REG - Power Metal - Molopo Farms Complex, Botswana – Programme Results

Power Metal ResourcesAnnouncement

27/04/2023 07:00

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RNS Number : 6003X  Power Metal Resources PLC  27 April 2023

27 April 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Programme Results

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces results from the recently completed 2022/2023 drilling campaign at
the 1,478.6 km(2) Molopo Farms Complex Project ("Molopo Farms" or the
"Project" or "MFC") targeting a large-scale nickel ("Ni") and platinum group
element ("PGE") discovery in southwestern Botswana.

On 7 February 2023 the Company announced an update regarding the completion of
the 2022/2023 drilling campaign. The link to this announcement can be found
below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-botswana-drill-programme-complete/15827461
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-botswana-drill-programme-complete/15827461)

Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented:

"I am very pleased to present this set of drill results, which I know have
been long awaited. We have provided a comprehensive analysis of the results
achieved as well as a detailed exploration history of the Molopo Farms Complex
and of our Project area.

 

Based on the information provided below, including historical drilling and
petrographic results, it is evident that the MFC has the required ingredients
which would allow for the formation of a magmatic sulphide deposit.

 

It is fair to say the discovery of major nickel sulphide & PGE deposits is
highly challenging, which is why they are so sought after and valuable. Some
of the main challenges are to find demonstrable evidence of the right
geological environment and targeted mineralisation within what is a very large
area of sand covered ground - as is the case at Molopo Farms with a 1,478.6
km(2) Project footprint.

 

These major challenges have been overcome and we have been able to confirm the
postulated geological model and confirm the presence of nickel sulphides and
PGEs. It is now time to move to the next stage where the knowledge and data we
have assembled can be deployed in continuing ground exploration.

 

In this regard, conversations with potential Project partners are underway as
previously announced, with further interest received very recently. We
strongly believe that we are now in a position to significantly advance those
conversations and set a course for the large-scale exploration programme that
Molopo Farms needs to prove the potential for a magmatic sulphide deposit or
deposits."

HIGHLIGHTS:

 

§ During the 2022/2023 diamond core drilling campaign Power Metal
successfully completed a total of 2,402.8m of drilling across five drillholes
targeting four individual target areas including:

 

-      DDH1-6B (650.2m), DDH1-6B(2) (300.2m), DDH1-14B (519.1m), DDH1-3
(450.1m) and DDH2-3 (483.2m).

 

§ Drilling at all target areas (T1-6, T1-14, T1-3, T2-3) was designed to test
geophysical conductors identified by the time-domain electromagnetic ("TDEM")
geophysics surveys completed by Power Metal earlier in 2022.

 

§ Multiple drillholes successfully intersected mineralised pyroxenites which
returned anomalous precious metal (gold (Au) + platinum (Pt) + palladium (Pd))
mineralisation including 2.3m @ 0.56 g/t Pt+Pd+Au & 0.17% Ni from 497.2m
downhole, including 0.8m @ 0.81 g/t Pt+Pd+Au & 0.18% Ni from 498.7m
downhole, in drillhole DDH1-6B.

 

§ Downhole electromagnetic ("EM") survey completed on drillhole DDH1-14B
indicates that the superconductor targeted lies beyond the depth of the
current end of hole (519m) at a projected downhole depth of approximately
610m. Conductivity depth imaging completed previously under-estimated the
depth to the central part of this conductor.  DDH1-14B would therefore need
to be extended to intersect the superconductor target.

 

 

§ The 2022/2023 results achieved for nickel and precious metals are in line
or exceed some of the highest results achieved from the minimal historical
exploration that has been completed within the Molopo Farms Complex, and
although these grades are currently not a levels permitting economical
extraction, they are very encouraging. A detailed overview of the geology,
historical exploration, and next steps are included in the body of this
release and interested parties are encouraged to read through the below
section in its entirety.

 

 

FURTHER INFORMATION

Summary Drilling Results

 Hole ID (current downhole depth m)  Target                                                                          Notable Outcome                                                                  Action proposed
 DDH                                 Targeted moderately dipping superconductor. The superconductor targeted by      Further proved the presence of a ultramafic feeder dyke within the MFC and       Investigate for mineralisation within or closer to the ultramafic dyke. Drill

                                   DDH1-14B was not intersected.                                                   delineated its northern edge.   The dyke is a funnel shaped intrusion with a     for intersection between pyritic mudstone and ultramafic dyke where magmatic
 1-14B                                                                                                               generally east-west strike.  It is composed mainly of harzburgites and           sulphide deposits are known to form.

                                                                                                                   dunites. The dyke follows the Jwaneng - Makopong structure.
 (519.1 m)

 DDH                                 Targeted moderately dipping (to the south) conductor, the causative body of     Drilled to the south and downdip of drillhole KKME1-6 further from feeder        Investigate layered rocks closer to known feeder dyke

                                   which remains uncertain.                                                        dyke. Successfully Intersected down dip extension of upper pyroxenite from
 1-6B                                                                                                                2020/2021 drillhole KKME1-6. The upper mineralised pyroxenite within DDH1-6B

                                                                                                                   returned 2.27m @ 0.56 g/t Pt+Pd+Au & 0.17% Ni from 497.2m downhole (incl.
 (650.2 m)                                                                                                           0.77m @ 0.81 g/t Pt+Pd+Au & 0.18% Ni from 498.7m).

                                                                                                                     This is close to the highest ever precious metals values obtained from
                                                                                                                     ultramafic rocks of the MFC (compared to 1.1 g/t Pt+Pd+Au from government
                                                                                                                     borehole MF38).

                                                                                                                     Hole also returned 0.65m @ 0.38% Ni from 564.05m downhole, precious metal
                                                                                                                     assays are still awaited.
 DDH                                 Targeted up dip extension of mineralised coarse pyroxenite unit which was       The hole intersected thick, coarse grained pyroxenites, maximum assay values     Investigate layered rocks closer to known feeder dyke

                                   intersected in both KKME1-6 and DDH1-1B.                                        in a weathered intersection of 1.0m @ 0.166g/t Pt+Pd+Au & 0.10% Ni from
 1-6B(2)                                                                                                             63.0m downhole.

 (300.2 m)                                                                                                           This weathered coarse pyroxenite intersected is believe the represent the same
                                                                                                                     geological unit targeted from KKME1-6 and DDH1-6B
 DDH                                 Targeted a 'jelly-bean' shaped conductor.  The Causative body remains           Intersected ultramafic rocks of the MFC under 131.5m of Kalahari Group           Further structural and geological analysis of physical drillcore as well as

                                   unclear. This conductor extends for at least 1.6km in a east-west direction.    sediments.   Intersected serpentinites intruded by later gabbro and dolerite     possible further assay analysis required prior to determining next steps
 1-3                                 This target is part of a approx. 14km long east-west trending magnetic high.    bodies, which are likely part of the MFC suite of rocks.

 (450.1 m)                                                                                                           Local anomalous precious metals results including 1.02m @ 0.52 g/t Pt+Pd+Au
                                                                                                                     & 0.23% Ni from 381.m downhole and 1.0m @ 0.44 g/t Pt+Pd+Au & 0.30% Ni
                                                                                                                     from 385.0m downhole.  The precious metal values are not associated with
                                                                                                                     visible sulphide mineralisation.

                                                                                                                     Considering this, Company is contemplating sending further sections with no
                                                                                                                     visible sulphide mineralisation for assay testing.

 DDH                                 Targeting flat-lying, slightly concave down, strong conductor which remains     Intersected ultramafic rocks of the MFC at depth of 280m under cover of          Further structural and geological analysis of physical drillcore as well as

                                   open in all directions. Conductor is coincident with 14km long east-east        Waterberg Group and Transvaal Supergroup.                                        possible further assay analysis required prior to determining next steps
 2-3                                 trending magnetic high. This represents the first ever drillhole into this

                                   target area. Significant magnetite intersected near depth of major conductor.   Demonstrated presence of MFC ultramafics further west than previously known.
 (483.2 m)                                                                                                           Ultramafics are intruded by a number of thin dolerite bodies.

 

Drill Hole Collar Table

 Hole ID      Operator  UTM Easting  UTM Northing  Azimuth  Dip     Total Depth (m)  Date Completed
 KKME1-14     KKME      232917       7267290       345°     -60°    515.8            12-Nov-20
 KKME1-6      KKME      213494       7255681       180°     -60°    597.8            20-Jan-21
 KKME1-11A    KKME      231666       7267130       157°     -60°    502.4            30-Mar-21
 DDH1-6B      Power     213493       7255150       0⁰       -80⁰    650.2            22-Oct-22
 DDH1-6B (2)  Power     213504       7255681       0⁰       -80⁰    300.2            02-Nov-22
 DDH1-14B     Power     232900       7267150       0⁰       -75⁰    519.1            22-Nov-22
 DDH1-3       Power     792330       7236250       345⁰     -80⁰    450.1            08-Dec-22
 DDH2-3       Power     761675       7233925       170⁰     -80⁰    483.2            25-Jan-23

Projection: UTM Zone 35S WGS 84

 

MOLOPO FARMS COMPLEX

A detailed historical and geological overview of the Molopo Farms Complex is
provided below. It is intended to be a comprehensive writeup so interested
parties can get additional context about the exploration task at hand and what
suggested future steps are.

 

Overview

The Molopo Farms Complex ("MFC" or the "Complex") is a significant layered
mafic-ultramafic intrusion covering approximately 13,000 km(2) across southern
Botswana and into South Africa. Power Metal's Molopo Farms Project covers
approximately 1,632 km(2) across this highly prospective geological province.
The MFC intrusive rocks have been emplaced into Palaeoproterozoic sedimentary
rocks of the Transvaal Supergroup.  Radiometric dating of the MFC shows that
it is coeval (a similar age) with the prolific Bushveld Complex located
entirely within South Africa approximately 200 km to the east.

Geology

The MFC consists of a lower zone of ultramafic rocks and an upper zone of
mafic rocks.  The total thickness is about 3,200 m of which the lower
ultramafic zone makes up at least 2,000 m.

The structure of the Complex is a folded, block faulted, lopolith which now
forms a southwest plunging syncline divided through the middle by ENE-WSW
trending Jwaneng-Makopong shear zone which divides the complex into a
northwest and southeast section.  The rocks are generally highly faulted and
the olivine bearing ultramafic rocks severely altered.

Essentially only the lower ultramafic zone is well developed within the
current Molopo Farms Project.  The mafic rocks are limited to sills overlying
the ultramafics, or, in some cases, mafic intrusions into the ultramafic
rocks.

The ultramafic rocks consist of either olivine dominant or orthopyroxene
dominant rocks, which alternate in an irregular fashion.  Specific rock types
include harzburgites, dunites, orthopyroxenites, olivine pyroxenites and
orthopyroxenites.  Alteration is generally intense, with widespread
serpentinization of olivine dominant rocks, and bastite and chlorite
alteration of pyroxenites.  Alteration of the pyroxenites varies from minimal
to highly pervasive.  Magnetite segregations and veining are common and may
in places be after chromite.  Chrysotile asbestos are common in joints and
faults, serpentine, talc and calcite veins are widespread.

Contacts between lithologies are in general sharp rather than gradational.
There is a competence difference between the olivine and pyroxene dominant
rocks which leads to jointing and faulting close to the contact between these
units.  Whilst some areas are not greatly faulted, in other areas the rocks
are severely fractured.

First Recognition

Due to extensive Kalahari sand cover there are no outcrop exposures of the MFC
making exploration for magmatic sulphide deposits challenging. In additional
to the Kalahari sands, the MFC is further concealed by varying thicknesses of
Proterozoic Waterberg Group, and locally by Karoo Supergroup rocks.

The first indication of the presence of the MFC below Kalahari sand cover was
when serpentinite was exposed in hand dug wells within the north of the MFC.
The Molopo Farms are commercial cattle ranches which were first surveyed in
the 1950s.  Drilling for water on the new farms intersected a variety of
igneous rocks which suggested there could be a Bushveld equivalent intrusion
in southern Botswana.

In 1962, to assist in the siting of further water wells, the Geological Survey
of Botswana commissioned an aeromagnetic survey over a large portion of
southern Botswana.  This survey revealed extensive magnetic high anomalies
which confirmed the presence of a large body of mafic - ultramafic rocks.

Exploration History

British & Botswana Geological Survey Joint Programme(1)

The MFC was the subject of a major research project carried out jointly by the
British and Botswana Geological Surveys from 1980-1984. The programme oversaw
the digitisation of the earlier aeromagnetic data, carried out a gravity
survey, prepared an inventory of existing drill holes and drilled 46
additional holes totalling 5,457 m of percussion drilling and 4,607 m of
diamond coring.  Considerable petrographic and lithogeochemical work was
completed on the various cores obtained.

Considering the vast footprint of the MFC, the drill holes were very widely
spaced and were designed mainly to provide additional data to allow the
preparation of a more comprehensive geological model. Despite this, a total
precious metal assay of 1g/t  Pt+Pd+Au was obtained from a pyroxenite close
to the base of the MFC in the northeast(1).  The joint exploration programme
successfully demonstrated that the MFC is a large, Bushveld equivalent,
layered intrusion, and the intriguing results guided subsequent work carried
out by various private sector companies.

The Kalahari Mapping Project was a second major programme completed jointly by
the Botswana and British Geological Surveys from 2003 to 2005. The aim was to
re-map the sub-Kalahari geology of the area from recent higher-resolution
government aeromagnetics (while utilising an updated drill hole inventory).
New maps of the geology of the MFC were published, however very little new
fieldwork was done, and there was no additional drilling.

Private Sector Exploration (1985-1992)

The MFC was explored by two companies between 1985-1992, one major - Gold
Fields Ltd. ("Gold Fields"), and one junior - Molopo Australia PTY. Most work
by Molopo Australia was funded through a joint-venture agreement with Inco
Ltd. (now Vale Ltd).

Given the lack of outcrop exposure, exploration was driven by geophysical
surveys, generally magnetic and gravity, although limited TDEM work was also
done.  Gold Fields discovered a possible equivalent of the Bushveld Critical
Zone located in the south of the complex, but precious metals values were
generally low and relatively inconsistent.  Molopo Australia noted low grade
platinum-group metal ("PGM") mineralisation towards the base of the ultramafic
sequence in the north of the Complex.  Molopo Australia also intersected
0.3 m of 14% nickel within a vein in the footwall of the MFC.

It is important to note that both Gold Fields and Molopo Australia based their
exploration efforts on a Bushveld model - where mineralisation would occur in
distinct horizons within a large layered intrusion.  In particular, the focus
was on an equivalent of the Bushveld Critical Zone.  Later re-interpretation
of the MFC suggests that this model misled the majority of their exploration.

Private Sector Exploration (2001-2007)(2)

From 2001 - 2007 an Australian junior exploration company Tau Mining Ltd.
("Tau Mining"), explored the MFC with a new geological model based on
exploration for a feeder zone or zones which were possible magma conduits.
This work was however mostly unsuccessful as Tau Mining had limited funding
and although some significant geophysical work was done, including a Spectrum
survey over the Keng area, drilling was limited, percussion only, and poorly
sited.

Tau Mining did however drill a number of drillholes close to the Kalahari Key
Mineral Exploration (Pty) Ltd. ("KKME" or "Kalahari Key") prospecting licence
("PL") 311/2016 and these are incorporated in Power's Project overall project
database.

Private Sector Exploration

Kalahari Key Mineral Exploration PTY Ltd & Power Metal Resources from
2020-present

The latest phase of work originally initiated by Kalahari Key, further adopted
the feeder zone dyke model from Tau Mining but has applied more sophisticated
geophysical surveys followed up by now two phases of core drilling.

Much of the work has been focussed within the northeast of the Complex, where
there is a very thick (>2,000 m) under explored, ultramafic succession
mainly under relatively thin (<25 m) Kalahari Group cover.

Exploration by Kalahari Key was guided by geophysics, in this case by
helicopter and ground Time Domain Electromagnetic (TDEM) surveys, supported by
helicopter magnetic data and ground magnetic surveys.  Only very limited
gravity surveys have been completed over the MFC.  The exploration targets
focussed on by KKME and Power Metal have been discrete conductors compatible
with massive magmatic sulphide bodies.

Ground TDEM surveys initially employed 1x 1 km fixed loops, but later more
detailed moving loop surveys were carried out over some targets.

Kalahari Key and subsequently Power Metal Resources have to date drilled 8
boreholes totalling 4,018.7 m. Select samples from drilling completed by KKME
were sent to the University of Witwatersrand for detailed petrographically
work. Primary magmatic nickel & copper sulphides were successfully
identified including pentlandite, maucherite, chalcocite, heazlewoodite,
awaruite, bornite, chalcocite and covellite. Various results are discussed
below and compared with the results of historical drilling.

Historical Occurrences of Base- and Precious-Metals

It is relatively rare to see sulphide mineralisation within hand specimens
from the MFC ultramafic rocks.  Serpentinites after harzburgite may contain
small specks of sulphide, generally intergrowths of pyrite, pyrrhotite and
chalcopyrite.  In some cases, these are restricted to within orthopyroxene
oikocrysts.

All mineralisation of interest has so far been found within pyroxenite units
within the ultramafic succession. Historical mineralised intersections
include:

§ The Molopo Farms Project borehole MF38, which is within KKME's
PL 311/2016, intersected 1.1 g/t Pt+Pd in pyroxenite at a depth of
approximately 532 m.

§ Borehole TB-1, drilled by Molopo Botswana, a previous explorer in the
Molopo Farms Complex, 1 km east of MF38, intersected a prominent sulphide
zone between 96.5 and 103.8 m which is believed to correlate with the 531 -
532 m zone in MF38.  Although sperrylite was recognised in the TB-1 samples,
the best assay result was 0.23 g/t Pt+Pd+Au(3).

§ Borehole TB-3 was drilled 1.4 km NE of TB-1 to test the strike continuity
of the mineralisation in TB-1 and MF38.  A sulphide horizon in pyroxenite at
287.9 - 293 m was interpreted as correlating with the mineralisation in
MF38.  However, the best assay result from TB-3 was 0.45 g/t Pt+Pd+Au.

§ Borehole TB-11 was drilled 500 m south of the MF38 - TB-1 line.  Sulphide
horizons were found in pyroxenite at 186 - 216 m and at 286 - 312 m.  A
total of 156 samples were assayed from TB-11 and its deflection, but the best
values were 0.20 g/t Pt and 0.12 g/t Pd.

§ Nickel values in the above boreholes were consistently <0.3% Ni.

§ Borehole KP-20, drilled by Molopo Botswana 5 km northeast of Keng Pan,
intersected a semi-massive nickel arsenide vein over 30 cm at a depth of
91 m which assayed 14.6% Ni, 0.05 g/t Pt+Pd+Au and 610 g/t Ag.  The vein
was in siliceous dolomite in the footwall of a differentiated pyroxenite sill
related to the MFC.  Follow up drilling however failed to locate any
continuation of the vein, which is believed to be hydrothermal(4).

§ Borehole KP-19, south of KP-20, intersected three narrow sulphide veins in
a tectonised ultramafic rock.  The best assay, from a downhole depth of
424 m returned 1.25% Ni and 0.97% Cu(4).

Based on all historical work completed to date the key lithology for
mineralisation in the ultramafic sequence is pyroxenite, especially coarse
grained, feldspathic pyroxenite.

By comparison with historical results, KKME and subsequently Power Metal have,
with limited drilling, intersected rocks giving assays results in line with
those achieved historically highlighting the various exploration successes of
both parties with overall limited exploration.

Confirmation of the Feeder Zone Model

The magnetic surveys carried out in the north of PL 311/2016, plus drill
holes KKME1-14, DDH1-14B and KKME1-11A, support the presence of an ultramafic
dyke following the Jwaneng - Makopong shear zone.  The dyke appears to be
funnel-like in profile and could be a magma conduit to the Molopo Farms
Complex. The Transvaal strata in contact with the steeply dipping feeder zone
are gently to moderately dipping. This is an important consideration when
reviewing existing and future geophysical results across the feeder zone.

Further south, around drillhole KKME1-6, it is harder to distinguish the
feeder from the layered rocks of the intrusion.

The magma conduit model is analogous to the Uitkomst intrusion in eastern
South Africa, which hosts the Nkomati nickel mine, once South Africa's largest
nickel producer.  Like the MFC, the Uitkomst intrusion is of Bushveld age.

Exploration Methodology

Due to extensive sand cover over the MFC, historical exploration has been
largely driven by geophysics.

Soil geochemical surveys have been carried out, but the Kalahari sands, even
if relatively thin, diffuse the results and soil surveys tend to only detect
the underlying lithology.  That said, there is no known mineralisation on
which soil sampling data can be orientated.

Historically, magnetic and gravity surveys were used to identify the
cross-over from the lower ultramafic zone to the upper mafic rocks.

TDEM surveys have sought to recognise conductors caused by massive sulphide
bodies.  To date, as no such bodies have been found, the usefulness of TDEM
surveys in this environment remains limited.

All eight of the drillholes completed by KKME and Power Metal were sited to
intersect electromagnetic ("EM") geophysical conductors.  However, in no case
was an obvious geological unit which was responsible for the EM signature
identified (causative body).  In the past, it has been noted that EM surveys
will detect faults and areas of saline groundwater, and sheared serpentinite
are also known to act as good conductors.

Discussion on Future MFC Exploration

It is evident from historical work that the ultramafic rocks in the NE of the
MFC are the most promising target.  As a result, Power Metal Resources Molopo
Farms Project is located in the right place.

KKME and Power Metal have discovered an ultramafic dyke-like intrusion which
causes a curvilinear magnetic anomaly changing direction from E-W to NE-SW.
The intrusion is composed of dunite and harzburgite and has a very basic
composition.  Three holes have been drilled on this target, demonstrating its
composition and that the northern contact is steep and discordant.  As
mentioned, this structure has similarities to the Uitkomst intrusion, which is
regarded as a feeder conduit to the Bushveld Complex and could merit further
drilling.  A vertical borehole down the centre of the body, aimed at passing
through the intrusion into country rock, could be proposed.

Recent and historical work has recognised the occurrence of awaruite in the
MFC serpentinites.  Awaruite is a Ni-Fe alloy, which has attracted
considerable attention as a "green" source of nickel, in that nickel may be
recovered without smelting and consequent release of SO(2) into the
atmosphere.  It may have a nickel content of >70%.(5)  Previous work in
the Keng area has shown that 40% of the total nickel in serpentinites may be
contained within awaruite.  Economic recovery of awaruite was considered in
the past and could be worth re-visiting.  Mining could be feasible only in
those areas where serpentinite is present under thin Kalahari cover, and thus,
depending on the cover depth, amenable to open pit working.

Correlation of individual layers in the ultramafic succession is problematic,
and it has been proposed that only certain coarse pyroxenite layers may be
continuous. Power Metal has tentatively correlated mineralised horizons
between boreholes KKME1-6 and DDH1-6B located approximately 530 m apart.
However, mineralisation is not entirely consistent.  Drillhole DDH1-6B(2),
drilled at the same position at KKME1-6 but angled to the north, intersected
coarse pyroxenites which were devoid of mineralisation.  Equivalent styles of
mineralisation in layered ultramafic rocks of the Bushveld Complex are low
grade (eg Volspruit North:  2.27 g/t Au+Pt+Pd, 0.18% Ni, 0.06% Cu and
Sheba's Ridge: 0.9 g/t Au+Pt+Pd, 0.2% Ni and 0.08% Cu) but have high tonnage
and are open-pitable.(6,7)  These grades are not considerably better than
found by Power Metal, but tonnage and being close to surface are important
considerations. In general, mineralisation in the generally moderately dipping
layered ultramafic rocks is likely not a viable exploration target going
forward - as per results obtained from drillholes KKME1-6, DDH1-6B and
DDH1-6B(2).

Next Steps

As the demand for nickel continues to increase, exploration for magmatic
sulphide deposits within mafic/ultramafic complexes will continue to be of
significant interest to junior and major mining companies. Compared to many
other significant mafic provinces, the MFC is comparatively underexplored,
likely as a result of the extensive Kalahari sand cover. However, based on the
information provided above, including historical drilling and petrographic
results, it is evident that the MFC has the required ingredients which could
allow for the formation of a magmatic sulphide deposit(s). To that end, one of
the major challenges of exploration for these types of deposits is due to the
lack of alteration surrounding known ore bodies - with barren rock known to
exist in contact with significant metal accumulations. Due to the above
considerations, Power Metal is strongly of the belief that significant further
exploration is warranted. Some of the possible next steps include:

 

§ Collection of further structural data from 2022/2023 drill
programme-oriented core, as well as thin section analysis of select
mineralised horizons.

§ Select core samples of ultramafic rocks in boreholes 1-6 and 1-6B for
preparation of mineral separates to assess awaruite content.  Choose
serpentinites with relatively high whole rock nickel content (0.2%).

§ Complete a high-resolution mobile magnetotellurics ("MobileMT") airborne
geophysical survey. MobileMT is on the cutting edge of geophysical survey
methodology and compared to TDEM has multiple advantages including:

o  Allows for good discrimination between resistive units (e.g. TDEM cannot
effectively map resistive units or discriminate between 1000 ohm-m and 5000
ohm-m formations).

o  Can detect superconductors directly.

o  Provides superior depth penetration than even high powered TDEM systems
(up to 2km in certain geological environments).

o  System experiences no problems with induced polarisation ("IP") effects,
zero coupling zones or super para-magnetic effects.

o  Highest efficiently and quick surveying over flat areas like southern
Botswana and can average production of 100km per day with a comparatively low
production cost.

§ Across PL311/2016 prepare detailed geological/structural interpretation
incorporating all historical drilling and geophysical data available. Trace
feeder dyke as possible magma conduit.

§ Based on above, plan additional drilling within the feeder dyke and
adjacent areas.  Possible additional ground magnetic surveys. Drillhole
KKME1-14 and DDH1-14B are 17 kms northeast of the main outcrop of the MFC
ultramafics - this area should be further investigated and subsequently
drilled (at least one deep vertical hole) as it geological analogous to the
prolific Uitkomst intrusion located in South Africa.

 

References

 

(1)Gould, D., Rathbone, P.A. and Kimbell, G.S., 1987. The geology of the
Molopo Farms Complex, southern Botswana. Geological Survey of Botswana,
Bulletin, 23, 178p

 

(2)Tau Mining Ltd., Molopo Farms Project Prospecting licenses: PL06/2001,
PL38A/2001, PL38B/2001, PL40/2001, PL41A/2001, PL41B/2001, PL42A/2001,
PL42B/2001., Quarterly Exploration Report July 2008 - September 2008

 

(3) McGeorge, I.B., 1992., Molopo Botswana (Pty) Ltd 1992. Final Report for PL
14/87, Southern District. Prospecting Records, Botswana Geoscience Institute.

 

(4) McGeorge, I.B., 1994, Molopo Botswana (Pty)- Final Report for Prospecting
Licence 62/89 Southern District. Prospecting Records, Botswana Geoscience
Institute.

 

(5) Seiler, S., Sanchez, G., Teliz, E., Diaz, V., BRadhsaw, P., Klein, B.,
2022, Awaruite (Ni(3)Fe), a new large nickel resource: Electrochemical
characterization and surface composition under flotation-related conditions,
Minerals Engineering vol 184. https://doi.org/10.1016/j.mineng.2022.107656
(https://doi.org/10.1016/j.mineng.2022.107656)

 

(6)Sharecast, 24 October 2022. "Sylvania Platinum upbeat on recent Bushveld
Studies." Sylvania Plathium Ltd.

 

(7)Mining Review Africa, 13 February 2008.  "Blue Ridge and Sheba's Ridge
Study Feasibility".  Sub- heading "Sheba's Ridge - open pit nickel PGM
project".

 

 

Glossary

 

Awaruite
 Awaruite is a naturally occurring alloy of nickel and iron.

Bastite                                               A
serpentinous mineral occurring embedded in serpentine at Baste in the Harz and
elsewhere, and probably derived from the alteration of a variety of enstatite.

Dunite
 Dunite is an ultramafic plutonic rock that is composed almost exclusively
of olivine (https://www.sandatlas.org/olivine/) .

Dyke
 A dyke is a vertical to subvertical sheet of rock that is formed in a
fracture of a pre-existing rock body.

Feeder zone                                      The
plumbing system from which magma is supplied into the intrusive from the lower
crust.  These can often form as elongated dykes at the base of an ultramafic
layered intrusion.  Sulphide mineral accumulations can often form in the
vicinity of the feeder zone.

Harzburgite
Harzburgite is a type of peridotite ultramafic igneous rock, with no or very
little monoclinic pyroxene and consisting only of olivine and orthorhombic
pyroxene bronzite. Harzburgite typically forms by the extraction of partial
melts from the more pyroxene-rich peridotite.

Lopolith                                             A
lense shaped intrusion of igneous rock.

Palaeoproterozoic Sedimentary        Sedimentary rocks deposited between
2,500 to 1,600 million years ago

 

Pyritic mudstone                               Mudstone
containing elevated amounts of iron pyrite - with refence to nickle sulphide
deposits, these represent important sources of sulphur.

Pyroxenite
Pyroxenite is an ultramafic igneous rock consisting essentially of minerals of
the pyroxene group, such as augite, diopside, hypersthene, bronzite or
enstatite.

Serpentinite                                       A
metamorphic rock formed as a result of the low temperature anaerobic oxidation
of ultramafic rock in the course of which density is reduced and volume
increased by the addition of water, and nickel and other elements undergo
remobilisation as a result of hydrothermal activity.

 

Transvaal Supergroup                      The Transvaal Supergroup
is a group of rocks in northern South Africa and southern Botswana, situated
on the Kaapvaal Craton, composed of sedimentary and volcanic ltiholgoies.

Olivine pyroxenites                           Olivine pyroxenites
are a type of ultramafic igneous rock composed mainly of pyroxene minerals and
olivine, with minor amounts of other minerals such as spinel and chromite.

 

Orthopyroxenites                               Orthopyroxenites
are a type of ultramafic igneous rock that is composed mainly of orthopyroxene
minerals. Orthopyroxenites are typically formed in the Earth's mantle, either
by crystallization from magma or by solid-state transformation of peridotite,
another type of ultramafic rock. They are often associated with other
mantle-derived rocks such as dunites, harzburgites, and lherzolites.

Ultramafic rock                                 An igneous
rock in which has a very low silica content and in which more than 90% of the
rock is composed of magnesium and iron-rich minerals like pyroxenes,
amphiboles, and olivine.

 

Power Metal Interest

Power Metal holds an 87.71% interest in Kalahari Key Mineral Exploration Pty
Ltd, a Botswana private company, which holds a 100% interest in the Molopo
Farms Complex Project.

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been reviewed 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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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.

 

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