Molopo Farms Complex, Botswana - Drilling Update

RNS Number : 3593K

Power Metal Resources PLC

20 December 2022

 

20 December 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling Update

Drillhole Into Target Area T1-3 complete and Drillhole into T2-3 Progressing Well

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a drilling update from the Molopo Farms Complex Project ("Molopo Farms" or the "Project") targeting a large-scale nickel and platinum group element ("PGE") discovery in southwestern Botswana.

A short presentation capturing developments at Molopo Farms and Power Metal's 100% owned Tati gold Project is available on the Company's website which is available through the following link:

https://www.powermetalresources.com/investors/botswana-in-focus-december-22/

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

"There is a strong momentum with our operations at Molopo Farms in Botswana where we have now commenced drilling at target area T2-3, a 12-kilometre-long magnetic body which represents another stand-out target we are eager to test.

From 5 drillholes across 4 target areas we have completed over 2,000m of diamond drilling, the drill core from which, is now the focus of multiple ongoing technical work streams including detailed core logging, downhole geophysics analysis and assay testing.

I look forward to reporting back to the market on developments at Molopo Farms as soon as practicable."

HIGHLIGHTS:

§ Diamond drillhole DDH1-3A has been completed at target area T1-3 to a depth of 450m.

§ The inaugural drillhole (DDH2-3A) into target area T2-3A has progressed well to the current downhole depth of 129.4m (see Fig. 3). Drilling operations have now paused for the holiday season.

§ The electromagnetic ("EM") geophysics conductor at target area T2-3A is located at approximately 400m downhole depth, so will be drill tested following the resumption of drilling operations expected early to mid-January 2023.

BACKGROUND INFORMATION

The following three figures outlining the Molopo Farms Complex Project Area, EM geophysics conductor targets, and details of the priority target area T2-3, may also be viewed on the Company's website through the following link:

https://www.powermetalresources.com/project/molopo-farms-complex/

Further photographs and videos from the drill programme are and will be available on the Company's website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/

Figure 1: Map showing Molopo Farms Complex Project, Named Electromagnetic Targets and Current Drill Programme Status (Map Projection: UTM Zone 35S WGS84)

Figure 2: Map Showing Location of In-Progress Drillhole DDH2-3A at Target T2-3 with Moving Loop EM Geophysics Section Line (A-A' Figure 3), over 1st Derivative Magnetic Geophysics Response

(Map Projection: UTM Zone 35S WGS84)

Figure 3: Moving Loop EM Conductivity Cross-Section over Target Area T2-3 with Downhole Trend of In-Progress Drillhole DDH2-3A (targeted conductor in blue)

(vertical scale interpreted metres)

QUALIFIED 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 Qualified 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.

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 - Background

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.

Exploration Work Overview

Power Metal holds a number of priority exploration projects with active exploration underway currently. The status of each project is outlined in the table below:

Project	Operations	POW %	Project Status
Athabasca Uranium	12 properties covering an area of 842km2 in the Athabasca Basin region Canada.	100%	Exploration programmes undertaken across three properties during summer 2022 and preliminary planning for work in Spring/Summer 2023 is ongoing.  Desktop review work ongoing across the existing portfolio and data rooms established for all the projects, to enable third party review of opportunities for potential acquisition, joint venture or earn-in. Ongoing review of new opportunities to further expand the Company's Athabasca uranium property exposure.
Molopo Farms Nickel - PGMs	3 prospecting licences covering 1,723km2 in south-west Botswana	87.71%	Currently a 2,600m diamond drill programme is underway with a planned 5-6 holes targeting four previously identified magnetic conductors prospective for Nickel - Platinum Group Metals.   Two drill holes at target conductor T1-6, one at T1-14 and one at T1-3 have been completed and drilling at target T2-3 target is underway currently. Downhole geophysics completed at DDH1-6A and underway at DDH1-14B. Further Moving Loop Electro-Magnetic surveys are planned over additional Airborne Electro-Magnetic targets identified, to develop further drill targets.
Tati Project Gold - Nickel	Botswana	100%	Reverse Circulation drilling and soil sampling confirmed high-grade and bonanza grade gold mineralisation within a gold-in-soil anomaly extending for 8km across the Company's prospecting licences. Next stage exploration plans announced 15.12.22. Sampling of fines dumps, representing waste material from the Cherished Hope gold mine on the project has confirmed circa 1g/t gold and suitability of the fines dumps for processing to extract gold and generate income.  Preparations for the fines dumps processing are advancing.

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below:

Company	Operations	Status	POW %	Further Information Link
First Class Metals PLC	Exploration in the Schreiber-Hemlo region of Ontario, Canada	Listed Investment	27.91%	www.firstclassmetalsplc.com
Kavango Resources PLC	Exploration in Botswana	Listed Investment	9.85%	www.kavangoresources.com
First Development Resources PLC	Exploration in Western Australia and the Northern Territory of Australia	Planned IPO	62.12%*	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Exploration and development in Nevada, USA	Planned IPO	83.13%	www.goldenmetalresources.com
New Ballarat Gold PLC	Exploration in the Victoria Goldfields of Australia	Planned IPO	49.9%	New website under development which can be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .
NewCo	Exploration in Queensland's Mount Isa copper belt and in South Australia	Planned IPO/Disposal	20% ^	NewCo website under development.
Uranium Energy Exploration PLC	Uranium exploration in the Athabasca region of Canada	Planned IPO	50-55%~	www.uraniumenergyexploration.com

^{^} subject to completion of Merger announced 15.12.22.

^~ subject to completion of disposal of Reitenbach and E-12 properties, announced on 8.8.22 and 4.11.22, respectively.

^* reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.

 

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