Power Metal Resources PLC (LON:POW) has signed an option agreement in respect of the Silver Peak project in British Columbia, Canada. The project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.
The Silver Peak project consists of a portfolio of mineral claims over a system of high grade, intrusion-related, polymetallic silver-lead-zinc-copper veins, part of the historical Eureka-Victoria silver mine.
Originally discovered in the late 1800s the Silver Peak mines reportedly exploited near-surface oxide material ranging at grades between 500 ounces per tonne to 658 ounces per tonne silver. The underground mining via adits of the two main veins, varying in width from 1.5 metres to six metres, continued on a small scale under various ownership until 1981.
Underground sampling in 2011 along the strike of the Victoria Vein is reported as returning a grade of 8,889 grams per tonne silver. A grab sample from the Victoria vein face assayed at 15,517 grams per tonne silver, 4.3% lead and 2.94% copper.
Significantly both the Eureka and the Victoria vein systems have yet to be drill tested below adit level, with mineralisation open at depth, and resource potential largely untested along strike.
The 30-day option will cost £26,819 with £12,500 payable through the issue of a million Power Metal shares at a price of 1.25p and £14,319 payable in cash. Further detailed transaction terms outlined below.
Power Metal can make further payments of C$200,000 in cash and C$100,000 in shares to acquire a 30% interest in the project