REG - Power Metal - Kanye Resources JV – Botswana - Operational Update

Power Metal ResourcesAnnouncement

08/07/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220708:nRSH7662Ra&default-theme=true

RNS Number : 7662R  Power Metal Resources PLC  08 July 2022

8 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Kanye Resources JV - Botswana - Operational Update

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an operational update regarding its Kanye Resources Pty Ltd ("Kanye
Resources" or "Kanye") Joint Venture ("JV") with Kavango Resources PLC
("Kavango"). The JV covers the Ditau Camp Project ("Ditau") and Kalahari
Copper Belt Project (collectively the "Projects") both located in southwestern
Botswana, and is 50% owned by both Power Metal and Kavango. Kavango is the
operator.

 

Highlights:

Ditau

-      Four diamond drillholes successfully completed across three
targets (i1, i8 and i10) for a total of 1,623.60m drilled.

-      All drillholes have been logged and sampled, and a wide range of
geological units were logged, including sediments, intrusive bodies, and in
hole DITDD004, distinctive veining and alteration.

-      Drillcore samples from three holes are now in transit to a
accredited laboratory in South Africa for assay testing and petrological
analysis. Drillcore samples from hole DITDD004 were previously submitted for
expedited assay testing with results expected shortlty.

-      Additional Controlled Source Audio Magneto Telluric ("CSAMT")
geophysical surveys and modelling were carried out over the i1, i8 and i10
targets, with the objective of providing better lateral definition of the
geology intersected in each hole.

Kalahari Copper Belt ("KCB")

-      To date 3,478 soil samples have successfully been collected from
the ongoing soil sampling campaign, from a total of approximately 5,750 soil
samples planned across the KCB JV licences.

-      Kanye has successfully identifiedthe Ngwako Pan - D'kar Formation
contact across multiple KCB licences.

o  The Ngwako Pan - D'kar contact is a crucial structural control for
copper/silver mineralisation within the broader Kalahari Copper Belt.

o  Kanye's geologists have completed an extensive geological mapping exercise
over the company's KCB Prospecting Licences ("PLs").

-      Kanye has deployed a passive seismic geophysics 'Tromino' unit to
help map overburden and subsoil layers, using resonance frequencies.

-      Discussions are advancing with Reverse Circulation ("RC") drill
contractors for a drilling programme planned for later in 2022. The programme
is designed to target structural features in the vicinity of and above the
Ngwako Pan - D'kar formation contacts.

 

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

"The work of the Kanye JV is proceeding at some pace and we await with
interest the results of the simultaneous work programmes underway across Ditau
and the Kalahari Copper Belt in Botswana.

"At Ditau we are looking forward to the receipt of assay results from the
completed drilling, whilst at the KCB the outcomes of the extensive
preparatory work, undertaken across the significant licence footprint, are
focussing towards targets for a maiden RC drilling programme.

I trust with market conditions still challenging in the junior resource
sector, that shareholders will appreciate that Power Metal and Kavango still
have the exploration mindset and continue to drive towards making major metal
discoveries in Botswana."

 

DITAU OVERVIEW

Completed Holes

Details of the drillholes completed during the 2022 Ditau diamond drilling
programme are provided in Table 1.

Table 1: Ditau Camp Project Diamond Drill Hole Details

 Target  Drillhole  Planned  Planned  Planned azimuth  Planned inclination  Final depth

UTM* E
UTM N
 i10     DITDD003   640350   7231118  000              -80                  300.1 m
 i10     DITDD004   640350   7230498  000              -80                  393.3 m
 i1      DITDD005   650000   7246516  000              -80                  343.9 m
 i8      DITDD006   654098   7233400  180              -80                  586.3 m

*Urchin Tracking Module

 

Targets and Intersected Geology

Kanye has identified, using a combination of integrated airborne magnetics,
ground magnetics and CSAMT surveys, 12 distinct geophysical structures/targets
at Ditau (targets i1 through i12). Kanye believes that these targets could be
possible carbonatites and/or intrusive complexes that may host carbonatites.

There are two target types at Ditau:

1)    Discrete kilometre-scale carbonatite pipe-like targets; and

2)    Larger multi-kilometre scale intrusive complex targets that may also
be host to carbonatite intrusives and/or mafic associated mineralisation
styles prospective for base-metals.

During the recently completed drilling programme, Kanye evaluated three of
these targets; i10, i1, and i8. In parallel with the drilling, additional
CSAMT surveys were carried out in order to further aid the interpretation and
understanding of the various geological units intersected downhole, a decision
supported by the high quality sub-surface imagery achieved early in the
programme using this technique.

Target i10

Two drillholes, DITDD003 and DITDD004 were drilled into this target, a
discrete circular anomaly with a diameter of 2.2 km. The intersected
lithologies are described briefly below.

DITDD003

This hole passed through 83.9 m of Kalahari sands, before intersecting various
geological units including a breccia, with a thickness of 20.4 m from 83.9 m
downhole as well as a dolomitic carbonate rock at 154.9 m downhole. In
addition, a 7.2 m intrusive, considered to be a dolerite, was intersected at
247.7 m downhole.

DITDD004

This hole passed through 105.9 m of Kalahari sands before intersecting
dolomitic carbonates, mafic intrusives (from 109.5m to 227.1 m), and mudstone
units interbedded with highly magnetic silicified material. Brecciation,
veining, and haematitic alteration were observed, which are locally intensely
developed, with what is interpreted as a fluidised breccia from 309.0 m to
346.5 m and 356.5 m to 364.0 m. Pyrite is present, both manifested as
disseminations and in veining.

Target i1

One hole, DITDD005, was drilled into the i1 target, to investigate a large 7
km x 18.5 km magmatic intrusive complex, within which are circular structures
indicative of potential carbonatite intrusives.

This hole passed through 31.0 m of Kalahari sands before passing into units
consisting largely of conglomerates made up of mafic, banded iron formation,
and marble clasts in a coarse-grained matrix of similar composition. Minor
pyrite veining was noted. The unit is interpreted to be stratigraphically part
of the Segwagwa Group, part of the Transvaal Supergroup.

Target i8

One hole, DITDD006, was drilled into the i8 target, to evaluate whether this
could represent an intrusive dome structure, approximately 4 km in diameter.
This hole was originally planned to a target depth of 400 m, and was extended
to 586 m in order to ensure that the geophysical target as outlined on a newly
implemented high-frequency CSAMT survey was thoroughly investigated.

This hole passed through 125.3 m of Kalahari sands before entering a series of
mudstones and siltstones to 229.7 m, with an intruded dolerite from 161.8 m to
228.0 m. The remainder of the hole was comprised of tillites, siltstones and
mudstones, interpreted to be of the Dwyka stratigraphic unit. No significant
veining or alteration were noted.

 

KALAHARI COPPER BELT OVERVIEW

Kanye has successfully identified the Ngwako Pan - D'kar Formation contact
across several of its prospecting licences within the Kalahari Copper Belt.
The Ngwako Pan-D'Kar Formation contact is associated with several
copper-silver deposits and discoveries within the district. Elsewhere economic
grades of mineralisation can be found along and close to this contact zone due
to intense shearing, folding, and tensional failure between the two rock
layers.

The discovery of this key geological contact zone was the result of an
extensive programme of geological mapping and soil sampling launched by Kanye
earlier this year. The goal of this ongoing work programme is to identify and
rank a complete range of drill targets across the licences. Kanye is in
advance discussions with RC drill contractors for its planned KCB drill
programme planend for later in 2022. This drilling will target the contact
zone between the Ngwako Pan and D'kar Formational across multiple licences.

Geochemical Survey

Alongside the ongoing drill planning, Kanye is making good progress on its
extensive geochemical soil sampling programme and is near midway through
collecting a planned ~5,750 samples (Table 2). The results from the programme
are aimed at widening coverage over existing licences, and in addition,
collecting the first ever samples over licences such as the Mamuno package,
located adjacent to the Botswana-Namibia border.

The soil samples are being analysed internally using a 'Vanta' X-ray
fluorescence ("XRF") spectrometer, in geochemistry mode with three beams
switched on for a total analytical time of 120 seconds per sample. Analyses
are done using a desk-top docking station to ensure a consistent presentation
distance between the sample and analyser window. Quality Control measures
include use of reference materials, which are used to generate user factors
for normalising the analytical results prior to follow-up interpretation.
Selected samples are also sent to an independent assay laboratory in South
Africa for multi-element analyses.

Table 2: KCB 2022 Geochemical Soil Sampling Programme Status as of 20 June
2022

 Prospecting Licence    Planned Samples  Samples Collected  Line Spacing     Sample Spacing
 PL036/2020 (Kanye JV)  4,000-5,000      3,478              400 & 2000m      50m
 Mamuno (Kanye JV)      1,000-1,500                         800m             50m

 

PL36/2020

A total of 3,478 samples have been collected to as of 20 June 2022. At a
current sampling rate of approximately 150 samples/day, it is anticipated that
the current phase of sampling on PL36/2020 will be completed within the month.

Mamuno Block: PL46, 49, 52, 53/2020

Soil sampling is now underway on the Mamuno Block. These licences (PL46, 49,
52, 53/2020), located near the Namibia-Botswana border, have seen little
previous work. The Mamuno Block lies on-strike with the main KCB trend.

Sampling is planned to cover the outcropping Ngwako Pan-D'kar Formation
contact zone that has now been mapped in detail by Kanye. A total of 1,319
samples at 50m sample stations across 800m spaced lines are planned, with some
extensions across mapped Ngwako Pan Formation to check for any structural
repetition.

 

Ongoing Work July to August 2022

Work will continue to complete the activities currently in progress,
integrating these with existing data sets with the ultimate aim of further
refining, as well as identifying new drill targets.

All KCB Licences

-      Relogging of remaining relevant historical drillholes (these are
predominantly drill chips from water boreholes) is planned to support the next
stage of geophysical interpretations.

PL036/2020

-      Completion of soil sampling over the Acacia fold nose and
southeastern limb.

-      Completion of interpretation of previous completed detailed ground
magnetic survey.

Mamuno Licences

-      Completion of soil sampling.

In parallel with the above, discussions are underway with RC drill contractors
for a planned drill programme taregeting for later in 2022, aimed at targeting
structural features in the vicinity of and above the Ngwako Pan-D'kar
Formation contact zone.

 

Glossary

Carbonatites - An unusual igneous rock with greater than 50% carbonate (CO3)
containing minerals.

Intrusive complexes - Intrusive rocks are those which have crystallized from a
magma within the crust, in 'complexes' the magma are from a similar source,
but the rocks have different textures and compositions.

Kalahari sands - A sandstone rock which mainly consists of air blown sands
that cover large parts of Southern Africa.

Breccia/Brecciation - A rock which is formed of angular fragments of broken
rock (termed 'clasts'), which in this case is formed though violent
hydrothermal processes, usually related to hot, pressurised fluids and gases
breaking rocks. Brecciation is the term for that process.

Clasts - A fragment of rock composed of pre-existing minerals and rock, which
has become incorporated into a larger 'clastic' rock.

Dolomitic carbonate - A type of limestone, which contains magnesium in
addition to calcium carbonate.

Dolerite - Fine grained intrusive rock containing plagioclase feldspar and
pyroxene.

Mafic intrusives - Intrusive rocks formed of 'mafic' minerals - such as
olivine, pyroxene, amphibole, and biotite.

Haematitic alteration - Alteration which replaces other minerals with iron
oxide rich minerals.

Pyrite veining - Thin veins of pyrite (iron-sulphide) running though a rock,
pyrite can be an important tracer to other sulphides, such as those containing
base-metals.

Banded iron formation - An sedimentary rock formed of very high levels of iron
oxide interspersed with bands of chert and mudstones.

Marble - Rock composed of metamorphosed (heated) limestone.

Dwyka stratigraphic unit - Rocks which are within the 'Dwyka Group'. The Dwyka
Group is a sequence of sedimentary rocks deposited during the late
Carboniferous-early Permian mainly composed of mudstones.

Segwagwa & Transvaal Supergroup - Two groups of metamorphosed sedimentary
rocks of a similar age (2.4 - 2.2 billion years).

Contact zone - Where two different rocks meet, in this case, it's where two
different sedimentary units of differing composition overlie each other. Often
these difference in the two rock types can act as pathways for metalliferous
fluids.

Fold nose - A 'fold nose' is the tip of an anticline (the rocks are risen in
the middle) which is tilted downward along its length.

 

 

 

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

 

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 completed.            Field and assay results from on-site work programme.
 Athabasca Uranium      Canada                        100%             Data compilation across uranium properties completed.                         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.
 Molopo Farms           Botswana                      53%(#)           Review of recent exploration findings.                                        Determine next exploration steps and action plan.
 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
 Victoria Goldfields    Australia                     49.9%            Diamond drill programme completed.                                            Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Western 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 at Wallal.
                                                                       Review of historical data and target generation for Ripon Hills &
                                                                       Braeside West projects.

 Selta Project          Northern Territory 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%

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUBAKRUBUBRAR