REG - Power Metal - Ditau Project - Exploration Programme Expansion

Power Metal ResourcesAnnouncement

05/05/2022 09:30

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RNS Number : 4374K  Power Metal Resources PLC  05 May 2022

5 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Camp Project - Exploration Programme Expansion

 

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 which is prospective for carbonatite hosted
rare-earth element ("REE") and base-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.

Following completion of drillhole DITDD003, which was drilled into the i10
target, Power Metal in conjunction with Kavango have decided to expand the
ongoing exploration programme. Initial observations in respect of DITDD03 were
announced on 29 April 2022 and can be viewed at the follow link:

https://www.londonstockexchange.com/news-article/POW/ditau-camp-project-botswana-drilling-update/15432783
(https://www.londonstockexchange.com/news-article/POW/ditau-camp-project-botswana-drilling-update/15432783)

The expanded exploration programme will include 16.1 line-km of
Audio-Magnetotelluric ("AMT") geophysics surveys over various target areas.

DITDD003 is the first of six planned exploration drillholes to be completed at
the Ditau Project as part of the ongoing drilling campaign. Based on results
achieved thus far, Kanye Resources has confidence in the utility of its new
AMT inversion modelling introduced this year and believes the expanded
geophysical surveys will enable it to further optimise the location of planned
drill collar locations.

Kanye Resources also announces the commencement of drilling of drillhole
DITDD004 which is also targeting the i10 Target geophysical anomaly.

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

"It's great to see the exploration programme at Ditau moving forward at pace
with the second drill hole now underway. The Ditau Project represents a
significant exploration opportunity, with a district-scale land holding
believed to be prospective for rare-earth element mineralisation. This
exploration comes at a critical time when this commodity group is in great
demand, particularly from stable mining jurisdictions.

The work undertaken thus far, and the building knowledge we are collating, is
highly valuable and I look forward to providing further updates to the market
as additional developments occur."

Operational Summary

-    Commencement of DITDD004, 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 modelled the i10 Target using inversions of Aeromagnetic ("AEM")
combined with its interpretation of limited existing AMT data.

-    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 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 12 targets from geophysics have been identified at the Ditau Project
(i1 through i12) which Kanye believes could be carbonatites and/or intrusive
complexes that may host carbonatites pipes. 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 is planning to drill test
three geophysical targets (i10, i1 and i8).

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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