REG - Power Metal - Haneti Project - Diamond Drilling Complete

Power Metal ResourcesAnnouncement

14/02/2022 07:00

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RNS Number : 4909B  Power Metal Resources PLC  14 February 2022

14 February 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Haneti Project - Diamond Drilling Complete

Haneti Project Diamond Drilling Programme - Drilling Complete, Core Logging
and Sample Preparation Underway

 

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 Company's inaugural diamond drilling programme on
the nickel-copper-cobalt-platinum group element Haneti Project ("Haneti" or
the "Project") located in central Tanzania.

Highlights:

-    The Company confirms the drill programme has been completed
successfully with a total of 900.04 metres completed across three drill holes
as planned.

 

-    Core logging and sampling is underway, with samples being prepared for
thin section petrographic analysis and laboratory assay testing (for nickel,
copper, platinum, palladium, cobalt, chromium and gold) at SGS Tanzania.

 

-     Large intersections of serpentinite and gabbroic rocks were
identified in MWDD01 and MWDD02 (Mwaka drill holes) with indications of
peridotitic sequences, the latter subject to confirmation through the thin
section petrographic analysis.

 

-   MHDD01 (Mihanza drill hole) intersected massive serpentinite from
surface and serpentinised meta-gabbroic rocks at depth.

 

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

"This drill programme was safely executed and delivered on schedule and within
budget. We are grateful to the operational team for a job well done.

Now that the physical drilling has been completed we move into the core
logging, sampling and testing phase, and clearly there are various elements to
this.

We are cautious with early interpretations until the core logging and testing
is complete.  What we can say is that we have seen thick sections of
ultramafic rocks and have postulated that the anticipated geological model has
been demonstrated from the core recovered.

We are encouraged by the technical and geological success so far and look
forward to providing further updates as and when they become available."

Joint Venture Ownership Structure

The Haneti Project is currently held under a Joint Venture ("JV") with Katoro
Gold Plc (LON:KAT "Katoro") who hold a 65% interest, with the remaining 35%
interest held by Power Metal.

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.

Glossary:

·    Serpentinite: a green coloured rock formed through the
low-temperature metamorphism of ultramafic rocks from the earrth's mantle. The
metamorphic chemical reactions convert unhydrous ferromagnesian silicate
minerals (pyroxene, olivine) into hydrous silicate minerals (serpentine).

·    Gabbroic: rock within the range classified as Gabbro which is a
coarse-grained, mafic intrusive igneous rock formed from the slow cooling of
magnesium-rich and iron-rich magma. Gabbro is found at the mid-ocean ridges
and as plutons associated with continental volcanism. Gabbro intrusives can be
associated with chromium, nickel, cobalt, gold, silver, platinum and copper
mineralisation.

·    Peridotitic: related to Peridotite rock, a dense, coarse-grained
ultramafic igneous rock consisting mostly of the silicate minerals olivine and
pyroxene. Peridotites is often a constituent in the layered igneous complexes
that can host platiunum group metals and nickel.

·    Ultramafic: Ultramafic rocks are a group of igneous and meta-igneous
rocks with a very low silica content (less than 45%), generally >18% MgO,
high FeO, low potassium, and are composed of usually greater than 90% mafic
minerals (dark colored, high magnesium and iron content). The Earth's mantle
is composed of ultramafic rocks. Intrusive ultramafic rocks are often found in
large, layered ultramafic igneous intrusions where differentiated rock types
often occur in layers and metals can be concentrated.

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 (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.
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Interpretation of laboratory assay results of samples collected.
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 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%(A)           Kavango Option to acquire an interest in local project holding company.       Results from various work activities underway as part of the Kavango Option
                                                         Option fee payable through defined work programme
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Haneti Project              Tanzania   35%              Diamon drill programme underway                                               Results from field programme including drill programme underway
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(B)        Passive seismic and 2D seismic processing work programme completed.           Results awaited

                                                         Ground reconnaissance work underway.

( )

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

(B) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors

 

 

 

 

 

 

 

 

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