Haneti Project - Diamond Drilling Complete

RNS Number : 4909B

Power Metal Resources PLC

14 February 2022

 

14 February 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Haneti Project - Diamond Drilling Complete

Haneti Project Diamond Drilling Programme - Drilling Complete, Core Logging and Sample Preparation Underway

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from the Company's inaugural diamond drilling programme on the nickel-copper-cobalt-platinum group element Haneti Project ("Haneti" or the "Project") located in central Tanzania.

Highlights:

-    The Company confirms the drill programme has been completed successfully with a total of 900.04 metres completed across three drill holes as planned.

-    Core logging and sampling is underway, with samples being prepared for thin section petrographic analysis and laboratory assay testing (for nickel, copper, platinum, palladium, cobalt, chromium and gold) at SGS Tanzania.

-     Large intersections of serpentinite and gabbroic rocks were identified in MWDD01 and MWDD02 (Mwaka drill holes) with indications of peridotitic sequences, the latter subject to confirmation through the thin section petrographic analysis.

- MHDD01 (Mihanza drill hole) intersected massive serpentinite from surface and serpentinised meta-gabbroic rocks at depth.

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

"This drill programme was safely executed and delivered on schedule and within budget. We are grateful to the operational team for a job well done.

Now that the physical drilling has been completed we move into the core logging, sampling and testing phase, and clearly there are various elements to this.

We are cautious with early interpretations until the core logging and testing is complete.  What we can say is that we have seen thick sections of ultramafic rocks and have postulated that the anticipated geological model has been demonstrated from the core recovered.

We are encouraged by the technical and geological success so far and look forward to providing further updates as and when they become available. "

Joint Venture Ownership Structure

The Haneti Project is currently held under a Joint Venture ("JV") with Katoro Gold Plc (LON:KAT "Katoro") who hold a 65% interest, with the remaining 35% interest held by Power Metal.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, 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.

Glossary:

· Serpentinite: a green coloured rock formed through the low-temperature metamorphism of ultramafic rocks from the earrth's mantle. The metamorphic chemical reactions convert unhydrous ferromagnesian silicate minerals (pyroxene, olivine) into hydrous silicate minerals (serpentine).

· Gabbroic: rock within the range classified as Gabbro which is a coarse-grained, mafic intrusive igneous rock formed from the slow cooling of magnesium-rich and iron-rich magma. Gabbro is found at the mid-ocean ridges and as plutons associated with continental volcanism. Gabbro intrusives can be associated with chromium, nickel, cobalt, gold, silver, platinum and copper mineralisation.

· Peridotitic: related to Peridotite rock, a dense, coarse-grained ultramafic igneous rock consisting mostly of the silicate minerals olivine and pyroxene. Peridotites is often a constituent in the layered igneous complexes that can host platiunum group metals and nickel.

· Ultramafic: Ultramafic rocks are a group of igneous and meta-igneous rocks with a very low silica content (less than 45%), generally >18% MgO, high FeO, low potassium, and are composed of usually greater than 90% mafic minerals (dark colored, high magnesium and iron content). The Earth's mantle is composed of ultramafic rocks. Intrusive ultramafic rocks are often found in large, layered ultramafic igneous intrusions where differentiated rock types often occur in layers and metals can be concentrated.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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 company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project	Location	POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Excavation of multiple test pits and mapping & sampling.	Field and assay results from on-site work programme.
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Interpretation of laboratory assay results of samples collected.
Ditau Project	Botswana	50%	Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals	Field programme findings and defined drill targets for near term drilling.
Kalahari Copper Belt	Botswana	50%	Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas	Field programme findings and defined drill targets for near term drilling
Molopo Farms	Botswana	53%A	Kavango Option to acquire an interest in local project holding company.  Option fee payable through defined work programme	Results from various work activities underway as part of the Kavango Option
Tati Gold/Nickel	Botswana	100%	Reverse circulation drill programme completed	Laboratory assay results awaited
H aneti Project	Tanzania	35%	Diamon drill programme underway	Results from field programme including drill programme underway
Victoria Goldfields	Australia	49.9%	Ongoing exploration across 848km2 of granted exploration licences	Results from field programme including drill programme underway
Wallal Gold/Copper Project	Australia	83.33%B	Passive seismic and 2D seismic processing work programme completed. Ground reconnaissance work underway.	Results awaited

^A should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project

^B   assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company's announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors

 

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