Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of 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.
On 17 August 2020 the Company announced an option agreement (the “Option Agreement”) in respect of the Project.
The Option Agreement provides Power Metal an option (the "Option") of a 30-day exclusivity period for due diligence in respect of the Project. Should Power Metal decide to exercise the Option it will secure a right to earn-in to a 30% interest in the Project.
As part of this due diligence process the Company today announces an exploration programme to commence shortly at the Project to gather further information and to assist the Company in its assessment of project prospectivity and potential.
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.
Due Diligence Exploration Programme
The work programme includes various elements but is centred on 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 will also include 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) will be utilised to provide in-field, geochemical analyses, in conjunction with confirmatory laboratory assay testing where appropriate.
The work programme cost totals C$25,000 (£14,512) and should Power Metal exercise the Option, the amount expended will be deducted from the C$250,000 12-month project exploration spend.
Gather additional positive field exploration data and evidence to support due diligence review of the Project.
CHIEF EXECUTIVE OFFICER’S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented “We advised shareholders that accelerated due diligence would be undertaken at the Silver Peak Project and ordinarily we would have undertaken a site visit as we did with the Alamo gold project in Arizona.
Given global travel restrictions, we are utilising a local team to undertake a short exploration programme gathering further information expeditiously, which we can add to the desk-based work we are undertaking.”
The Silver Peak Project consists of a portfolio of mineral claims covering an area of approximately 46.02 km2, 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.
The Project is located on Silver Peak Mountain which is 6 km south of the paved TransCanada Highway and the town of Hope. A good quality gravel municipal road along Silver Creek, passes by the entrance to the project mine access road. A logging/mining road which was upgraded in 2011, then extends upwards to the workings.
Originally discovered in the late 1860s the Silver Peak mines reportedly exploited near-surface oxide material ranging 500 to 658 oz/ton silver, via underground adits on two main veins varying in width from 1.5 to 6 m. Mining continued intermittently on a small scale under various ownership until 1981.
The property was subject to minor surface and underground sampling and mapping programmes between 2009 and 2011, confirming the tenor and extent of high grade silver mineralisation in the Eocene age conglomerate hosted siderite-tetrahedrite veins, with grab sample assays up to 22,600 g/t Ag(1).
Underground sampling in 2011 along the strike of the Victoria Vein returned a grade of 8,889 g/t Ag, with a grab sample from the Victoria Vein face assayed at 15,517 g/t Ag, 4.3% Pb, 2.94% Cu and 2,756ppm Bi. Bench scale metallurgical testwork in 2011 returned silver leach recoveries of up to 80% using a 0.4% Ag (4,000g/t) feed sample.(1)
1. Data as reported in the National Instrument 43-101 Technical Summary Report on the Eureka-Victoria Mine Property 10.3.13
Whilst the Project can demonstrate a long history of high grade silver production, the resource potential of the Eureka and the Victoria vein systems, which each range over 625m long, has never been formally assessed or drill tested at depth or along strike.
A systematic phased exploration programme is envisaged to test the resource potential of the Eureka and Victoria vein systems at depth and along strike.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, 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.
25 August 2020