The programme will be delivered by an experienced Canadian drilling company.
It is expected that the contractor will mobilise within the next few days with a view to starting drilling next week.
The programme is due to be completed with an experienced Canadian drilling company before the onset of winter conditions.
Paul Johnson, Power Metal chief executive, noted that the contractor and expeditious work to date has allowed the drilling to get underway far earlier than the company initially thought possible.
"I am very pleased to report the signing of the drilling contract for an initial diamond core programme at Silver Peak, where the recently announced channel sampling returned exceptionally high silver assays,” Johnson said in a statement.
“The team in-country are now focused on mobilisation and commencement of drilling and we are naturally eager to see the outcome of this programme, given the results we achieved from the sampling programme recently announced.”