REG - Power Metal - Molopo Farms Complex – Geophysics & Drill Update

Power Metal ResourcesAnnouncement

15/09/2022 10:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220915:nRSO6031Za&default-theme=true

RNS Number : 6031Z  Power Metal Resources PLC  15 September 2022

15 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Geophysics and Drilling Update

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 8 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/mfc-project-update-drill-programme-mobilisation/15621071
(https://www.londonstockexchange.com/news-article/POW/mfc-project-update-drill-programme-mobilisation/15621071)

HIGHLIGHTS

§ High-resolution ground magnetic geophysics ("Ground-Mag") survey completed
over high priority Target 1-6 ("T1-6").

§ Three dimensional ("3D") inversion modelling of Ground-Mag data and all
other available geophysical datasets covering the T1-6 electromagnetic ("EM")
conductor, also completed.

§ Interpretation of historical airborne electromagnetic ("AEM") survey data
with recently collected moving-loop EM ("MLEM") geophysics results, estimates
the T1-6 conductor has an approximate strike length of 2,600m and an estimated
down dip extent of 1,000m.

§ Diamond core drillhole parameters for the first two planned holes at T1-6
have now been established, with the two drill collar sites under preparation
and drilling expected to commence shortly.

§ MLEM surveys are ongoing at additional target areas T1-3 and T2-3, and MLEM
and Ground-Mag surveys are ongoing at target area T1-14, with further updates
to follow shortly.

 

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

"Our work at Molopo Farms is gathering pace with the parameters for the first
two diamond core drillholes into Target 1-6 now confirmed. With the drill rig
now on-site we expect to start drilling the first priority target hole
shortly.

Significantly, based on recently completed 3D geophysical modelling the
strike-length of the priority conductor at T1-6 is interpreted to be 2,600m, a
considerable target.

We are working closely with the team in Botswana who have done an incredible
job thus far.  It is less than a month since the initial geophysical survey
findings at T1-6 that inspired this acceleration to drilling and I look
forward to providing further progress updates."

FURTHER INFORMATION

 

§ A high-resolution Ground-Mag survey covering an area of approximately
2,700m by 1,600m has now been completed over priority target area T1-6. A
strong east-west trending magnetic anomaly was identified near the southern
edge of the survey area.

 

§ Magnetic inversions of this newly identified anomaly show that the magnetic
body intersects the down dip extent of the southerly dipping EM conductor
identified by the previously completed ground-based MLEM survey over T1-6.

 

§ As a result of the recently completed geophysics work at T1-6, as well as
the extensive 3D analysis and inversion modelling now completed, two priority
drillholes have now been planned for T1-6. The two drill collar sites are now
being prepared and cleared in preparation for the programme start. The two
sites selected are summarised below:

 

o  Diamond core drillhole DDH1-6B: Located 530m directly south of drillhole
KKME 1-6 (completed  December 2020 (1)). Planned 600m hole depth, inclined at
80° dip and 0° azimuth (to the north). Based on the 3D modelling completed,
DDH1-6B has been planned to intersect the southerly dipping conductor at a
relatively shallow depth of 300m.

 

o  Diamond core drillhole DDH1-6C: Located 830m directly south drillhole KKME
1-6 (1). Planned 650m hole depth, inclined at 80° dip and 0° azimuth (to the
north). Based on the 3D modelling completed, DDH1-6C is planned to test the
intersection zone between the southerly dipping conductor and the newly
identified strongly magnetic E-W trending body, which is estimated to be at a
depth of approximately 350m.

 

§ Based on 3D modelling of all available geophysical data including the
previous AEM survey, the targeted T1-6 EM conductor been estimated to have an
approximate strike-length of 2,600m in a broadly E-W direction and is
estimated to extend for around 1,000m down dip (towards the south).

 

§ Power is currently preparing a short video which highlights the above
information and will include a demonstration of the 3D geophysical modelling
with the plots of previous drillhole KKME 1-6 and the planned drillholes
DDH1-6B and DDH1-6C.

 

§ Camp setup and preparation for the upcoming programme continues at pace.
The Company will announce to the market once drilling has commenced, which is
expected shortly.

 

§ MLEM surveys are ongoing at target areas T1-3 and T2-3, and MLEM and
Ground-Mag surveys are ongoing at target area T1-14. A further update in
regard to this work, as well as survey results, are also expected shortly.

 

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.

 

COMPETENT 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 Competent 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, 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)
)

 

 

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)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEANNSFFNAEEA