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Power Metal Resources Edge Higher on Canadian Drilling Operations Update

Updated: 5 Aug 2021

Shares of Power Metal Resources PLC (LON: POW) edged higher after releasing an update on the drilling operations at its Silver Peak project in British Columbia, Canada.

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The exploration company revealed that it had completed 12 of the planned 25 diamond drill holes at the project, which are part of Phase I.

The Eureka-Victoria Silver Mine is part of the Silver Peak project and was the first-ever mineral claim granted by the British Crown in the province.

The project has an excellent road network connecting it to the TransCanada Highway and the town of Hope, British Columbia.

Power Metal noted that the drilling campaign had so far resulted in excellent core recoveries via the Victoria Vein, which is extremely oxidized as evidenced by due diligence samples, which returned 0.50m of 14,937g/t Silver (480 troy Ag oz/tonne), 3.05% Cu and 11.95% Pb.

Today’s announcement follows yesterday’s news that the company completed the first phase of the geochemical sampling, mapping and prospecting work on its Tati gold project in Botswana.

Power Metal revealed that it collected 1,107 soil samples and 49 rock samples, and the test results would be used to plan a phase two program of geophysics and rotary air blast drilling in late summer 2021.

Bullish investors may find the company’s current share price quite attractive given the bounce off support with potential targets at 2.6p, 2.8p, and 3.0p. However, nothing is guaranteed in the markets; you should always use a stop-loss order on your trades to limit your potential losses.

*This is not investment advice.

Power Metal share price.

IG chart of Power Metal share price 05-08-2021

Power Metal shares are down 22.27% in 2021 despite the recent move higher off a support zone.

Should you invest in Power Metal Resources shares?

Power Metal shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are POW shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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