Power Metal Resources plc has signed a strategic option agreement to acquire a 100% interest in the tungsten-copper-silver-zinc Pilot Mountain project in Nevada.
EXPLORATION
The 5,908-acre project comprises four existing mineral deposits of Garnet, Good Hope, Gunmetal and Desert Scheelite which all hold “significant skarn-style tungsten-copper-silver-zinc mineralisation”.
Pilot lies 200km southeast of Reno and hosts a JORC (2012) compliant mineral resource estimate of 12.53Mt @ 0.27% tungsten trioxide for 34.3kt of contained tungsten metal plus “significant” silver, copper and zinc.
Power Metal said that there was currently no domestic primary tungsten production in the United States, which classifies the metal as a strategic mineral.
The company’s subsidiary Golden Metal Resources Ltd has a 60-day option, which if exercised will see Power Metal issue $1.65 million of its new ordinary shares of 0.1p each, at 2.5p.
This will give Golden Metal 100% interest in the Pilot Mountain, Garfield and Stonewall projects and the right to earn-in to a 100% interest in the Golconda Summit project.
Chief executive Paul Johnson said the company planned an accelerated listing process for Golden Metal on the London capital markets.
“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.”
CURRENT OWNERS
The Pilot Mountain tenements are owned by BFM Resources Inc and Pilot Metals Inc (American), which are owned by Industrial Minerals Pty (USA) Pty Ltd (Australian), owned by Black Fire Industrial Minerals Pty Ltd, which in turn is owned by Thor Mining plc (Aus).