REG - Power Metal - Ditau Camp Project - Drilling Programme Update

Power Metal ResourcesAnnouncement

18/05/2022 07:00

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RNS Number : 8541L  Power Metal Resources PLC  18 May 2022

18 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Camp Project - Drilling Programme Update

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an update from the Ditau Camp Project ("Ditau" or the "Project")
located in southwest Botswana. Ditau is considered prospective for carbonatite
hosted rare-earth element ("REE"), base-metal and possible precious-metal
mineralisation.

Ditau is held within a 50/50 Joint Venture ("Kanye Resources" or "Kanye") with
London-listed Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the
operator.

DITDD004, the second hole in the Ditau drill programme has been successfully
completed to a downhole depth of 389m.

DITDD004 was drilled into the i10 Target, a discrete 2.2km diameter magnetic
anomaly that Kanye Resources had previously modelled as a possible
carbonatite. DITDD004 appears to have intercepted the magnetic anomaly within
the drillhole from 293m to 321m downhole depth.

Kanye Resource's field team has taken preliminary magnetic susceptibility
readings on the core recovered from DITDD004. The field team recorded highly
elevated magnetic susceptibility readings between 293m and 321m (the "Zone of
Interest") - a combined 28m of core length. These readings from the Zone of
Interest coincide with a visibly altered section that Kanye Resources will
immediately cut half-core samples from and send to the assay laboratory for
multi-element analysis.

The core from DITDD004 contains visible siliceous and haematitic zones, with
local pervasive pyrite manifested both as disseminations and in veins.
Extensive fracturing (brecciation) is observed throughout the Zone of Interest
and elsewhere in the hole.

Power Metal has provided select core images from the Zone of Interest on its
website:

https://www.powermetalresources.com/drill-update-ditdd004/
(https://www.powermetalresources.com/drill-update-ditdd004/)

A 1km Audio-Magnetotelluric ("AMT") survey will be performed over the i10
Target in the coming weeks. Kanye Resources hopes that data from this will
help further define the shape and form (morphology) of the Zone of Interest.

Mindea Exploration and Drilling Services Pty ("Mindea") will now mobilise the
diamond core drill rig to Target i1 at Ditau. Target i1 is the largest of
three geophysical targets Kanye Resources plans to drill during the current
campaign. A further update will be released shortly in respect of this
drillhole.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

"The core extracted from hole DITDD004's Zone of interest, spanning a combined
28m, is fascinating from a geological perspective and we are eager to see the
results from further analysis thereon - including laboratory multi-element
assays.

The magnetic modelling undertaken to develop this target appears to be
reliable, which is also particularly encouraging for DITDD004 and future drill
holes within Ditau.

I look forward to reporting further plans and progress over the coming weeks."

 

Operational Summary

-    DITDD004 is the second hole to target the i10 Target

-    The i10 Target is a discrete circular geophysical anomaly which is
roughly 2.2km in diameter.

-    Kanye Resources has extensively modelled the i10 Target using various
inversions of Aeromagnetic ("AEM") and AMT geophysical datasets.

-    Kalahari sediment thickness was determined to be 105m based on the
first hole drilled (DITDD003) which is consistent with the estimated thickness
based on the AMT modelling completed.

-    An additional 16.1 line-km of AMT geophysical surveying is now planned
with coverage over multiple drill target areas including:

-    1.0 line-km over the i10 Target;

-    5.5 line-km over the i8 Target; and

-    9.6 line-km over the i1 Target.

The plan is to collect high-frequency AMT profiles over near-surface potential
carbonatite targets with the ultimate goal of better resolving the location of
breccia zones and intrusive sills/dykes intersected in drillhole DITDD003.

AMT surveys can aid geophysicists and geologists in mapping subsurface
geological structures and layers; further identifying potential areas for
mineralisation which allows for the refinement of drill targeting.

To date, Kanye Resources has identified 12 geophysical targets at the Ditau
Project (i1 through i12), which are believed to be caused by possible
carbonatites and/or intrusive complexes that may host carbonatites.
Carbonatites account for the primary source of mined rare-earth elements; and
REEs are vital component materials in many high-tech industries.

As part of the ongoing exploration programme, Kanye Resources is planning to
drill test three geophysical targets (i10, i1 and i8).

 

GLOSSARY

Siliceous - Rich in silica, with reference to the geology at Ditau, this can
be a sign of hydrothermal alteration.

Haematitic - A rock formed principally of iron oxide, often associated with
hydrothermal alteration.

Pervasive - The replacement of most, if not all, of the original minerals in
the rock by later alteration.

Dissemination - when an ore (or mineral) is present within a rock as small
particles distributed uniformly throughout the rock.

Brecciation -  Texture formed of broken angular fragments of a rock, often
signalling  intense hydrothermal alteration.

Intrusive Sill - Body of igneous rock forced horizontally into a rock.

 

Intrusive Dyke - Body of igneous rock forced vertically into a 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/
(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 or Underway                                                    Results Awaited

 Alamo Gold Project     USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                    Interpretation results from all Properties complete. Next steps upcoming.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential          Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 Kalahari Copper Belt   Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling.
                                                    exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                    licence areas
 Molopo Farms           Botswana   53%              Review of recent exploration findings.                                        Determine next exploration steps and action plan.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                             Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                              Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  83.33%           Wallal passive seismic and 2D seismic processing work programme completed.    Findings from multiple work programmes including final approvals and

                                                                             preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills &
                                                    Braeside West projects.

 Selta Project          Australia  83.33%           Field reconnaissance work complete, which included mapping and sampling.      Finalising data review from field programmes.

 

 

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