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#POW Power Metal Resources PLC – Investee Update – #GMET Golden Metal Resources PLC
Power Metal Resources PLC (“Power Metal” or the “Company”) Investee Update – Golden Metal Resources PLC
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the announcement today by Golden Metal Resources PLC (LON:GMET)(“Golden Metal”) confirming significant copper systems identified at Golden Metal’s Garfield Project in Nevada USA.
An extract of Highlights from the announcement is provided in italics below:
Highlights:
– Discovery of two significant copper (Cu) zones which are now named the “Power Line Zone” (or “Power Line”) and “High-Grade Zone” (or “High-Grade”; collectively the “Zones”) which returned individual Cu-in-soil results of up to 851ppm and 950ppm Cu.
– Importantly, the newly discovered Zones are coincident with historical rock sampling results which returned up to 2.6% Cu at Power Line and 5.53% Cu at High-Grade, highlighting the significance of these newly defined copper mineralised systems at Garfield.
This announcement may be viewed through the following link:
Power Metal Holding in Golden Metal
Golden Metal completed a listing on the AIM market of the London Stock Exchange on 10 May 2023.
Power Metal holds 52,248,756 ordinary shares in Golden Metal (“Golden Metal Shares”)representing a 62.06% interest in the ordinary share capital of Golden Metal which, based on the closing market mid-price of Golden Metal on 19 May 2023, was valued at £4,049,279.
The total shareholding above is subject to a 12-month lock-in agreement prohibiting the sale of Golden Metal Shares until 10 May 2024, with a follow on further 12-month orderly market arrangement thereafter until 10 May 2025.
In addition to the shareholdings above, Power Metal holds 1,749,378 warrants to subscribe for a further 1,749,378 Golden Metal Shares at an exercise price of 10.75p per share and an expiry date of 10 May 2024. Power Metal also holds 1,749,378 warrants to subscribe for a further 1,749,378 Golden Metal Shares at an exercise price of 17.5p per share and an expiry date of 10 May 2025.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Golden Metal Resources #GMET – Garfield Project: Significant Copper Systems Identified
Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA, is pleased to announce the results of a high-resolution soil geochemical sampling survey completed over its 100% owned Garfield Project (“Garfield” or the “Project”) located within the prolific Walker Lane Mineral Belt in Nevada, USA.
Highlights:
– Discovery of two significant copper (Cu) zones which are now named the “Power Line Zone” (or “Power Line”) and “High-Grade Zone” (or “High-Grade”; collectively the “Zones”) which returned individual Cu-in-soil results of up to 851ppm and 950ppm Cu.
– Importantly, the newly discovered Zones are coincident with historical rock sampling results which returned up to 2.6% Cu at Power Line and 5.53% Cu at High-Grade, highlighting the significance of these newly defined copper mineralised systems at Garfield.
Oliver Friesen, CEO of Golden Metal, commented:
“While our admission to trading on AIM was completed less than two weeks ago, our exploration forward mandate at Golden Metal should be apparent with the release of these very positive results from Garfield, which have far exceeded our original expectations. It is important to note that the main focus remains on Pilot Mountain (tungsten) followed by Golconda Summit (gold), however, the results presented today should clearly highlight the depth, as well as quality, of our overall combined project portfolio.
“The original property acquired included only a small footprint covering the original Garfield showing. Fast forward to today, the Garfield Project has been expanded significantly from its original acquisition size and we have now identified two considerable copper zones. The newly named ‘Power Line’ and ‘High-Grade’ zones are strongly coincident with the anomalies identified by the Hyperspectral Analysis completed previously, confirming the effectiveness of this exploration tool. We have obtained Hyperspectral Analysis results for the broader district and can now look at additional exploration targets based on the confirmation of the results outlined here.
“We are looking forward to updating the market in due course with further updates from Garfield, as well as at Pilot Mountain, where we await final results from the induced polarisation survey completed there previously.”
Detailed Overview:
– The geochemical soil survey results have identified two distinct zones of significant copper anomalies:
o Power Line Zone – a northeast-southwest trending Cu-in-soil anomaly which extends for over 1,500m in length (remains open towards the southwest), located in the west of the Project area. The Power Line Zone connects up the original Garfield showing with a previously isolated zone located towards the southwest, where limited historical rock sampling results returned up to 2.6% Cu and 0.536g/t Au; and
o High-Grade Zone – a circa 1.5km by 0.8km Cu-in-soil anomaly (remains open towards north, south and east), located in the south east of the Project area and approximately 1 km southeast of the Power Line Zone. Limited historical rock sampling completed near what is now the western end of the High-Grade Zone returned up to 5.53% Cu, which highlights the potential of this large, newly defined copper mineralised system.
– Both newly discovered copper zones are of considerable size and both remain open in multiple directions within the Project’s current footprint. They are broadly coincident with mapped limestone, suggesting that the significant copper mineralised system now identified is possibly of skarn-type affinity..
– A single soil sample returned 0.83g/t Au which is located outboard of the newly discovered zones mentioned above. This result represents a very-high gold tenor for soil sampling within the district and further analysis of this area is required.
– Both newly discovered copper zones show strong coincidence with anomalies identified by the Hyperspectral Analysis completed in 2021. This supports the effectiveness of the previously completed analysis and Golden Metal will now review other strong anomalies identified within the district that may be open for staking.
Table 1 – Map highlighting the location of the Power Line and High-Grade Zones
Further Information
A total of 447 individual soil samples were collected at either 50m or 100m station spacing and along 100m spaced lines. The sample grid was set up to provide coverage over the original Garfield copper (Cu), silver (Ag) and gold (Au) showing (see attached map) located within the Garfield Project, as well as over two anomalies which were identified by a previously obtained and analysed Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER satellite) and European Space Agency Sentinel-2 satellite datasets (“Hyperspectral Analysis” or the “Analysis”).
The previously obtained Hyperspectral Analysis results can be found at the link below:
Analysis
All soil samples were prepped and analysed at ALS’ laboratory in Reno, Nevada. Assays were determined using the analytical package ME-MS41 comprising aqua regia digestion with super trace inductively coupled plasma mass spectrometry (ICP-MS) analysis providing extremely low detection limits for analysis of soils. A total of 41 elements were reported as part of this analysis.
Property Ownership
Golden Metal holds a 100% interest in the Garfield Project through its wholly-owned Nevada operating company, Golden Metal Resources LLC.
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 or contact the following:
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Golden Metal Resources plc Oliver Friesen (CEO) |
Tel: +44 (0) 20 7583 8304 |
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Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O’Driscoll |
Tel: +44 20 7213 0880 |
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First Equity Limited Broker Jonathan Brown/Jason Robertson |
Tel: +44 20 7374 2212 |
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 km2 (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 km2 (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 km2 (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 km2 (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.
Alan Green covers Premier African Minerals #PREM & Golden Metal Resources #GMET on this week’s Stockbox Research Talks
Alan Green covers Premier African Minerals #PREM & Golden Metal Resources #GMET on this week’s Stockbox Research Talks
#GMET Golden Metal Resources PLC – First Day of Dealings
Golden Metal Resources plc, a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA, is pleased to announce that, at 08:00 today, its ordinary shares will commence trading on AIM under the ticker GMET. As part of the process of admission to trading on AIM (“Admission”), the Company has raised gross proceeds of £1.98m through the issue of 23,317,643 new ordinary shares of £0.01 each at a placing price of 8.5 pence per share, equating to a market capitalisation of £7.16 million on Admission.
Overview
The key strengths and attributes of Golden Metal can be summarised as follows:
Location:
The state of Nevada is a well-regarded, mining investment friendly jurisdiction. It was ranked third in the Fraser Institute’s global mining investment attractiveness index survey in 2021 and has a long history of mining and a strong mining and ancillary business support network. Nevada is one of the principal producers of precious metals in the world, with 25 precious metal mines currently in production, accounting for approximately 70 per cent. of the United States total gold production in 2020. In 2018 Nevada accounted for 83 per cent. of the US’s total gold production.
According to the Nevada Mining Association (2022), as of November 2021, 11,000 people were employed by the metal mining sector within the state, with a Nevada Gross Domestic Product contribution of US$3.2 billion in 2020.
Projects with Critical and High-Demand Minerals:
The Company’s 100% owned Pilot Mountain Project (“Pilot Mountain”) hosts a tungsten-copper-silver-zinc Mineral Resource Estimate (MRE) which includes 12.53Mt at 0.27% W03 (tungsten tri-oxide) with significant copper-silver-zinc credits. Tungsten is an in-demand and critical metal as outlined below:
· Tungsten is included in the British Geological Survey’s UK Critical Minerals list (2022), the US Geological Survey’s (USGS) Critical Minerals list (2022) and the European Commission’s Critical Raw Materials list (2020).
· The global demand for tungsten is forecast to rise annually (3-7 per cent. per annum according to the British Geological Survey) and is predicted to outstrip available supply, which is likely to place continued upward pressure on prices in the near-term.
Management Team:
A proven management team with:
· a broad spectrum of knowledge and capabilities;
· substantial technical and listed company experience; and
· extensive North American operating experience with connections to various in-country consulting teams.
Diverse Project Base:
The Golden Metal portfolio consists of four Nevada based projects (collectively the “Nevada Projects”) comprising the Pilot Mountain Project and three exploration stage projects: the Golconda Summit Project (gold), the Garfield Project (copper-gold-silver) and the Stonewall Project (gold-silver).
The Nevada Projects are all well located within major metallogenic belts containing active, globally important precious- and base-metal mining operations. All the assets have favourable geology which is prospective for skarn, carlin, epithermal and porphyry deposit types. The portfolio is focussed on tungsten, gold, silver and base metal mineralisation.
In particular, the Pilot Mountain Project offers significant exploration upside potential as well as the opportunity for Golden Metal to de-risk the Project on a number of fronts. These include building on the existing MRE, furthering and updating technical studies relating to the potential development of the known resources, further permitting, making relevant grant applications, including to the DOD Defence Production Act (DPA) Title III grant office as well as commodity marketing and further metallurgical studies.
In total, the Nevada Projects cover a combined area of approximately 22.83 km2.
Oliver Friesen, CEO of Golden Metal, commented:
” Golden Metal’s admission to AIM comes at a time when it is clear that the world needs more critical, precious-and base-metals. This represents an exciting opportunity for a company such as ours with ownership of four diverse exploration and development assets located wholly within one of the top mining jurisdictions in the world. I believe that our Pilot Mountain Project, with its tungsten MRE, offers the greatest potential for exploitation, given that the US currently has no domestic primary production of the metal and is looking to reduce its heavy reliance on imports of critical metals from China. We are looking forward to actively pushing forward various exploration and corporate developments both within the US and UK and will provide further updates to the market on these various plans in due course.
I would like to thank all of the Golden Metal team and pre-IPO investors for their patience as we methodically worked through the various exploration and corporate developments which have led the Company to the exciting position it is in now. “
Background
Golden Metal is a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA. It was established for the purpose of holding all of the Nevada mining assets of Power Metal Resources plc (“Power Metal”) and progressing the exploration and development of those assets. The Company holds four mining assets comprising the 100% owned Pilot Mountain, Garfield and Stonewall Projects together with an earn in option over the Golconda Summit Project. Each Project consists of unpatented lode mining claims located entirely on land managed by the United States Bureau of Land Management.
The Directors believe that the combination of a suite of high-quality, diversified Nevada based mining assets within a single, US-focused AIM-quoted vehicle creates a compelling investment opportunity. It is their opinion that the Nevada Projects hold several underexplored, highly prospective tungsten, gold, copper, silver and zinc exploration targets. The Directors consider that the Pilot Mountain Project has the potential to increase its existing tungsten focused MRE and to expand on multiple tungsten, copper, silver and zinc-rich zones identified by minimal historical drilling. In addition, the Directors consider that the Golconda Summit Project has the potential for a major gold discovery to follow the identification of significant surface gold mineralisation during a 1989 trenching programme. Accordingly, the Company’s exploration focus will be on these two projects but the Directors also believe there is potential value to be realised at the Garfield and Stonewall Projects.
On 8 April 2022, the Company raised £750,000 through a pre-IPO Financing at a price of 6.67 pence per Ordinary Share, following which Power Metal held 83.13 per cent. of the existing ordinary shares. On Admission, Power Metal will hold 62.1 per cent. of the Company’s enlarged share capital.
Placing, Subscription, Acquisition and Use of Proceeds
The Company has raised gross proceeds of £1,982,000 through a placing and subscription through the issue of 12,449,208 Placing Shares and 10,868,435 Subscription Shares at a price of 8.5 pence per share.
The net proceeds from the Placing and Subscription will be used by the Company to:
· provide funding for the Company to further explore and develop the Nevada Projects; and
· provide the Company with ongoing working capital to support its business operations.
Warrants
Together with every two Placing Shares and every two Subscription Shares, each Placee and Subscriber will also be granted one warrant entitling the holder to subscribe for one further new Ordinary Share at 10.75 pence per Ordinary Share, for a period of 12 months from Admission, and one warrant entitling the holder to subscribe for one further new Ordinary Share at 17 pence per Ordinary Share, for a period of 24 months from Admission. Further details of the warrants are set out in Part VI of the Company’s AIM admission document.
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 or contact the following:
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Golden Metal Resources plc Oliver Friesen (CEO) |
Tel: +44 (0) 20 7583 8304 |
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Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O’Driscoll |
Tel: +44 20 7213 0880 |
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First Equity Limited Broker Jonathan Brown/Jason Robertson |
Tel: +44 20 7374 2212 |
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 km2 (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 km2 (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 km2 (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 km2 (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.
Power Metal Resources #POW – Release of Schedule One for Golden Metal Resources #GMT
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio is pleased to announce the release today by AIM of a Schedule One announcement in respect of Golden Metal Resources PLC (“Golden Metal”), a link to which is provided below:
http://www.rns-pdf.londonstockexchange.com/rns/6686W_1-2023-4-18.pdf
Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented: “I am very pleased to be able to update shareholders that the Golden Metal IPO is progressing.
Further information in respect of Power Metal’s interest in Golden Metal on admission to trading on AIM, the total IPO equity placing amount, market capitalisation and other important information is expected to be forthcoming in due course. POW will make further announcements as appropriate.”
Shareholders wishing to learn more about Golden Metal, may review the company’s website through the following link:
https://www.goldenmetalresources.com/
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:
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Power Metal Resources plc |
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Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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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.
Alan Green covers Marula Mining #MARU & Golden Metal Resources #GMT on this week’s Stockbox Research Talks
Alan Green covers Marula Mining #MARU & Golden Metal Resources #GMT on this week’s Stockbox Research Talks
#POW Power Metal Resources Plc- 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:
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Power Metal #POW – Golden Metal Resources #GMT- Company Update
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 “Golden Metal Resources”), the Company’s 83.13% owned subsidiary, which is planning to list in the London capital markets.
Golden Metal holds a 100% interest in three projects (Pilot Mountain, Garfield and Stonewall) and a right to earn-in to a 100% interest in one further project (Golconda). All projects are situated in Nevada USA, ranked number 3 in the Fraser Institute Survey of Mining Companies 2021 – Investment Attractiveness Index.1
HIGHLIGHTS:
Operational
– 3D induced polarisation (“IP”) survey over Pilot Mountain project is now underway, a significant milestone, enabling a more detailed assessment of high priority targets, with follow up drilling planned to commence later this year to target additional tungsten, copper, silver and zinc resources.
– Detailed planning has been undertaken for initial exploration programmes at the Golconda project, including utilising historical datasets which would expedite exploration plans and targeting a gold discovery in the known Carlin-type geological environment surrounding Golconda.
– High resolution soil geochemical survey currently underway across the Garfield project targeting additional copper-gold-silver mineralisation and building on the significant evidence of skarn-type mineralisation established to date which led to the staking of additional claims expanding the project.
– Detailed desktop study undertaken for the Stonewall project has identified multiple targets for follow up exploration programmes.
Corporate
· The most complex area of the pre-IPO process has been undertaken, namely the removal of the various Australian subsidiaries from the holding company structure of the Pilot Mountain Project. Golden Metal Resources plc now has 100% ownership of the two US private companies holding the Pilot Mountain project.
· The re-registration of Golden Metal to a PLC was completed earlier this year, the pre-IPO funds were received in full, and the key technical work streams (Competent Person’s technical reporting, legal due diligence, financial accounting due diligence and multiple related work streams) have now been progressed successfully.
· Golden Metal is in the final stages of finalising its inaugural Environment Social and Governance (“ESG”) report, demonstrating to the market that it plans on being an ESG leader in the resource exploration and development space.
· Following the United States Geological Survey (“USGS”) including tungsten in its 2022 list of critical minerals (released February 2022), Golden Metal is making progress building connections with various governmental groups in the USA, in order to increase the awareness of its projects, notably Pilot Mountain, and exposing the company to various governmental initiatives to stimulate the production of homeland based critical metal projects.
· The preparations for Golden Metal’s listing on the London capital markets are now nearing completion and Golden Metal expects to be in a position shortly where it can move towards the launch of its Initial Public Offer (“IPO”) financing and subject to regulatory approvals, complete its listing process.
Following the reorganisation of the Pilot Mountain holding company structure the new Golden Metal organisation structure may be viewed on the Golden Metal website through the following link:
https://www.powermetalresources.com/golden-metal-resources-company-structure/
Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:
“Since our last report earlier this year Golden Metal has made extensive progress and is now in the final stages of preparation for its planned listing. This has been a complex process where we have removed the Australian holding companies for the flagship project, Pilot Mountain, and structured its ownership more appropriately, particularly when it comes to seeking project engagement with the USA authorities and the private sector, as a wholly owned subsidiary of a UK company.
We look forward to Golden Metal taking the final steps towards its planned listing in the London capital markets, where we believe it will attract considerable investment interest.”
Oliver Friesen, Chief Executive Officer of Golden Metal Resources PLC, commented:
“The team at Golden Metal Resources has done a fantastic job over the past several months preparing the company for our listing on the London capital markets. Not only have we achieved several important corporate milestones, but we have been able to launch exploration on the ground allowing us to push forward some of the exciting 100% owned projects in the Golden Metal portfolio.
We are starting to see a very important shift happening globally, and specifically in the United States of America where governments are not only realising the importance of securing domestic sources of critical metals such as tungsten – but actively making policy changes in order to support companies who are exploring and developing these strategic projects.
Our 100% owned Pilot Mountain project is now held within a simplified corporate structure, we have officially launched a very exciting IP geophysics programme and have begun preparations for a robust diamond drilling campaign planned for later in the year. All of these factors combined have our team very excited about what is in store for Golden Metal Resources during the second half of 2022 and beyond.”
Reference
1 https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2021.pdf
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.
