TIDMPOW
RNS Number : 3733G
Power Metal Resources PLC
29 March 2022
29 March 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Ditau Project Botswana - Rare-Earth Element Drill Targets
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces a update for the Ditau
Project ("Ditau" or the "Project") located in southwestern
Botswana.
The Ditau Project is held by Kanye Resources Pty Ltd ("Kanye
Resources"), a Botswana joint venture company in which Power Metal
and Kavango Resources plc ("Kavango") (LON:KAV) each hold a 50%
interest.
Ditau is targeting rare-earth element ("REE") discoveries. A
diamond drill rig is now being mobilised to the first drill
location and drilling is expected to commence within the next few
weeks.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"It is imperative for the world to find new sources of
rare-earth elements in secure and stable mining jurisdictions. At
Ditau, several years of preparatory work utilising modern remote
sensing and various geophysical techniques have culminated in
multiple high-priority exploration targets which we believe offer
the potential for new discoveries of rare-earth element
mineralisation within mining friendly Botswana.
For Power Metal and Kavango to jointly launch another drill
programme in Botswana demonstrates our confidence in the geological
prospectivity across our project interests in country, and we look
forward to the progression of this important drilling programme at
Ditau and its findings."
HIGHLIGHTS
Kanye Resources has identified 12 airborne magnetic targets at
Ditau of which 9 are clear ring structures that are believed to
represent possible carbonatites that are considered by the Company
to be prospective for rare-earth element mineralisation. Kanye is
now commencing on a diamond drilling campaign which will include up
to 6 deep drillholes (up to 2,400m estimated in total) targeting
three of the highest priority targets identified to date:
- The "i10" target, a discrete circular airborne magnetic
anomaly of 2.2km diameter (a independent orientation study
concluded that the magnetic source of the i10 target is not related
to intrusive kimberlitic bodies)
- The "i8" target, a larger ring like target of about 4km diameter, and
- The "i1" target that may represent a large, 7km x 18.5km
intrusive complex where structures have been identified which may
be indicative of potential carbonatite intrusives.
Whilst the drilling campaign is primarily targeting REE
mineralisation hosted within interpreted carbonatites or felsic
intrusives, the geophysical targets could also be related to
layered mafic intrusive systems, which are considered by the
Company to be prospective for nickel, copper, and platinum group
element ("PGE") mineralisation.
The target depth horizons at all targets are less than 400m for
each drillhole, and the estimated Kalahari sand cover is between
60m-120m thick based on estimates from the recently completed
Audio-frequency Magnetotelluric ("AMT") surveys at Ditau. The drill
programme may be revised as it progresses. While the nominal
targets are carbonatites, other mineralisation styles may also be
intersected within the ring structures. The programme has been
designed with this flexibility in mind.
The 12 airborne magnetic targets identified at Ditau are not
known to have been tested for either REEs, base or precious metal
mineralisation historically. Kanye has identified these structures,
which range in size from 1km to 20km in diameter using geophysical
techniques which are more advanced than that available to previous
operators. Kanye has employed airborne magnetic, ground magnetic,
gravity and AMT surveys at Ditau and the results from these surveys
have allowed for precise drill targeting.
DITAU DRILLING RATIONALE
Carbonatites have the potential to host both rare-earth element
and base-metal mineralisation. Carbonatites are often unique
geologically and can show marked differences from one intrusive
complex to the next. Notably they can form very large, world class
mineral deposits highlighted by examples in the region (e.g. the
Palabora Cu deposit in South Africa) and around the world (e.g.
Jacupiranga REE deposit in Brazil, and the Kovdor REE deposit in
Russia).
In addition to primary REE mineralisation, Carbonatites are also
known as a source of secondary REE mineralisation located within
the supergene/weathering zone. Kanye believes that both primary and
secondary mineralisation are legitimate target styles at the Ditau
Project.
Carbonatites often occur in "swarms" or clusters, oriented along
favourable and clearly defined geological trends. The 12 structures
identified at Ditau occur along a southwest-northeast oriented
regional corridor which further along strike hosts the Mabuasehube
and Kokong kimberlite groups. Desktop analysis of regional
geological data by Kanye's geologists suggest that this trend is
subparallel to corridors that host other kimberlite groups within
Botswana and northwest Angola. Significantly, in both countries
these trends are known to host both kimberlite and carbonatite
intrusives.
In addition to the known presence of kimberlites and
carbonatites within this geological trend, further supporting the
possible presence of carbonatites at Ditau are a small cluster of
carbonatite intrusives including KW2, definite, and KS12 & KS36
(the "Falconbridge Carbonatites"), located near to the Project. The
Falconbridge Carbonatites were drilled by Falconbridge Exploration
Botswana (Pty) Ltd in the late 1970's-early 1980's, to the
immediate north and 30km along strike to the northeast of the Ditau
Project.
Kanye Resources commissioned GeoResources Consultancy to conduct
a reconnaissance soil sampling survey for kimberlite indicator
minerals over the i10 target. The survey report concluded:
" The laboratory reported no kimberlitic grains picked from any
of the (soil) samples. If the target were related to any intrusive
kimberlitic body, the samples would have at least produced some
kimberlitic indicator minerals since an optimum sample volume (60
litres) and sampling density was used in this programme. The cause
of the magnetic anomaly is still to be established but is non
kimberlitic.
The areas covered by the prospecting licence still has potential
for the occurrence of kimberlite bodies. Some of the known
kimberlite fields in Botswana, from the Orapa field in the
north-east, through the Gope field, Kikao-Khutse field, Kokong
field and down to the Tsabong field in the south-west corner of the
country. These kimberlite fields form the north-east, south-west
kimberlite intrusive corridor. The areas with the sampled magnetic
targets fall within or close to the margins of this corridor. "
In addition, analysis of the gravity survey results by Kavango's
in-house team of geophysicists suggests the i10 target has a dense
underlying body causing a high gravity anomaly. The coincidence of
the gravity and magnetic anomalies strengthens Kanye's view that
this target could be prospective for either carbonatite or base or
precious metal mineralisation
Additionally, the larger geophysical targets at the Ditau
Project have a more complicated geophysical signature that may be
caused by magmatic layered intrusive bodies. Layered mafic
intrusives are known sources of base and precious metals within
Botswana and worldwide. Kanye believes it is possible that the
magnetic anomalies being drill tested have the potential to host
ultramafic rocks, which could be prospective for magmatic nickel
and precious metal mineralisation. Drill samples from the programme
will be sent to the laboratory where they will undergo
multi-element analysis.
As noted above, apart from recent exploration by Kanye, no known
REE, base or precious metal exploration has been conducted within
the Ditau Project. As a result, Kanye will be the first known
company to drill test these exciting targets.
JOINT VENTURE STRUCTURE
The Ditau Project is held by Kanye Resources Pty Ltd, a Botswana
joint venture company in which Power Metal and Kavango each company
hold a 50% interest. Exploration costs are equally shared. Kavango
is the operator. Mindea Exploration and Drilling Services (Pty) has
been contracted to conduct the drilling.
THE DITAU CAMP PROJECT
The Ditau Camp Project comprises two prospecting licences
("PLs") (PL169/2012 & PL010/2019) that cover an area of
1,386km(2) . Detailed geophysical and geochemical analyses by Kanye
has identified 12 ring structures within the two PLs. These ring
structures have the potential to host REE-rich carbonatites.
Carbonatites are a principal global source of rare-earth
elements including the much sought-after elements neodymium (Nd)
and praseodymium (Pr) which are used in the manufacture of the new
generation of electric vehicles (EVs), permanent magnets and other
high-tech applications. Other elements/minerals known to be
associated with carbonatites include niobium, phosphates, monazite,
strontium, magnetite and copper.
Additionally, layered mafic intrusives have the potential to
host base- and precious-metals as evidenced in the Molopo Farms
Complex, Selebi-Phikwe and Tati Nickel projects in Botswana.
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) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway,
with results awaited, as outlined below:
Project Location POW % Work Completed Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field and assay
Project to 75% test pits and mapping results from on-site
& sampling. work programme.
---------- --------- ------------------------ ----------------------------
Athabasca Canada 100% Data compilation Interpretation
Uranium across uranium results from 5
properties of 7 properties.
---------- --------- ------------------------ ----------------------------
Authier North Canada Earn-in Soil & rock sampling Technical Review
Lithium to 100% completed of exploration
results & define
next exploration
steps.
---------- --------- ------------------------ ----------------------------
Ditau Project Botswana 50% Drill programme Field updates and
focused on key receipt & review
targets notably of laboratory assay
drilling of potential results.
carbonatites and
targeting rare-earth
elements.
---------- --------- ------------------------ ----------------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling.
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- --------- ------------------------ ----------------------------
Molopo Farms Botswana 53% Review of recent Determine next
exploration findings. exploration steps
and action plan.
---------- --------- ------------------------ ----------------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Receipt & review
drill programme of laboratory assay
completed results.
---------- --------- ------------------------ ----------------------------
Haneti Project Tanzania 35% Diamond drill programme Receipt & review
completed of laboratory assay
results.
---------- --------- ------------------------ ----------------------------
Victoria Goldfields Australia 49.9% Diamond drill programme Field updates and
underway receipt & review
of laboratory assay
results.
---------- --------- ------------------------ ----------------------------
Paterson Projects Australia 83.33% Wallal passive Findings from multiple
seismic and 2D work programmes
seismic processing including final
work programme approvals and preparations
completed. for planned deep
Review of historical diamond drilling.
data and target
generation for
Ripon Hills & Braeside
West projects.
---------- --------- ------------------------ ----------------------------
Selta Project Australia 83.33% Field reconnaissance Field updates.
work now underway,
including mapping
and sampling.
---------- --------- ------------------------ ----------------------------
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