REG - Power Metal - Golden Metal Resources – Golconda Gold Anomalies

Power Metal ResourcesAnnouncement

27/10/2022 15:00

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RNS Number : 3840E  Power Metal Resources PLC  27 October 2022

27 October 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources - Golconda Gold Anomalies

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update from Golden Metal Resources PLC ("Golden Metal" or "GMT"),
the Company's 83.13% owned subsidiary, which is planning to list on the London
capital markets this quarter.

The most recent update from Golden Metal was released on 26 August 2022 and
can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-operational-update/15603522
(https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-operational-update/15603522)

HIGHLIGHTS:

-      Recently obtained historical dataset from a high-resolution
geochemical soil survey covering the entirety of the Golconda Summit Project
("Golconda Summit" or the "Project"), has highlighted three zones of strongly
anomalous arsenic and gold mineralisation for further investigation.

 

-      Rock sample assay results from a geological mapping and sampling
programme over Golconda Summit, undertaken by Golden Metal's in-country senior
geological consultant, have confirmed strong arsenic (pathfinder for
Carlin-type gold mineralisation) and gold anomalism.

 

-      At the Garfield Project assay results are pending for the recently
completed soil geochemical survey.

 

-      At the Pilot Mountain Project three-dimensional ("3D") modelling
of the high-resolution induced polarisation ("IP") geophysics survey data
collected over Golden Metal's flagship project has been commissioned, with
results eagerly awaited.

Oliver Friesen, Chief Executive Officer of Golden Metal Resources PLC,
commented:

"Our 100% owned flagship Pilot Mountain Project has been a source of
particular focus for GMT and our investors, with good reason, as we continue
to engage in various discussions regarding possible technical and financial
engagement at a project level.

Work has continued in parallel across GMT'S other Nevada interests and today's
update is focused on significant gold anomalism confirmed across the Golconda
Summit Project where we are targeting a Carlin-type gold discovery.

Review of newly acquired historical datasets, together with recently completed
detailed geological mapping and rock sampling at Golconda Summit have
delivered clear evidence of gold and arsenic anomalism. These results, in
GMT's technical view, further underpin the strong value proposition associated
with bringing this compelling gold opportunity to UK investors alongside the
rest of our exciting Nevada focused project portfolio.

We are seeing a steady improvement of market conditions, and particularly
those surrounding junior mining and exploration companies. As a result, we are
seeking to secure the UK listing of Golden Metal Resources as soon as
possible.

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

"The news from Golconda Summit today is the first key set of exploration
results, and they have ratified our belief in the potential of the Project to
host a Carlin-type gold deposit.  As a result, Golconda has been designated
as a priority Project for follow-on exploration and subsequent drilling.

The combination of the strategically significant Pilot Mountain Project
combined with the blue-sky exploration upside offered by Golconda Summit, as
confirmed today, makes Golden Metal, in our view, a unique investment
proposition focused on Nevada, USA and we look forward to the planned listing
in London."

Further Information: Golconda Summit

Within Carlin-type gold deposits, which are found almost exclusively within
northern Nevada, there are multiple alteration minerals that are typically
found proximal and near to Carlin-type gold deposits. The most notable of
these is arsenic, so as a result arsenic anomalism is often one of the best
proxies when looking for Carlin-type gold deposits. Additionally, arsenic is
considered to be highly mobile (compared to gold) and therefore arsenic can
more easily be remobilised along fluid conduits away from Carlin-type
mineralised systems.

Geochemical Sampling

Golden Metal have obtained the dataset for a high-resolution (60m x 60m sample
spacing) soil geochemical survey completed across the entire Golconda Summit
Project in 2006.  This historical geochemical dataset includes 741
multi-element assay results from which three discrete anomalous zones have
been identified: 'Trench', 'Thrust', and 'Ridge' zones. These zones are
defined by the arsenic and gold results, of which there is a strong
correlation noted. The 'Trench' zone is coincident with historical trenching
completed within the Project, while little historical work is known to have
been completed within the 'Thrust' and 'Ridge' zones (see Figure 1).

'Trench Zone' - Strong arsenic and gold anomalism was identified with
individual results up to 929ppm As and 1846ppb Au (1.846g/t; Sample GS-358).

'Thrust Zone' - Strong arsenic and gold anomalism was identified with results
up to 338ppm As and 402ppb Au (Sample GS-134).

'Ridge Zone' - Strong arsenic and gold anomalism was identified with results
up to 110ppm As and 782ppm Au (Sample GS-679).

Rock Sampling/Mapping

Detailed mapping and rock sampling was recently completed across Golconda
Summit by Golden Metals' in-country senior geological consultant. A total of
41 individual rock samples were taken, and detailed mapping of the easterly
dipping iron-point thrust fault was completed. Most of the sampling was done
within or near to the 'Thrust Zone'. Strong arsenic and gold anomalism was
identified within multiple samples, and in particular within five samples that
are within the mapped iron-point thrust fault.

As with the geochemical results, a strong correlation between arsenic and gold
results was noted. Of the 41 samples collected, 9 samples returned >250ppm
As, with 6 samples returning >500ppm As (500ppb represents upper limits of
analysis technique used). The three top gold results from the rock sampling
completed were all from samples that returned >250ppm As (838, 335, and
280ppb Au).

Geological Model

At Golconda Summit, GMT's geological consultant has completed several weeks of
detailed mapping and has identified the presence of the Iron Point thrust
fault. This thrust fault has controlled the emplacement of non-reactive 'upper
plate' rocks, over top of reactive 'lower plate' rocks. Encouragingly (see
Figure 2), a very strong arsenic anomalism within rock and soil sample results
is coincident with the surface expression of the Iron Point thrust fault. The
postulation is that there has been remobilisation of Carlin-type fluids up
along the Iron Point thrust fault - with the view that one would need to drill
test east of this thrust fault. Interestingly, the 'Trench Zone' is located
with this drill target zone, and here, historical trenching completed by Nerco
Mining Company in 1989 returned up to 7.6m of 19.7g/t Au within non-reactive
'upper plate' rocks. Secondary sub-vertical faults have been mapped across
this trench area which could have controlled the remobilisation of Carlin-type
gold from reactive 'lower-plate' rocks below.

Trenching as well as follow-up reverse circulation ("RC") drilling is planned
post the planned listing of Golden Metal. Golden Metal will be the first
company to ever drill test at Golconda multiple prospective 'lower plate'
units including the Antler Peak limestone, Edna Mountain and Preble
Formations, all of which host Carlin-type gold deposits elsewhere in Northern
Nevada.

Figure 1 - Golconda Summit: A plan map of the Project area including the
recently obtained 2006 geochemical results as well as 2022 rock sampling
results. Arsenic is a strong pathfinder for gold within Carlin-type gold
deposits.

 

Figure 2 - Golconda Summit: A plan map of the Project showing the location of
the 'Ridge', 'Thrust' and 'Trench' zones in relation to the major iron-point
thrust fault which has been mapped across the Project.

 

The diagrams and images presented above may be viewed on GMT's website and may
be reached through the following link:

https://www.goldenmetalresources.com/project/the-golconda-summit-project/
(https://www.goldenmetalresources.com/project/the-golconda-summit-project/)

Further photographs and videos from the drill programme are and will be
available on the Company's website gallery section, through the following
link:

https://www.goldenmetalresources.com/investors/gallery/golconda-summit-project/
(https://www.goldenmetalresources.com/investors/gallery/golconda-summit-project/)

 

QUALIFIED 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 Qualified 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/
(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.

 

Exploration Work Overview

Power Metal has multiple internal exploration programmes completed or
underway, with results awaited.  The status for each of the Company's
priority exploration projects is outlined in the table below.

 

 Project            Location  Current   Work Completed or Underway                                                     Results Awaited

                              POW %

 Athabasca Uranium  Canada    100%      Ground exploration programme complete at 3 properties.  Preliminary planning   Assay results from samples collected during fieldwork.
                                        for work in Spring/Summer 2023 is ongoing.
 Molopo Farms       Botswana  c.53%(#)  T1-6 conductor target drilling underway. Further MLEM surveys planned over     Drill programme updates and findings from further MLEM survey work.
                                        additional AEM targets identified.
 Tati Project       Botswana  100%      RC drilling and sampling of mine dumps complete.                               Review of mine dumps sampling and assay results from RC drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.  These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 27.91%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com/)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com/)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com/)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com/)
                                  announced 8.7.22 and issue of Kavango shares e.g. financing announced

                                  24.10.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found

                                                                           at www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com/) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 Uranium Energy Exploration PLC   Planned IPO - POW on listing estimated 40-55%                               www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com/)

                                  Uranium exploration in the Athabasca region of Canada

 

 

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