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
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