REG - Power Metal Res. - Molopo Farms Complex, Botswana – Drilling Results

Power Metal ResourcesAnnouncement

27/06/2024 07:00

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RNS Number : 0552U  Power Metal Resources PLC  27 June 2024

27 June 2024

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling Results

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to announce
the results from drillhole DDH1-14C at its Molopo Farms Complex Project
("Molopo Farms" or "Project"), where the Company is targeting a district-scale
nickel (Ni) and platinum group element ("PGE") discovery in southwestern
Botswana.

DRILLING UPDATE

·    Diamond core drill hole DDH1-14C was completed to a final depth of
832.6m, with the successful intersection of the targeted steeply dipping
geophysical superconductor at high priority Molopo Farms Target Area T1-14.

 

·    The geophysical superconductor, identified by the ground moving loop
electromagnetic ("MLEM") and audio-frequency magnetotelluric ("AMT") surveys
(1), is determined be a sulphide mineralised carbonaceous to graphitic
mudstone intersected between 760.5m - 813m downhole depth and from 828.4m -
832.6m (end of hole) where it remains open at depth. A total of 8 samples were
collected from this interval for laboratory assay testing.

 

·    The mineralised carbonaceous mudstone contains abundant
pyrrhotite-quartz-calcite veining and localised sulphide dominated veins of
what appears to be pyrrhotite (Figure 1). Further, mostly vein-hosted
sulphides are present throughout the intervals including dominantly pyrite.

 

·    Significant sulphur assays of up to 3.46% were identified, alongside
one sample which returned anomalous nickel (IMK-05242: 0.128% Ni). This shows
that the carbonaceous mudstones are a potential source of sulphur which, if
mixed with the ultramafic intrusives of the Molopo Farms Complex, could lead
to the formation of nickel sulphide deposits.

 

·    The carbonaceous rocks are part of the Transvaal Supergroup country
rocks into which the Molopo Farms Complex is emplaced, and occur at a number
of horizons within the stratigraphy and have considerable lateral extent.

 

·    The importance of sulphur within these systems cannot be understated,
considering that without abundant sulphur, magmatic sulphide deposits cannot
form. With the successful identification of this sulphide rich horizon, the
Company has further confidence in the ability for the Molopo Farms Complex to
host a nickel sulphide deposit or deposits.

 

·    With this important hole completed, and with the findings obtained
demonstrating the potential for the Project as outlined above, the Company is
looking to progress potential commercial pathways with a view to moving Molopo
Farms to the next stage in its exploration programme.

Sean Wade, Chief Executive Officer of Power Metal Resources, commented:

 

"I am pleased to be able to announce this drill result, which shows continued
progress at Molopo Farms. We achieved our principal objective, which was the
intersection of the sharply dipping conductor, and I am grateful to the
drilling team and the geophysicists who worked so hard to define and prove
this difficult target.

 

As we have always maintained, Molopo Farms is a potential district-scale
deposit, and for that to be ascertained, considerable investment needs to be
made at this stage to undertake the scale of exploration required.

 

The Company continues to look at possible solutions to this requirement, which
is aided by the extensive exploration data gathered, the potential for
discovery and the supportive operating environment for this type of
opportunity in Botswana. Further developments on that front will be
communicated in due course."

 

 Media

Figure 1: Carbonaceous mudstone with localised dominantly pyrrhotite sulphide
veins - see bronze coloured mineralisation just right of downhole depth
("DPH") marker 775.60m.

 

Laboratory Assay Results

 

 Sample ID  Downhole depth  From (m)   Downhole depth    Sample length (m)  Geological description                   Sulphur (S) % Assay *

                                       To (m)
 IMK-05236  758.33                     758.70            0.37               carbonaceous mudstone                    0.3
 IMK-05237  769.60                     770.00            0.40               carbonaceous mudstone                    2.55
 IMK-05238  779.10                     779.50            0.40               carbonaceous mudstone, minor sulphide    0.59
 IMK-05239  788.42                     788.90            0.48               carbonaceous mudstone                    1.14
 IMK-05240  799.12                     799.60            0.48               carbonaceous mudstone                    0.5
 IMK-05241  810.00                     810.38            0.38               carbonaceous mudstone, some pyrrhotite   2.63
 IMK-05242  826.60                     826.80            0.20               talcose ultramafic                       0.47
 IMK-05243  763.23                     763.60            0.37               carbonaceous mudstone, well mineralised  3.46

* Using certified laboratory ALS Chemex (South Africa) analytical method
ME-ICP81.

 

Power Metal Interest

 

Power Metal holds an 87.71% interest in Kalahari Key Mineral Exploration Pty
Ltd, a Botswana private company, which holds a 100% interest in the Molopo
Farms Complex Project.

 

Reference

 

1:            Source: Company announcement, 'Molopo Farms Complex,
Botswana' dated 6 October 2023

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

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been reviewed and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, 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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 SP Angel Corporate Finance LLP (Nomad and Joint Broker)
 Ewan Leggat/Caroline Rowe                                                       +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                                               +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)

 Tim Blythe/Megan Ray                                                            +44 (0) 20 7138 3204

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.

 

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