Published: September 2, 2021 |

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Power Metal Resources said its wholly owned subsidiary Golden Metal Resources has signed a strategic option agreement to acquire a 100 percent interest in the Pilot Mountain Project in Nevada, subject to completion of detailed due diligence.

Paul Johnson, chief executive officer of Power Metal Resources commented:

“We plan to list our wholly owned subsidiary Golden Metal as soon as possible in the London capital markets. The Pilot Mountain project, subject to due diligence, will be an important strategic interest embedded within that listing, and provide a significant increase to the value of the Golden Metal listing proposition.

In addition to the JORC (2012) compliant mineral resource at Pilot Mountain we are of the view that there is considerable exploration upside potential.

Historic work undertaken, including a scoping study completed in 2018, has demonstrated the potential viability of production from the Pilot Mountain deposit, further bolstered by strong metallurgical test results.

On a standalone basis Pilot Mountain is a significant advanced asset and complements the earlier stage exploration interests currently held by Golden Metal.

Importantly on completion of the acquisition we believe the Golden Metal portfolio will be one of the most exciting resource exploration and development opportunities in Nevada, USA.

We are now working with advisers to complete project due diligence and undertake an accelerated listing process.” 

PROJECT HIGHLIGHTS

• The Pilot Mountain Tungsten-Copper-Silver-Zinc Project is located approximately 200km southeast of Reno, in
  Nevada.
• Pilot Mountain hosts a JORC (2012) compliant mineral resource estimate of 12.53Mt @ 0.27 percent WO3 for
  34.3kt of contained tungsten metal plus significant silver, copper and zinc.
• The project has undertaken metallurgical testwork and a 2018 scoping study for a conceptual open pit mining
  operation with an 8-year mine life.
• There is a clear pathway for upgrading and supplementing the scoping study work, addressing the permitting
  requirements and advancing the project towards a mining feasibility study.
• Pilot Mountain has significant upside exploration potential.

PROJECT STRATEGIC DEVELOPMENT POTENTIAL

There is currently no domestic United States primary tungsten production, and tungsten is classified as a strategic mineral by the United States Department of the Interior. Set against this backdrop, the Pilot Mountain project is potentially a key strategic metal deposit in the United States.

• Production Potential
Potential production viability was reinforced with a scoping study completed in 2018 on the project indicated the potential for an inital 8-year mine life from an open pit at Desert Scheelite supplemented by production from garnet.

Furthermore 694kg of Pilot Mountain mineralized rock tested by Guanzhou Research Institute highlighted strong metallurgical results including the successful production of two saleable concentrates (scheelite, and copper/silver) from a coarse grind treated by floatation or by flotation and wet high-intensity magnetic separators (WHIMS).

Shallow JORC (2012) compliant deposits at the Desert Scheelite and garnet deposits may be amenable to shallow open-cut mining methods (as modeled in the 2018 scoping study) which would allow for rapid low-cost start-up costs.

• Exploration Potential
The company is of the view that there is the significant potential to build on the current the Pilort Mountain mineral resource through exploration. The project hosts significant resource upside through the upgrading of existing but under drilled targets, as well as the potential for discovery of new zones of skarn-style mineralization located under post-mineral alluvial and basaltic cover.

Additionally, widely-spaced drillholes recently completed indicate that significant copper-rich zones at the Desert Scheelite and Good Hope deposits remain largely untested, and will be a focus of the of exploration going forward.

About Power Metal Resources
Power Metal Resources is an 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 and base metal exploration in North America, Africa, and Australia. Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programs. 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 recognized stock exchange thereby crystallizing the value generated from its internal exploration and development work.

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