REG - Power Metal - Golden Metal Resources Plc Update

Power Metal ResourcesAnnouncement

20/06/2023 10:45

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RNS Number : 3081D  Power Metal Resources PLC  20 June 2023

20 June 2023

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources Plc Update

Power Metal Resources PLC (LON:POW) the London listed exploration company with
a global project portfolio, notes the announcement made by Golden Metal
Resources Plc, ("Golden Metal") a company in which Power Metal Resources has a
62.01 per cent shareholding, which is reproduced in full below and can be
found on the Golden Metal website accessible via the following link:
https://www.goldenmetalresources.com/ (https://www.goldenmetalresources.com/)

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

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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
 BlytheRay (PR Advisors)
 Tim Blythe/ Megan Ray                                                           +44 (0) 20 7138 3204

 

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.

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.

 

Golden Metal Resources plc

("Golden Metal" or the "Company")

Pilot Mountain Project: Further Targets Identified

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused
on tungsten, gold, copper and silver within Nevada, USA, is pleased to
announce a further update from the detailed interpretation and inversion
modelling of the high-resolution induced polarisation ("IP") geophysics survey
completed over its 100% owned flagship Pilot Mountain Project ("Pilot
Mountain" or the "Project") located within the prolific Walker Lake Mineral
Belt in Nevada, USA.

The initial results confirmed the presence of three significant exploration
targets at Pilot Mountain which were summarised in a RNS published by the
Company on 6 June 2023 and found below:

https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-significant-exploration-targets/15986134
(https://www.londonstockexchange.com/news-article/GMET/pilot-mountain-significant-exploration-targets/15986134)

Further inversion modelling and detailed interpretation of all available
geophysical, geological and geochemical datasets by a senior geophysicist from
SJ Geophysics based in Vancouver, Canada, has identified two further
high-priority exploration targets which are summarised below.

Highlights:

-      Two additional significant undrilled exploration targets (Porphyry
South & Good Hope West) have been successfully identified bringing the
total high-priority target inventory at Pilot Mountain to five (1 - Desert
Scheelite Parallel West, 2 - Porphyry Depths, 3 - Desert Scheelite East, 4 -
Porphyry South, 5 - Good Hope West), see Figure 1.

 

-      The Porphyry South target represents the most compelling porphyry
deposit target identified to date at Pilot Mountain.

 

-      The Company considers that Pilot Mountain hosts the largest known
undeveloped tungsten resource in the USA (with the US currently without any
domestic primary tungsten production), and the five targets now identified
show potential for a significantly greater in-ground resource than currently
known, marking a significant further uplift in Project potential.

 

-      Any increase in potential mineralisation will further bolster the
inherent value of the Project and its attractiveness as a target for
non-dilutive grant funding for Project exploration and development, which the
Company is actively pursuing at present.

Oliver Friesen, CEO of Golden Metal, commented:

"Hats off to our technical team who spent many days compiling and combining
all available geological, geophysical and geochemical datasets, which has led
to the identification of two other significant exploration targets at Pilot
Mountain.

"While the criticality of the in-situ tungsten mineralisation at Pilot
Mountain cannot be understated given the current geopolitical climate, it is
the exploration upside that we continue to delineate which has us equally as
excited.

"With this strong inventory of five exploration targets now in hand, combined
with the 12.53Mt of resources already established at Pilot Mountain, we are
eager to move this Project along to the next stage.

"We look forward to updating the market with our planned operational and
commercial next steps in short order."

 

Detailed Overview:

 

1)    Porphyry South (Figures 1, 2 & 3)

o  The Company has been in search of a porphyry system at Pilot Mountain
which could represent the causative intrusion for the skarn-type
mineralisation found across the Project. Associated porphyry deposits can
often be much larger than their associated skarns and therefore are highly
sought after and explored for.

 

o  The 2023 IP geophysical results have successfully highlighted a
significant geophysical target that appears to be of porphyry affinity. This
is in addition to the porphyry intrusion that the Company considers may be
present at the Porphyry Depths Zone (see Figure 1).  The centre of the
Porphyry South target is approximately 600m south of Desert Scheelite and is
defined by a resistivity high which starts at around 250m depth and extends
towards the depth limit of the survey at 500m depth where it remains open (see
Figure 3). This anomaly is surrounded by a moderate chargeability anomaly
which could represent a halo around the porphyry centre - an often common
feature of porphyry deposits.

 

o  Further evidence to support the presence of a porphyry centre is evidenced
within a small ground magnetic survey, completed by Zonge International
Geophysics in 2013, which covered the Porphyry South area and identified a
very strong and concentric magnetic anomaly which is strongly coincident with
the resistivity high feature. The Porphyry South target is considerable in
size at  approximately 500m x 500m (see figure 2).

 

o  The Company is considering completing select magnetic geophysics survey
lines over the previously identified Porphyry Depths Zone as to date, no
magnetic data has been collected over the majority of the Project. Concentric
magnetic highs can often be associated within intrusive rocks including
porphyry deposits.

 

2)    Good Hope West (Figure 1)

o  The Good Hope Zone is located  circa 1.4km north of Desert Scheelite and
is defined by a relatively copper-rich area with abundant near-surface
mineralisation that has only been sparsely drilled. One historical drillhole
returned 26.6m of 1% Cu, 1.2% Zn and 0.21% W0(3) starting at surface.(1)

 

o  Detailed review and interpretation of the 2023 IP geophysical results have
led to the delineation of the Good Hope West zone which is defined by a
moderate resistivity anomaly that fingers in from the west. By georeferencing
historical drilling cross sections, it became evident that this resistivity
anomaly is strongly coincident with a known Good Hope mineralised lode
structure. This anomaly extends for around 600m to the southwest from Good
Hope where it has never been drill tested.

Media

Figure 1 - Pilot Mountain Project overview map showing the location of
existing known mineralised bodies (Desert Scheelite, Gunmetal, Garnet Mine,
Goodhope) and the outline of the five newly delineated exploration targets
including the two new targets (Porphyry South and Good Hope West).

Figure 2 (Porphyry South) - Historical digitised ground magnetic geophysics
data (Zonge, 2013) showing location of magnetic high. See figure 3 for outline
of resistivity anomaly which is coincident with magnetic high feature. Scale,
legend and north arrow located bottom left of image.

Figure 3 (Porphyry South) - Resistivity depth slice at 400m below surface
showing concentric resistivity high anomaly near the southern boundary of the
survey area. Main Desert Scheelite Zone hosts 10.7Mt of 0.26% W0(3).

 

Property Ownership

Golden Metal holds a 100% interest in the Pilot Mountain Project through its
wholly-owned Nevada-based operating companies BFM Resources Inc and Pilot
Metals Inc.

Reference Notes:

1:            Thor Mining PLC, regulatory news announcement,
'Drilling Success at Pilot Mountain Tungsten Project, dated 12 October 2017

                (
https://wcsecure.weblink.com.au/LSE_news/2017/10/12/Thormining_13706685.pdf)

 

 

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 Golden Metal Resources plc to provide technical support.

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

For further information visit www.goldenmetalresources.com
(http://www.goldenmetalresources.com) or contact the following:

 Golden Metal Resources plc                   Tel: +44 (0) 20 7583 8304

 Oliver Friesen (CEO)
 Cairn Financial Advisers LLP                 Tel: +44 20 7213 0880

 Nominated Adviser

 Sandy Jamieson/Jo Turner/Louise O'Driscoll
 First Equity Limited                         Tel: +44 20 7374 2212

 Broker

 Jonathan Brown/Jason Robertson

 

The Projects:

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource
definition stage project located in Mineral County in western Nevada. The
project covers an area of 14.80 km(2) (3,656.1 acres) and is located 200km
southeast of Reno and 18km east of Mina, Nevada. It is well situated for the
supply of power, water and skilled labour and proximity to transport
infrastructure in Mineral County and is centred around four existing mineral
deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which
possess significant skarn-style tungsten-copper-silver-zinc mineralisation.
The Pilot Mountain project consists of 176 active lode mining claims and 4
filed mill site claims. The four mill site claims filed at the former Dunham
mill site have secure access to groundwater supply sufficient for the proposed
project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held
under an earn-in right to acquire up to 100 per cent. of the project from the
mineral claim owner pursuant to an option agreement. The Golconda Summit
project is an exploration stage gold and silver project located in Humboldt
County and situated at the confluence of the Getchell and Battle Mountain -
Eureka metallogenic trends, and consists of 44 lode mining claims, covering a
total area of approximately 3.22 km(2) (795.4 acres) located approximately
27km east of Winnemucca.

Garfield Project

The Garfield project is an early exploration stage copper, gold and silver
property consisting of 39 lode mining claims covering 3.23 km(2) (797.9 acres)
located in Mineral County, Nevada, approximately 14km due east of the town of
Hawthorne and 120km due west-northwest of Tonopah.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective
for epithermal gold-silver mineralisation. The property consists of 19 lode
mining claims covering 1.59 km(2) (392.5 acres) located on the northern flank
of Stonewall Mountain, on the western edge of the Nellis Airforce Range
Restricted Access Area, in Nye County, Nevada, approximately 24km south-east
of the historic gold mining town of Goldfield and 60km due south of Tonopah.

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