TIDMPOW
RNS Number : 2570B
Power Metal Resources PLC
30 September 2022
30 September 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Molopo Farms Complex Project, Botswana - Major Drill Target
T1-3
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.
On 28 September 2022 the Company announced an update regarding
the delineation of a second major conductor at target area T2-3, as
well as an update regarding its ongoing geophysics programme. The
link to this announcement is below:
https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138
The above update noted that further analyses in respect of
target (T1-3) were ongoing, the results of which are now covered
below.
KEY HIGHLIGHTS
T1-3 Major Drill Target
-- Final compilation and analyses of the ground-based moving
loop electromagnetic ("MLEM") and magnetic geophysical surveys over
target area T1-3 are now complete.
-- Geophysical inversion of the MLEM data has highlighted a
significant 'jelly-bean' shaped, geophysical conductor at target
area T1-3. This conductor remains open to the east-west and sits
within a magnetic trough observed in both the ground and airborne
magnetic surveys. No drilling has ever been completed over this
target area.
-- Historical airborne electromagnetic ("AEM") data over T1-3
have been further analysed with results showing the MLEM conductor
may extend out to 1.6km in an east-west direction, based on
coincident airborne/ground survey anomalies.
-- The T1-3 conductor has been given a high-priority (A+)
ranking by the Company, the same priority attributed to the
conductor at T1-6 (where drilling is ongoing) as well as the new
conductor identified at T2-3.
-- A planned 450m diamond core drillhole, DDH1-3A, has been
designed to intersect the T1-3 conductor at approximately 300m
downhole depth. The Company has added this hole to the list of
holes to be drilled during the ongoing 2022 campaign. Considering
the proximity of T1-3 to ongoing drilling at T1-6 (33km southwest),
it is possible that T1-3 will be drilled after holes DDH1-6B and
DDH1-6C complete, with drilling at T2-3 to follow (see map for
relative locations).
Paul Johnson, Chief Executive Officer of Power Metal Resources
commented:
"The inventory of high priority A+ ranked drill targets at
Molopo are building and we now have the third, T1-3, added to the
list. We plan to drill all three high priority targets during the
current drill programme.
Our review has also identified further targets which we believe
could become additional priority drill targets subject to
additional technical work over those areas.
Each priority conductor identified to date, including T1-6, T1-3
and T2-3, are located proximal to a geological feeder zone but each
possess unique size and scale dimensions. By drilling all of these
targets, the Project becomes inherently de-risked, and the prospect
of a discovery or discoveries increases.
Our attention is principally focused on drilling, with our first
drill hole into the T1-6 conductor underway and I look forward to
providing further updates at the earliest opportunity."
GEOPHYSICAL SURVEY - OVERVIEW
-- Spectral Geophysics have now completed the 2022 Phase I &
II exploration programmes which included four MLEM and four
magnetic geophysics surveys over targets T1-6, T1-14 and T2-3 and
T1-3. The MLEM and magnetic survey results are assisting the
company in refining further drill collar locations for the ongoing
2022 diamond drilling campaign.
-- To date, the MLEM survey results have now highlighted:
o T2-3 (A+): A flat-lying, slightly concave (downward),
conductor which remains open in all directions. Drilling is planned
at this target.
o T1-6 (A+): A large, southerly dipping conductor which remains
open towards the south, east and west. Drilling is ongoing over
this target.
o T1-3 (A+): A 'jelly-bean' shaped conductor which remains open
towards the east and west. Drilling is planned at this target.
o T1-14 (B): A conductor which is near-to the contact zone with
known Transvaal carbonaceous mudstones. Due to the estimated depth
required to reach this conductor (approx. 650m) and the geological
complexity associated with this area, it has been given a lower
priority ranking than T2-3, T1-6 and T1-3.
-- The Company has also completed an in-depth review of a
historical AEM report covering the majority of the Molopo Farms
Complex Project. Considering priority areas T1-6, T2-3 and T1-3
were originally identified by the historical AEM survey results, it
was decided that further investigation of the targets identified by
this report were warranted. Significantly, five of the strong AEM
conductors, including T1-2, T1-4, T1-5, T1-10 and T1-11 have been
upgraded and are now classified as priority airborne targets by the
Company. At T1-11, a 2020/2021 drillhole (KKME1-11) completed by
the previous operator was determined to not have adequately
targeted this conductor. The Company is in ongoing discussions with
its geophysical contractor to determine next steps over these
target areas.
FURTHER INFORMATION
Figure 1 - Molopo Farms Complex Project Plan Map: A plan map of
the Project area, including the location of various elements
mentioned above is outlined in Figure 1 below.
Figure 2 - Priority Target Area T1-3 3D View: A 3D view showing
the location of the planned drillhole DDH1-3A and the MLEM results
(new conductor in blue). The red-pink block model are magnetic
inversion results showing the new 'jelly-bean' shaped conductor
sits within a magnetic trough.
The diagrams and image presented above may also be viewed on the
Company's website through the following link:
https://www.powermetalresources.com/molopo-farms-major-drill-target-t1-3/
Further photographs and videos from the drill programme are and
will be available on the Company's website gallery section, through
the following link:
https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/
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 Mineral Exploration (Pty) Ltd
("KKME"). On 18 May 2022 Power Metal announced a conditional
transaction that would see its interest in Molopo Farms 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.
QUALIFIED 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 Qualified 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.
REFERENCES
1: Power Metal PLC announcement, Molopo Farms Complex Project,
Botswana - Major Drill Target T2-3
(
https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138
)
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 or Results Awaited
POW Underway
%
Athabasca Canada 100% Ground exploration Results from ground
Uranium programme underway exploration including
at 3 properties. Continuing spectrometer analysis,
data analysis across sampling and mapping.
the property portfolio.
--------- --------- ----------------------------- --------------------------
Authier Canada Earn-in Property Evaluation Update covering
North to 100% Report completed. exploration plans
Lithium for target areas
identified during
the Evaluation.
--------- --------- ----------------------------- --------------------------
Molopo Botswana 53%(#) K1-6 conductor target Drill programme
Farms drilling underway updates and findings
and MLEM surveys over from further MLEM
T1-6, T1-14, T1-3 survey work.
and T2-3 completed.
Further MLEM surveys
planned over additional
AEM targets identified.
--------- --------- ----------------------------- --------------------------
Tati Botswana 100% RC drilling and sampling Review of mine dumps
Project of mine dumps complete. sampling and results
from 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 - www.firstclassmetalsplc.com
Metals PLC POW 28.19%
Exploration
in the Schreiber-Hemlo
region of Ontario,
Canada
------------------------ ------------------------------------------------------------------
First Development Planned IPO www.firstdevelopmentresources.com
Resources - POW 62.12%
PLC Exploration
in Western Australia
and the Northern
Territory of
Australia
------------------------ ------------------------------------------------------------------
Golden Planned IPO www.goldenmetalresources.com
Metal Resources - POW 83.13%
PLC Exploration
and development
in Nevada, USA
------------------------ ------------------------------------------------------------------
Kavango Investment - www.kavangoresources.com
Resources POW 14.03% (subject
PLC to completion
of Kanye Resources
disposal announced
8.7.22)
Exploration
in Botswana
------------------------ ------------------------------------------------------------------
New Ballarat Planned IPO A new website is currently in development
Gold PLC - POW 49.9% which will be found at www.newballaratgoldcorp.com
Exploration .
in the Victoria In the interim further information
Goldfields of in respect of NBGC can be found at:
Australia https://www.powermetalresources.com/project/victoria-goldfields/
.
------------------------ ------------------------------------------------------------------
Uranium Planned IPO www.uraniumenergyexploration.com
Energy Exploration - POW on listing
PLC estimated 40-55%
------------------------ ------------------------------------------------------------------
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