Power Group Projects commences field work on Muddy Gullies PGE project, central Newfoundland
Power Group Projects commences field work on Muddy Gullies PGE project,
central Newfoundland
Toronto, Ontario – August 10, 2021 - Power Group Projects Corp. (TSXV: PGP) (the "Company") is pleased
to announce that field work has commenced on its Muddy Gullies PGE property in central Newfoundland.
The first phase of exploration will include airborne magnetometer, LiDAR and orthophotography surveys,
line cutting and gridded prospecting, mapping and sampling. The property is highly prospective for the
discovery of significant Platinum Group Elements (PGE) hosted by a pyroxenite unit of the Gander River
Complex.
The line cutting program is underway and has been contracted to Grass Roots Exploration of Gander, NL.
This will provide a control grid for the prospecting on the main PGE target zone. The airborne surveys will
cover the central three licences on the property , and have been contracted out to RPM Aerial Inc, of
Holyrood, NL. All the necessary permits are in place for this phase of the field program.
This work wil l be followed in the Fall -Winter exploration season by a planned drill program comprising
1000 metres.
Muddy Gullies Property
The Muddy Gullies Property is located 28 kilometers northeast of the town of Gander, NL. Route 330
affords easy access to the property as does Muddy Gullies access road which runs east from route 330.
The Property comprises 113 claim units (8 licences) covering 28.25 km². The Property is host to several
historical platinum, palladium, copper and gold showings, as indicated by the Mineral Occurrence
Database System, Department of Natural Resources, Newfoundland & Labrador. The Property is underlain
by a portion of the Gander River Ultramafic Belt (GRUB LINE) which consists of pyroxenite and lessor
serpentinite, magnesite, amphibolite, hornblendite, and gabbro.
The mafic and ultramafic rocks of the GRUB LINE are considered to be an ophiolitic suite of volcanic and
plutonic rocks which have tectonically emplaced over the Gander Groups.
Local and Regional Geology
The Muddy Gullies Property straddles the tectonic boundary between the Dunnage Zone to the northwest
and the Gander Zone to the southeast. The Davidsville Group sediments represent rocks of the Dunnage
Zone on the Muddy Gullies Property and consist of pebble conglomerate, sandstone, shale and siltstone.
Areas to the west of the Gander River are predominantly underlain by rocks of the Davidsville Group. The
Gander Zone is represented by rocks of the Gander River Ultramafic Belt (GRUB), which include tonalite,
intermediate to mafic volcanics, gabbro, serpentinite, pyroxenite and talc-magnesite altered ultramafics.
Alternating sequences of the two contrasting rock groups outcrop across the property on the east side of
Gander River and is interpreted to be shallow westward dipping thrusted slices.
Previous exploration work on the property, in 2000 -2002, reported combined values for platinum and
palladium of up to 2400 ppb (J.P. Bouzane Associates Lt. 2000, 2001, 2002). In 2013 an airborne mag-EM
survey was completed, along with mapping, prospecting, and limited drilling. More recent (2016) sampling
by the property vendors confirmed platinum-group element mineralization and also outlined additional
areas of anomalous PGE mineralization on the Property.
31 s amples were taken by the Vendors in the central portion of the property, where the PGE
mineralization appears to be controlled by a non-magnetic course-grained pyroxenite unit. Assays ranged
from 47 to 1707 ppb combined Pt+Pd+Au. Palladium averages 36% higher than platinum.
Muddy Gullies Acquisition
The Company acquired the Muddy Gullies property by the acquisition of all of the issued and outstanding
common shares of Pallplat Metals Inc. The Transaction was carried out by way of a share purchase
agreement dated October 15, 2020 between the Company, Pallplat and the shareholders of Pallplat (the
Vendors). As consideration for the Transaction, the Company issued an aggregate of 11,700,000 common
shares in the capital of the Company at a deemed price of $0.05 per Common Share, to the Vendors.
In connection with the Transaction, the Company entered into a min ing option agreement with the
Prospectus Alliance Syndicate (the "Syndicate") whereby the Syndicate granted an option (the "Option")
to the Company to acquire a 100% undivided interest the Muddy Gullies project in Newfoundland, Canada
(the "Property"). In order to exercise the Option the Company is required to: (i) pay an initial deposit of
$20,000, which has been paid by Pallplat, and additional cash payments of $20,000 payable on each of
the first three anniversaries of the LOI; (ii) issue 1,200,000 Common Shares upon receipt of the approval
of the TSX Venture Exchange (the " TSXV") at a deemed price of $0.05 per Common Share, which have
been issued, and an additional 600,000 Common Shares to be issued on each the first three anniversaries
of the LOI, and (ii) incur $800,000 in expenditures in respect of the Property over a three-year period.
In the event that the Option is exercised, the Company will grant a 2% net smelter returns royalty ("NSR")
in favour of the Syndicate, subject to the ability of the Com pany to purchase 0.75% of the NSR (resulting
in the remaining NSR being 1.25%) for a purchase price of $1,250,000 at any time before the
commencement of commercial production on the Property.
Power Group Projects acknowledges the financial support of the M uddy Gullies project by the
Government of Newfoundland and Labrador, through the Department of Industry, Energy and Technology
Junior Exploration Assistance Program.
Chris M. Healey, P.Geo, a geological consultant to the Company, is the qualified person who is responsible
for the technical content of this release and consents to its release.
For further information, please contact:
Aleem Nathwani
Chief Executive Officer and Chairman
Tel: (604) 290-7073
Email: [email protected]
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking information" within the meaning of applicable securities
laws. Forward looking information is frequently characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar
words, or statements that certain events or conditions "may" or "will" occur. These statements are only
predictions. Forward-looking information is based on the opinions and estimates of management at the date
the information is provided, and is subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those projected in the forward-looking information. For
a description of the risks and uncertainties facing the Company and its business and affairs, readers should
refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to
update forward-looking information if circumstances or management's estimates or opinions should change,
unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA