Presentation Released Highlighting Exploration Potential of the Recently acquired Projects Located in Mining Friendly Nevada
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company has prepared an information presentation covering the recently acquired Golconda Summit, Garfield, and Stonewall Projects (collectively the “Projects”) all located in mining friendly Nevada, USA.
This information presentation may be viewed through the following link:
The Nevada Projects are held by Golden Metal Resources Ltd (“Golden Metal”) a wholly owned subsidiary of Power Metal and include the Golconda Summit carlin-type gold Project, Stonewall epithermal-type Au-Ag Project, and the Garfield skarn-type Cu-Au Project.
The details underlying the acquisition of the Nevada Projects are provided in previous Power Metal announcements which can be viewed through the following links:
Golconda (1 June 2021)
Garfield/Stonewall (17 June 2021)
· The Company views Nevada as one of the most prospective jurisidctions in the world for the discovery of world class precious metal deposits.
·Nevada was ranked #1 in the Investment Attractiveness Index in the Fraser Institute Annual Survey of Mining Companies, 2020 1.
· The Projects are located within some of the prolific mining trends within the state including the Battle Mountain – Eureka Trend (Golconda Summit), and the Walker Lane Mineral Trend (Stonewall and Garfield).
Golconda Summit Project
§ The Golconda Summit Project (“Golconda”) is located entirely on the Bureau of Land Management (“BLM”) ground less than 15km east of the town of Winnemucca, Nevada.
· Golconda is located within the same host rocks (Havallah Sequence upper plate rocks as well as lower plate Edna Mountain Formation and Antler Peak Limestones) as the nearby multi-million ounce Turquoise Ridge, Lone Tree Complex, and Marigold gold mines.
· Previous exploration on the Project by the Nerco Mineral Company is 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including surface mechanised trenching assay results of 7.6m of 24.0g/t Au and 15.2m of 8.6g/t Au, as well as shallow reverse circualtion driling results of 10.7m @ 3.9g/t Au 2.
· Golconda is considered by the Company to be prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence upper plate rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak limestones located below the Golconda thrust fault.
· Permits for trenching and drilling are currently being prepared and will be submitted shortly, with receipt of full permits expected within 4-6 weeks.
§ The Garfield skarn-type Cu-Au Project (“Garfield”) is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada.
§ Garfield is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Garfield Project was originally centered around a small gossan exposed within extensive Quarternary alluvial sediments which cover most of the Project. Work undertaken in 2016 by previous owner Sunrise Resources plc included a single trench excavated within the gossan which returned 22m of 0.33% copper, including a 2m sub-interval which graded 2.18% copper (16-18m) and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in copper and gold mineralisation and remains open along strike.
§ Follow up regional prospecting returned several >1% (up to 5.53%) copper grab samples kilometres from the main gossan showing. No additional follow up work has been completed to date.
§ Golden Metal will carry out extensive grid-based soil sampling as well as prospecting which aims to prove up the continuity of skarn and porphyry-style mineralisation between the various copper rich historic sampling sites.
§ The Stonewall epithermal-type Au-Ag Project (“Stonewall”) is located approximately 15m south of the historic mining town of Goldfield in Nye County, Nevada.
§ Stonewall is 100% owned by Golden Metal and is located entirely on BLM ground.
§ The Stonewall Project is centered on a approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.
§ Minimum shallow historic drilling tested a limited strike length along the vein (away from the surface samples displaying the strongest epithermal-type boiling textures) and returned downhole epithermal vein intersections of up to 12m in width with stockwork zones up to 70m wide with anomalous gold, silver and mercury results.
§ Following a Phase I Programme which will include prospecting, geological mapping and rock sampling, Golden Metal plans on executing a diamond drilling programme on the Property which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system could be found.
BACKGROUND TO GOLDEN METAL AND PLANNED CORPORATE ACTIVITY
Golden Metal is a private United Kingdom domiciled company which is a wholly owned subsidiary of Power Metal.
The intention is to arrange an initial public offering of Golden Metal in the London capital markets targeting admission to trading in Autumn 2021 and the Company is taking preparatory steps to enable that proposed listing.
Carlin deposit: Sediment-hosted disseminated gold deposits which are typically found in Nevada. They are characterised by invisible (typically microscopic) gold which is found within the crystal lattice of pyrite and arsenopyrite grains.
Epithermal deposit: Gold deposits which are formed from gold rich hydropthermal fluids within shallow crustal levels.
Gossan: Often red, orange or brown Intensely oxidized, weathered or decomposed rocks found at surface which result from the weathering of mineralised country rocks (typically sulphide-rich, including pyrite).
Low sulphidation epithermal boiling textures: Sub-classification of epithermal deposits which form at shallower crustal depths than high sulphidation deposits. The main control for gold deposition within these systems is fluid boiling (which leads to the formation of boiling textures) caused by a decrease in confining pressure as gold-rich hydrothermal fluids migrate to the surface.
Quaternary alluvial sediments: Young sedimentary cover which typically post-dates most gold mineralisation in Nevada. These sediments typically erode from nearby mountains and are transported to adjacent basins by fluvial action. They then form a blanket of loose sediment which covers bedrock within the valley bottoms, obscuring any precious or base metal mineralisation within these areas.
Skarn deposit: Deposits which form within carbonate rich host rocks adjacent to porphyry deposits.
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.
1: Fraser Institute Annual Survey of Mining Companies, 2020, published 23 February 2021 see: https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2020
2: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006.
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
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
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