REG - Power Metal - Molopo Farms Complex Project - Exploration Update

Power Metal ResourcesAnnouncement

04/08/2022 07:15

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RNS Number : 8532U  Power Metal Resources PLC  04 August 2022

4 August 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Molopo Farms Complex Project - Exploration 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"
or the "Project") targeting a large scale nickel-platinum group element
("PGE") discovery in southwestern Botswana.

 

MOLOPO FARMS EXPLORATION HISTORY

 

-      The Project is targeting nickel (Ni), copper (Cu) and
platinum-group-element (PGE) mineralisation within the Molopo Farms Complex
("MFC") of the Bushveld Large Igneous Province.

 

-      Airborne geophysics previously completed confirmed an exploration
model focusing on magmatic feeder zones within the MFC.

 

-      Significantly, the previous drill programme which concluded in
2021 intersected nickel-sulphides downhole with individual grades up to 1.69%
Ni including 0.55g/t platinum (Pt)  over 0.6m from 446.7m downhole (1).

 

-      Follow-up petrographical work undertaken identified primary nickel
and copper sulphides (incl. pentlandite, bornite and chalcocite).

NEXT EXPLORATION PHASE COMMENCES

 

-      Spectral Geophysics have mobilised to the Project to conduct two
electromagnetic geophysics surveys to facilitate the precision targeting of
planned diamond drill holes for a drill programme expected to commence in the
autumn.

 

-      Power Metal technical team have compiled all project data into a
dataroom to underpin forward project development and which is available for
third parties who have expressed an interest in potential engagement on the
Project.

 

-      Final negotiations proceeding with Botswana drill contractors for
the upcoming planned diamond drill programme at the Project.

 

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

"We are making very important progress as we look to reinvigorate the Molopo
Farms Project, arguably one of the Company's major exploration success stories
from 2020/2021.

The main next step is planned diamond drilling focused on the discovery of
economic nickel sulphides and following up on the highly positive results from
the drill programme completed in early 2021.

To ensure we are optimising drill hole targetting, Spectral Geophysics have
been engaged to conduct a geophysics programme, and whilst that continues we
are making arrangements for the engagement of drill contractors.

Molopo is a priority exploration Project for Power Metal and I look forward to
providing further updates to the market on our operational progress and drill
plans."

FURTHER INFORMATION

Power Metal has amalgamated and compiled all data received from previous
operators and organised it into a singular dataroom. Third-parties that have
previously expressed interest in the Project have been re-engaged by Power and
have been supplied with the updated database.

The Company is in final stages of negotiation with two Botswana-based drill
contractors and is looking to finalise and sign a contract within the next few
weeks in advance of a diamond drilling programme currently expected to
commence in the autumn.

 

Weekly technical meetings are being conducted between Power Metal and
representatives from the project partner Kalahari Key Mineral Exploration
(Pty) Ltd ("Kalahari Key" or "KKME"), in order to finalise the planned
drilling campaign and deliniate future exploration works.

 

Spectral Geophysics has mobilised to the Project and has commenced a
geophysical work programme which will include moving loop electromagnetic
("MLEM") surveys over targets 1-14 and 1-6 located within prospecting licence
area PL311/2016. The rationale for these surveys is as follows:

o  Target 1-6: previous 2020/2021 drill programme results returned nickel
values up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au over 0.6m from 446.7m
downhole, within layered ultramafic rocks of the Molopo Farms Complex (1,2).
The ongoing MLEM survey will aid in the further refinement of the original
electromagnetic ("EM") geophysics anomaly that was targeted by drilling in
2021. The results from this survey will allow for optimum drillhole siting
prior to the 2022 drilling programme.

o  Target 1-14: is defined by a broad strong EM anomaly which was targeted by
a single hole 2020/2021 drill programme (2). That drilling intersected
carbonaceous mudstones at depth (3) which, although highly conductive, were
determined to be flat lying and therefore did not explain the anomaly which
was indicative of a shallower, steeply dipping body. The MLEM survey will
provide higher resolution and further refinement of the original EM response,
aiding the effective siting of future drill holes.

 

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)
)

 

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.

Exploration work programmes may also be underway within 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:

www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

www.goldenmetalresources.com (http://www.goldenmetalresources.com)

www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

For planned IPO vehicle New Ballarat Gold Corporation PLC (NBCG) a new website
is currently in development which will 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/) .

Power Metal also holds a material investment in Kavango Resources plc with
exploration updates available through their regulatory announcements and on
their website:

www.kavangoresources.com (http://www.kavangoresources.com)

 Project                Location  Current          Work Completed or Underway                                                     Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Hyperspectral data analysis conducted across 7 properties. Updating to 7 data  Finalise review of data from 3 properties.  Prepare for summer exploration
                                                   rooms for third party review.                                                  programme across 4 properties.
 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%(#)           Comprehensive data review complete and establishment of data room for third    Finalise drill programme targets, select drill contractor and launch drill
                                                   party review. Geophysics programme underway.                                   programme.
 Tati Project           Botswana  100%             Site visit with mapping of gold workings and mine dumps.                       Exploration planning underway including further mapping, sampling and launch
                                                                                                                                  of an RC drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

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