REG - Power Metal - Molopo Farms Complex Project Update

Power Metal ResourcesAnnouncement

30/09/2022 07:00

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RNS Number : 2570B  Power Metal Resources PLC  30 September 2022

30 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex Project, Botswana - Major Drill Target T1-3

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 28 September 2022 the Company announced an update regarding the delineation
of a second major conductor at target area T2-3, as well as an update
regarding its ongoing geophysics programme. The link to this announcement is
below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138)

The above update noted that further analyses in respect of target (T1-3) were
ongoing, the results of which are now covered below.

KEY HIGHLIGHTS

T1-3 Major Drill Target

§ Final compilation and analyses of the ground-based moving loop
electromagnetic ("MLEM") and magnetic geophysical surveys over target area
T1-3 are now complete.

§ Geophysical inversion of the MLEM data has highlighted a significant
'jelly-bean' shaped, geophysical conductor at target area T1-3. This conductor
remains open to the east-west and sits within a magnetic trough observed in
both the ground and airborne magnetic surveys. No drilling has ever been
completed over this target area.

§ Historical airborne electromagnetic ("AEM") data over T1-3 have been
further analysed with results showing the MLEM conductor may extend out to
1.6km in an east-west direction, based on coincident airborne/ground survey
anomalies.

§ The T1-3 conductor has been given a high-priority (A+) ranking by the
Company, the same priority attributed to the conductor at T1-6 (where drilling
is ongoing) as well as the new conductor identified at T2-3.

§ A planned 450m diamond core drillhole, DDH1-3A, has been designed to
intersect the T1-3 conductor at approximately 300m downhole depth. The Company
has added this hole to the list of holes to be drilled during the ongoing 2022
campaign. Considering the proximity of T1-3 to ongoing drilling at T1-6 (33km
southwest), it is possible that T1-3 will be drilled after holes DDH1-6B and
DDH1-6C complete, with drilling at T2-3 to follow (see map for relative
locations).

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

"The inventory of high priority A+ ranked drill targets at Molopo are building
and we now have the third, T1-3, added to the list.   We plan to drill all
three high priority targets during the current drill programme.

Our review has also identified further targets which we believe could become
additional priority drill targets subject to additional technical work over
those areas.

 

Each priority conductor identified to date, including T1-6, T1-3 and T2-3, are
located proximal to a geological feeder zone but each possess unique size and
scale dimensions. By drilling all of these targets, the Project becomes
inherently de-risked, and the prospect of a discovery or discoveries
increases.

 

Our attention is principally focused on drilling, with our first drill hole
into the T1-6 conductor underway and I look forward to providing further
updates at the earliest opportunity."

GEOPHYSICAL SURVEY - OVERVIEW

 

§ Spectral Geophysics have now completed the 2022 Phase I & II
exploration programmes which included four MLEM and four magnetic geophysics
surveys over targets T1-6, T1-14 and T2-3 and T1-3. The MLEM and magnetic
survey results are assisting the company in refining further drill collar
locations for the ongoing 2022 diamond drilling campaign.

 

§ To date, the MLEM survey results have now highlighted:

o  T2-3 (A+): A flat-lying, slightly concave (downward), conductor which
remains open in all directions. Drilling is planned at this target.

o  T1-6 (A+): A large, southerly dipping conductor which remains open towards
the south, east and west. Drilling is ongoing over this target.

o  T1-3 (A+): A 'jelly-bean' shaped conductor which remains open towards the
east and west. Drilling is planned at this target.

o  T1-14 (B): A conductor which is near-to the contact zone with known
Transvaal carbonaceous mudstones. Due to the estimated depth required to reach
this conductor (approx. 650m) and the geological complexity associated with
this area, it has been given a lower priority ranking than T2-3, T1-6 and
T1-3.

 

§ The Company has also completed an in-depth review of a historical AEM
report covering the majority of the Molopo Farms Complex Project. Considering
priority areas T1-6, T2-3 and T1-3 were originally identified by the
historical AEM survey results, it was decided that further investigation of
the targets identified by this report were 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. The
Company is in ongoing discussions with its geophysical contractor to determine
next steps over these target areas.

 

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 - Priority Target Area T1-3 3D View: A 3D view showing the location
of the planned drillhole DDH1-3A and the MLEM results (new conductor in blue).
The red-pink block model are magnetic inversion results showing the new
'jelly-bean' shaped conductor sits within a magnetic trough.

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-major-drill-target-t1-3/
(https://www.powermetalresources.com/molopo-farms-major-drill-target-t1-3/)

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

(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138)
)

 

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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