Business Operational Update

RNS Number : 1100Y

Power Metal Resources PLC

04 September 2020

 

4 September 2020

Power Metal Resources plc ("Power Metal" or the "Company")

Business Operational Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide a Business Operational Update (the "Update") to shareholders, outlining the current status of operations across the Company's six existing projects and two projects under due diligence.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

"Power Metal is an operationally diversified business with precious metal interests in North America and base metal interests in Africa.  The Company has multiple live exploration programmes running and significant corporate activity underway.

The summary below outlines where we are across each project, and the anticipated next steps or developments which, where material, will be notified to shareholders through regulatory news announcements.

Power Metal is at a key stage in its development and aided by our strong underlying financial position, we are pushing ahead proactively across the business, seeking to secure a large-scale metal discovery." 

KEY HIGHLIGHTS

· Two significant drill programmes impending, in Botswana and Tanzania, targeting large-scale nickel sulphide targets and with current levels of local regulation allowing the Company to plan to commence drilling in 2020

· Significant advancement made in the Australia JV, with 2,188 km² of ground under application in the Victoria Goldfields over 12 distinct project areas and a draft of the NI 43-101 technical report under review;

· Due diligence ground exploration programme underway at the Silver Peak project in Canada, where channel sampling for silver is the key focus and where exploration results are expected shortly and within the 30-day option period announced 17 August 2020;

· Reconnaissance survey completed successfully at the Alamo gold project in Arizona, USA reviewing the key areas where the bulk of gold nuggets were found in alluvium on the property. The findings have been received in a project report and are being reviewed currently.  A market update will follow including next stage exploration plans;

· Power Metal remains in a strong financial position with working capital comprising cash and listed investments of circa £1.6 million;

· Further specific updates will be provided for each project as material developments occur.

OPERATIONAL UPDATE

Power Metal provides the following overview of its six main projects and two projects under due diligence.

Note: all exploration and corporate work is subject to COVID-19 restrictions which may impact work programmes and timescales.  Power Metal and its partners are focused on the safety of operational teams and the conduct of programmes in line with local requirements in relation to COVID-19, and all applicable operational regulatory requirements.

PROJECT	CURRENT OPERATIONAL STATUS
Australia JV - Victoria Goldfields (Gold) (POW holds a 49.9% interest in Australian JV Company Red Rock Australasia Pty Limited "RRAL")	Twelve licence applications have been submitted by RRAL covering 2,188 km2 in the Victoria Goldfields with three licenses having completed the mandatory 14 day public advertising period.  The JV team is working with Earth Resources Victoria to secure early grant of the advertised licenses to enable exploration to commence. Ten detailed historic exploration and target assessment reports now received from local consulting geologists (four reports have been released to the market and six are under review, and will be announced shortly). The NI 43-101 Technical Report covering seven key licenses is in final drafting stage and is expected to be received in final form in the coming week.  The findings of this report will be released shortly after receipt and following internal review. Receipt of the Technical Report will also allow the potential listing of some or all of the JV interests to be progressed to the next stage. In addition, liaison with various external parties is underway with a view to further potential corporate transactions, including external joint ventures, in respect of certain license applications.
Botswana - Ditau Camp Project (RARE EARTHS) (Under Due Diligence) (Subject to due diligence POW may acquire a 51% project interest)	Power Metal remains in due diligence and related discussions with Kavango Resources plc (LON:KAV), the current 100% project owner, with a view to crystallising a transaction in respect of the Ditau Camp project. For clarity the due diligence period in respect of the Ditau Camp Project ends on 30 September 2020.
Botswana - Molopo Farms Complex Project (Nickel Copper PGMs) (POW holds 18.26% of project holding company Kalahari Key and additionally may earn in up to a 40% project interest)	Kalahari Key Mineral Exploration Pty Limited ("Kalahari Key"), the JV partner and current 100% project owner is making considerable progress in respect of planning for drill commencement at the Molopo Farms Complex Project ("MFC Project"). Drilling proposals have now been received from multiple contractors and a review is underway at present leading to contractor selection and thereafter, subject to rig availability, to confirmation of drill rig mobilisation at the earliest opportunity. The drill programme will be focused on high profile nickel sulphide targets within the Chipo area of the MFC project.
Cameroon - Cobalt Blue Project (Cobalt - Nickel) (POW holds a 100% project interest)	Power Metal is continuing to review the exploration and corporate options in respect of the Cameroon project interests and will provide a further update as material developments occur.
Canada - Silver Peak Project (Silver) (Under Due Diligence) (POW may earn in to a 30% project interest)	As part of the due diligence process Power Metal is funding an initial exploration programme at the Silver Peak project including channel sampling to help determine silver prospectivity. Initial results are expected from this programme in the next week and Power Metal will update the market upon completion of an internal technical review of findings.
The DRC - Kisinka Project (Copper - Cobalt) (POW holds a 70% project interest)	The Company is awaiting the receipt of assay results from the pitting and mapping programme conducted earlier this year.  The results will help inform next stages of exploration on the ground at the 6.8km copper anomaly discovered within the Kisinka Project. The results so far justify the magnetic ground survey and electromagnetic ("EM") survey the Company is currently planning in order to increase understanding of structure in the target area defined by the exploration to date. The license renewal was recently underway but the decision has been taken instead to convert the license to a Permis d'Exploitation (production license) with a 25 year life. 50% of the less prospective ground is being surrendered, leaving the Company with 41 carrés miniers (each 84.95 ha),
Tanzania - Haneti Project (Nickel - PGMs - Gold - Lithium) (POW holds a 35% project interest)	Power Metal is working with Katoro Gold plc (LON:KAT or Katoro) the JV partner in respect of the Haneti Project in Tanzania. Katoro are in the final stages of planning for drill commencement.  Specifically, Katoro are seeking to confirm rig availability and confirmation of a drill mobilisation date. Power Metal and Katoro hope to confirm the launch of the drill programme to the market in the near term.
USA Arizona - Alamo Gold Project (Gold) (POW may earn in up to a 75% project interest)	A Reconnaissance Survey ("Survey") has been completed successfully at the project in Arizona which was focused on a review of the key areas where the bulk of gold nuggets were found in alluvium on the property. The Survey report from the work undertaken has been received and is being reviewed. Power Metal are also working with its local partners to design the next stage exploration programme at the project based on the Survey report findings. Upon completion of our review of the Survey report and confirmation of the next stage exploration programme Power Metal will update the market in full.

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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