2021, with a revised acquisition structure and now including 5 licence interests in the Paterson Province, East Pilbara, Western Australia;
· The Company announced the creation of a new resource project incubator subsidiary in May 2021, Power Capital Investments Limited;
· In May 2021, the Company announced the Kisinka Project in the DRC saw prominent magnetic highs identified from ground geophysics, and an intention to drill at Kisinka following completion of preparatory exploration work. In addition, confirmation was received that the project had been awarded a 25-year Production Licence;
· An Option agreement was announced in May 2021 allowing for the acquisition of a 100% interest in two exploration licences in the Tati Greenstone Belt, Botswana, targeting gold and nickel;
· In May 2021 positive findings were announced from the South Ghanzi Project in the Kalahari Copper Belt, Botswana, with extensive anomalies identified including 7 airborne electromagnetic targets for follow up geochemical sampling and drill testing; and
· As at 21 May 2021, Power Metal’s working capital comprising cash and listed investments amounted to circa £2.57 million, providing a robust underlying financial position for ongoing operations.
Financial Highlights for the Half Year Ended 31 March 2021:
· Loss for the period, attributable to owners of the parent of £0.59 million (2020: £0.24 million), resulting in a loss per share of 0.07 pence (2020: 0.05 pence);
· Warrant exercises during the period raised £2,692,474 for the Company; and
· Net assets of £4.6 million at the period end (30 September 2020: £2.4 million).
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 POW https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
||
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
SI Capital Limited (Joint Broker) |
||
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Nick Emerson |
+44 (0) 1483 413 500 |
|
|
First Equity Limited (Joint Broker) |
||
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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 discovery of precious or base metals.
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.
Power Metal Resources #POW – Canadian Silver Project Commercial Update – Intention to Seek IPO for Project
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a commercial update for shareholders covering the Silver Peak Project (“Silver Peak” or the “Project”), in British Colombia, Canada. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Colombia.
The original agreement in respect of the Silver Peak project was announced on 14 September 2020 and may be viewed through the following link:
https://www.powermetalresources.com/n/n251/canadian-silver-project-option-exercised
Highlights:
· Power Metal has accelerated its earn-in to the Silver Peak Project and now holds a 30% Project interest.
· A new Canadian company is being formed to hold a 100% interest in the property and Power Metal will retain its 30% interest in the Project through the new company.
· Power Metal has agreed with its partners who hold the remaining 70% interest in Silver Peak to list the Project holding company on a recognised stock exchange and the process has now commenced with relevant paperwork being prepared in this regard. Further information will follow shortly with regard to the listing plans.
· Power Metal has agreed to pay the CAD$108,952 (£62,313) remaining under the exploration earn-in commitment of CAD$250,000 into the new Canadian company to extinguish that earn-in requirement. This payment will be made from existing cash resources.
· Power Metal has also elected to satisfy the final earn-in payment to secure its 30% Project interest through the issue of 5,139,281 new ordinary shares of 0.1p in the Company (“Ordinary Shares”) at a price of 2.225p and the issue of 2,569,641 warrants to subscribe for new Ordinary Shares at an exercise price of 2.89p and with a three year life to expiry from today’s date. The Ordinary Shares and warrants issued were in accordance with the original agreement announced 14 September 2020 and further information in this regard is provided below.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“Alongside its extensive exploration activities Power Metal is intent on generating material organic value from corporate work in respect of its portfolio of interests. In just seven months since we engaged with Silver Peak we are now, with our partners, planning to move this project interest into its own independent listing.
The level of interest in quality silver projects is considerable and we believe that material value can be generated for Power Metal through the listing of Silver Peak.
Further information will follow with regard to our plans when we have concluded the important preparatory work for the listing.
Power Metal now has three project interests moving forward with planned IPOs including Silver Peak, Kanye Resources (the strategic joint venture with Kavango Resources plc) and the Australia gold joint venture (with Red Rock Resources plc).
We believe that these proposed IPOs could accelerate the crystalisation of value from the Company’s projects into 2021, providing an earlier recognition of project value.”
Acceleration to 30% Interest – Transaction Information
Balance of Exploration Earn-in Commitment
In the original agreement Power Metal was to pay CAD$250,000 against exploration expenditure at the Silver Peak Project. Previously Power Metal has paid CAD$141,048 leaving a balance outstanding of CAD$108,952.
As the Project is moving into a proposed listing process immediately Power Metal has agreed to pay the CAD$108,952 (£62,313) remaining under the exploration earn-in commitment directly into the new Canadian company to extinguish that earn-in requirement. This payment will be made from existing cash resources.
Final Earn-in Payment
Also in the original agreement Power Metal was able to pay a final earn-in payment amount of CAD$200,000 in a combination of cash and warrants or shares and warrants.
Power Metal has elected to satisfy the final earn-in payment through a shares and warrants payment as outlined below.
To secure its 30% Project interest Power Metal is to make a payment of CAD$200,000 (£114,349) through the issue of 5,139,281 new Ordinary Shares (“Final Payment Shares”) to the Vendors of the Project interest (Michael Nugent and Jo Shearer). The number of shares to be issued is based on an agreed 7 day volume weighted average price of Power Metal shares (2.225p).
In addition, as per the original agreement the Vendors will also receive 2,569,641 warrants to subscribe for new Ordinary Shares (“Final Payment Warrants”) exercisable at a price of 2.89p representing a 30% premium to the issue price of the Final Payment Shares. The Final Payment Warrants have a three year life to expiry from today’s date.
Admission and Total Voting Rights
Application will be made for the 5,139,281 Final Payment Shares to be admitted to trading on AIM, which is expected to occur on or around 22 March 2021 (“Admission”). The Final Payment Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 1,143,017,211 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
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) |
+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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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.
Power Metal Resources #POW – Business Operational Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“The team at Power Metal are intent on building a great company for our shareholders. Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.
We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our “balance sheet” through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.
As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.
We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.
We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength. Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities.”
The table below outlines the latest status of each project in the current Power Metal active portfolio. For further project information readers should review the latest Power Metal presentation which may be accessed on the Company’s website through the following link:
https://www.powermetalresources.com/p/193/presentations
|
PROJECT |
LATEST POSITION |
|
AUSTRALIA Australian Gold JV Gold (POW 49.9%) |
Initial Public Offer (“IPO”) process has formally commenced with the appointment of legal counsel in Canada. The intention is to list certain core assets of Red Rock Australasia (Pty) Ltd (the JV holding company) by IPO in the Canadian capital markets. Shareholders should note that there can be no certainty that the proposed IPO of certain core assets of Red Rock Australasia (Pty) Ltd will be successful, further updates will be made to shareholders as appropriate. Following the grant of first three licenses, as announced on 2ndFebruary 2021, a further seven applications are at an advanced stage of processing. Application made for a new exploration license covering 227 sq km (EL 45/5859) in Western Australia, which will be subject to a ballot between RRAL and Rumble Resources Ltd (ASX:RTR). |
|
BOTSWANA Kanye Resources Copper, Silver, Rare Earths (POW 50%) |
Kanye Resources Plc now formed in the UK, and Kanye Resources Pty Ltd in Botswana. This is the holding company company structure for a planned listing of Kanye Resources on a recognised stock exchange. Kanye Resources includes the Ditau Project and the Ghanzi South (Kalahari Copper Belt) Project, and the exploration status of each project is outlined below. Ditau Project An exploration camp has been established and the field team has continued taking soil samples and conducting ground magnetic surveys. A new senior geologist has been recruited to oversee operations. Data is currently being analysed on the I10 target. Results from this are expected to guide future exploration of the remaining 9 potential carbonatite targets. Ghanzi South (Kalahari Copper Belt) Project Intensified soil sampling, airborne electromagnetic survey and magnetic geophysics survey, all underway. Sampling and surveys focused on key target areas and seeking delineation of key drill targets. Environmental Management Plan being finalised, which following approval will allow drilling to be undertaken. |
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BOTSWANA Molopo Farms Complex Nickel, Copper, PGMs (POW with Economic Interest up to 50.96%) |
Following completion of two drill holes, drill core has been cut and inspected. Drill core samples sent to South African accredited laboratory and assay results awaited. Samples also sent to Witswatersrand University for mineralogical and thin section analysis and results awaited. Third drill hole to be commenced shortly and ongoing technical review underway. |
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CANADA Hemlo/Schreiber Gold, Base Metals (POW 100%) |
Acquisition of seven projects now complete and comprising exploration Claim packages strategically located across the Hemlo/Schreiber greenstone belt. Preliminary exploration work planned includes remote sensing data interpretation and ground based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing. |
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CANADA Silver Peak Silver (POW Earn-in to 30%) |
Recommencement of exploration work including completion of the planned drill programme following the snow thaw in Spring 2021 targeting high-grade silver and to establish vein continuity. Currently working with our partners to review corporate options including a potential listing of the Silver Peak project on a recognised stock exchange. |
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THE DRC Kisinka Project Copper, Cobalt (POW 70%)
|
Ground magnetics completed and induced polarisation to begin over 6.8 kilometre copper-cobalt anomaly nearing completion. Following the completion of fieldwork, and interpretation of findings, likely next step will be exploration drilling of key targets. Application to secure a 25 year Permis d’Exploitation (production licence) is progressing well and in the final stages of processing. |
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TANZANIA Haneti Project Nickel, PGMs, Copper, Gold, Lithium (POW 35%) |
Following completion of 1,965 metres of Rotary Air Blast drilling, 776 three metre composite samples have been delivered to SGS Tanzania, an accredited assay laboratory in Tanzania. Samples being analysed using multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum, and palladium.
Assay results expected shortly and the findings will guide next stage exploration.
|
|
USA Alamo Gold Project Gold (POW Earn-in up to 75%) |
Ground exploration programme (as announced 11 December 2020) now completed and detailed operational report received by Power Metal. Full technical review underway to determine next exploration and commercial steps. |
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) |
+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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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.
Power Metal Resources #POW – Audited Results for the Year Ended 30 September 2020
Power Metal Resources plc (LON:POW), the AIM listed mineral resources exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2020 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. (“RRIC”), and Power Metal Resources SA, (“PMR”), (together the “Group”).
Highlights from the year under review:
Operational
- A strategic Australian gold joint venture was formed with Red Rock Resources plc (LON:RRR), with Power Metal Resources holding 49.9%. By year end the joint venture holding company, Red Rock Resources Australasia (Pty) Limited (“RRAL”) had lodged 12 licence applications covering some 2,188 km2 in the Victoria goldfields region. Various technical work was completed in the year including project reports for 11 of the licence applications and a National Instrument 43-101 report for 8 of the licence applications as a group. A new office was secured in Ballarat town and an exploration manager appointed to the joint venture company;
- Following completion of ground geophysics in 2019 and the delineation of key drill targets, Power Metal Resources elected on 31 December 2019 to earn in to a 40% project holding at the Molopo Farms Complex Project, Botswana by expending US$500,000 on exploration, notably key target drilling in 2020. A maiden drill programme commenced in October 2020;
- A new strategic joint venture was formed between Power Metal Resources and Kavango Resources Plc (LON:KAV) in respect of the Kalahari Copper Belt and Ditau Camp Projects in Botswana, with each party having a 50% interest;
- Review work was undertaken in respect of the exploration and commercialisation options in respect of the Cobalt Blue nickel/cobalt project in Cameroon. No formal conclusions as to the way forward were reached in the financial year, with deliberations continuing post year end and leading to a decision to impair the value of the of the Cameroon project in full (£970,000);
- A new earn in agreement was formed over the Silver Peak Project, including a former working silver mine, in British Columbia, Canada. Due diligence programme sampling demonstrated bonanza grade silver from channel sampling;
- A pitting, sampling and mapping work programme was undertaken successfully at the Kisinka Project in The Democratic Republic of the Congo. X-ray fluorescence testing of the samples confirmed the presence of copper, with samples dispatched to South Africa for analysis and results received post year end. The results announced in November 2020 demonstrated high grade copper and cobalt values;
- Power Metal Resources increased its interest in the Haneti Nickel Project by 10% to 35% in the financial year and worked with joint venture partner AIM Listed Katoro Gold plc (LON:KAT) to plan for commencement of maiden drilling for nickel sulphide and Platinum Group Metals (“PGMs”) at the Project;
- An agreement was signed in respect of the Alamo Gold Project in Arizona USA which saw Power Metal Resources acquire an option to earn in to a maximum 75% interest in the project. An initial reconnaissance survey conducted following the acquisition identified additional prospective areas which were pegged and added to existing claims, increasing the project footprint;
- A further strengthening of the Board saw Edmund Shaw, an experienced City finance professional, join the Board as Non-executive Director in February 2020;
- At the year-end 30 September 2020 the Company held a private and listed shares/warrants portfolio worth circa £1,481,000, including a £415,000 fair value uplift in the valuation of the portfolio of listed investments in other junior natural resource companies held by the Company over the course of the year;
- · At the year end the Company held cash in GBP, USD, AUD and CAD of £913,000 in GBP equivalent.
Financial
- Loss for the year to 30 September 2020 of £1.4 million (2019: £1.6 million);
- Pre non-controlling interest total equity of £3.6 million at the year-end (2019: £1.8 million); and
- Raised £1.7 million (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors, and an additional £266,000 of cash received by the Company during the year from exercises of Power Metal share warrants.
Post-year end
Expansion of exploration and activity across the Company’s project portfolio including:
- Drilling programme commencement at the Molopo Farms Complex Project in Botswana (announced 15 October 2020), the Silver Peak Project in Canada (announced 10 November 2020) and the Haneti Nickel Project in Tanzania (announced 30 December 2020);
- Next stage exploration programmes commenced at the Kalahari Copper Belt and Ditau Projects in Botswana, the Alamo Gold Project in Arizona, USA and the Kisinka Project in The Democratic Republic of the Congo (“DRC”);
- Continuation of corporate activities since the year end with participation in a rights issue for Kalahari Key Mineral Exploration (Pty) Limited and expansion of the Australian Gold Joint Venture with an application to increase the JV footprint by a further 148 km2 surrounding the Ballarat mine area; and
- Option agreement signed in January 2021 providing 60 business-days for due diligence which if successful would lead to the acquisition of First Development Resources Pty Limited, a private Australian company with copper-gold exploration interests in Paterson Province, Australia.
- Agreement signed by Power Metal Resources in January 2021 to acquire a package of gold exploration properties in Ontario Canada, followed by an option agreement providing 30 days for due diligence which if successful would lead to the acquisition of four additional exploration projects also in Ontario, Canada. In February 2021, the Company announced it had exercised the Option to acquire the McKellar Property by transferring total consideration of CAD$100,000 in cash and shares;
- In February 2021 RRAL received confirmation that three licence applications had been granted enabling the commencement of ground exploration in the Victoria Goldfields, Australia;
- In February 2021, the Company announced, subject to shareholder approval, a capital reduction to take place in order for distributions to be made to shareholders; and
- Warrant exercises since the year end have raised a further £2,638,470 for the Company.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The audited results for the year ended 30 September 2020 demonstrate the pace of business development at Power Metal.
In the previous financial year the Company emerged from the refinancing in February 2019 with a new sense of energy and a promise to deliver an exciting investment proposition in resource exploration and development. As at today’s date Power Metal is a global exploration company with precious and base metal projects across three continents.
Much of the development achieved in the Company was undertaken in the year ended 30 September 2020 and since then we have seen the launch of proactive exploration and corporate activities across multiple projects including district scale opportunities.
Power Metal is well funded with a strong working capital position and an objective to continue to build our “balance sheet” working capital to move the Company toward financial self sustainability.
We believe that 2021 and the coming years presents a great opportunity for junior resource opportunities and where possible we intend to take full advantage.”
Notice of Annual General Meeting and Distribution of Accounts to Shareholders
The Company’s Annual General Meeting will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA. The Company’s Annual Report and Accounts for the year ended 30 September 2020 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com in due course.
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.
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 20 7583 8304 |
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SP Angel Corporate (Nominated Adviser and Broker) |
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Ewan Leggat |
+44 (0) 20 3470 0470 |
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SI Capital Ltd (Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity (Joint Broker) |
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David Cockbill/Jason Robertson |
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+44 (0) 20 7330 1883 |