REG - Power Metal - Botswana Molopo Farms Complex - Drilling Update
RNS Number : 9132GPower Metal Resources PLC30 November 2020
30 November 2020
Power Metal Resources PLC
("Power Metal" or the "Company")
Botswana Molopo Farms Complex - Drilling Progress Update
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drilling update for the 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.
- The second exploration drill hole KKME 1-6 commenced on 19 November 2020 and intersected serpentinised ultramafic rocks at about 27m immediately beneath Kalahari Group sediments.
- By end of day on 27 November 2020, the drill hole had reached a depth of about 286m and has continuously intersected ultramafic rocks comprising mostly serpentinite after dunite or harzburgite. The rock is very altered to about 115m and generally quite sheared and fractured throughout, however the drilling team have been able to maintain near 100% core recovery.
- Preliminary inspection of the core from the lower part of the hole shows indications of possible cyclic layering within the intrusive ultramafic rocks.
- Geological logging of the core indicates a shear/feeder zone setting and samples including from the prospective layering features will be analysed for both nickel and PGMs.
CHIEF EXECUTIVE OFFICER UPDATE
Paul Johnson Chief Executive Officer of Power Metal Resources commented:
"Further significant progress has been achieved with the geological model of the feeder zone being demonstrated through the core from the first and second holes.
The first hole produced 167 metres of ultramafic rock and this second hole has already produced about 260 metres of ultramafic rock, which has potential to host nickel and PGMs, and will be subject to assay testing.
After a short weekend break the drilling team will now continue the hole down to target depth of circa 500 metres."
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 in 2020, 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 original Earn-in period was to 31.12.20 however Power Metal and Kalahari Key have mutually agreed to extend this to 31.1.21 as some drill programme activities and invoices relating thereto and requiring payment may not be received until early in 2021.
THE DRILL PROGRAMME
The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.
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 and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.
This second drill collar 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)
+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)
+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 (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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