TIDMPOW
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
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/
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/
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/ 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 Results Awaited
POW Underway
%
Athabasca Canada 100% Ground exploration Assay results from
Uranium programme complete samples collected
at 3 properties. during fieldwork.
Preliminary planning
for work in Spring/Summer
2023 is ongoing.
--------- --------- --------------------------- --------------------------
Molopo Botswana c.53%(#) T1-6 conductor target Drill programme
Farms drilling underway. updates and findings
Further MLEM surveys from further MLEM
planned over additional survey work.
AEM targets identified.
--------- --------- --------------------------- --------------------------
Tati Botswana 100% RC drilling and sampling Review of mine
Project of mine dumps complete. 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 Investment www.firstclassmetalsplc.com
Class Metals - POW 27.91%
PLC Exploration
in the Schreiber-Hemlo
region of Ontario,
Canada
------------------------ ------------------------------------------------------------------
First Planned IPO www.firstdevelopmentresources.com
Development - POW 62.12%
Resources Exploration
PLC in Western
Australia and
the Northern
Territory of
Australia
------------------------ ------------------------------------------------------------------
Golden Planned IPO www.goldenmetalresources.com
Metal Resources - POW 83.13%
PLC Exploration
and development
in Nevada,
USA
------------------------ ------------------------------------------------------------------
Kavango Investment www.kavangoresources.com
Resources - POW 14.03%
PLC (subject to
completion
of Kanye Resources
disposal announced
8.7.22 and
issue of Kavango
shares e.g.
financing announced
24.10.22)
Exploration
in Botswana
------------------------ ------------------------------------------------------------------
New Ballarat Planned IPO A new website is currently in development
Gold PLC - POW 49.9% which will be found at www.newballaratgoldcorp.com
Exploration .
in the Victoria In the interim further information
Goldfields in respect of NBGC can be found at:
of Australia https://www.powermetalresources.com/project/victoria-goldfields/
.
------------------------ ------------------------------------------------------------------
Uranium Planned IPO www.uraniumenergyexploration.com
Energy - POW on listing
Exploration estimated 40-55%
PLC Uranium exploration
in the Athabasca
region of Canada
------------------------ ------------------------------------------------------------------
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