REG - Power Metal - Molopo Farms Complex Project Update

Power Metal ResourcesAnnouncement

28/09/2022 07:00

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RNS Number : 9121A  Power Metal Resources PLC  28 September 2022

28 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex Project, Botswana - Major Drill Target T2-3

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 21 September 2022 the Company announced an update regarding the
commencement of drilling at priority target area T1-6, as well as the ongoing
geophysics programme. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-underway/15638648
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-underway/15638648)

KEY HIGHLIGHTS

T2-3 Major Drill Target

§ Data from ground-based electromagnetic ("EM") as well as magnetic
geophysical surveys covering target areas T1-14, T1-3 and T2-3 has now been
compiled and analysed.

§ Final results have highlighted a large, significant geophysical conductor
at target area T2-3. This conductor remains open in all directions and is
strongly coincident with a magnetic body identified here by the ground and
airborne magnetic surveys. No drilling has ever been completed over this
target area.

§ The historical airborne magnetic results at T2-3 have been further analysed
and the magnetic body coincident with this newly identified moving loop
electromagnetic ("MLEM") geophysical conductor is shown to extend for
approximately 12km in an east-west direction.

§ This conductor has been given a high-priority (A+) ranking by the Company,
the same priority ranking granted to the conductor at T1-6 (where drilling is
ongoing).

§ A planned 600m diamond core drillhole, DDH2-3A, has been designed to
intersect the T2-3 conductor at approximately 300-350m downhole depth. The
Company is planning on drilling this hole following the completion of diamond
drillholes DDH1-6B (drilling currently in progress) and DDH1-6C.

Additional Airborne Electromagnetic Conductors

§ Power Metal in conjunction with its geophysical contractor, completed an
in-depth review of all airborne electromatic ("AEM") geophysics conductors
identified by the previous operator. Five of these AEM conductors (1-2, 1-4,
1-5, 1-10 and 1-11) have been upgraded and are now designated as priority
airborne conductors, where follow up work is being considered.

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

"Drilling is successfully underway at the priority target area T1-6 where a
very large geophysical conductor was identified from recently completed
geophysical surveys, the initial results of which we announced on 16 August
2022. In that announcement I noted that the exploration findings were
potentially among the most significant the Company had delivered.

Today's news potentially has even greater significance with the confirmation
of a major conductor at T2-3 which adds another high-priority target to the
list for drill testing during the ongoing campaign. Significantly, airborne
magnetic survey results over this new conductor suggest that it could be very
sizeable.

Our focus is the continuation of drilling at T1-6 which is still in its early
stages and where the diamond drill is progressing down to the target zone.

The findings from T1-6 in terms of potential mineralisation are keenly awaited
and, given the results of the latest geophysical review, we will be looking to
also drill T2-3 at the earliest opportunity.

Further to T1-6 and now T2-3, we have confirmed numerous additional targets
for further investigation where there is the potential for multiple additional
drill targets to be identified."

GEOPHYSICAL SURVEY - OVERVIEW

 

§ Spectral Geophysics have completed the 2022 Phase II exploration programme
which included three MLEM and three magnetic geophysics surveys over targets
T1-14 and T2-3 and T1-3. The MLEM and magnetic survey results will assist the
company in refining further drill collar locations for the ongoing 2022
diamond drilling campaign.

 

§ MLEM survey results over T2-3 have highlighted a large flat-lying, slightly
concave (downward), strong conductor which remains open in all directions. The
magnetic survey over this target also identified a large magnetic body that is
spatially coincident with the  conductor, which is interpreted to be an
indication that the conductor is associated with or found within mafic to
ultramafic rocks of the Molopo Farms Complex.

 

§ MLEM results over the T1-14 target have highlighted the presence of a
strong conductor located south of the 2021 drillhole (KKME1-14) that targeted
this zone. It is estimated that a circa 650m drillhole would be needed to test
the top of this conductor. 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 interpreted to be 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. The Company is
considering next steps at target area T1-14.

 

§ Further geophysical data analysis and processing inversions are ongoing at
T1-3, where a large AEM conductor was originally identified by the previous
operators. The results of the completed MLEM and magnetic surveys over this
target will be released following the completion of these further analyses.

 

§ The Company also has completed an in-depth review of a previously completed
AEM report covering the majority of the Molopo Farms Complex Project.
Considering priority areas T1-6 and now T2-3 were originally identified by the
airborne EM survey, it was decided that further investigation of the targets
identified by this report was warranted. Significantly, five of the strong AEM
conductors, including T1-2, T1-4, T1-5, T1-10 and T1-11 have been upgraded and
are now classified as priority airborne targets by the Company. At T1-11, a
2020/2021 drillhole (KKME1-11) completed by the previous operator was
determined to not have adequately targeted this conductor. Further work at
these targets, which may include MLEM surveys, as well as the possibility of
downhole EM at T1-11 is being contemplated and next steps will be outlined by
the Company in due course.

 

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 - Molopo Farms Complex Project T2-3 Plan Map: A plan map of the
priority area T2-3, including the location of the MLEM survey, airborne
magnetic results (first vertical derivative) and location of planned drillhole
DDH2-3A.

Figure 3 - Priority Target Area T2-3 Cross-Section: A cross section showing
the location of the planned drillhole DDH2-3A and the MLEM results (new
conductor in blue).

 

The diagrams and image presented above may also be viewed on the Company's
website through the following link:

https://www.powermetalresources.com/molopo-farms-complex-project-major-drill-target-t2-3/
(https://www.powermetalresources.com/molopo-farms-complex-project-major-drill-target-t2-3/)

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.

 

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.

REFERENCES

 

1:            Power Metal PLC announcement, Botswana Molopo Farms
Complex - Drilling Progress Update, 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)
)

 

2:            Power Metal PLC announcement, Significant Nickel
Intersections Confirmed by Drill Sample Assay Results, 8 April 2021

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw)
)

 

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%(#)           K1-6 conductor target drilling underway and MLEM surveys over T1-6, T1-14,  Drill programme updates and findings from further MLEM survey work.
                                                   T1-3 and T2-3 completed. Further MLEM surveys planned over additional AEM
                                                   targets identified.
 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)

 

 

 

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