Power Metal updates on Silver Peak drilling progress (POW)

Power Metal Resources (LSE:POW) has said that the drilling of its Silver Peak project in British Columbia, Canada, is on schedule to begin before the end of the week.

The firm plans to complete an initial 500m confirmatory diamond core drill programme at the historically-producing property to test the Victoria vein.

And in a Friday update, it announced that its drilling contractor has now mobilised the drilling rig, bulldozer and ancillary equipment from northern British Columbia to the local town of Hope where Silver Peak is based. The drilling rig and support equipment is from being moved from Hope up the valley to the first Silver Peak drill pad with a view to commencing diamond core drilling before Monday.

Paul Johnson Chief Executive Officer of Power Metal Resources added: "Following the logistics involved with shipping the drilling rig and equipment from northern British Columbia to the local town of Hope and finishing the final access from the road head to the drill pads, the team is mobilising up the valley and orientating the drill rig ready to commence the first hole during the course of today.

This is an exciting time for the Power Metal team and our partners as we launch our first silver focused drill programme. We are targeting the Victoria Vein where Power Metal due diligence sampling returned bonanza silver grades (up to 480 troy oz/tonne) with significant copper and lead grades. The information which will be secured from this drilling programme will be key to directing the next development steps for the project."

The Silver Peak Project consists of a portfolio of mineral claims over a system of high grade, intrusion related, polymetallic silver, lead, zince, and copper. The area also contains the historical Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.

Power Metal announced the exercise of an option agreement giving it the right to earn-in to a 30% interest in the Silver Peak project in September following a period of due diligence.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 

Power Metal Resources signs contract to kick off drilling at Silver Peak (POW)

Power Metal Resources (LSE:POW) has signed up with a Canadian specialist drill company for the next phase of its promising Silver Peak exploration. 

The programme for 500m of diamond core drilling of the Victoria Vein is expected to last for two weeks, in advance of winter conditions on site. 

The AIM-listed explorer confirmed bonanza-grade silver at the British Columbia project last month after it hit on a series of “exceptionally high” silver assay samples.

Grades from two 0.5m-long surface channel samples were reported to be as high as 10,718 g/t and 14,937 g/t.

Also contained in the same vein were samples of significant copper and lead grades reaching 2.14 % copper and 2.99 % lead, as well as 3.05 % copper and 11.95% lead. 

It’s here where Power Metal will conduct its first drilling operation. 

Drilling will start from two pads using an NQ size drilling bit for a 48mm core sample. Then half core samples will be sent to an accredited independent lab for analysis. 

Silver Peak marks a significant expansion into North America for Power Metal, at a time when silver spot prices are breaching seven-year highs. 

The silver price has climbed more than 100% since the March stock market crash, hitting $25/oz. And as a proportion of the gold price the precious metal still remains fundamentally undervalued.

Silver is a key component in the semiconductor chips that power almost all modern mobile and computing devices, as well as a critical element for building solar panels because of its exceptional thermal and electrical conductivity. 

CEO Paul Johnson praised his Canadian partners for putting the company in a position to undertake the work before winter weather closes in. 

He said: “The expeditious work undertaken has given us an opportunity to assess this unique high-grade silver project through drilling, far earlier than we initially thought possible."

The team in-country are now focused on mobilisation and commencement of drilling and we are naturally eager to see the outcome of this programme, given the results we achieved from the sampling programme recently announced.

On 14 September Johnson executed the option for a 30% earn-in of the Silver Peak project. 

Silver Peak consists of a wide portfolio of claims spread across 62km2 of a high-grade system of polymetallic silver-lead-zinc-copper veins, part of the historic Eureka-Victoria Silver Mine.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Power Metal Resources updates on “monumental” maiden Molopo Farms drilling

Power Metal Resources (LSE:POW) has reported that drilling is moving forward at its hugely prospective Molopo Farms Complex (MFC) project.

The AIM-listed metals explorer is targeting massive nickel sulphide and PGM mineralisation across the Botswana scheme.

Power Metal confirmed that a drill contract has now been signed with Discovery Drilling Contractors. This is the South African outfit instrumental in aiding the discovery of the nearby T3 copper project now owned by mid-tier Australian explorer Sandfire Resources (ASX:SFR).

Discovery has now started moving equipment onto site and drilling is expected to commence imminently. 

Power Metal’s phase one drilling is planned for 2,505m across four diamond core drill holes with target depths ranging from 525m to 710m. 

Earlier this year, the London explorer said that privately-held JV partner Kalahari Key Mineral Exploration Pty Ltd (“KKME”) had selected eight high-priority targets prospective for nickel, with four of the best selected for drill testing. 

Airborne and ground geophysics surveys have already demonstrated that all four show extension and increasing conductivity at depth, which implies that large nickel mineralisation is present. 

Power Metal has an 18.26% stake in KKME. It will earn-in a 40% direct interest in Molopo Farms by electing to spend US$500,000 (£371,025) on the drill campaign this year. 

All of this spending is already fully funded from a £700,000 December 2019 fundraise at 0.4p, and Power Metal has established a dedicated US dollar account for the earn-in drill costs. 

On completion, Power Metal will own a 50.96% economic interest in the project.

Investors are salivating at the prospect of what could be a set of monster results from Molopo Farms.  Power Metal shares surged to a two-year high of 1.43p in early September 2020. 

The complex as a whole straddles the southern border of Botswana and South Africa, and lies within the same province as Bushveld, which contains the world’s largest reserves of PGMs. 

Exploding mineral wealth discoveries across Botswana have driven hefty economic development in recent years, with the jurisdiction now marked as one of the safest in Africa. 

Chief executive Paul Johnson told the market in an RNS: “Maiden exploration drilling at the Molopo Farms Complex Project is a major event for Power Metal. Not least because our partners are targeting not just a possible large-scale metal opportunity, but a district scale opportunity.”

Nickel prices continue to rise as Covid has hit supplies worldwide, with inventories dwindling across the board. At the same time, demand is increasing for the valuable metal, as it has become a key component in building batteries for electric vehicles. 

Johnson added: “The build up to any exploration drill programme is a monumental affair for any junior exploration company. The Power Metal approach is one of relentless drive in the search for potential new large-scale metal discoveries.” 

“In part this is because we want to be proven right in our decision making,” the chief executive admitted, adding, “however we also seek the share price appreciation that comes with a major metal discovery.”

The Power Metal board owns 14% of company stock. This includes Chairman Andrew Bell of Red Rock Resources, with whom Power Metal have a JV for expansive exploration in the renewed goldrush district of Victoria, Australia. 

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Power Metal completes due diligence program at new Canadian silver project (POW)

Power Metal Resources (LSE:POW) continued its strong run of news on Wednesday with an exploration update from its silver project in British Columbia.

The firm, which has risen by more than 200% this year to above 1p, said it has successfully completed a due diligence programme over the Silver Peak project in British Columbia.

A total of 11 channel samples have been taken from exposed veins and open stopes at the Victoria section of the property’s historic Eureka-Victoria silver mine and submitted for assay testing.

Power Metal announced a 30-day option agreement for the Silver Peak mineral claims, which reside over a system of high-grade silver, lead, zinc, copper veins, last month.

If it exercises its option, it will secure a 30% interest in the property.

The company believes the property’s vein systems could boast a great deal of resource potential.

This is because they have never been formally assessed or drill tested at depth or along strike using modern mining.

Instead, the area’s long history of high-grade, surface silver mining in the late 19th and early 20th centuries was limited to the surface as a result of technical restrictions of the time.

As part of its initial work, which cost around £14,500, Power Metal also completed “enhancement of road accessibility” to the exploration area and collated detailed photographic and video evidence of the project area.

The firm’s technical team will now review its findings and subsequent assay results before deciding whether to pursue the project further.

Chief executive Paul Johnson said: "We are pleased to report the completion of the sampling work on the Victoria vein, one of two main veins located at the Silver Peak Project in British Columbia, Canada.

“The exploration work focussed on representative sampling of vein exposures located in the cliffs and workings situated vertically above the Victoria adit of the Eureka-Victoria Silver Mine.  The work was conducted by contract geologist and technicians in challenging conditions and was documented by photographs, video and drone footage. A selection of these images and videos are being made available on the Power Metal website."

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Power Metal eyes huge nickel drill results in Botswana (POW)

Power Metal Resources (AIM:POW) is banking on a set of monster results from an upcoming drill campaign in Botswana.

The Molopo Farms project is targeting prospective massive nickel sulphide mineralisation in the southwest of the country.

The company now reports that its privately-held JV partner Kalahari Key Mineral Exploration Pty Ltd (“KKME”) has carried out electromagnetic surveys across the license area, highlighting eight high-priority targets prospective for the valuable metal.

Four of the best targets have now been selected for drill testing, and fieldwork has confirmed that each of these shows good depth extension.

The surveys show that conductivity also increases with depth, which indicates probable large mineralisation deep in the rock substrata.

Nickel is highly conductive of electricity, which makes it a superb metal for use in industrial alloys for stainless steel and especially electric car batteries.

This property also means nickel deposits can be identified with relative ease underground by electromagnetic surveys.

Chief executive Paul Johnson told the market:

“These results show very good correlation to both the ground and high-resolution airborne EM results, adding significant resolution to the depth, size and shape for prospective massive nickel sulphide targets.

“We are looking forward to receiving the full geophysical analysis and report ahead of KKME commencing drilling.”

Worldwide shortage

If the drill results point towards big nickel sulphide deposits as expected, then Power Metal could be approaching an entirely transformational period.

The price of nickel has risen by over 30% since March, and industry analysts suggest a worldwide nickel shortage is on the cards as demand rockets for electric vehicles.

Shares in the London-headquartered explorer have already gained over 225% since December’s placing, hitting 1.3p.

Power Metal has an 18.26% stake in Kalahari Key and took a 40% earn-in interest in Molopo Farms by electing to spend US$500,000 (£371,025) on the drill campaign.

When the earn-in is complete, Power Metal will have a 50.96% economic interest in the project.

The AIM-listed company raised £700,000 in December 2019, with £400,000 specifically ringfenced to progress Molopo Farms. Johnson and his chairman Andrew Bell each subscribed for £25,000 in the 0.4p placing, highlighting their enthusiasm for its prospects.

At the time, Johnson said the move demonstrated that the financing would “secure material progression of the company through exploration in Botswana, rather than to cover general corporate and business overheads.”

That promise has now been borne out for investors as the earn-in progresses.

Johnson said his company had established a dedicated US dollar account for the $500,000 earn-in cost of the drill programme. This cash is fully covered by Power Metal’s existing resource, the CEO said.

As of 27 August, Power Metal had a strong £1.65 million ($2.23 million) in cash and cash equivalents on its balance sheet.

Upcoming

Drilling on the four key targets at Molopo Farms is expected to start in September 2020. 

In the meantime, Botswanan industry is normalising in the wake of the outbreak of Covid-19. The country has seen fewer cases than New Zealand, and recorded only six deaths since January. 

Formerly one of Africa’s poorest nations, Botswana is now the fourth-richest country on the continent, driven by an explosion in mining wealth.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance