REG - Power Metal - Golden Metal Resources – Exploration Update

Power Metal ResourcesAnnouncement

29/11/2021 15:15

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RNS Number : 9257T  Power Metal Resources PLC  29 November 2021

29 November 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Golden Metal Resources - Exploration Update

Major Gold, Tungsten and Copper Targets Identified

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a exploration update in respect of its wholly-owned subsidiary
Golden Metal Resources Limited ("Golden Metal"), focused on Nevada, USA and
which is currently seeking an independent listing on the London markets.

LATEST EXPLORATION HIGHLIGHTS:

 Project          Technical Findings

 Pilot Mountain   -      Multiple untested chargeability and gravity highs identified east
                  & southeast of main Desert Scheelite tungsten deposit.

                  -      Underexplored copper rich zones identified near eastern most
                  extent of historic drilling at Desert Scheelite and Good Hope deposits.

                  -      Several tier 1 and tier 2 exploration targets located primarily
                  between the four main deposit areas with potential to substantially increase
                  the existing resource.
 Golconda Summit  -      Hydrothermal fluids believed to have caused remobilisation of
                  significant gold mineralisation (including 7.6m at 24.0g/t gold & 15.2m
                  at  8.6g/t gold - in historical trenches) into the Havallah Sequence (upper
                  Golconda Thrust plate) rocks from the underlying thrust plate units.(1)

                  -      Significant potential exists for further gold mineralisation
                  within the Antler/Edna Peak Mountain limestones (lower Golconda Thrust plate
                  strata), which are virtually untested by historical drilling.
 Garfield         -      Historic rock sampling of surface gossans highlighted up to 6%
                  copper, 3.5g/t gold and 124 g/t silver.(2)

                  -      Remote sensing studies including Advanced Spaceborne Thermal
                  Emission and Reflection Radiometer and European Space Agency Sentinel-2
                  datasets highlighted considerable additional prospective ground (now staked).
 Stonewall        -      Highly experienced epithermal gold deposit geologist commissioned
                  to undertake a comprehensive historic data analysis at the Stonewall Project.

                  -      Favourable structural zones for potential epithermal gold
                  mineralisation  identified near eastern and western end of exposed Stonewall
                  vein, representing compelling high-priority exploration targets going forward.

 

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

"It is abundantly clear from our exploration work to date that the Golden
Metal project portfolio hosts several underexplored, highly prospective, gold,
tungsten, copper and silver exploration targets.

We believe that the Pilot Mountain project holds the potential to
substantially increase the existing JORC (2012) compliant Resource and also
the potential to expand on the multiple copper-rich zones identified by
limited historical drilling to the east of Desert Scheelite and Good Hope.

Golconda Summit, positioned in a neighbourhood of dramatic scale Carlin-type
gold deposits, has the potential for another major gold discovery within the
underexplored Golconda Thrust lower plate strata on the Project; evidenced by
the considerable gold mineralisation found historically within the thrust's
upper plate rocks on the Golconda Summit Project - which are not typically
known as good hosts for Carlin-type gold mineralisation across Northern Nevada
. As a result, our main goals are to test the favourable lower thrust plate
rocks on the Golconda Summit Project as soon as possible.

Whilst our focus justifiably will be on Pilot Mountain and Golconda Summit, we
are also seeing extremely strong findings from our work at the Garfield and
Stonewall projects.  There is clearly also great value in both projects and
we will ensure sufficient work is undertaken expeditiously to better
understand the potential offered by each.

Power Metal is preparing for the listing of Golden Metal Resources in London,
and corporate work in this regard is progressing at pace.  A further
corporate update will follow in due course."

 

DETAILED PROJECT SPECIFIC UPDATES

Key

Gold "Au", Silver "Ag", Tungsten "WO(3)", Zinc "Zn", Copper "Cu"

Pilot Mountain

The Pilot Mountain tungsten-copper-silver-zinc Project ("Pilot Mountain") is
100% owned by Golden Metal. The details of the transaction can be found at the
link below:

https://www.londonstockexchange.com/news-article/POW/strategic-option-agreement-pilot-mountain-nevada/15117136
(https://www.londonstockexchange.com/news-article/POW/strategic-option-agreement-pilot-mountain-nevada/15117136)

Pilot Mountain represents a strategic asset for Golden Metal as it hosts a
robust JORC (2012) compliant Mineral Resource of 12.53Mt at 0.27% W0(3) with
significant Cu-Ag-Zn credits(3). Tungsten was added to the 2020 United States
Geological Survey ("USGS") Critical Minerals List - a list of 50 non-fuel
mineral or mineral materials deemed essential to the economic or national
security of the USA; there is currently no known domestic production of
tungsten within the USA.(4)

On the back of surging global energy and transportation costs, the price of
tungsten has risen >40% in the past year, from ~US $22,000/t to over
US$31,000/t.(5)

Since acquiring Pilot Mountain, Golden Metal has hosted several technical
planning meetings in order to determine the exploration direction for the
asset post-listing. Golden Metal's exploration strategy going forward can be
summarised into three main focus areas which include:

1)    Targeting underexplored blue-sky exploration opportunities across the
Pilot Mountain Project - including multiple untested chargeability and gravity
highs identified during a 2013 induced polarisation ("IP") and gravity survey;
the untested geophysical anomalies are located east and southeast of the
Desert Scheelite Deposit. The 2013 geophysical report highlighted a 'strong IP
conductor much larger than the known mineralisation', and noted that the IP
conductor identified 'indicated mineralisation is likely to extend further to
both the east and north' of the Desert Scheelite Deposit.(6) Additional
geophysical surveys will also be undertaken, which may include airborne
magnetics, as well as ground-based IP and gravity surveys focusing on the area
east and southeast of the survey conducted in 2013, as well as the ~1500m zone
between the Desert Scheelite and Good Hope deposits where the Company believes
there to be considerable exploration upside.

 

2)    Targeting copper rich zones originally identified during the 2012 and
2017 drilling campaigns. This is highlighted by the most easterly hole drilled
during the 2012 drill programme which intersected exceptionally strong
mineralisation of 13.9m averaging 0.89% W0(3), and 1.75% Cu at only 130m true
vertical depth. Similarly, drilling at Good Hope in 2017 returned 26.6m
averaging 0.21% WO(3), 1.0% Cu, and 1.2% Zn starting at only 0.8m downhole.(7)
As previously mentioned, Good Hope is located ~1,500m north of Desert
Scheelite and the high-grade copper intercepts encountered at both deposits
may represent the transition to a more copper rich zone towards the east, an
area that was largely untested by any previous operators.

 

3)    Targeting several tier 1 and tier 2 exploration targets located
primarily between the four main deposit areas (Desert Scheelite, Garnet,
Gunmetal, and Good Hope), which have been generally overlooked because of thin
post-mineral volcanic and sedimentary cover obscuring any outcropping
mineralisation within this area. A previous operator highlighted the potential
to increase the size of the Pilot Mountain JORC (2012) compliant Resource
substantially by drilling these various exploration targets (many of which
have historic tungsten rich drill intercepts). The Company will prioritise the
highest ranked targets for drilling, with the aim of significantly de-risking
the asset by building out and upgrading the existing Resource.

 

Golconda Summit

Golden Metal has the option to earn 100% of the Golconda Summit Carlin-type
gold Project which is located 15km east of Winnemucca, NV, at the confluence
of the prolific Battle Mountain-Eureka and Getchell trends.  The details of
the transaction can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/agreement-golconda-gold-property-nevada-usa/14998042
(https://www.londonstockexchange.com/news-article/POW/agreement-golconda-gold-property-nevada-usa/14998042)

The Project is underlain by a thrust faulted Palaeozoic sedimentary package
which has been transported eastward to its present day location along the
major Golconda Thrust fault. The preserved stratigraphic section includes the
Antler Peak Limestone, Edna Mountain Formation and the Preble Formation
(collectively "lower thrust plate rocks"), which are structurally capped by
the Havallah Sequence ("upper thrust plate rocks"). Previous work has been
primarily focused on surface anomalies within the overlying upper plate rocks,
which are not a known host of Carlin-type mineralisation within Nevada;
despite this, previous work by Nerco Mineral Company in 1989 encountered
significant gold mineralisation within upper thrust plate rocks including
trench results of 7.6m @ 24.0g/t Au and 15.2m @ 8.6g/t Au, as well as shallow
drilling results of 10.7m @ 3.9g/t Au.(1)

These exceptional results were believed to be caused by hydrothermal fluids
remobilising gold mineralisation from favourable lower thrust plate strata
along sub-vertical fault structures, and depositing it in the upper plate
rocks found at surface today. This hints at the significant potential that
exists within the virtually untested lower plate rocks found across the
Project, directly below the Havallah Sequence. Most of the previous
exploration at Golconda consisted of shallow, vertical drill holes which were
terminated short of the more favourable lower plate host rocks. Only two holes
penetrated through the Golconda Thrust fault testing only a short section of
the upper Edna Mountain Formation.

The Antler Peak Limestone and its stratigraphic equivalents are known host
rocks for both Carlin-type (Chimney Creek Mine) and replacement-skarn deposits
(Fortitude and Phoenix Mines), the Edna Mountain Formation is known host rock
for the nearby Lone Tree Mine, and the Preble Formation is host to the nearby
Preble Mine, located less than 10km from the Project.

Since acquiring the asset, Power Metal has successfully obtained trenching
permits from the United States Bureau of Land Management ("BLM").
Additionally, the Company has employed various geological consultants to
review the historic data files and provide comment. The work completed has
resulted in many important highlights about the project which will factor
heavily into the decisions towards future work programmes including:

1)    Trenching targeting the exceptional historical results obtained
within the Havallah Sequence rocks. To date, the location of the permitted
trenches has been marked by stakes, allowing the Company to carry out when
ready, regardless of snow cover at the time. A highly regarded Nevada based
full-service geological consulting company ("Nevada Co") has been selected to
carry out this work, as well as various other work programmes across the
portfolio.

 

2)    A proposal has also been received by Nevada Co to carry out a
high-density soil sampling survey across the property, including 75m x 75m
spaced samples for a total of 546 samples. A comprehensive soil sampling
survey has never been completed across the Golconda Summit Project, and the
results will aid Golden Metal with structural and alteration mapping within
the upper plate rocks, with the main goal of identifying structural zones and
sub-vertical faults which may be acting as feeder structures from the more
favourable lower plate strata.

 

3)    Various ground-based geophysical surveys are also being contemplated,
as no known modern geophysical surveys have ever been carried out on the
Golconda Summit Project. The goal of the geophysical programmes will be to
help map the various favourable host units contacts at depth.

 

4)    All preparatory surveys are being completed in order to better refine
drill targets for the planned 2022 deep drilling campaign. This drilling
campaign is planned to be the first ever to target the various favourable
lower plate rocks on the Goldconda Summit Project, which are known hosts for
many nearby past producing, and currently operational gold mines.

 

Garfield

The Garfield copper-silver-gold Project ("Garfield") is 100% owned by Golden
Metal. The details of the transaction can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989
(https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989)

Garfield was originally staked to cover a small area of gossan occurring at
surface and discovered 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.(2) The trench ended in
mineralisation and remains open along strike. No additional follow up work had
been completed on the Project.

Since acquiring the asset the Company undertook a Remote Sensing study
including the analysis of Advanced Spaceborne Thermal Emission and Reflection
Radiometer ("ASTER") and European Space Agency Sentinel-2 datasets. Positive
results generated by the programme led to the staking of additional claims.
The details of the work programme are highlighted at the link below:

https://www.londonstockexchange.com/news-article/POW/new-copper-anomalies-identified-garfield-nevada/15175582
(https://www.londonstockexchange.com/news-article/POW/new-copper-anomalies-identified-garfield-nevada/15175582)

Following the successful results generated, the Company has undertaken a
thorough review of all historic data available. As a result of the analysis
completed, Golden Metal has developed a exploration strategy for the
 Garfield going forward following the planned listing in London which will
include:

1)    Nevada Co provided Golden Metal with a proposal for a geochemical
soil survey consisting of 802 total samples collected at 200m x 200m spacing.
This work programme has been scheduled for late Q1, which coincides with the
targeted IPO date of Golden Metal. Several other high-priority copper
anomalies identified by the Remote Sensing Study will be the target of this
geochemical survey - along with multiple other historic mines and copper
occurrences identified in various USGS datasets.

 

2)    Various geophysical surveys are also being contemplated, as no known
modern geophysics has been completed near to, or over Garfield. Geophysics, in
conjunction with the planned geochemical surveys will allow the Company to
position Garfield as a more regional type skarn-style exploration play with
vastly increased discovery potential.

 

Stonewall

The Stonewall gold-silver Project ("Stonewall") is 100% owned by Golden Metal.
The details of the transaction can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989
(https://www.londonstockexchange.com/news-article/POW/acquisition-of-gold-copper-projects-nevada-usa/15020989)

The focus of the Stonewall gold-silver Project is a >1.2km long
Au/Ag-bearing low sulphidation epithermal vein & stockwork system on the
northern side of Stonewall Mountain within the prolific Walker Lane Mineral
Belt. IMC Minerals, the most recent project operator who undertook drilling at
Stonewall, targeted less than 400m of the exposed more than 1,200m of strike
length along the Stonewall vein. Drill pads were chosen within this limited
section primarily because of accessibility of flat ground where drill pads
could be excavated in a time efficient manner.

Golden Metal recently contracted experienced epithermal gold deposit geologist
to undertake a comprehensive historical data analysis on Stonewall, with the
goal of helping direct future exploration initiatives on the Project post
listing. The recent report commissioned, concluded that the structurally
complex "horsetailed" segments at the eastern end of the vein are probably
dilational sites which are favourable hosts for epithermal Au-Ag
mineralisation.

Additionally, he determined that the carbonate-rich northwest trending veins
at the western end of the vein system have not been unroofed, representing a
compelling underexplored exploration target. He concluded that there remains
significant potential for locating ore shoots of bonanza grade Au-Ag at
Stonewall . Based on the  analysis completed by Golden Metal at Stonewall to
date, the Company's exploration plans going forward will include:

1)    Detailed geological mapping and surface sampling/chip sampling will
be undertaken over several of the prospective areas detailed in the report,
including the eastern "horsetailing" zone and western vein-stockwork zone -
both of which were underexplored by previous operators. Petrographic work may
also be carried out on collected samples to confirm the presence of adularia
and sulphide/sulphosalts minerals, which are general indicators of epithermal
boiling zones.

 

2)    All preparatory work will be completed in order to refine drill
targets for a planned deep drilling campaign at Stonewall. Contingent on
geological mapping and surface sampling/chip sampling results, the drilling
will focus on the underexplored eastern and western portions of the Stonewall
vein. Planned holes will designed to test to a true vertical depth of at least
150-250 meters, representing a depth where the postulated Au-Ag rich boiling
zone may be found.

 

Conclusion

In conclusion, Golden Metal has several exciting exploration initiatives that
are being planned across the portfolio. Whilst the listing process is ongoing,
additional preparatory and desktop analyses are planned in order to give the
company the best chance of success post listing. Significant exploration news
flow, including planned drilling programmes at Pilot Mountain and Golconda, as
well as high-impact grassroots geochemical and geophysics programmes at
Stonewall and Garfield, could act a catalysts for the company post completion
of its planned initial public offering.

 

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.

Reference Notes:

1                 Brook, Ken (2006): Summary Report for the
Golconda Summit Property (April, 2006)

 

 2                    Sunrise Resources PLC AIM
Announcement (26 July 2016) - Garfield Copper-Gold Project Update

 

 

3                     JORC (2012): The Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the
JORC Code') is a professional code of practice that sets minimum standards for
Public Reporting of minerals Exploration Results, Mineral Resources and Ore
Reserves. The current edition of the JORC Code was published in 2012, and is
available at http://www.jorc.org/docs/JORC_code_2012.pdf
(http://www.jorc.org/docs/JORC_code_2012.pdf)

 

4                  https://www.usgs.gov/news/usgs-seeks-public-comment-draft-list-50-minerals-deemed-critical-us-national-security-and
(https://www.usgs.gov/news/usgs-seeks-public-comment-draft-list-50-minerals-deemed-critical-us-national-security-and)

 

5
                https://www.mining.com/web/tungsten-suppliers-havent-been-able-to-profit-from-meme-fueled-cube-craze/
(https://www.mining.com/web/tungsten-suppliers-havent-been-able-to-profit-from-meme-fueled-cube-craze/)

 

6                     Pilot Mountain Tungsten Project
Information Memorandum (August, 2021)

 

7                     Godfrey, Stephen (2018): Pilot
Mountain Desert Scheelite Deposit Resource Estimation (November, 2018)

 

 

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/
(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 has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                     Location   POW %            Work Completed or Underway                                                    Results Awaited

 Alamo Gold Project          USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field results from on-site work programme.
 Athabasca Uranium           Canada     100%             Phase I field exploration completed                                           Laboratory assay results of samples collected for uranium and REEs
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 Silver Peak                 Canada     30%              Following drill programme demonstrating bonanza grade silver, overlimit       Overlimit analysis results
                                                         testing being undertaken where sample grade exceeded previous assay method
                                                         detection limits
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 Kalahari Copper Belt        Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling
                                                         exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                         licence areas
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill targets for near term drilling

 Wallal Gold/Copper Project  Australia  83.33%           Passive seismic and 2D seismic processing work programme completed            Results awaited

 

 

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