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Precious Metal Resources Limited - Halls Peak, Completed drill holes continue to impress with further high grades

May 7, 2014

ENP Newswire - 07 May 2014

Release date- 06052014 - Precious Metal Resources (ASX: PMR), a 78% subsidiary of Sover eign Gold Company Limited (ASX: SOC) has received results from the final 4 diamond drill holes of a six-hole program conducted at Gibsons Mine at the Halls Peak base metal field in northern NSW.

A detailed study of drill cores and assay results of diamond drill holes in the historic Gibsons zinc-lead-copper-silver mine area has now been completed.

Gibsons Mine at Halls Peak is located on EL 4474 that, subject to shareholders approval, will be transferred to Sovereign Gold (ASX 9 April 2014).

This Announcement should be read together with previous releases by PMR regarding Halls Peak exploration targets and results, specifically the announcements of 3 January 2014 titled 'Promising Results - Initial Halls Peak Drilling' and 15 January 2014 titled 'Halls Peak - Base metal mineralization continuity confirmed (bonus high grade silver)'.

Some of the mineralized intervals reported from diamond drill holes DDH HP 026, 027 and 028 and 029 are shallow and have potential for direct shipment to smelters.

Further drilling is planned to establish the continuity of beds discovered to date and to locate new lodes. DDH HP 028, 029 and 030 were completed at the Gibsons Mine.

DDH HP 028 intersected the four base metal zones identified in HP026 and HP027, providing useful information about their configuration and copper, lead, zinc and silver grades.

DDH HP 029 was collared near the portal of the 'Dry Tunnel' to attempt an intersection of Barker's Lode. Barker's Lode was intersected at shallow depth with high Ag, Cu, Pb and Zn grades.

DDH HP 030 was drilled vertically to test showings of mineralization along mine tracks, in rocks overlying the main mineralized zones. Three rather narrow zones of copper mineralization were intersected by the hole.

DDH HP 031 was drilled to investigate a shallow VTEM feature and to provide stratigraphic information in an area of very little rock outcrop, on the plateau to the east of Gibsons Mine Prospect.

DDH HP 028

9.4 metres (from 0.00 - 9.40m downhole) at 5.0% Zn, 2.2% Pb, 2.4% Cu, 73.4g/t Ag

Including 1.8 metres (from 1.60 - 3.40m downhole) at 12.76% Zn, 7.06% Pb, 7.13% Cu, 224.3g/t Ag, 0.9 g/t Au

3.3 metres (from 15.7 - 19.0m downhole) at 7.6% Zn, 3.0% Pb, 0.8% Cu, 29.5g/t Ag

1.5 metres (from 33.9 - 35.4m downhole) at 28% Zn, 9.6% Pb, 2.6% Cu, 62.9g/t Ag

3.2 metres (from 42.0 - 45.2 m downhole) at 19.7% Zn, 6.7% Pb, 1.57% Cu, 40.4g/t Ag

DDH HP 029

1.8 metres (from 8.60 - 10.40m downhole) at 19.98% Zn, 10.69% Pb, 0.9% Cu, 41.4g/t Ag

0.4 metres (from 30.40 - 30.80m downhole) at 2.18% Cu

0.2 metres (from 31.90 - 32.10m downhole) at 3.33% Cu

DDH HP 030

0.4 metres (from 40.60 - 40.80m downhole) at 6.47% Cu, 0.22% Zn, 30.3g/t Ag

0.25 metres (from 84.35 - 84.10m downhole) at 3.19% Cu, 0.25% Zn

DDH HP 31 did not intersect any significant mineralization. It was drilled in a separate location to Holes DDH HP 26-30 (Gibsons Mine).

Previous reported holes

Following are some results from holes reported earlier.

DDH HP 026

37.2 metres at an average grade of 8.7% zinc, 3.0% lead, 1.4% copper and 85 g/t (2.8 oz/t) silver, over 4 bands

Including 10.5 metres at an average grade of 9.81% zinc, 5.63% lead, 2.67% copper and 196 g/t (6.3 oz/t) silver

Including 1.48 metres (from 1.62 to 3.1m) at an average grade of 19.2% zinc, 10.7% lead, 5.66% copper and 509 g/t (6.3 oz/t) silver

DDH HP 027

3.5 metres (from 39.00 - 42.50m downhole) at 5.0% Zn, 2.2% Pb, 2.4% Cu, 73.4g/t Ag

7.45 metres (from 50.20 - 57.65m downhole) at 8.88% Zn, 3.11% Pb, 0.56% Cu, 22.35g/t Ag

Including 1.9 metres (from 53.80 - 55.70 downhole) at 27.1% Zn, 8.7% Pb, 1.5% Cu, 59.0g/t Ag


Henry Kinstlinger

Investor Relations

Tel: +61 2 9251 7177

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Source: ENP Newswire

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