Tati Project, Botswana - Exploration Update

RNS Number : 7288S

Power Metal Resources PLC

18 July 2022

 

18 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Project, Botswana - Exploration Update

Site Visit Completed, Extensive Gold Workings with Dumps Identified and Planning for Next Exploration Steps Underway

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update in respect of the Company's 100% owned Tati Project ("Tati" or the "Project") located within the prolific Tati Greenstone Belt near Francistown, Botswana.

Collectively the Tati Project covers three individual prospecting licences ("PLs") for gold and nickel mineralisation including PL126/2019, PL127/2019, as well as the newly acquired 16.14km² PL049/2022 which covers the historic Cherished Hope gold mine.

A map highlighting the current licences and key features can be found on the Company's website through the following link:

https://www.powermetalresources.com/cherished-hope-gold-mine/

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

"It is particularly exciting to get on the ground at our newly granted prospecting licence PL049/2022 and the initial findings are extremely positive.  Not only have we identified extensive gold workings, but also two large sized fines dumps.

We will be back on site to undertake further mapping and sampling, including the fines dumps to assay test for gold as there may be sufficient gold grades remaining to consider processing the material to generate income to fund more extensive exploration.

Importantly we have moved to plan for the near term launch of reverse circulation drilling to test along-strike and the down-dip extent of the Cherished Hope mineralised quartz reef structures.

Further updates will follow in the near term on this exciting project where Power Metal has a 100% interest."

Highlights

-  A site visit has been successfully completed to the historical Cherished Hope gold mine which is located entirely within the newly acquired PL049/2022.

-  Ground mapping has shown the historical gold workings are significantly more extensive than previously understood, with at least 10 individual workings comprising a combination of vertical shafts and trial pits, extending over approximately 175m of strike-length. 

-  Two fines dumps (representing waste material from the Cherished Hope gold mine) are located proximal to the historical workings.  A survey is required to determine the volume of fines material in each dump, against which, with sampling, the amount of contained gold may be estimated.

-  It is a common practice within the Tati Greenstone belt, to excavate and truck historical fines dump material to operational processing plants, as these modern plants are capable of extracting gold from lower grade material rendering historical waste as potentially economic.  This possibility is being investigated further as a potential source of low-cost near-term revenues to help fund more extensive and expeditious exploration activities.

-  The Cherished Hope gold mine and fines dumps cover only a small portion of the gold-in-soil anomaly which extends across the majority of PL049/2022 (see map linked above).

-  The Company is undergoing an in-depth review of the site visit report covering the newly acquired licence and is finalising next exploration steps. It is anticipated that this programme will include sampling of the fines dump material and a volumetric survey in order to determine an average gold grade range for each fines dump.

-  In addition, planning is underway for an early and low-cost reverse circulation ("RC") drilling programme aimed at testing the along-strike and down-dip extent of the Cherished Hope mineralised quartz reef structures.

-  Further updates in regards of this programme will be announced to the market in due course.

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

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
Alamo Gold Project	USA	Earn-in to 75%	Technical reports received following excavation of multiple test pits and mapping & sampling completed.	Analysis of technical reports and potential follow-on work programme under review.
Athabasca Uranium	Canada	100%	Hyperspectral data analysis conducted across all 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.	Finalise next exploration steps and action plan.
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.
Victoria Goldfields	Australia	49.9%	Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.	Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences.

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

 

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