TIDMPOW
RNS Number : 0859W
Power Metal Resources PLC
16 August 2022
16 August 2022
Power Metal Resources plc
("Power Metal" or the "Company")
Molopo Farms Complex Project - Drill Target K1-6
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 Farms" or the "Project")
targeting a large scale nickel-copper-platinum group element
("PGE") discovery in southwestern Botswana.
KEY HIGHLIGHTS:
-- Two ground-based electromagnetic ("EM") geophysics surveys
now complete, covering areas hosting 2020/2021 diamond drillholes
KKME 1-14 ("K1-14") and KKME 1-6 ("K1-6").
-- Preliminary survey results have highlighted a large shallow
dipping magnetic conductor at drillhole K1-6.
-- Plotting of drillhole K1-6 shows that the drillhole
penetrated the edge of the newly identified magnetic conductor at a
similar stratigraphic level to nickel-sulphide mineralisation
averaging 7.0m @ 0.443% Ni from 445m, including 0.6m @ 1.69% Ni,
0.55g/t Pt & 0.14g/t Au from 446.7m downhole.(1) This is within
a broader mineralised interval from 294.7m (when pentlandite was
first logged - assay result of 6606ppm Ni from 294.7 - 295.28m) to
the end of the hole at 597.8m (minor sulphides logged - assay
result 2852ppm Ni from 597.0 - 597.8m).
-- Planned 2022 diamond drill programme start date now being
brought forward. The upcoming programme will now focus on testing
the central and stronger part of this magnetic conductor. At
present the plan is to drill 6 drillholes for approximately 2600m
during this upcoming programme.
A map highlighting a location plan map of the Project (Fig.1) as
well as a zoomed out (Fig. 2) and zoomed in (Fig. 3) cross-section
of the MLEM results over target area K1-6 can be found at the link
below:
https://www.powermetalresources.com/molopo-farms-complex-rns/
Paul Johnson, Chief Executive Officer of Power Metal Resources
commented:
"Today's exploration news is, in my view, potentially one of the
more significant the Company has released in its 3-year history as
Power Metal.
We have confirmed that drillhole K1-6 at Molopo Farms, drilled
during the 2020/2021 programme, intersected the edge of a very
large-scale and strong magnetic conductor. Significantly, drillhole
K1-6 highlighted that the edge of the magnetic conductor was
mineralised, with widespread nickel sulphides demonstrated from
assay testing and follow up petrological analysis.
As a result of the findings, multiple drillholes planned for the
2022 programme will target the centre of the magnetic conductor
where we believe there is the potential for a more strongly
mineralised system where the conductive response is considerably
stronger and larger.
The EM survey over K1-6 captured 800m of magnetic conductor
length where it remains open at depth. The magnetic conductor is
also shallow dipping and expands in magnitude and size at depth
based on the preliminary processed survey images we hold at
present.
As a result we believe we have a compelling reason to accelerate
drilling at Molopo Farms and are working in order to achieve
that.
In the link above to our website you will see the survey images,
with explanatory information, for review. The further information
below explains the findings in more detail and also gives
additional information in regards to an additional strong magnetic
conductor identified below target 1-14, which was not tested by the
2020/2021 drillhole in that area.
This is an exciting time for the Power Metal team and we are now
pushing ahead at pace."
GEOPHYSICAL SURVEY - OVERVIEW
-- Spectral Geophysics have completed the 2022 Phase I
exploration programme which included two moving loop
electromagnetic ("MLEM") geophysics surveys over targets 1-6 and
1-14. The MLEM survey results will assist the company in further
refining drill collar locations prior to the planned 2022 diamond
drilling campaign.
-- Preliminary MLEM survey results over the I-6 target suggest
that the 2021 drillhole (K1-6) targeting this zone clipped this
sizeable shallow-dipping (south) magnetic conductor. The magnetic
conductor appears to be increasing in magnitude with depth where it
remains completely untested by drilling.
-- Preliminary MLEM results over the 1-14 target suggest the
presence of a strong magnetic conductor located directly south of
the 2021 drillhole (K1-14) that targeted this zone. While there are
conductive Transvaal carbonaceous mudstones in the area of the
survey, the centre of this anomaly is strongly coincident with a
magnetic high caused by the ultramafic rocks in the area -
suggesting that the magnetic conductor detected by this survey may
be located within the ultramafic intrusive rocks.
-- A Botswana based drilling contractor has been selected for
the upcoming planned diamond drilling programme at Molopo Farms and
a site visit with the drilling company's foreman and Power's
in-country geological consultant is planned for later this
week.
FURTHER INFORMATION
Spectral Geophysics has now completed MLEM surveys over targets
1-14 and 1-6 located within prospecting licence area PL311/2016.
Preliminary results have been made available to the Company, with
finals results expected within the coming weeks.
The rationale for these surveys was as follows:
Target 1-6 : Previous 2020/2021 drill programme results returned
nickel (sulphide) values of up to 1.69% Ni with 0.55g/t Pt and
0.14g/t Au, within a composite intersection of 7.0m @ 0.44% Ni from
445 to 452.0m in K-1-6, hosted by layered ultramafic rocks of the
Molopo Farms Complex .(1,2)
The preliminary results from the recently completed MLEM survey
have allowed for significantly enhanced resolution of the original
EM anomaly that was targeted by drilling in 2021.
Specifically, the results now indicate that drillhole K1-6
intersected the edge of the large shallow-dipping magnetic
conductor in the area, which also appears to be increasing in size
and magnitude with depth where it remains completed untested by
drilling.
The 2022 drilling programme will test this intriguing
target.
Target 1-14 : Defined by a broad strong EM anomaly which was
targeted by a single drillhole during the 2020/2021 drill
programme.(2) The drillhole (1-14) intersected carbonaceous
mudstones at depth which, although highly conductive, were
determined to be flat lying and therefore did not explain the
magnetic conductor which was indicative of a shallower, steeply
dipping body. (3)
The preliminary results from the 2022 MLEM survey over this
target have identified a magnetic conductor that is coincident with
a magnetic high associated with ultramafic rocks in the area.
The results therefore suggest that the magnetic conductor may be
located within the ultramafic intrusive rocks in the area, making
it a highly viable drill target for the 2022 drilling campaign.
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
)
Diamond Drill Hole KKME 1-6 Assay Data - reported 24 September
2021 - with 7.0m composite
Drill From To (m) Interval Ni (ppm) Au (g/t) Pt (g/t)
Hole (m) (m)
ID
1-6 445.0 446.0 1.0 2663 <0.05 <0.05
------ ------- --------- --------- --------- ---------
1-6 446.0 446.7 0.7 3012 <0.05 <0.05
------ ------- --------- --------- --------- ---------
1-6 446.7 447.3 0.6 16961 0.14 0.55
------ ------- --------- --------- --------- ---------
1-6 447.3 448.0 0.7 6948 <0.05 0.11
------ ------- --------- --------- --------- ---------
1-6 448.0 449.0 1.0 3056 <0.05 0.06
------ ------- --------- --------- --------- ---------
1-6 449.0 450.0 1.0 3187 <0.05 <0.05
------ ------- --------- --------- --------- ---------
1-6 450.0 451.0 1.0 2504 <0.05 <0.05
------ ------- --------- --------- --------- ---------
1-6 451.0 452.0 1.0 2474 <0.05 <0.05
Weighted average
Ni intersection 7.0 4,433
--------- --------- --------- ---------
* All depths and intervals are as measured downhole.
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) +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.
Exploration Work Overview
Power Metal has internal exploration programmes completed or
underway, with results awaited, as outlined in the table below.
Project Location Current Work Completed Results Awaited
POW or Underway
%
Athabasca Canada 100% Ground exploration Results from ground exploration
Uranium programme underway including spectrometer
at 3 properties. analysis, sampling and
Continuing data mapping.
analysis across
the property
portfolio.
--------- --------- --------------------- --------------------------------
Authier Canada Earn-in Property Evaluation Update covering exploration
North to 100% Report completed. plans for target areas
Lithium identified during the
Evaluation.
--------- --------- --------------------- --------------------------------
Molopo Botswana 53%(#) Geophysics programme Final preparations for
Farms complete. launch of accelerated
drill programme targeting
very large scale magnetic
conductor.
--------- --------- --------------------- --------------------------------
Tati Botswana 100% Sampling of mine Review of mine dumps
Project dumps complete. sampling, and processing
potential. Launch of
RC drill programme.
--------- --------- --------------------- --------------------------------
(#) subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
Exploration work programmes may also be underway within Power
Metal investee companies and 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. These
interests are summarised in the table below:
Company Status/Operations Link
First Class Investment - POW 28.19% www.firstclassmetalsplc.com
Metals PLC Exploration in the Schreiber-Hemlo
region of Ontario, Canada
------------------------------------ ------------------------------------------------------------
First Development Planned IPO - POW 62.12% www.firstdevelopmentresources.com
Resources Ltd Exploration in Western Australia
and the Northern Territory
of Australia
------------------------------------ ------------------------------------------------------------
Golden Metal Planned IPO - POW 83.13% www.goldenmetalresources.com
Resources PLC Exploration and development
in Nevada, USA
------------------------------------ ------------------------------------------------------------
Kavango Resources Investment - POW 14.03% www.kavangoresources.com
PLC (subject to completion of
Kanye Resources disposal
announced 8.7.22)
Exploration in Botswana
------------------------------------ ------------------------------------------------------------
New Ballarat Planned IPO - POW 49.9% A new website is currently
Gold PLC Exploration in the Victoria in development which
Goldfields of Australia 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-goldfi
elds/
.
------------------------------------ ------------------------------------------------------------
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