REG - Power Metal - Ditau Project - Rare-Earth Element Drill Targets

Power Metal ResourcesAnnouncement

29/03/2022 09:30

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RNS Number : 3733G  Power Metal Resources PLC  29 March 2022

29 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Project Botswana - Rare-Earth Element Drill Targets

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a update for the Ditau Project ("Ditau" or the "Project") located in
southwestern Botswana.

The Ditau Project is held by Kanye Resources Pty Ltd ("Kanye Resources"), a
Botswana joint venture company in which Power Metal and Kavango Resources plc
("Kavango") (LON:KAV) each hold a 50% interest.

 

Ditau is targeting rare-earth element ("REE") discoveries.  A diamond drill
rig is now being mobilised to the first drill location and drilling is
expected to commence within the next few weeks.

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

"It is imperative for the world to find new sources of rare-earth elements in
secure and stable mining jurisdictions. At Ditau, several years of preparatory
work utilising modern remote sensing and various geophysical techniques have
culminated in multiple high-priority exploration targets which we believe
offer the potential for new discoveries of rare-earth element mineralisation
within mining friendly Botswana.

For Power Metal and Kavango to jointly launch another drill programme in
Botswana demonstrates our confidence in the geological prospectivity across
our project interests in country, and we look forward to the progression of
this important drilling programme at Ditau and its findings."

HIGHLIGHTS

Kanye Resources has identified 12 airborne magnetic targets at Ditau of which
9 are clear ring structures that are believed to represent possible
carbonatites that are considered by the Company to be prospective for
rare-earth element mineralisation. Kanye is now commencing on a diamond
drilling campaign which will include up to 6 deep drillholes (up to 2,400m
estimated in total) targeting three of the highest priority targets identified
to date:

-    The "i10" target, a discrete circular airborne magnetic anomaly of
2.2km diameter (a independent orientation study concluded that the magnetic
source of the i10 target is not related to intrusive kimberlitic bodies)

-    The "i8" target, a larger ring like target of about 4km diameter, and

-    The "i1" target that may represent a large, 7km x 18.5km intrusive
complex where structures have been identified which may be indicative of
potential carbonatite intrusives.

Whilst the drilling campaign is primarily targeting REE mineralisation hosted
within interpreted carbonatites or felsic intrusives, the geophysical targets
could also be related to layered mafic intrusive systems, which are considered
by the Company to be prospective for nickel, copper, and platinum group
element ("PGE") mineralisation.

The target depth horizons at all targets are less than 400m for each
drillhole, and the estimated Kalahari sand cover is between 60m-120m thick
based on estimates from the recently completed Audio-frequency Magnetotelluric
("AMT") surveys at Ditau. The drill programme may be revised as it progresses.
While the nominal targets are carbonatites, other mineralisation styles may
also be intersected within the ring structures. The programme has been
designed with this flexibility in mind.

The 12 airborne magnetic targets identified at Ditau are not known to have
been tested for either REEs, base or precious metal mineralisation
historically. Kanye has identified these structures, which range in size from
1km to 20km in diameter using geophysical techniques which are more advanced
than that available to previous operators. Kanye has employed airborne
magnetic, ground magnetic, gravity and AMT surveys at Ditau and the results
from these surveys have allowed for precise drill targeting.

DITAU DRILLING RATIONALE

Carbonatites have the potential to host both rare-earth element and base-metal
mineralisation. Carbonatites are often unique geologically and can show marked
differences from one intrusive complex to the next. Notably they can form very
large, world class mineral deposits highlighted by examples in the region
(e.g.  the Palabora Cu deposit in South Africa) and around the world (e.g.
Jacupiranga REE deposit in Brazil, and the Kovdor REE deposit in Russia).

In addition to primary REE mineralisation, Carbonatites are also known as a
source of secondary REE mineralisation located within the supergene/weathering
zone. Kanye believes that both primary and secondary mineralisation are
legitimate target styles at the Ditau Project.

Carbonatites often occur in "swarms" or clusters, oriented along favourable
and clearly defined geological trends. The 12 structures identified at Ditau
occur along a southwest-northeast oriented regional corridor which further
along strike hosts the Mabuasehube and Kokong kimberlite groups. Desktop
analysis of regional geological data by Kanye's geologists suggest that this
trend is subparallel to corridors that host other kimberlite groups within
Botswana and northwest Angola. Significantly, in both countries these trends
are known to host both kimberlite and carbonatite intrusives.

In addition to the known presence of kimberlites and carbonatites within this
geological trend, further supporting the possible presence of carbonatites at
Ditau are a small cluster of carbonatite intrusives including KW2, definite,
and KS12 & KS36 (the "Falconbridge Carbonatites"), located near to the
Project. The Falconbridge Carbonatites were drilled by Falconbridge
Exploration Botswana (Pty) Ltd in the late 1970's-early 1980's, to the
immediate north and 30km along strike to the northeast of the Ditau Project.

Kanye Resources commissioned GeoResources Consultancy to conduct a
reconnaissance soil sampling survey for kimberlite indicator minerals over the
i10 target. The survey report concluded:

"The laboratory reported no kimberlitic grains picked from any of the (soil)
samples. If the target were related to any intrusive kimberlitic body, the
samples would have at least produced some kimberlitic indicator minerals since
an optimum sample volume (60 litres) and sampling density was used in this
programme. The cause of the magnetic anomaly is still to be established but is
non kimberlitic.

The areas covered by the prospecting licence still has potential for the
occurrence of kimberlite bodies. Some of the known kimberlite fields in
Botswana, from the Orapa field in the north-east, through the Gope field,
Kikao-Khutse field, Kokong field and down to the Tsabong field in the
south-west corner of the country. These kimberlite fields form the north-east,
south-west kimberlite intrusive corridor. The areas with the sampled magnetic
targets fall within or close to the margins of this corridor."

In addition, analysis of the gravity survey results by Kavango's in-house team
of geophysicists suggests the i10 target has a dense underlying body causing a
high gravity anomaly. The coincidence of the gravity and magnetic anomalies
strengthens Kanye's view that this target could be prospective for either
carbonatite or base or precious metal mineralisation

Additionally, the larger geophysical targets at the Ditau Project have a more
complicated geophysical signature that may be caused by magmatic layered
intrusive bodies. Layered mafic intrusives are known sources of base and
precious metals within Botswana and worldwide. Kanye believes it is possible
that the magnetic anomalies being drill tested have the potential to host
ultramafic rocks, which could be prospective for magmatic nickel and precious
metal mineralisation. Drill samples from the programme will be sent to the
laboratory where they will undergo multi-element analysis.

As noted above, apart from recent exploration by Kanye, no known REE, base or
precious metal exploration has been conducted within the Ditau Project. As a
result, Kanye will be the first known company to drill test these exciting
targets.

JOINT VENTURE STRUCTURE

The Ditau Project is held by Kanye Resources Pty Ltd, a Botswana joint venture
company in which Power Metal and Kavango each company hold a 50% interest.
Exploration costs are equally shared. Kavango is the operator.  Mindea
Exploration and Drilling Services (Pty) has been contracted to conduct the
drilling.

THE DITAU CAMP PROJECT

The Ditau Camp Project comprises two prospecting licences ("PLs") (PL169/2012
& PL010/2019) that cover an area of 1,386km(2). Detailed geophysical and
geochemical analyses by Kanye has identified 12 ring structures within the two
PLs. These ring structures have the potential to host REE-rich carbonatites.

Carbonatites are a principal global source of rare-earth elements including
the much sought-after elements neodymium (Nd) and praseodymium (Pr) which are
used in the manufacture of the new generation of electric vehicles (EVs),
permanent magnets and other high-tech applications. Other elements/minerals
known to be associated with carbonatites include niobium, phosphates,
monazite, strontium, magnetite and copper.

Additionally, layered mafic intrusives have the potential to host base- and
precious-metals as evidenced in the Molopo Farms Complex, Selebi-Phikwe and
Tati Nickel projects in Botswana.

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 5 of 7 properties.
 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.
 Tati Gold/Nickel       Botswana   100%             Reverse circulation drill programme completed                                    Receipt & review of laboratory assay results.
 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 now underway, including mapping and sampling.          Field updates.

 

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