Molopo Farms Complex - Geophysics Update T1-14

RNS Number : 9468D

Power Metal Resources PLC

25 October 2022

 

25 October 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Geophysics Update T1-14

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

On 20 October 2022 the Company announced an update regarding the ongoing drilling programme and the link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-update/15681045

Further detailed work in regard to the moving loop electromagnetic ("MLEM") survey results over the target area T1-14 has been ongoing, with an update relating to those results presented herein.

HIGHLIGHTS

§ A geophysical electromagnetic ("EM") 'superconductor' has now been identified at target area T1-14, with a conductance reading akin to that of massive sulphides. ¹

§ As a result, the superconductor at target area T1-14 has been upgraded to priority status and will be subject to diamond drilling in the coming weeks, being now the strongest MLEM conductor identified on the Project to date.

§ Diamond drilling at target area T1-14 will commence after the completion of diamond drillholes DDH1-6B and DDH1-6B(2), both targeting the conductor identified within target area T1-6.

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

"The momentum at our Molopo Farms Complex Project continues to build and we now have four Company designated priority (A+) targets that we plan to test during the ongoing drilling campaign.

The results from the extra MLEM work over target area T1-14 are quite definitive and have resulted in the upgrade of this target area following the identification of a superconductor.

I appreciate that the mineral discoveries under cover that we seek at Molopo Farms, and at other Company interests, often require a long lead time with complex preparatory work often needed to define drill targets.  However, we have the rig drilling now at Molopo Farms and the drill testing of the T1-14 superconductor, targeting a massive nickel sulphide discovery, is expected to commence in the coming weeks."

FURTHER INFORMATION

Target Area T1-14

§ During the 2020/2021 drilling campaign, a 515.8m long diamond drillhole (KKME1-14) was drilled within target area T1-14 which was targeting a priority airborne EM conductor.

§ Drillhole KKME1-14 intersected three main geological units including serpentinites (40.4m - 208.5m) quartzites (208.5 - 479.6m) and graphitic mudstones (479.6 - 515.8m). It was originally assumed that the graphitic mudstone was the cause of the airborne conductive anomaly identified at this target zone - and as a result the hole was shut down at 515.8m.

§ The conductor at target area T1-14 was originally given a lower priority B ranking due to it being slightly deeper than priority conductors found at T1-6, T2-3 and T1-3. However, following further analysis of available datasets, the following conclusions have been reached:

o  The MLEM conductor modelled at target area T1-14 has been classified as a superconductor, ranking it as the strongest conductor identified at the Project to date. The conductance reading at T1-14 is akin to that of massive sulphides.

o  KKME1-14 was drilled mostly within a magnetic low, which is consistent with the drillhole intersecting mostly sedimentary rock units instead of targeted mafic/ultramafic rocks (which are typically strongly magnetic and can host primary magmatic nickel sulphides).

o  The MLEM superconductor now modelled at target area T1-14 has a discrete shape. If the graphitic mudstones were the cause of the conductor identified at this target area, it would be expected that this conductor would be flat-lying, consistent with the typically very flat-lying and continuous nature of Transvaal sedimentary units within the Molopo Farms Complex.

o  Three dimensional ("3D") modelling of KKME1-14 shows that it intersected only the edge of the newly identified superconductor.

§ The combination of the ground MLEM and airborne EM geophysics datasets into a single 3D model has enabled a geological model to be developed. This is interpreted to show a geological contact zone between mafic/ultramafic magmatic intrusive rocks and potentially sulphur rich sedimentary rocks (as signified by overlapping highly magnetic and conductive bodies). Melting of the sedimentary rocks at this intrusive contact zone could have led to magma mixing, differentiation, and contamination that triggered sulphide saturation and the segregation of an immiscible sulphide melt which could have resulted in the accumulation of massive sulphide mineralisation.  It appears that this prospective, highly conductive, contact zone was not intersected by the previous drillhole KKME1-14.

§ As a result of further integration and analysis of available datasets, target area T1-14 has been upgraded by the Company to Priority A+ status and a 700m drillhole (DDH1-14A) is now planned following the completion of DDH1-6B(2). It is estimated that the superconductor could be reached at a downhole depth between 450-500m.

FURTHER INFORMATION

Figure 1 - Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.

Figure 2 - T1-14 3D View (Magnetics; Pink = Magnetic High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the ground magnetic inversion. KKME1-14 was drilled mostly within a magnetic low, which is consistent with the quartzites and carbonaceous mudstones.

Figure 3 - T1-14 3D View (MLEM: Blue = Conductivity High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the MLEM superconductor identified.

 

The diagrams and images presented above will be uploaded shortly to the Company's website which may be reached 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/

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

Reference Notes

1  The term 'superconductor' is utilised here, to describe a region of very high geophysical conductivity as depicted by a very slow decay of the electromagnetic signal. In the case of T1-14, the electromagnetic signal has not decayed to system noise levels after 2,000 milliseconds (msecs). The calculated decay constant is between 400 and 550 msecs which is common for massive nickel sulphides.

Glossary

Serpentinite: Mafic rock composed of one or more serpentine group minerals. Serpentinization is a form of low-temperature metamorphism of ultramafic rocks. They often are strongly magnetic.

Quartzite: Hard, non-foliated metamorphic rock which was originally very quartz rich. It has a low magnetic and conductance response.

Graphitic Mudstone: Graphite rich, fine-grained clastic sedimentary rock. It has a low magnetic and can have a high conductance response.

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 has multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company's priority exploration projects is outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme complete at 3 properties.  Preliminary planning for work in Spring/Summer 2023 is ongoing.	Assay results from samples collected during fieldwork.
Molopo Farms	Botswana	c.53%#	T1-6 conductor target drilling underway. Further MLEM surveys planned over additional AEM targets identified.	Drill programme updates and findings from further MLEM survey work.
Tati Project	Botswana	100%	RC drilling and sampling of mine dumps complete.	Review of mine dumps sampling and assay results from RC drill programme.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

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	Status/Operations	Link
First Class Metals PLC	Investment - POW 27.91% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
First Development Resources PLC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
Kavango Resources PLC	Investment - POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22 and issue of Kavango shares e.g. financing announced 24.10.22) Exploration in Botswana	www.kavangoresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will 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/ .
Uranium Energy Exploration PLC	Planned IPO - POW on listing estimated 40-55% Uranium exploration in the Athabasca region of Canada	www.uraniumenergyexploration.com

 

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