Molopo Farms Complex Project - Exploration Update

RNS Number : 8532U

Power Metal Resources PLC

04 August 2022

 

4 August 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Molopo Farms Complex Project - Exploration Update

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" or the "Project") targeting a large scale nickel-platinum group element ("PGE") discovery in southwestern Botswana.

MOLOPO FARMS EXPLORATION HISTORY

-  The Project is targeting nickel (Ni), copper (Cu) and platinum-group-element (PGE) mineralisation within the Molopo Farms Complex ("MFC") of the Bushveld Large Igneous Province.

-  Airborne geophysics previously completed confirmed an exploration model focusing on magmatic feeder zones within the MFC.

-  Significantly, the previous drill programme which concluded in 2021 intersected nickel-sulphides downhole with individual grades up to 1.69% Ni including 0.55g/t platinum (Pt)  over 0.6m from 446.7m downhole ¹.

-  Follow-up petrographical work undertaken identified primary nickel and copper sulphides (incl. pentlandite, bornite and chalcocite).

NEXT EXPLORATION PHASE COMMENCES

-  Spectral Geophysics have mobilised to the Project to conduct two electromagnetic geophysics surveys to facilitate the precision targeting of planned diamond drill holes for a drill programme expected to commence in the autumn.

-  Power Metal technical team have compiled all project data into a dataroom to underpin forward project development and which is available for third parties who have expressed an interest in potential engagement on the Project.

-  Final negotiations proceeding with Botswana drill contractors for the upcoming planned diamond drill programme at the Project.

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

"We are making very important progress as we look to reinvigorate the Molopo Farms Project, arguably one of the Company's major exploration success stories from 2020/2021.

The main next step is planned diamond drilling focused on the discovery of economic nickel sulphides and following up on the highly positive results from the drill programme completed in early 2021.

To ensure we are optimising drill hole targetting, Spectral Geophysics have been engaged to conduct a geophysics programme, and whilst that continues we are making arrangements for the engagement of drill contractors.

Molopo is a priority exploration Project for Power Metal and I look forward to providing further updates to the market on our operational progress and drill plans."

FURTHER INFORMATION

Power Metal has amalgamated and compiled all data received from previous operators and organised it into a singular dataroom. Third-parties that have previously expressed interest in the Project have been re-engaged by Power and have been supplied with the updated database.

The Company is in final stages of negotiation with two Botswana-based drill contractors and is looking to finalise and sign a contract within the next few weeks in advance of a diamond drilling programme currently expected to commence in the autumn.

Weekly technical meetings are being conducted between Power Metal and representatives from the project partner Kalahari Key Mineral Exploration (Pty) Ltd ("Kalahari Key" or "KKME"), in order to finalise the planned drilling campaign and deliniate future exploration works.

Spectral Geophysics has mobilised to the Project and has commenced a geophysical work programme which will include moving loop electromagnetic ("MLEM") surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. The rationale for these surveys is as follows:

o  Target 1-6 : previous 2020/2021 drill programme results returned nickel values up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au over 0.6m from 446.7m downhole, within layered ultramafic rocks of the Molopo Farms Complex ^1,2. The ongoing MLEM survey will aid in the further refinement of the original electromagnetic ("EM") geophysics anomaly that was targeted by drilling in 2021. The results from this survey will allow for optimum drillhole siting prior to the 2022 drilling programme.

o  Target 1-14 : is defined by a broad strong EM anomaly which was targeted by a single hole 2020/2021 drill programme ². That drilling intersected carbonaceous mudstones at depth ³ which, although highly conductive, were determined to be flat lying and therefore did not explain the anomaly which was indicative of a shallower, steeply dipping body. The MLEM survey will provide higher resolution and further refinement of the original EM response, aiding the effective siting of future drill holes.

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.  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest  in Molopo 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.

References:

1  Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )

2  Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

3  Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w   )

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.

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 internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within 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:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

For planned IPO vehicle New Ballarat Gold Corporation PLC (NBCG) 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/ .

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Hyperspectral data analysis conducted across 7 properties. Updating to 7 data rooms for third party review.	Finalise review of data from 3 properties.  Prepare for summer exploration programme across 4 properties.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Comprehensive data review complete and establishment of data room for third party review. Geophysics programme underway.	Finalise drill programme targets, select drill contractor and launch drill programme.
Tati Project	Botswana	100%	Site visit with mapping of gold workings and mine dumps.	Exploration planning underway including further mapping, sampling and launch of an RC drill programme.

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

 

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