Botswana Molopo Farms Complex Update

RNS Number : 2605X

Power Metal Resources PLC

27 August 2020

 

27 August 2020

Power Metal Resources PLC

("Power Metal" or the "Company")

Botswana Molopo Farms Complex - AMT Geophysics Refine and Scale Drill Targets

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of the Kalahari Key Mineral Exploration Pty Ltd ("Kalahari Key" or "KKME") Molopo Farms Complex Project (the "Project" or "MFC Project"), which is targeting prospective massive nickel sulphide mineralisation in Botswana.

OWNERSHIP STRUCTURE - MOLOPO FARMS COMPLEX PROJECT

Power Metal has an 18.26% shareholding in Kalahari Key and has elected to earn in ("Earn-In") to a 40% direct interest in the MFC Project by expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

NATURAL FIELD AUDIO MAGNETO TELLURIC SURVEY RESULTS

The Natural Field Audio Magneto Telluric ("NF-AMT") geophysics survey (announced 11 August), has been completed over a selected four of eight high priority targets for nickel-platinum group metals identified by KKME's previous high-resolution airborne electromagnetic ("EM") and ground geophysics. 

The NF-AMT technique is used to measure the electrical conductivity of the Earth's subsurface and is an important additional exploration tool in the search for conductive massive sulphide deposits. The method has been successfully utilised in Sudbury, Canada to sense nickel deposits at depths up to 1,750m ⁽¹⁾. Unlike controlled-source EM geophysical methods which use a generator and an inductive loop as an electromagnetic field source, NF-AMT is a passive electromagnetic exploration method that relies on naturally-occurring electromagnetic field variations generated by sources including lightning and solar winds. 

The processed NF-AMT results have produced high quality Conductivity Depth Images ("CDIs")  which correlate, confirm and reinforce the results of the previous ground EM geophysics, highlighting significant depth extensions and increasing conductivity interpreted to be indicative of mineralisation with depth.

The NF-AMT data, which in ideal conditions has the capability to produce CDIs to several kilometres depth, has helped to fine tune the depth and shape of the drill targets, refining the collar positions for the planned drill holes designed to intersect the centres of the first four high priority targets. The NF-AMT data has also shown that these targets appear to continue at depth as well as identifying additional areas for future investigation.

A full analysis of the data will be completed prior to the commencement of drilling.

(1)  Essentials of Mineral Exploration and Evaluation - S. M. Gandhi, B. C. Sarkar - Elsevier, 10 May 2016

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:

"The KKME team have been excited to receive the processed conductivity depth imagery from the recent NF-AMT survey at the Molopo Farms Complex Project in south-eastern Botswana.  These results show very good correlation to both the ground and high-resolution airborne EM results, adding significant resolution to the depth, size and shape for prospective massive nickel sulphide targets.  Moreover, the results show increasing conductivity with depth, possibly relating to an increase in the tenor of possible mineralisation with depth.

We are looking forward to receiving the full geophysical analysis and report ahead of KKME commencing drilling."

BACKGROUND:

A helicopter-borne high-resolution electromagnetic survey, followed by ground geophysics, and subsequent desktop review, has to-date identified a total of eight high priority targets prospective for nickel - platinum group metals ("PGMs").  The first four high priority targets selected for drill testing have also been surveyed by NF-AMT geophysics, refining the target morphology and refining the parameters for eight drill holes designed to test these targets.

DEVELOPMENTS:

OPERATIONAL ELEMENT	UPDATE
Natural Field Audio Magneto Telluric Survey	KKME has completed NF-AMT ground geophysical investigations on four high priority targets for massive nickel sulphide mineralisation in the Chipo Target Zone within the Molopo Farms Complex Project. The AMT survey was designed to provide a clearer 3D shape to the four EM targets being investigated and allow for further refining of the drill targets as KKME leads up to the drilling programme.
Method Overview	NF-AMT is an electromagnetic geophysical method for inferring the Earth's subsurface electrical conductivity from measurements of natural geomagnetic and geoelectric field variation at the Earth's surface.
Rationale	The advantage of the Natural Field Audio Magneto Telluric (NFAMT) method is, that in ideal conditions, Conductivity Depth Images (CDIs) can be derived to several kilometres depth. The CDIs will facilitate the understanding of the geology around the electromagnetic (EM) derived target areas. In addition, the method is not affected by zero-coupled zones and IP effects and can therefore reduce some of the ambiguity associated with large loop EM interpretation.
Work Done	The NF-AMT survey was undertaken by Spectral Geophysics of Gaborone, Botswana, between 9 - 21 August, on four targets within the Chipo Target Zone of Licence PL311/2016.
Preliminary Outcomes	The fieldwork has successfully completed and has shown that all four EM targets are directly associated with NF-AMT conductors with good depth extension and increasing conductivity probably indicative of mineralisation with depth. The depths of all EM targets were confirmed with the top of a second priority target at about 200m below surface. All the targets are confirmed as steeply dipping with additional keel-shaped conductors identified to the south of priority targets 1 and 2, that will need follow-up in the near future. A full analysis of the new data will be completed prior to commencement of drilling.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

 

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