AIM-listed Power Metal Resources has signed a deal to expand its Canadian exploration by acquiring four new gold properties in Ontario.

Historic sampling from the option properties has revealed figures as high as 678g/t gold and 32.3% zinc. 

The region is dotted with substantial mineral discoveries and the state is now one of the world’s hottest gold mining districts, as well as a hotbed for mining investment.

Each of the four sites are located within 60 miles of Power Metal’s existing Canadian gold exploration projects on the Schreiber-Hemlo Greenstone Belt.  

 

Greenstone belts are mineral-rich geological trends which produce the majority of the world’s gold supply. They can also be economically-viable resources of silver, copper, and zinc. Canada plays host to some of the largest world-class gold deposits ever discovered in greenstone belts. 

The option deals see Power Metal take a 100% stake in McKellar, Enable, Coco East and Magical, which together consist of 140 mining claims covering an area of 30.4km2.

CEO Paul Johnson praised his team for “moving quickly to secure these interests” as their highly-prospective gold-rich nature became clear. 

Power Metal Resources has also secured a separate 30-day option on the properties to carry out due diligence work. 

The deal comes just five days after Power Metal swooped to acquire three gold and base metals properties: Roger Lake, Olga Lake and Dotted East. Together, the three sites cover 25km2, just north of the Barrick Gold (NYSE:GOLD) Hemlo Mine, which has produced more than 21 million ounces of gold to date.

Together with the company’s Hemlo North gold projects, the new option properties now “give Power Metal a significant footprint in the Schreiber-Hemlo district, with ground tenure close to existing mines or other local properties subject to active exploration.”

Johnson added: 

Shareholders will see with our recent actions that we are building a significant portfolio of precious metal interests in North America and that is something we intend to continue should the right opportunities continue to remain available to the company."

The options were acquired for a fee of $100,000 in cash.

Power Metal said its preliminary exploration work at McKellar, Enable, Magical and Coco East will include remote sensing data interpretation along with ground-based fieldwork, using systematic soil sampling and geophysics to define key drill targets. 

Each of the four properties provides Power Metal Resources with a low-capex entry into the proven gold and base metals region.

McKellar consists of 58 claims across 12.3km2, valid from 7 June 2021 to 26 April 2022. The agreement can be renewed annually by making an additional work spend of C$8,400 (£4,838). The underexplored property is prospective for volcanogenic massive sulphide copper-lead-zinc mineralisation and orogenic gold deposits. 

Historic sampling reported a 1.4m channel at 678g/t gold with 13% zinc, and 7.1% lead, with a trench sample of 1.1m at 68.4 g/t gold and 32.3% zinc, 

Mineralisation was reportedly traced over a 600m strike.

Enable contains 41 claims across 8.7km2, valid until 25 July 2022. Renewal can be made yearly with a work spend of C$16,400 (£9,446). It is located on a geological structure called the Terrace Bay batholic contact, where 30 known gold discoveries have been made.  

The largely unexplored Magical property consists of 14 claims across 3km2 which are valid until 27 July 2022, renewable annually with a work spend of C$5,600 (£3,226).

Coco East lies 8km east of the Superior Lake Zinc Project run by ASX-listed Superior Lake Resources (ASX:SUP). 

That contains a high-grade volcanic massive sulphide zinc deposit with a JORC Resource of 2.35 million tonnes at 17.7% zinc, 0.9% copper, 0.38g/t gold and 34 g/t silver with probably reserves of 1.96 million tonnes at 13.9% zinc, 0.6% copper, 0.2g/t gold and 26.2g/t silver.

Power Metal’s Canadian expansion also comes just days after it signed a fresh option deal for a potential acquisition of copper-gold interests in the Pilbara region of Western Australia. Pilbara is home to a rapid increase in exploration activity after recent high-profile copper-gold discoveries by Rio Tinto (LSE: RIO) and Greatland Gold (LSE: GGP) at Havieron.

Author: Mark Sheridan

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