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Power Metal Resources #POW – Golden Metal Resources Nevada Presentation Released Highlighting Exploration Potential of the Recently acquired Projects Located in Mining Friendly Nevada
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company has prepared an information presentation covering the recently acquired Golconda Summit, Garfield, and Stonewall Projects (collectively the “Projects”) all located in mining friendly Nevada, USA.
This information presentation may be viewed through the following link:
https://www.powermetalresources.com/presentation/golden-metal-resources-presentation/
The Nevada Projects are held by Golden Metal Resources Ltd (“Golden Metal”) a wholly owned subsidiary of Power Metal and include the Golconda Summit carlin-type gold Project, Stonewall epithermal-type Au-Ag Project, and the Garfield skarn-type Cu-Au Project.
The details underlying the acquisition of the Nevada Projects are provided in previous Power Metal announcements which can be viewed through the following links:
Golconda (1 June 2021)
Garfield/Stonewall (17 June 2021)
PRESENTATION HIGHLIGHTS:
Regional Background
· The Company views Nevada as one of the most prospective jurisidctions in the world for the discovery of world class precious metal deposits.
· Nevada was ranked #1 in the Investment Attractiveness Index in the Fraser Institute Annual Survey of Mining Companies, 2020 1.
· The Projects are located within some of the prolific mining trends within the state including the Battle Mountain – Eureka Trend (Golconda Summit), and the Walker Lane Mineral Trend (Stonewall and Garfield).
Golconda Summit Project
§ The Golconda Summit Project (“Golconda”) is located entirely on the Bureau of Land Management (“BLM”) ground less than 15km east of the town of Winnemucca, Nevada.
· Golconda is located within the same host rocks (Havallah Sequence upper plate rocks as well as lower plate Edna Mountain Formation and Antler Peak Limestones) as the nearby multi-million ounce Turquoise Ridge, Lone Tree Complex, and Marigold gold mines.
· Previous exploration on the Project by the Nerco Mineral Company is 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including surface mechanised trenching assay results of 7.6m of 24.0g/t Au and 15.2m of 8.6g/t Au, as well as shallow reverse circualtion driling results of 10.7m @ 3.9g/t Au 2.
· Golconda is considered by the Company to be prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence upper plate rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak limestones located below the Golconda thrust fault.
· Permits for trenching and drilling are currently being prepared and will be submitted shortly, with receipt of full permits expected within 4-6 weeks.
Garfield Project
§ The Garfield skarn-type Cu-Au Project (“Garfield”) is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada.
§ Garfield is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Garfield Project was originally centered around a small gossan exposed within extensive Quarternary alluvial sediments which cover most of the Project. Work undertaken in 2016 by previous owner Sunrise Resources plc included a single trench excavated within the gossan which returned 22m of 0.33% copper, including a 2m sub-interval which graded 2.18% copper (16-18m) and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in copper and gold mineralisation and remains open along strike.
§ Follow up regional prospecting returned several >1% (up to 5.53%) copper grab samples kilometres from the main gossan showing. No additional follow up work has been completed to date.
§ Golden Metal will carry out extensive grid-based soil sampling as well as prospecting which aims to prove up the continuity of skarn and porphyry-style mineralisation between the various copper rich historic sampling sites.
Stonewall Project
§ The Stonewall epithermal-type Au-Ag Project (“Stonewall”) is located approximately 15m south of the historic mining town of Goldfield in Nye County, Nevada.
§ Stonewall is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Stonewall Project is centered on a approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.
§ Minimum shallow historic drilling tested a limited strike length along the vein (away from the surface samples displaying the strongest epithermal-type boiling textures) and returned downhole epithermal vein intersections of up to 12m in width with stockwork zones up to 70m wide with anomalous gold, silver and mercury results.
§ Following a Phase I Programme which will include prospecting, geological mapping and rock sampling, Golden Metal plans on executing a diamond drilling programme on the Property which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system could be found.
BACKGROUND TO GOLDEN METAL AND PLANNED CORPORATE ACTIVITY
Golden Metal is a private United Kingdom domiciled company which is a wholly owned subsidiary of Power Metal.
The intention is to arrange an initial public offering of Golden Metal in the London capital markets targeting admission to trading in Autumn 2021 and the Company is taking preparatory steps to enable that proposed listing.
Glossary
Carlin deposit: Sediment-hosted disseminated gold deposits which are typically found in Nevada. They are characterised by invisible (typically microscopic) gold which is found within the crystal lattice of pyrite and arsenopyrite grains.
Epithermal deposit: Gold deposits which are formed from gold rich hydropthermal fluids within shallow crustal levels.
Gossan: Often red, orange or brown Intensely oxidized, weathered or decomposed rocks found at surface which result from the weathering of mineralised country rocks (typically sulphide-rich, including pyrite).
Low sulphidation epithermal boiling textures: Sub-classification of epithermal deposits which form at shallower crustal depths than high sulphidation deposits. The main control for gold deposition within these systems is fluid boiling (which leads to the formation of boiling textures) caused by a decrease in confining pressure as gold-rich hydrothermal fluids migrate to the surface.
Quaternary alluvial sediments: Young sedimentary cover which typically post-dates most gold mineralisation in Nevada. These sediments typically erode from nearby mountains and are transported to adjacent basins by fluvial action. They then form a blanket of loose sediment which covers bedrock within the valley bottoms, obscuring any precious or base metal mineralisation within these areas.
Skarn deposit: Deposits which form within carbonate rich host rocks adjacent to porphyry deposits.
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.
References:
1: Fraser Institute Annual Survey of Mining Companies, 2020, published 23 February 2021 see: https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2020
2: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006.
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) |
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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 and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects 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) – Acquisition of Gold-Copper Projects Nevada USA
Signed Agreement to acquire a 100% Interest in the Garfield Gold-Copper and the Stonewall Gold Exploration Properties Located in Nevada, USA
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an agreement (the “Agreement”) to acquire two exploration properties in Nevada USA.
The projects include the Garfield Gold-Copper Project and the Stonewall Gold Project (together the “Acquisition Properties” or the “Properties”), acquired outright from London quoted Sunrise Resources plc (LON:SRES).
The Properties will be acquired by a Nevada limited liability new company which will be the wholly owned local Nevada operating company for Golden Metal Resources Limited (“Golden Metal”), Power Metal’s 100% owned UK private subsidiary.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“The Acquisition Properties provide Power Metal with further exposure to precious and base metals exploration in Nevada USA and complement the recently acquired option over the Golconda Summit Gold Property, also in Nevada and announced on 1 June 2021.
Through this transaction Golden Metal, the wholly owned Power Metal subsidiary, now has a trio of gold – silver – copper exploration projects, targeting major metal discoveries in Nevada USA.
We expect to launch ground exploration in Nevada shortly, initially targeting near surface significant gold mineralisation at the Golconda Summit gold property and thereafter initial work programmes on the two properties acquired with today’s announcement. Further updates to the market in this regard are expected in the near term.”
VENDOR AND PROPERTY INFORMATION
The Vendor of the Properties is London AIM quoted Sunrise Resources plc (LON:SRES) and its two Nevada based wholly owned subsidiaries SR Minerals Inc and Westgold Inc.
The Acquistion Properties consist of two portfolios of United States Department of the Interior Bureau of Land Management (“BLM”) Mining Claims held 100% and in good standing by SR Minerals Inc. for the Garfield Gold-Copper Project (“Garfield”); and by Westgold Inc. for the Stonewall Gold Project (“Stonewall”).
Garfield
The Garfield Project is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada. Garfield is 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).
Garfield was staked to cover a small area of gossanous material occurring at surface and discovered by Sunrise Resources in 2015. Initial sampling over the gossan returned rock results up to 6% Cu, 3.5g/t Au, and 124g/t Ag. A single 26m trench was oriented over part of the gossan in 2016 and returned an interval of 22m of 0.33% copper, including a 2m sub-interval grading 2.18% copper (16m-18m), and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in mineralisation and remains open along strike. No additional follow up work has been completed on the Project.
The Company plans on executing a Phase 1 work programme that will include a property wide systematic soil geochemical survey designed to test continuity of skarn and porphyry-style mineralisation and elevated copper between the various historic grab sampling localities. The soil survey will be followed by a programme of trenching which should provide a cost effective means of evaluating any copper, gold and silver anomalies identified by the soil survey.
In addition the 2016 trench will be re-opened and extended to provide coverage of the mineralisation which currently remains open along strike.
Stonewall
Stonewall is located approximately 15km south of the historic mining town of Goldfield in Nye County, Nevada. Stonewall is also in the prolific Walker Lake mineral belt, and less than 60km southwest of the famous silver deposits of Tonopah which produced over 138 million ounces of silver from 1900-1921.1
Stonewall is centred on an approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.
Rock sampling by previous operators returned anomalous gold-silver values (up to 1.17g/t Au and 161g/t Ag) with elevated mercury, which is characteristic of the shallow parts of a low-sulphidation epithermal system.
Minimal shallow historic drilling tested a limited strike length along the vein and returned downhole epithermal vein intersections up to 12m in width with stockwork zones up to 70m wide with elevated gold and silver results. Drilling was completed along parts of the vein easily accessible for a road, with the zones displaying the strongest epithermal textures remaining untested.
Placer Dome Inc. (now Barrick Gold Corp.), who optioned the Stonewall property in 2003, completed fluid inclusion analysis on surface samples which determined formation temperatures of 170°C, consistent with the upper parts of the epithermal System.
Considering the widths of the quartz vein and surrounding stockwork/alteration zones (up to 70m), the mapped strike-length extent (currently 1.2km; but remains open under cover) and the well developed boiling textures found at surface, the Company is of the belief that the Stonewall vein may represent the upper parts of a sizeable buried low-sulphidation epithermal system.
The Company plans on executing a diamond driling programme at Stonewall which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system would be found.
TRANSACTION TERMS
The principal terms to acquire a 100% interest in the Properties are as follows:
– Power Metal will pay initial consideration of £20,000 cash and £61,875 payable through the issue to the Vendors of 2.25 million new ordinary shares of 0.1p each in Power Metal at a price of 2.75p per share (“new Ordinary Shares”)(“Consideration Shares”).
– In addition, Power Metal will issue to Sunrise Resources plc 2.25 million warrants with an exercise price of 3.75p per new Ordinary Share and life to expiry of 2 years from the date of issue (“Warrants”). Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10 (ten) pence for 5 trading days Power Metal may serve notice on Sunrise Resources plc providing 14 calendar days to exercise and pay for the Warrants or the Warrants will be cancelled.
– The Vendors will retain a 2% Net Smelter Return (“NSR”) Royalty over the Properties. 1% of each Project NSR royalty may be repurchased by Golden Metal for US$1,000,000 at any time.
– The Properties will be acquired by a Nevada limited liability newly formed company and the local operating company wholly owned by Golden Metal, Power Metal’s 100% owned UK private subsidiary.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 2,250,000 Consideration Shares to be admitted to trading on AIM which is expected to occur on or around 24 June 2021 (“Admission”). The Consideration 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 1,149,017,211 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.
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.
References:
1Tonopah History – Tonopah, Nevada (tonopahnevada.com)
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) |
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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 |