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

Power Metal ResourcesAnnouncement

20/12/2022 13:30

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RNS Number : 3593K  Power Metal Resources PLC  20 December 2022

20 December 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling Update

Drillhole Into Target Area T1-3 complete and Drillhole into T2-3 Progressing
Well

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.

A short presentation capturing developments at Molopo Farms and Power Metal's
100% owned Tati gold Project is available on the Company's website which is
available through the following link:

https://www.powermetalresources.com/investors/botswana-in-focus-december-22/
(https://www.powermetalresources.com/investors/botswana-in-focus-december-22/)

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

"There is a strong momentum with our operations at Molopo Farms in Botswana
where we have now commenced drilling at target area T2-3, a 12-kilometre-long
magnetic body which represents another stand-out target we are eager to test.

From 5 drillholes across 4 target areas we have completed over 2,000m of
diamond drilling, the drill core from which, is now the focus of multiple
ongoing technical work streams including detailed core logging, downhole
geophysics analysis and assay testing.

I look forward to reporting back to the market on developments at Molopo Farms
as soon as practicable."

HIGHLIGHTS:

 

§ Diamond drillhole DDH1-3A has been completed at target area T1-3 to a depth
of 450m.

 

§ The inaugural drillhole (DDH2-3A) into target area T2-3A has progressed
well to the current downhole depth of 129.4m (see Fig. 3). Drilling operations
have now paused for the holiday season.

 

§ The electromagnetic ("EM") geophysics conductor at target area T2-3A is
located at approximately 400m downhole depth, so will be drill tested
following the resumption of drilling operations expected early to mid-January
2023.

 

BACKGROUND INFORMATION

The following three figures outlining the Molopo Farms Complex Project Area,
EM geophysics conductor targets, and details of the priority target area T2-3,
may also be viewed on the Company's website through the following link:

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

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/)

 

 Figure 1: Map showing Molopo Farms Complex Project, Named Electromagnetic
 Targets and Current Drill Programme Status

(Map Projection: UTM Zone 35S WGS84)

 

 Figure 2: Map Showing Location of In-Progress Drillhole DDH2-3A at Target T2-3
 with Moving Loop EM Geophysics Section Line (A-A' Figure 3), over 1st
 Derivative Magnetic Geophysics Response
 (Map Projection: UTM Zone 35S WGS84)

 

 Figure 3: Moving Loop EM Conductivity Cross-Section over Target Area T2-3 with
 Downhole Trend of In-Progress Drillhole DDH2-3A (targeted conductor in blue)
 (vertical scale interpreted metres)

 

 

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.

                                                                                                   Two drill holes at target conductor T1-6, one at T1-14 and one at T1-3 have
                                                                                                   been completed and drilling at target T2-3 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 confirmed high-grade and

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

                                                                                                   Next stage exploration plans announced 15.12.22.

                                                                                                   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/) .
 NewCo                            Exploration in Queensland's Mount Isa copper belt and in South Australia  Planned IPO/Disposal  20%(^)     NewCo website under development.
 Uranium Energy Exploration PLC   Uranium exploration in the Athabasca region of Canada                     Planned IPO           50-55%(~)  www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)

(^) subject to completion of Merger announced 15.12.22.

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

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

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