REG - Power Metal - Molopo Farms Complex Project – Drill Target K1-6

Power Metal ResourcesAnnouncement

16/08/2022 07:01

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RNS Number : 0859W  Power Metal Resources PLC  16 August 2022

16 August 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Molopo Farms Complex Project - Drill Target K1-6

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.

 

KEY HIGHLIGHTS:

 

§ Two ground-based electromagnetic ("EM") geophysics surveys now complete,
covering areas hosting 2020/2021 diamond drillholes KKME 1-14 ("K1-14") and
KKME 1-6 ("K1-6").

 

§ Preliminary survey results have highlighted a large shallow dipping
magnetic conductor at drillhole K1-6.

 

§ Plotting of drillhole K1-6 shows that the drillhole penetrated the edge of
the newly identified magnetic  conductor at a similar stratigraphic level to
nickel-sulphide mineralisation averaging 7.0m @ 0.443% Ni from 445m, including
0.6m @ 1.69% Ni, 0.55g/t Pt & 0.14g/t Au from 446.7m downhole.(1) This is
within a broader mineralised interval from 294.7m (when pentlandite was first
logged - assay result of 6606ppm Ni from 294.7 - 295.28m) to the end of the
hole at 597.8m (minor sulphides logged - assay result 2852ppm Ni from 597.0 -
597.8m).

 

§ Planned 2022 diamond drill programme start date now being brought forward.
The upcoming programme will now focus on testing the central and stronger part
of this magnetic conductor. At present the plan is to drill 6 drillholes for
approximately 2600m during this upcoming programme.

 

A map highlighting a location plan map of the Project (Fig.1) as well as a
zoomed out (Fig. 2) and zoomed in (Fig. 3) cross-section of the MLEM results
over target area K1-6 can be found at the link below:

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

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

"Today's exploration news is, in my view, potentially one of the more
significant the Company has released in its 3-year history as Power Metal.

We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the
2020/2021 programme, intersected the edge of a very large-scale and strong
magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of
the magnetic conductor was mineralised, with widespread nickel sulphides
demonstrated from assay testing and follow up petrological analysis.

As a result of the findings, multiple drillholes planned for the 2022
programme will target the centre of the magnetic conductor where we believe
there is the potential for a more strongly mineralised system where the
conductive response is considerably stronger and larger.

The EM survey over K1-6 captured 800m of magnetic conductor length where it
remains open at depth. The magnetic conductor is also shallow dipping and
expands in magnitude and size at depth based on the preliminary processed
survey images we hold at present.

As a result we believe we have a compelling reason to accelerate drilling at
Molopo Farms and are working in order to achieve that.

In the link above to our website you will see the survey images, with
explanatory information, for review. The further information below explains
the findings in more detail and also gives additional information in regards
to an additional strong magnetic conductor identified below target 1-14, which
was not tested by the 2020/2021 drillhole in that area.

This is an exciting time for the Power Metal team and we are now pushing ahead
at pace."

GEOPHYSICAL SURVEY - OVERVIEW

 

§ Spectral Geophysics have completed the 2022 Phase I exploration programme
which included two moving loop electromagnetic ("MLEM") geophysics surveys
over targets 1-6 and 1-14. The MLEM survey results will assist the company in
further refining drill collar locations prior to the planned 2022 diamond
drilling campaign.

 

§ Preliminary MLEM survey results over the I-6 target suggest that the 2021
drillhole (K1-6) targeting this zone clipped this sizeable shallow-dipping
(south) magnetic conductor. The magnetic conductor appears to be increasing in
magnitude with depth where it remains completely untested by drilling.

 

§ Preliminary MLEM results over the 1-14 target suggest the presence of a
strong magnetic conductor located directly south of the 2021 drillhole (K1-14)
that targeted this zone. While there are conductive Transvaal carbonaceous
mudstones in the area of the survey, the centre of this anomaly is strongly
coincident with a magnetic high caused by the ultramafic rocks in the area -
suggesting that the magnetic conductor detected by this survey may be located
within the ultramafic intrusive rocks.

 

§ A Botswana based drilling contractor has been selected for the upcoming
planned diamond drilling programme at Molopo Farms and a site visit with the
drilling company's foreman and Power's in-country geological consultant is
planned for later this week.

 

FURTHER INFORMATION

Spectral Geophysics has now completed MLEM surveys over targets 1-14 and 1-6
located within prospecting licence area PL311/2016. Preliminary results have
been made available to the Company, with finals results expected within the
coming weeks.

 

The rationale for these surveys was as follows:

Target 1-6: Previous 2020/2021 drill programme results returned nickel
(sulphide) values of up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au, within a
composite intersection of 7.0m @ 0.44% Ni from 445 to 452.0m in K-1-6, hosted
by layered ultramafic rocks of the Molopo Farms Complex .(1,2)

The preliminary results from the recently completed MLEM survey have allowed
for significantly enhanced resolution of the original EM anomaly that was
targeted by drilling in 2021.

Specifically, the results now indicate that drillhole K1-6 intersected the
edge of the large shallow-dipping magnetic conductor in the area, which also
appears to be increasing in size and magnitude with depth where it remains
completed untested by drilling.

The 2022 drilling programme will test this intriguing target.

Target 1-14: Defined by a broad strong EM anomaly which was targeted by a
single drillhole during the 2020/2021 drill programme.(2) The drillhole (1-14)
intersected carbonaceous mudstones at depth which, although highly conductive,
were determined to be flat lying and therefore did not explain the magnetic
conductor which was indicative of a shallower, steeply dipping body. (3)

The preliminary results from the 2022 MLEM survey over this target have
identified a magnetic conductor that is coincident with a magnetic high
associated with ultramafic rocks in the area.

The results therefore suggest that the magnetic conductor may be located
within the ultramafic intrusive rocks in the area, making it a highly viable
drill target for the 2022 drilling campaign.

 

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.  On 18 May 2022 Power Metal announced a conditional transaction
that would see its interest in Molopo 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.

 

References:

 

1                     Source: Company announcement: 24
September 2021

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw)
)

 

Diamond Drill Hole KKME 1-6 Assay Data - reported 24 September 2021 - with
7.0m composite

 Drill Hole ID  From (m)     To (m)       Interval (m)  Ni (ppm)  Au (g/t)  Pt (g/t)
 1-6            445.0        446.0        1.0           2663      <0.05     <0.05
 1-6            446.0        446.7        0.7           3012      <0.05     <0.05
 1-6            446.7        447.3        0.6           16961     0.14      0.55
 1-6            447.3        448.0        0.7           6948      <0.05     0.11
 1-6            448.0        449.0        1.0           3056      <0.05     0.06
 1-6            449.0        450.0        1.0           3187      <0.05     <0.05
 1-6            450.0        451.0        1.0           2504      <0.05     <0.05
 1-6            451.0        452.0        1.0           2474      <0.05     <0.05
 Weighted average Ni intersection         7.0           4,433

* All depths and intervals are as measured downhole.

 

 

2                     Source: Company announcement: 21
July 2021

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx)
)

 

3                     Source: Company announcement: 16
November 2020

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w)
  )

 

 

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.

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%(#)           Geophysics programme complete.                                              Final preparations for launch of accelerated drill programme targeting very
                                                                                                                               large scale magnetic conductor.
 Tati Project           Botswana  100%             Sampling of mine dumps complete.                                            Review of mine dumps sampling, and processing potential.  Launch of 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 Ltd  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/) .

 

 

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