REG - Power Metal - Ditau Project - Drilling and Geophysics Update

Power Metal ResourcesAnnouncement

15/06/2022 07:00

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RNS Number : 8900O  Power Metal Resources PLC  15 June 2022

15 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Project - Drilling and Geophysics Update

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a drilling update in respect of the Ditau Camp Project ("Ditau"),
located in southwestern 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") with
London-listed Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the
operator.

Project Background

The third diamond core drill hole of the programme, drill hole DITDD005 on the
i1 Target is now complete, and the drill rig has relocated to the i8 target,
where drilling has now commenced on hole DITDD006. The final siting of
DITDD006 followed the completion of a Controlled Source Audio-Magnetotelluric
(CSAMT) ground geophysical survey and survey data inversion modelling.

The CSAMT survey imagery has provided enhanced interpretative model of the
geology and structural setting of the i8 Target beneath the Kalahari sands and
sediments. Images highlighting the i8 Target with a CSAMT section overlay can
be found at the link below:

Ditau drilling and AMT update - Power Metal Resources plc (LON: POW)
(https://www.powermetalresources.com/ditau-drilling-and-amt-update/)

Additionally, Kanye has shipped the first batch of drill core samples from
hole DITDD004 for testing at a certified laboratory in South Africa, with
fast-track analyses requested.

Highlights:

-    Diamond core drillhole DITDD006 has commenced on the i8 Target:

-    CSAMT survey completed over i8 has provided an enhanced targeting
model enabling drill collar location, hole dip and azimuth optimisation.

-    The i8 Target is highlighted by a circa 4km diameter ring structure
which was interpreted from airborne magnetic survey data.

-    This target was the subject of 5.5-line km of CSAMT surveying, using
both high and low frequency configurations.

-    Inversion processing of the CSAMT data over the i8 Target, which was
completed by an external geophysical consultant, has shown bedrock signatures
below the i8 Target magnetic anomaly that are significantly different from the
surrounding flat lying signatures which are interpreted to be sedimentary
country rock.

-    These geophysical signatures appear disturbed in dip and vertical
position and are interpreted to relate to an intrusive body.  These
signatures are significantly different to those seen in the CSAMT survey for
the i10 and i1 Targets.

-    Drillhole DITDD006 is targeting the ring of the magnetic geophysics
high, where it is coincident with resistivity geophysics high features, near
the edge of the i8 Target.

-    Drillhole DITDD005, targeting the i1 Target, is now complete with a
final down-hole depth of 343.9m.

-    DITDD005 intersected extensive conglomerate with a measurable magnetic
mineral content.

-    The interpretation of these findings is to be aided by an expanded
CSAMT survey programme - which includes additional line-km over the i1 target.

-    Update in respect of Drillhole DITDD004, targeting the i10 Target:

-    DITDD004 intersected thick successions of highly magnetic brecciated
rock units, confirmed by magnetic susceptibility readings on drill core, with
the magnetism interpreted as being related to hydrothermal alteration
processes.

-    First batch of drill core samples have been cut and shipped for
multi-element analyses (including select fire-assays), at a certified
laboratory located in South Africa, with fast-turnaround 'rush analysis'
requested.

-    Further sample batches from hole DITDD004 will be dispatched during
the coming weeks.

-    A separate batch of samples for petrographic analysis are currently in
preparation.

-    High frequency CSAMT geophysics survey underway on the i10 Target,
with the purpose of augmenting the existing AMT survey dataset, to assist
further modelling and interpretation of the range of lithologies intersected
in the DITDD004 drill hole.

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

"The Ditau drilling is moving at significant pace through the key targets and
today we announce the commencement of hole DITDD006, which is located on the
i8 Target, the third main area being tested as part of this ongoing programme.
As you will see from the AMT images linked above, the i8 target is
particularly interesting.

Photographs of the drill core from  hole DITDD004  are now available to view
in the Gallery section of the Company's website, the core samples have been
submitted to the assay laboratory in South Africa and the results  are
eagerly anticipated with the faster-turnaround 'rush' analytical service
requested.

There is an intensely active period underway in the Kanye JV and I look to
providing further updates to the market in the near future."

Target I8

The inversion modelling  of the CSAMT and aeromagnetic survey data has led
Kanye to conclude that the i8 Target anomaly could be caused by a buried
intrusive body, approximately 4km in diameter.  The inversions modelling,
undertaken by an external geophysical consultant, shows 'intrusive' signatures
below a magnetic ring anomaly, that are significantly different to the
surrounding flat lying 'sedimentary' signatures.

The CSAMT survey has detected signatures that appear disturbed in their dip
and vertical position. There is also possible thrust faulting that has been
identified by the inversions.

The area of disturbance is radially symmetric with the aeromagnetic ring
structure and is interpreted to be a possible intrusion. Further, there are
CSAMT signatures that are coincident with the outer magnetic ring that are
protruding high into the resistivity section, further suggesting the
possibility of an intrusive body.  This signature is significantly different
from that interpreted from preliminary CSAMT data collected on the i10 and i1
Targets.

The target conforms to an idealised model for a carbonatite.  The composition
of this is now being tested by drillhole DITDD006, planned to a depth of 400m.

 

Background to Targeting

Kanye has identified 12 geophysical structures/targets at Ditau (i1 through
i12 Targets), which could be possible carbonatites and/or intrusive complexes
that may host carbonatites. Nine of these targets are particularly well
defined.

There are two target types at Ditau:

1)    Discrete kilometre-scale carbonatite pipe targets; and

2)    Larger multi-kilometre scale intrusive complex targets that may also
be host to carbonatite intrusives.

The 12 Ditau geophysical targets are not known to have been tested for REEs
historically. Kanye identified these targets, which range in size from circa
2km to 18km in diameter, using modern geophysical interpretative techniques.
Kanye has used combined and integrated Airborne Magnetics, Ground Magnetics
and CSAMT surveys in the exploration of the Project and for drill targeting.

Recently completed and inverted CSAMT surveying of the i8 Target, using both
high and low frequency configurations, has resulted in high resolution of the
basement below the Kalahari sand and sediment cover, providing enhanced target
definition. As a result, Kanye is now running both high and low frequency
CSAMT surveys over the i1 and i10 Targets to further enhance the
interpretation of these, post drilling.

Completed Holes

A total of three drillholes for a combined core length of 1,037.3m have now
been completed as part of the 2022 drilling programme. Mindea Exploration and
Drilling Services (Pty) ("Mindea") is conducting the drilling. Analytical
results will be provided once assays are received, compiled, and interpreted.

 

 

2022 Drill Programme Summary Table (WGS 84 UTM Z34S):

 Target  Drillhole  UTM E   UTM N    Azimuth (°)   Inclination (°)   Final depth
 i10     DITDD003   640350  7231120  000           -80               300.1m
 i10     DITDD004   640350  7230500  000           -80               393.3m
 i1      DITDD005   650000  7246515  000           -80               343.9m
 i8      DITDD006   654100  7233400  180           -80               In progress

 

POW/KAV Joint Venture at Ditau

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

 

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   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 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.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed.                                            Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%*          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  82.78%*          Lithium review underway including desktop and field mapping and sampling.     Findings from lithium review exploration programme.

* Reducing to 62.12% after Completion of the Pre-IPO Financing

# subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

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