Power Metal Resources (LSE:POW)
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RNS Number : 9110C

Power Metal Resources PLC

22 October 2020

22 October 2020

Power Metal Resources plc ("Power Metal" or the "Company")

Canadian Silver Project - Diamond Drilling Contract Signed

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the signing of the drilling contract for an initial 500m diamond core confirmatory drill programme to test the Victoria Vein at the Silver Peak Project (the "Silver Peak Project" or the "Project") in British Columbia, Canada. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.

HIGHLIGHTS:

-- Drilling contract signed with an experienced Canadian drilling company for an initial 500m diamond core programme.

-- Contractor is expected to mobilise within the next few days with a view to commencing drilling next week.

-- Initial programme will entail drilling from two pads with planned core intercepts to test the Victoria Vein where POW due diligence sampling returned bonanza silver (Ag) and significant copper (Cu) and lead (Pb) grades from two 0.5m long surface channel samples as announced 22 September 2020 and as follows:

   -      0.50m @ 10,718 g/t Ag (345 troy oz/tonne), 2.14 % Cu & 2.99 % Pb, and; 
   -      0.50m @ 14,937 g/t Ag (480 troy oz/tonne), 3.05 % Cu & 11.95 % Pb). 

-- Core drilling will employ a NQ size drilling bit, for a 48mm diameter core sample, with a winter capable track mounted rig operated on a double 12 hour shift basis.

-- Drilling oversight, core logging and sampling will be conducted by an experienced independent geologist, with half core samples sent to an accredited independent laboratory for analysis.

-- Programme is expected to be completed within a two week window prior to the onset of winter conditions. The rig will be supported by a bulldozer on site.

CHIEF EXECUTIVE OFFICER'S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented

"I am very pleased to report the signing of the drilling contract for an initial diamond core programme at Silver Peak, where the recently announced channel sampling returned exceptionally high silver assays.

The team in-country are now focused on mobilisation and commencement of drilling and we are naturally eager to see the outcome of this programme, given the results we achieved from the sampling programme recently announced.

My thanks go to our partners in Canada who have worked incredibly hard to organise this programme and put us in a position to undertake this work prior to the weather window closing. The expeditious work undertaken has given us an opportunity to assess this unique high-grade silver project through drilling, far earlier than we initially thought possible."

FURTHER INFORMATION

 
 Background                                        On 14 September 2020 the Company announced 
                                                  the exercise of an option agreement announced 
                                                   17 August 2020 (the "Option Agreement") in 
                                                   respect of the Silver Peak Project, gaining 
                                                  the right to earn-in to a 30% interest in the 
                                                                    Project. 
                                                 Prior to option exercise the Company undertook 
                                                 a due diligence exploration programme including 
                                              sampling at the Project to gather further information 
                                                   and to assist the Company in its assessment 
                                                     of project prospectivity and potential. 
                                                The assay results from the due diligence channel 
                                                   sampling were reported on the 22 September 
                                                     2020 and are set out in Table 1 below: 
                                                  Table 1: Summary of assay results for samples 
                                                 taken during Power Metal Due Diligence sampling 
                                         on Victoria Vein, Silver Peak Project    ALS Global Analytical 
                                                 Method              Ag-GRA22   Ag-CON01   Cu-OG46   Pb-OG46 
                                                                    ---------  ---------  -------- 
                                       Sample ID    Channel Sample       Ag         Ag        Cu        Pb 
                                                        Length         (ppm)     (ppm)#      (%)*      (%)* 
                                                                                 (m) 
                                        SP20-001         0.50         >10,000     10,718     2.14      2.99 
                                        SP20-002         0.50          6,010                 1.71      2.87 
                                        SP20-003         0.50          7,530                 1.57      2.07 
                                             SP20-004         0.60          5,540                 1.38 
                                        SP20-005         0.70          7,880                 1.94      3.16 
                                       SP20-006         0.50         >10,000     14,937     3.05      11.95 
                                             SP20-007         0.80          5,330                 1.26 
                                             SP20-008         0.55          1,595                 1.78 
                                             SP20-009         0.45          4,110                   - 
                                             SP20-010         0.65          1,755                 1.71 
                                             SP20-011    N/A Grab sample     660                    - 
 
                                                   * Cu and Pb results rounded to two decimal 
                                                                     places. 
                                                  # Two over limit silver samples were analysed 
                                                >10,000 ppm Ag by method Ag-GRA22 were reanalysed 
                                                             using method Ag-CON01. 
 Project Overview         The Silver Peak Project consists of a portfolio 
                           of mineral claims (the "claims") over a system 
                           of high grade, intrusion related, polymetallic 
                           Ag-Pb-Zn-Cu veins, part of the historical Eureka-Victoria 
                           Silver Mine, at Silver Peak in southern British 
                           Columbia, Canada. 
                         ----------------------------------------------------------------------------------- 
 Earlier Due Diligence     The due diligence work programme previously 
  Exploration Programme     conducted by Power Metal included various elements 
                            including channel sampling at close intervals 
                            perpendicular to the existing known high-grade 
                            veins and grab samples from a main target area 
                            between the lower elevations and the Victoria 
                            Adit. 
                            The work also included enhancement of road 
                            accessibility to the exploration area, and 
                            the collation of detailed photographic and 
                            video evidence of the project area for cross 
                            referencing to existing project technical information. 
                            A portable X-ray fluorescence analyser ("pXRF") 
                            was utilised to provide in-field, geochemical 
                            analyses, in conjunction with confirmatory 
                            laboratory assay testing where appropriate. 
                            The due diligence work programme cost totalled 
                            C$25,000 (GBP14,512) and the amount expended 
                            will be deducted from Power Metal's 12 month 
                            Project exploration spend commitment of C$250,000. 
                         ----------------------------------------------------------------------------------- 
 

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information please visit https://www.powermetalresources.com/ or contact:

 
Power Metal Resources plc 
Paul Johnson (Chief Executive Officer)                +44 (0) 7766 465 617 
 
SP Angel Corporate Finance (Nomad and Joint Broker) 
Ewan Leggat/Charlie Bouverat                          +44 (0) 20 3470 0470 
 
SI Capital Limited (Joint Broker) 
Nick Emerson                                          +44 (0) 1483 413 500 
 
First Equity Limited (Joint Broker) 
David Cockbill/Jason Robertson                        +44 (0) 20 7330 1883 
 
 
 
 

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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END

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October 22, 2020 04:16 ET (08:16 GMT)