REG - Power Metal - Kalahari Copper Belt - Initial AEM Survey Results

Power Metal ResourcesAnnouncement

17/03/2021 07:05

RNS Number : 4822S
  
Power Metal Resources PLC
  
17 March 2021
  
 

17 March 2021
Power Metal Resources plc 
("Power Metal" or the "Company")
Kalahari Copper Belt -  Encouraging Preliminary AEM Survey Results
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an exploration update for shareholders to confirm encouraging initial results from the airborne electromagnetic ("AEM") surveys recently flown over the South Ghanzi Project (the "Project" or "South Ghanzi") in the Kalahari Copper Belt, Botswana ("KCB").
The South Ghanzi Project is part of a Strategic Joint Venture ("SJV") with Kavango Resources plc ("Kavango")(LON:KAV) covering precious, base and strategic metal opportunities in Botswana.  Power Metal and Kavango each have a 50% interest in the SJV.
 
Highlights:
·    Over 1,200 km of AEM surveys flown by SkyTEM Surveys ApS ("SkyTEM"), a leading airborne geophysical survey company, over South Ghanzi Project.
·    Preliminary data plots conform to Kavango's developing exploration models across the South Ghanzi Project.
·    Initial results correlate encouragingly to results from Kavango's other exploration efforts, including:
-      Close correlation to Kavango's interpretation of regional geological structures.
-      Confirmation of areas of interest identified by previous soil sampling and ground magnetic surveys.
·    Data processing underway, with the results expected later in the spring, and with a goal of identifying  targets for test drilling in H2/2021.
·    Initial results from AEM surveys has been used to augment next steps of field exploration across the JV's KCB licence area.
 
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
"The pathway to major metal discoveries requires a disciplined and targeted step-by-step approach, something which is being applied to the South Ghanzi exploration model.
What stands out however, for me, is the speed at which we have been able to implement the AEM surveys and to gather initial results, which are demonstrating that the South Ghanzi Project is shaping up very nicely.
So, with our SJV partners, we are pushing ahead with the next stage of work, which is focused on delineating drill targets ASAP, the objective of which will be a large-scale copper/silver metal discovery, or discoveries."
 
Initial AEM survey results
Heavy rains and low cloud cover across southern Africa slightly delayed the AEM survey, but SkyTEM completed all AEM survey work by the first week in March.
Kavango's in-house geophysics team has plotted the preliminary electromagnetic data on maps of the Company's licences. These maps have been overlaid on regional geological survey maps and proprietary maps, which also plots results from soil sampling and ground magnetic surveys.
The preliminary AEM anomalies are associated with a number of plunging fold hinges that represent potential drill targets. Follow-up work will require the development of geological models to determine the stratigraphic location of these anomalies and potential drill collar locations and orientations. The AEM anomalies are supported by zinc soil geochemistry anomalies and malachite staining (often formed by the near-surface weathering of copper bearing primary sulphide minerals) in PL 036/2020.
The AEM survey data will now undergo further processing and finalisation, ahead of a detailed interpretation and drill hole target planning. Further details will be provided once this work has been completed.
 
THE SOUTH GHANZI PROJECT
The SJV South Ghanzi Project includes two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.
 
The South Ghanzi Project, located on the highly prospective Kalahri Copper Belt ("KCB") in northern Botswana, includes lengthy geological reduction-oxidation ("redox") boundaries and geological fold structures that represent high priority exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges and other structural trap-sites.
Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources Ltd (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
 
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 (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 metals exploration in North America and Australia together with base and strategic 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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