REG - Power Metal - Molopo Farms Complex – Botswana Drilling Update

Power Metal ResourcesAnnouncement

20/10/2022 14:15

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RNS Number : 5898D  Power Metal Resources PLC  20 October 2022

20 October 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Molopo Farms Complex - Botswana Drilling Update

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a drilling update from the Molopo Farms Complex Project ("Molopo
Farms" or the "Project") targeting a large-scale nickel-copper-platinum group
element ("PGE") discovery in southwestern Botswana.

In September 2022 Power Metal commenced a planned 2,600m diamond drill
programme at Molopo Farms focused on the drilling of three Company designated
priority (A+) electromagnetic ("EM") geophysics conductors, located at target
areas T1-6, T2-3 and T1-3. The first diamond core drillhole, DDH1-6B is within
priority target area T1-6 and is located 530m south of previous drillhole
KKME1-6 drilled in 2020, which returned multiple nickel sulphide intervals
which are detailed in the Company's announcement of 24 September 2021
accessible via the link below:

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-further-assays/15148836
(https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-further-assays/15148836)

HIGHLIGHTS:

§ The first diamond hole, DDH1-6B, has now achieved a depth of 576m.

 

§ Ultramafic rocks have been intersected immediately beneath relatively
shallow  (~24m) Kalahari Group sediments and have continued to the current
hole depth.

 

§ Preliminary inspection of DDH1-6B shows interbedded mafic units,
predominantly comprised of pyroxenites and serpentinites. Pyroxenites were the
host rock for nickel sulphide mineralisation found within drillhole KKME1-6.

 

§ Visible sulphide mineralisation has been logged within pyroxenites toward
the end of the current drillhole DDH1-6B. As a result, the Company has decided
to extend the hole from the original 600m target depth, with the goal of
intersecting additional pyroxenite layering. Drillhole DDH1-6B now has a
planned target depth of at least 650m.

 

§ Drill core recovery has been excellent, with core now being transported to
the processing area. Core logging and the preparation of samples for assay
testing will be expedited where possible.

 

§ Following the completion of DDH1-6B, a down hole EM survey will be
undertaken in order to gather further geophysical data which will assist in
the vectoring of subsequent drillholes planned to test the priority T1-6
target area.

 

§ In the interim on completion of DDH1-6B, the Company will undertake a
further new shallow drill hole into target area T1-6, DDH1-6B(2), from a drill
location proximal to that for the original hole KKME1-6.  The new drill hole
is planned to a target depth of 250m. This hole will test for the potential up
dip extension (shallower) of the nickel mineralised pyroxenites identified in
drillhole KKME1-6, and should help the Company to demonstrate the full extent
of the mineralised system at this priority target area.

 

 

 

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

"The initial findings from hole DDH1-6B are exciting, confirming the extension
of pyroxenite layering to the south of original hole KKME1-6 and providing
significant core intervals for expedited processing and subsequent assay
testing.

 

The presence of visible sulphide mineralisation toward the end of the current
hole has led us to make the decision to extend the planned target depth of
DDH1-6B to at least 650m.

 

The preliminary logging of the ongoing drillhole has confirmed the angle of
dip of geological units from original hole KKME1-6 to the current hole DDH1-6B
to be approximately 30°, it is also clear that we should test the northerly
extension of the pyroxenite layering up-dip, to the north of KKME1-6, where we
are targeting nickel sulphide mineralisation nearer to surface.

 

The opportunity at Molopo Farms is considerable, so I am particularly pleased
to report the findings above so early in this ongoing programme and look
forward to releasing further information as soon as possible.

 

My thanks to the drill team and our technical advisers in the field for a
great job on the programme thus far."

 

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.

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 multiple internal exploration programmes completed or
underway, with results awaited.  The status for each of the Company's
priority exploration projects is outlined in the table below.

 

 Project            Location  Current   Work Completed or Underway                                                     Results Awaited

                              POW %

 Athabasca Uranium  Canada    100%      Ground exploration programme complete at 3 properties.  Preliminary planning   Assay results from samples collected during fieldwork.
                                        for work in Spring/Summer 2023 is ongoing.
 Molopo Farms       Botswana  c.53%(#)  T1-6 conductor target drilling underway and MLEM surveys over T1-6, T1-14,     Drill programme updates and findings from further MLEM survey work.
                                        T1-3 and T2-3 completed. Further MLEM surveys planned over additional AEM
                                        targets identified.
 Tati Project       Botswana  100%      RC drilling and sampling of mine dumps complete.                               Review of mine dumps sampling and assay 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 27.91%                                                     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)

                                  Uranium exploration in the Athabasca region of Canada

 

 

 

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