Tati Project - Large Scale Anomalies Confirmed

RNS Number : 1015J

Power Metal Resources PLC

19 August 2021

 

19 August 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Project Botswana - Large Scale Anomalies Confirmed from Soil Sampling Results

Results Highlight Several Kilometre Scale Nickel  and Arsenic In-Soil Anomalies

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the results from the first batch of samples analysed as part of its recently completed Phase I work programme on its gold-nickel properties in the Tati Greenstone Belt (the "Tati Project" or the "Project") located near Francistown, Botswana.

Power Metal exercised its option to acquire a 100% interest in the Project on 28 July 2021 through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited. Details of the option exercise can be found below.

Tati Project Botswana - Option Exercised - 07:00:05 28 Jul 2021 - POW News article | London Stock Exchange

Programme Highlights

· A total of 1,107 soil samples and 49 rock samples were collected across five grid areas as part of the Phase I programme.

· The results presented herein represent 727 soil samples from grids 2 to 5, which were analysed utilising portable field X-Ray Fluorescence equipment ("XRF").

· The soil samples from grid 1 and the 49 rock samples are currently undergoing fire assay analysis testing for gold in Perth, Australia, at Intertek Group plc's laboratory. These results will be released in coming weeks once received, analysed and interpreted by Power Metal.

· XRF testing of soil samples across grids 2 to 5 confirm multiple large scale nickel and arsenic anomalies, with arsenic being a pathfinder element for gold deposits in the Tati Greenstone belt.

Figures 1-4, which highlight the results from the Phase I programme across grids 2 to 5 can be viewed on the Company's website through the following link:

https://www.powermetalresources.com/tati-phase-i-programme-results/

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

"The Tati Project is potentially a game changing opportunity for Power Metal. The Tati Greenstone Belt was the site of southern Africa's first gold rush, but since then its nickel and gold potential has been underexplored.

Results from the XRF analysis of the geochemical samples collected as part of the Phase I work programme have delivered multiple large scale anomalies with notably strong nickel and arsenic-in-soil anomalies.  It is now confirmed that we have substantial nickel and gold exploration targets emerging and we are following the pathway needed to make major discoveries.

We are awaiting gold-in-soil assay results from grid 1, as XRF is not a reliable tool for measuring gold values in the context of this project.  We expect those results in the near future.

As a result of the positive outcomes of our work completed to date, we expect to move to a Phase II programme shortly, and this is being planned accordingly.

This follow up programme may include ground based geophysics, including possible magnetic surveys over the newly defined nickel targets, as well as Rotary Air Blast ("RAB") drilling over the gold targets (grids 1, 3 and 4). Additional details about the upcoming Phase II work programme will be announced within the coming weeks."

Result Highlights

· Grid 2 geochemical results highlight a roughly 1000m x 200m high-tenor nickel-in-soil anomaly which is coincident with a government mapped mafic intrusive body. Of the 80 total samples taken from grid 2, 23 returned greater than 500ppm Ni (up to 1489ppm), and an impressive 50 samples returned greater than 100ppm Ni.

· Minimal work has been completed on grid 2 historically and the strong geochemical anomaly outlined by the Phase I programme represents a compelling target for the discovery of magmatic nickel sulphide mineralisation. The Tekwane nickel mine is located roughly 15km southeast of the newly defined nickel anomaly and is hosted within same aged (pre-cambrian) mafic intrusive units mapped on grid 2.

· Grid 3 geochemical results highlight a roughly 3000m long northwest-southeast trending high-tenor arsenic-in-soil anomaly which ranges in width from 500m to 200m along its extent. It is crosscut by a east-west trending structure which truncates the mineralisation over a distance of less than 150m. Of the 354 samples collected from grid 3, 79 returned greater than 100ppm As (up to 1097ppm As). The anomaly remains open towards the northwest and southeast. Arsenic is known as a strong pathfinder element for gold in the Tati Greenstone belt, and the anomaly represents a compelling target for the company going forward.

· Grid 4 geochemical results highlight a roughly 1000m long by 400m wide north-south trending arsenic-in-soil anomaly. Of particular intereset, the anomaly occurs along a geological contact zone between the Last Hope Formation, and the Eastern Succession Volcanics, a analogous geological position the to Signal Hill gold mine located only 2.5km to the southeast along the same geological structure. Arsenic is known as a strong pathfinder for gold in the Tati Greenstone belt, and the anomalies proximity to the Signal Hill mine and analogous geological position make it a priority exploration target for the Company going forward. 

· Grid 5 geochemical results highlight a roughly 1500m long by 300m wide northeast-southwest trending nickel-in-soil anomaly. The Nickel mines of the Tati Greenstone belt, including the Tekwane, Selkirk and Phoenix mines are located less than 5km from the newly defined anomaly. Previous operators within the belt have suggested that the mafic intrusive units which host the nearby nickel mines extends further southeast than previously mapped, and the newly defined robust nickel anomaly identified provides further evidence to this postulation. Due to the proximity to operating nickel mines, the newly defined anomaly at grid 5 will be a priority exploration target for the Company going forward.

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 (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 and base 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.

 

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