Molopo Farms Complex - Drilling Programme Update

RNS Number : 4422J

Power Metal Resources PLC

22 December 2020

 

22 December 2020

Power Metal Resources PLC

 ("POW" or the "Company")

Botswana Molopo Farms Complex - Drilling Programme Update

Power Metal Resources plc (LON:POW) the AIM listed African focused metals exploration and development company is pleased to provide a further update on the recently completed second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd ("Kalahari Key" or "KKME") Molopo Farms Complex Project (the "Project" or "MFC Project"), which is targeting prospective massive nickel sulphide and platinum-group metal ("PGM") mineralisation in Botswana.

Re-analysis has been undertaken of the airborne electromagnetic ("AEM") conductivity depth sections on hole 1-6, and of the ground geophysics results interpreted by superconducting quantum interference device ("SQUID"), in the light of preliminary assessment of the drill core.

This re-analysis has resulted in the following main conclusions:

• The AEM indicates an arched shape geophysical conductive anomaly, possibly close to flat-lying and with a depth to anomaly top of over 200m.

• Drill hole 1-6 intersected this conductor and the source may be the sheared and serpentinised ultramafic rock encountered in the drill core, however there can be no certainty of this until full core analysis, including a review of mineralogy, has been undertaken.

• The AEM itself would not have penetrated a conductor below this observed conductor however the SQUID survey would have penetrated to any lower conductor but its signal will have been distorted by the shallower conductor, influencing the plate modelling results.

• Samples are to be assayed from a number of the 26 major cyclically layered ultramafic rock units intersected, including the units comprising the geophysical conductor zone.

• In addition, the hole is to be deepened to 600-650m as recommended by KKME's geophysicist on both geological and geophysical grounds.

• Deepening of the hole will be undertaken when the drill team return from their Christmas break in January 2021.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

"The confirmation from our consultants that we have intersected at least one conductive target in the over 500 metres of ultramafic rock through which we drilled in the second hole of our programme is most encouraging news.

Detailed logging and analysis of the core will continue, and further sections of interest may be identified in the 26 major units intersected. We are told that with ultramafic rock in this area it is difficult to see sulphides on the core surface, and easier on a cut surface, so there remains work to be done to determine metal content.

We now know that we should look deeper for a further significant target and that additional drilling work will start after the Christmas break. The drill has been left in place aligned with the hole.

We will provide further updates as material developments occur."   

OWNERSHIP STRUCTURE - MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in ("Earn-In") to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 31 January 2021, notably the diamond drilling of selected targets (the "Drill Programme").  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.  Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic ("EM") and Natural Field Audio Magneto Telluric ("NF-AMT") geophysics surveys.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme with a current end of hole depth of 547m (to be deepened as outlined above). The hole was originally designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project's Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme's first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

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 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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