REG - Power Metal - Molopo Farms Complex - Geophysics Update T1-14

Power Metal ResourcesAnnouncement

25/10/2022 07:00

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RNS Number : 9468D  Power Metal Resources PLC  25 October 2022

25 October 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Geophysics Update T1-14

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 where drilling is currently
underway.

On 20 October 2022 the Company announced an update regarding the ongoing
drilling programme and the link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-update/15681045
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-update/15681045)

Further detailed work in regard to the moving loop electromagnetic ("MLEM")
survey results over the target area T1-14 has been ongoing, with an update
relating to those results presented herein.

HIGHLIGHTS

§ A geophysical electromagnetic ("EM") 'superconductor' has now been
identified at target area T1-14, with a conductance reading akin to that of
massive sulphides. (1)

§ As a result, the superconductor at target area T1-14 has been upgraded to
priority status and will be subject to diamond drilling in the coming weeks,
being now the strongest MLEM conductor identified on the Project to date.

§ Diamond drilling at target area T1-14 will commence after the completion of
diamond drillholes DDH1-6B and DDH1-6B(2), both targeting the conductor
identified within target area T1-6.

 

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

"The momentum at our Molopo Farms Complex Project continues to build and we
now have four Company designated priority (A+) targets that we plan to test
during the ongoing drilling campaign.

The results from the extra MLEM work over target area T1-14 are quite
definitive and have resulted in the upgrade of this target area following the
identification of a superconductor.

I appreciate that the mineral discoveries under cover that we seek at Molopo
Farms, and at other Company interests, often require a long lead time with
complex preparatory work often needed to define drill targets.  However, we
have the rig drilling now at Molopo Farms and the drill testing of the T1-14
superconductor, targeting a massive nickel sulphide discovery, is expected to
commence in the coming weeks."

 

FURTHER INFORMATION

Target Area T1-14

§ During the 2020/2021 drilling campaign, a 515.8m long diamond drillhole
(KKME1-14) was drilled within target area T1-14 which was targeting a priority
airborne EM conductor.

§ Drillhole KKME1-14 intersected three main geological units including
serpentinites (40.4m - 208.5m) quartzites (208.5 - 479.6m) and graphitic
mudstones (479.6 - 515.8m). It was originally assumed that the graphitic
mudstone was the cause of the airborne conductive anomaly identified at this
target zone - and as a result the hole was shut down at 515.8m.

§ The conductor at target area T1-14 was originally given a lower priority B
ranking due to it being slightly deeper than priority conductors found at
T1-6, T2-3 and T1-3. However, following further analysis of available
datasets, the following conclusions have been reached:

o  The MLEM conductor modelled at target area T1-14 has been classified as a
superconductor, ranking it as the strongest conductor identified at the
Project to date. The conductance reading at T1-14 is akin to that of massive
sulphides.

o  KKME1-14 was drilled mostly within a magnetic low, which is consistent
with the drillhole intersecting mostly sedimentary rock units instead of
targeted mafic/ultramafic rocks (which are typically strongly magnetic and can
host primary magmatic nickel sulphides).

o  The MLEM superconductor now modelled at target area T1-14 has a discrete
shape. If the graphitic mudstones were the cause of the conductor identified
at this target area, it would be expected that this conductor would be
flat-lying, consistent with the typically very flat-lying and continuous
nature of Transvaal sedimentary units within the Molopo Farms Complex.

o  Three dimensional ("3D") modelling of KKME1-14 shows that it intersected
only the edge of the newly identified superconductor.

§ The combination of the ground MLEM and airborne EM geophysics datasets into
a single 3D model has enabled a geological model to be developed. This is
interpreted to show a geological contact zone between mafic/ultramafic
magmatic intrusive rocks and potentially sulphur rich sedimentary rocks (as
signified by overlapping highly magnetic and conductive bodies). Melting of
the sedimentary rocks at this intrusive contact zone could have led to magma
mixing, differentiation, and contamination that triggered sulphide saturation
and the segregation of an immiscible sulphide melt which could have resulted
in the accumulation of massive sulphide mineralisation.  It appears that this
prospective, highly conductive, contact zone was not intersected by the
previous drillhole KKME1-14.

§ As a result of further integration and analysis of available datasets,
target area T1-14 has been upgraded by the Company to Priority A+ status and a
700m drillhole (DDH1-14A) is now planned following the completion of
DDH1-6B(2). It is estimated that the superconductor could be reached at a
downhole depth between 450-500m.

FURTHER INFORMATION

Figure 1 - Molopo Farms Complex Project Plan Map: A plan map of the Project
area, including the location of various elements mentioned above is outlined
in Figure 1 below.

Figure 2 - T1-14 3D View (Magnetics; Pink = Magnetic High): A 3D view showing
the location of the planned drillhole DDH1-14A and historical drillhole
KKME1-14 with the ground magnetic inversion. KKME1-14 was drilled mostly
within a magnetic low, which is consistent with the quartzites and
carbonaceous mudstones.

 

Figure 3 - T1-14 3D View (MLEM: Blue = Conductivity High): A 3D view showing
the location of the planned drillhole DDH1-14A and historical drillhole
KKME1-14 with the MLEM superconductor identified.

 

 

The diagrams and images presented above will be uploaded shortly to the
Company's website which may be reached 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/)

 

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.

 

Reference Notes

 

1              The term 'superconductor' is utilised here, to
describe a region of very high geophysical conductivity as depicted by a very
slow decay of the electromagnetic signal. In the case of T1-14, the
electromagnetic signal has not decayed to system noise levels after 2,000
milliseconds (msecs). The calculated decay constant is between 400 and 550
msecs which is common for massive nickel sulphides.

Glossary

 

Serpentinite: Mafic rock composed of one or more serpentine group minerals.
Serpentinization is a form of low-temperature metamorphism of ultramafic
rocks. They often are strongly magnetic.

 

Quartzite: Hard, non-foliated metamorphic rock which was originally very
quartz rich. It has a low magnetic and conductance response.

 

Graphitic Mudstone: Graphite rich, fine-grained clastic sedimentary rock. It
has a low magnetic and can have a high conductance response.

 

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. Further MLEM surveys planned over     Drill programme updates and findings from further MLEM survey work.
                                        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 and issue of Kavango shares e.g. financing announced

                                  24.10.22)

                                  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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