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

Power Metal ResourcesAnnouncement

07/12/2022 07:00

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RNS Number : 8299I  Power Metal Resources PLC  07 December 2022

7 December 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling Update

Drillhole Into Target Area T1-3 Progressing Well - Nickel Sulphides Identified
in K1-3 Drill Core

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 and platinum group
element ("PGE") discovery in southwestern Botswana.

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

"The Molopo Farms Complex Project represents a substantial discovery
opportunity, both in terms of size and potential, and I am thrilled to report
the presence of the targeted nickel sulphides* from the inaugural drillhole
into target area T1-3, which is an immense target, the scale of which is
clearly demonstrated within the figures below.

At T1-6, the targeted pyroxenite intervals originally intersected by the
2020/2021 drillhole KKME1-6 have successfully been intersected by the two new
follow-up drillholes into this target area. Drill core samples from DDH1-6B
are currently at the lab undergoing assay testing.

At target area T1-14 we await the detailed core logging results and the
downhole geophysics survey data which recently completed.  We will report
these findings in due course.

We push on with increased confidence and look forward to reporting further
results as well as progress updates surrounding the completion of the
drillhole at Target T1-3, as well as the commencement of inaugural drilling at
target area T2-3."

*The presence of nickel sulphides was determined via visual inspection of core
and subsequent analysis of identified sulphides utilising a portable X-Ray
Fluorescence ("XRF") spectrometer.

 

DRILL OVERVIEW

 

Target T1-3

 

§   The inaugural drillhole (DDH1-3) into target area T1-3A is progressing
well with the last reported depth being down to 355.66m. This drillhole is
still underway.

 

§    Initial core review identified visible nickel sulphides at 327m and
also within the interval from 348-354m, where an increase in intensity of
visible disseminated sulphide mineralisation was identified. XRF readings
taken within this interval have confirmed the sulphides to be nickeliferous.

 

§    It should be noted that the above findings are from the initial core
review, and the grade of any nickel or other mineral intersections, can only
be accurately determined from assay testing of homogenised samples at an
accredited laboratory.

 

§    Hole T1-3 is continuing to the current planned target depth of
approximately 450m. Additional technical details surrounding priority target
area T1-3 were released on 30 September 2022 and can be found at the link
below:

 

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15651506
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15651506)

 

Target T1-14

 

§    Drillhole DDH1-14B was successfully completed to a depth of 520m.

 

§   A downhole electromagnetic ("EM") geophysical survey is now complete
with results expected in the coming days.

 

§   Detailed technical core review is currently underway and the results of
this work in conjunction with the results from the downhole geophysical
survey, once received, will advise the Company of next steps at this target
area.

 

Target T1-6

 

§   Drillhole DDH1-6B was successfully completed to a depth of 650m with
interbedded mafic units, predominantly comprised of pyroxenites and
serpentinites intersected throughout the majority of the hole. Pyroxenites
were the host rock for nickel sulphide mineralisation found within original
drillhole KKME1-6 drilled during the 2020/2021 campaign.

 

§   Preliminary technical core review from DDH1-6B has been completed and
select samples were prepared and dispatched to the accredited assay laboratory
in South Africa for analysis.

 

§   Drillhole DDH1-6B(2) was completed to a depth of 300m which was
designed to test for the up-dip (shallower) extension of the targeting
pyroxenites identified by drill hole KKME1-6. Hole DDH1-6B(2) successfully
intersected (up-dip) pyroxenites units, with detailed core review currently
underway.

 

§   A downhole EM geophysics survey has been completed at target area T1-6,
the final results of which will be delivered to the company alongside the
geophysical results from target area T1-14 in the near term.

 

Target T2-3

 

§    Following the completion of DDH1-3, the drilling rig will then move to
target area T2-3, where the first ever drillhole into this target is planned.
Additional details surrounding target area T2-3 were released on 28 September
2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138)

 

FURTHER INFORMATION

A plan map of the Project area, including the location of various targets
mentioned in this announcement is outlined in Figure 1 below.

Figure 2 (below) depicts a three dimensional ("3D") airborne geophysics
magnetic inversion model of Target Area T1-3 showing the location of the
planned drillhole DDH1-3A and the moving-loop electromagnetic ("MLEM")
geophysics cross-section with the new 'Jelly Bean' shaped conductor in blue.
The 3D model shows how the 'Jelly Bean' conductor sits within an apparent
magnetic trough.

Figure 1: Map of Molopo Farms Complex Project with Named Airbourne
Electromagnetic ("EM") Geophysics Target Locations and Current Drill Programme
Status  (Projection: UTM Zone 35S WGS84)

 

Figure 2: Geophysical Interpretation Model of Priority Target Area T1-3 and
the Targeted Jelly Bean Conductor. Depicted at 500m grid spacing (UTM Zone 35S
WGS84 projection)

 

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 holds a number of priority exploration projects with active
exploration underway currently. The status of each project is outlined in the
table below:

 Project         Operations                                                                POW %   Project Status
 Athabasca       12 properties covering an area of 842km(2) in the Athabasca Basin region  100%    Exploration programmes undertaken across three properties during summer 2022

               Canada.                                                                           and preliminary planning for work in Spring/Summer 2023 is ongoing.
 Uranium

                                                                                                   Desktop review work ongoing across the existing portfolio and data rooms
                                                                                                   established for all the projects, to enable third party review of
                                                                                                   opportunities for potential acquisition, joint venture or earn-in.

                                                                                                   Ongoing review of new opportunities to further expand the Company's Athabasca
                                                                                                   uranium property exposure.
 Molopo Farms    3 prospecting licences covering 1,723km(2) in south-west Botswana         87.71%  Currently a 2,600m diamond drill programme is underway with a planned 5-6

                                                                                                 holes targeting four previously identified magnetic conductors prospective for
 Nickel - PGMs                                                                                     Nickel - Platinum Group Metals.

                                                                                                   2 drill holes at target conductor T1-6 and one at T1-14 have been completed
                                                                                                   and drilling at target T1-3 target is underway currently.

                                                                                                   Downhole geophysics completed at DDH1-6A and underway at DDH1-14B.

                                                                                                   Further Moving Loop Electro-Magnetic surveys are planned over additional
                                                                                                   Airborne Electro-Magnetic targets identified, to develop further drill
                                                                                                   targets.
 Tati Project    Botswana                                                                  100%    Reverse Circulation drilling and soil sampling has confirmed high-grade and

                                                                                                 bonanza grade gold mineralisation across a gold-in-soil anomaly extending for
 Gold - Nickel                                                                                     8km across the Company's prospecting licences.

                                                                                                   Next stage exploration plans are currently under development.

                                                                                                   Sampling of fines dumps, representing waste material from the Cherished Hope
                                                                                                   gold mine on the project has confirmed circa 1g/t gold and suitability of the
                                                                                                   fines dumps for processing to extract gold and generate income.  Preparations
                                                                                                   for the fines dumps processing are advancing.

( )

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                          Operations                                                                Status             POW %      Further Information Link
 First Class Metals PLC           Exploration in the Schreiber-Hemlo region of Ontario, Canada              Listed Investment  27.91%     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

 Kavango Resources PLC            Exploration in Botswana                                                   Listed Investment  9.85%      www.kavangoresources.com (http://www.kavangoresources.com)

 First Development Resources PLC  Exploration in Western Australia and the Northern Territory of Australia  Planned IPO        62.12%*    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

 Golden Metal Resources PLC       Exploration and development in Nevada, USA                                Planned IPO        83.13%     www.goldenmetalresources.com (http://www.goldenmetalresources.com)

 New Ballarat Gold PLC            Exploration in the Victoria Goldfields of Australia                       Planned IPO        49.9%      New website under development which can be found at
                                                                                                                                          www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .

                                                                                                                                          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   Uranium exploration in the Athabasca region of Canada                     Planned IPO        50-55%(~)  www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)

(*) reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.

(~) subject to completion of disposal of Reitenbach and E-12 properties,
announced on 8.8.22 and 4.11.22, respectively.

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