Kisinka - Update & Grant of Production Licence

RNS Number : 6748X

Power Metal Resources PLC

05 May 2021

 

5 May 2021

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

Kisinka Project - Update & Grant of Production Licence

Prominent Magnetic Highs Identified, Drilling to be Undertaken Following IP Survey Completion

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company announces an update in respect of its 70% owned Kisinka Copper-Cobalt Project ("Kisinka" or the "Project").

The Project is located roughly 30km east of the regional capital of Lubumbashi in the southern part of the Katangan Copperbelt within the Democratic Republic of the Congo ("DRC"). 

HIGHLIGHTS:

Licensing

· The Company has today been notified of the successful conversion of its Permis de Recherches (exploration licence) to a Permis d'Exploitation (25 years Production Licence) over 61 carrés (each of 84.95 ha).

Exploration Update

· On 20 November 2020 the Company announced assay results confirming high copper and cobalt values from pitting and mapping exploration programme completed earlier in 2020 (and following on from a termite mound sampling program conducted in 2019 which successfully identified a roughly 6.8km long copper and cobalt anomaly).

· The Company recently completed a high-resolution 276 line-kilometre ground-based magnetic survey (125 metre spacing) under the supervision of Minerals Exploration SARL ("Minex Consulting SA"). The results from this survey have now been compiled and interpreted by Ronacher Mackenzie Geoscience out of Ontario, Canada.

· The results from this survey highlight a prominent magnetic high anomaly coincident with a regionally important northwest trending diamictite unit. A northwest trending hematitic iron formation unit was also defined within the survey results as a linear magnetic feature, which is broadly coincident with elevated copper and cobalt geochemical results.  This geological model possesses many similarities to other Sediment-Hosted Copper Deposits found within the prolific Congolese Copperbelt ("CCB").  

· Two additional northwest trending magnetic high features were also identified within the southern portion of the surveyed area which hare also associated with a diamictite unit. The relationship of these geological units with robust copper-in-soil anomalies identified on the Property are possibly indicative of a redox boundary common within Kupferschiefer copper deposit types (e.g. Kamoa-Kakula Deposit, DRC).

· A next phase of exploration including an induced polarization ("IP") survey is planned which will provide coverage over several of the new magnetic anomalies recently identified with the objective of identifying possible supergene and/or disseminated copper-cobalt mineralisation.

· Following completion of the IP survey, the Company intends to follow up with an immediate drilling program. Quotations for the next phase of work are currently being sought.

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

"The news of the grant of a Production Licence over Kisinka is an important step forward and lends considerable support for the continuation of our work on the Project.

Our exploration work at Kisinka since 2019 has been carried out in a systematic and disciplined manner with increasingly promising copper and cobalt results, and we look forward to the upcoming drill programme.

The size of the mineralised area identified by the work to date makes Kisinka an important potential copper-cobalt project in the Company's base metal portfolio, in what we believe is one of the world's best copper-cobalt districts."  

Glossary:

Diamictite - A tyle of lithified sedimentary rock that consists of unsorted to poorly sorted sediment with particle sizes ranging from clay to boulders suspended in a matrix of mudstone or sandstone.

Hematitic iron formation - A sedimentary rock formation (often banded) that is dominated by the mineral hematite (Fe₂O₃).

Copper-in-soil anomaly - Geochemical anomaly defined by increased copper levels over background.

Kupferschiefer copper deposits - A type of sedimentary hosted copper deposit that were originally discovered in central Europe. They are a globally important source of copper and their mineralization is dominated by chalcocite (Cu₂S), chalcopyrite (CuFeS₂) and bornite (Cu₅FeS₄).

Supergene - Zone of secondary mineral enrichment (e.g. Copper) that occurs near the earth's surface. 

The technical and related information in this report relates to exploration results based on information from third parties and data compiled by Kazadi S-B. Barry (MSc), Pr.Sc.Nat., MGSSA., Mr Steffen Kalbskopf, (BSc), Pr.Sci.Nat., who are members of the South African Council for Natural Scientific Professions, and Ms Jenna McKenzie, (BSc Hons), P.Geo.  and Ms Elisabeth Ronacher, PhD, P.Geo. MM. Messrs Kazadi and Kalbskopf have sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Kazadi and Kalbskopf consent to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Kazadi is a Managing Director of Mineral Exploration Associates SARL, consultants (under the name Minex Consulting) to the Company.

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 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 and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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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