REG - Power Metal - Molopo Farms Complex, Botswana – Drilling Underway

Power Metal ResourcesAnnouncement

21/09/2022 14:00

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RNS Number : 1851A  Power Metal Resources PLC  21 September 2022

21 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling 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 in relation to the Molopo Farms Complex Project ("Molopo
Farms" or the "Project") targeting a large-scale nickel-copper-platinum group
element ("PGE") discovery in southwestern Botswana.

On 15 September 2022 the Company announced an update regarding progress being
made towards the first Power Metal managed and operated diamond drilling
programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-geophysics-drill-update/15631016
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-geophysics-drill-update/15631016)

HIGHLIGHTS

Drill Programme

§ Power Metal's inaugural drilling campaign at Molopo Farms has now
commenced.

§ Diamond core drilling at drillhole DDH1-6B is now underway and is targeting
a large southerly dipping conductor that was identified by the Company's
recently completed moving loop electromagnetic ("MLEM") geophysics survey over
the priority Target area 1-6 ("T1-6").

§ DDH1-6B is located 530m to the south of December 2020 drill hole KKME 1-6
which intersected significant nickel mineralisation (1, 2  )subsequently
interpreted to be on the  edge of a large electromagnetic ("EM") conductor.

§ The second diamond core drillhole DDH 1-6C planned for the ongoing drilling
campaign will be located 830m to the south of KKME1-6.  Site preparations are
underway and will be completed shortly.

Geophysics

§ Additional ground magnetic and MLEM geophysics surveys over target areas
1-3, 2-3 and 1-14 have now been completed.

§ Preliminary geophysical data has now been received, and the Company is now
compiling and interpreting these results.

§ Power Metal will release a further update to the market in due course with
the findings of this geophysical work and the additional drill targets derived
from the analysis undertaken.

 

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

"The world needs security of metal supply, which is enhanced if from a stable
and supportive operating environment, such as Botswana.

Molopo Farms presents the possibility for a district scale nickel exploration
opportunity, with priority drill target T1-6 expected to be the first in a
series of prospective drill targets based on current geophysical work and
exploration planning.

We are targeting a large-scale nickel-copper-PGE discovery or discoveries,
which would be transformational for the Company and, importantly, may lead to
Molopo Farms being a focal point for investment and lead to significant job
creation and opportunity.

We are therefore enthused with the opportunity the Molopo Farms Complex
Project offers and are particularly pleased to announce the commencement of
drilling.

I appreciate all our shareholders, and other current and potential
stakeholders in the Project, will be watching developments with interest."

FURTHER INFORMATION

Figure 1 - Molopo Farms Complex Project Plan Map: A plan map of the Project
area, including the location of various elements mentioned above is outlined
in Figure 1 below.

Figure 2 - Priority Target Area T1-6 Cross-Section: A cross section showing
the location of the first two planned holes, DDH1-6b and DDH1-6c, can be found
in Figure 2 below.

Image - Diamond Drill Rig in Position at K1-6: In addition, an image of the
drill rig at hole DDH1-6b is provided below, after positioning with the
azimuth and dip set for drilling.

The diagrams and image presented above may also be viewed on the Company's
website through the following link:

https://www.powermetalresources.com/molopo-farms-complex-drill-commencement/
(https://www.powermetalresources.com/molopo-farms-complex-drill-commencement/)

Further photographs and videos from the drill programme are and will be
available on the Company's website gallery section, through the following
link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/
(https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/)

 

PROJECT BACKGROUND AND OWNERSHIP

 

Power Metal currently has a current circa 53% effective economic interest in
Molopo, held through a direct project interest and a shareholding in partner
Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power
Metal announced a conditional transaction that would see its interest in
Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may
be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701
(https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701)

 

As part of the Transaction, Power Metal will become the Project operator and
in advance of completion the Company is working with the team at KKME to
maintain momentum with regard to Project exploration.

 

Work streams are also in process to secure Botswana regulatory approvals
enabling the Transaction to complete.

 

QUALIFIED 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 Qualified 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.

REFERENCES

 

1:            Power Metal PLC announcement, Botswana Molopo Farms
Complex - Drilling Progress Update, 14 December 2020

                (
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w)
)

 

2:            Power Metal PLC announcement, Significant Nickel
Intersections Confirmed by Drill Sample Assay Results, 8 April 2021

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw)
)

 

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.

 

 

Exploration Work Overview

 

Power Metal has internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration programme underway at 3 properties.  Continuing data       Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                         Update covering exploration plans for target areas identified during the
                                                                                                                                 Evaluation.
 Molopo Farms           Botswana  53%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 Tati Project           Botswana  100%             RC drilling and sampling of mine dumps complete.                              Review of mine dumps sampling and results from RC drill programme.

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

 

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.

 

These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 28.19%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com)
                                  announced 8.7.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found at

                                                                           www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 Uranium Energy Exploration PLC   Planned IPO - POW on listing estimated 40-55%                               www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)

 

 

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