Major Progress Across Nevada-Based Tungsten, Gold, Copper, Silver Projects
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a comprehensive update in respect of its majority-owned subsidiary Golden Metal Resources Limited (“Golden Metal” or “GMT”), which is currently seeking an independent listing on the London markets targeted for Q2 2022.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“The focus of Golden Metal remains the preparations for listing in London, however it is important that steps are taken during the listing process to prepare for proactive work streams following listing, notably meaningful targeted exploration.
Our preparatory work has revealed positive findings with a growing target base for potential resource expansion at Pilot Mountain Project and emboldening our belief in the potential of Golconda, Garfield and Stonewall projects.”
LATEST EXPLORATION HIGHLIGHTS:
– A comprehensive desktop analysis and subsequent report completed by a highly experienced economic geologist identified several high-priority tier 1 and tier 2 targets which have the potential to host significant new discoveries of tungsten-copper-silver skarn type mineralisation.
– GMT has received a competitive proposal from a Vancouver based geophysics company to undertake a property wide high-resolution ground 3D induced polarisation (“IP”) and magnetic geophysics survey.
– GMT is in the final stages of selecting its drilling contractor which will be responsible for the planned 2022 drilling campaign, which will be the first drilling programme since 2018 at Pilot Mountain.
– GMT has appointed a drill management services company which has significant previous experience on the Project.
– GMT has engaged an ex-Newmont senior geologist (the “Geologist”) who has worked extensively on the nearby Lone Tree Complex mine. The Geologist will oversee and manage exploration on GMT’s carlin-type Golconda Summit Project and is currently undertaking a detailed historic data analysis.
– Preliminary on-site investigations have identified multiple geological similarities between the nearby Pinson and Preble gold mines and Golconda Summit.
– GMT has received a competitive proposal from one of Nevada’s leading all-service exploration companies to undertake a soil geochemical sampling survey which will cover the entire Garfield Project as well as various nearby high-priority expansion targets.
– A comprehensive desktop analysis and subsequent report completed by a highly experienced economic geologist identified two high-priority zones along the Stonewall vein which have never been drill tested: a zone of ‘horsetailing’ quartz-calcite veins at the easternmost vein segment; and a zone of northwest trending carbonate-rich veins at the western end of the Stonewall vein. These two underexplored zones have been prioritised for future work programmes.
– In order to better cover these segments of the vein, as well as multiple historic mine adits and shafts discovered southwest of the Stonewall vein, GMT is in the process of staking an additional 11 Lode Mining Claims.
– Golden Metal’s progress towards a listing in London continues at pace with weekly board and advisory meetings, undertaken to ensure the various parties involved with the listing process are well aligned and working coherently.
– Golden Metal has received an advance draft of the Competent Person’s Report from SRK Exploration Services Ltd., a world leading exploration consultancy (and part of the SRK Group) based in Cardiff, United Kingdom. The report has been forwarded to GMT’s various advisors for inclusion into the listing documents.
– GMT remains well funded after the pre-initial public offering (“pre-IPO”) placement of £750,000, which was announced on 9 December 2021. The financing was completed at a pre-money valuation of £3.25million and included participation by various Golden Metal board members.
DETAILED PROJECT SPECIFIC UPDATES
Key: Gold “Au”, Silver “Ag”, Tungsten [Trioxide] “WO3“, Zinc “Zn”, Copper “Cu”
The Pilot Mountain tungsten-copper-silver-zinc Project (“Pilot Mountain”) is 100% owned by Golden Metal. The details of the acquisition can be found at the link below:
The Company believes that Pilot Mountain represents a strategic asset for Golden Metal as it hosts a robust Mineral Resource Estimate (“MRE”) of 12.53Mt at 0.27% W03 with significant Cu-Ag-Zn credits.1 Tungsten was added to the 2020 United States Geological Survey (“USGS”) Critical Minerals List – a list of 50 non-fuel mineral or mineral materials deemed essential to the economic or national security of the USA; there is currently no known domestic production of tungsten within the USA.2 Golden Metal has officially adopted the reclassification to a MRE, which is better aligned with Golden Metal’s intention to complete any future resource updates in line with Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves as referenced in the Canadian NI43-101 technical reporting requirements, which is consistent with the majority of mineral projects located within North America. In addition, Power Metal recently announced the execution of a variation agreement on 24 January 2022, enabling it to secure early clearance from the underlying tail benefit which would have been payable upon Golden Metal publishing a CIM (NI43-101) or JORC compliant Mineral Resource at Pilot Mountain which increased current declared resource levels by 25%.
On the back of surging global energy and transportation costs, the price of tungsten has risen >45% since January 2021, from $228 USD/mtu (metric tonne unit) to over US$335 USD/mtu.3
Since acquiring Pilot Mountain, Golden Metal has undertaken extensive preparatory work which will allow implementation of its focused exploration strategy on the project post-listing. The highlights of this work include:
1) The completion of a comprehensive desktop analysis and subsequent report by a highly experienced economic geologist with abundant tungsten-skarn deposit type experience. The report identified at least four distinct areas which have the potential for significant new discoveries of tungsten-skarn mineralisation including:
a. Beneath post-mineral sedimentary and volcanic cover in the Good Hope Zone target area – looking for the easterly continuation of the Gunmetal-Greasewood Spring ridge of exposed quartz monzonites.
b. In the Juniper target area – looking for a small intrusive stock juxtaposed against carbonate rocks similar to the Desert Scheelite area.
c. In the Greasewood Springs target area – looking for the easterly continuation of the Gunmetal Zone under post-mineral sedimentary and volcanic cover.
d. Desert Scheelite West target area – looking for the continuation of an east-west swarm of faults associated with the Desert Scheelite mineralisation.
2) Golden Metal intends to complete a high-resolution, property-wide, ground-based magnetics and 3D induced polarization (“IP”) geophysics surveys across the Pilot Mountain Project. This work will be crucial for better modelling the blind target areas that are perceived to host the extensions of tungsten-skarn mineralisation from known deposit areas. A small 2012 IP survey identified a large chargeability anomaly southeast of the Desert Scheelite deposit – which has never been tested. The 2022 work will build on this earlier work, as well as cover high priority zones on the project that have never been explored or drill tested. Golden Metal has received a competitive quote from a Vancouver, Canada, based geophysical firm which has abundant experience in western USA. By employing a Canadian based firm, Golden Metal will be able to cost-effectively carry out these crucial property-wide surveys due to favorable currency exchange rates.
3) Golden Metal has also begun various drilling preparations in line with its intentions to undertake a Phase I drilling campaign during summer 2022 – the first on the Project since 2018. A drill management service company has been contracted, a group which has extensive experience and knowledge of the Project. Drilling contacts are now being reviewed and Golden Metal expects to award the drilling contract within the coming weeks.
Golden Metal has the option to earn 100% of the Golconda Summit Carlin-type gold Project which is located 15km east of Winnemucca, Nevada, USA, at the confluence of the prolific Battle Mountain-Eureka and Getchell trends. The details of the transaction can be found at the link below:
The project is underlain by a thrust faulted Palaeozoic sedimentary package which has been transported eastward to its present day location along the major Golconda Thrust fault. The preserved stratigraphic section includes the Antler Peak Limestone, Edna Mountain Formation and the Preble Formation (collectively “lower thrust plate rocks”), which are structurally capped by the Havallah Sequence (“upper thrust plate rocks”). Previous work has been primarily focused on surface anomalies within the overlying upper thrust plate rocks, which are not a known host of Carlin-type mineralisation within Nevada. Despite this, previous work by Nerco Mineral Company in 1989 encountered significant gold mineralisation within upper thrust plate rocks.
Since acquiring the asset, Golden Metal has successfully obtained trenching permits from the United States Bureau of Land Management (“BLM”). Other recent highlight developments include:
1) Golden Metal has engaged an ex-Newmont senior geologist who has almost 10 years of work experience at the nearby, Carlin-type gold Lone Tree Complex Mine. The Geologist is currently reviewing all available historical information on the project and has completed multiple site visits. Preliminary analysis of road cuts immediately west of the project, which have exposed sections of alteration and mineralisation within various lower plate rock units, are showing geological similarities to the nearby Pinson and Preble gold mines.
2) Various work programmes are being planned post-listing, the details of which will be finalised within the coming weeks in conjunction with the Geologist. Golden Metal has already begun initial preparations with various service companies who could assist with any of the contemplated work programmes, which may include geophysics and geochemical surveys.
The Garfield copper-silver-gold project is 100% owned by Golden Metal. The details of the transaction can be found at the link below:
Since acquiring the asset Golden Metal undertook a Remote Sensing study including the analysis of Advanced Spaceborne Thermal Emission and Reflection Radiometer (“ASTER”) and European Space Agency Sentinel-2 datasets. Positive results generated by the programme led to the staking of additional claims. The details of the work programme are highlighted at the link below:
Following the successful results generated, Golden Metal has undertaken a thorough review of all historic data available. As a result of the analysis completed, Golden Metal has developed an exploration strategy for the project going forward post listing which will include:
1) A leading Nevada based geological services company has provided Golden Metal with a proposal for a geochemical soil survey consisting of 802 total samples collected at 200m x 200m spacing. Several other high-priority copper anomalies identified by the Remote Sensing Study will be the target of this geochemical survey – along with multiple other historic mines and copper occurrences identified in various USGS datasets.
2) Various geophysical surveys are also being contemplated, as no known modern geophysic survey has been completed near to, or over the project. Geophysics, in conjunction with the planned geochemical surveys will allow Golden Metal to position the project as a more regional skarn-style exploration proposition with increased discovery potential.
The Stonewall gold-silver project is 100% owned by Golden Metal. The details of the transaction can be found at the link below:
The focus of the Stonewall gold-silver project is a >1.2km long Au/Ag-bearing low sulphidation epithermal vein & stockwork system on the northern side of Stonewall Mountain within the prolific Walker Lane Mineral Belt. International Minerals Corp the most recent project operator who undertook drilling at Stonewall, targeted less than 400m of the exposed >1,200m of strike length along the Stonewall vein. Drill pads were chosen within this limited section primarily because of accessibility of flat ground where drill pads could be excavated in a time efficient manner.
Golden Metal contracted a highly experienced economic geologist to undertake a comprehensive historical data analysis on the project, with the goal of helping direct future exploration initiatives on the project post listing. The recent report commissioned, concluded that the structurally complex “horsetailed” segments at the eastern end of the vein are probably dilational sites which are favourable hosts for epithermal Au-Ag mineralisation.
Additionally, he determined that the carbonate-rich northwest trending veins at the western end of the vein system have not been unroofed, representing a compelling underexplored exploration target. He concluded that there remains significant potential for locating shoots of bonanza grade Au-Ag at the Stonewall Project. Based on the project analysis completed by Golden Metal to date, additional steps have been taken which include:
1) Lode Mining Claim staking is currently in progress for a further 11 claims covering ground proximal to these newly identified exploration targets, as well as multiple historical mine adits and shafts which were located southwest of the project and where records obtained by the Company show that hand-sorted shipments of high-grade gold-silver were made in the early 1900s.
In conclusion, Golden Metal has several exciting exploration initiatives that are currently progressing or being planned across the portfolio. Whilst the listing process is ongoing, additional preparatory and desktop analysis will continue at pace in order to give GMT the best chance of success post listing. Significant exploration news flow, including planned drilling programmes at Pilot Mountain and Golconda, as well as high-impact grassroots geochemical and geophysics programmes at Stonewall and Garfield, will act as catalysts for the company post completion of its initial public offering.
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.