REG - Power Metal Res. - Molopo Farms Complex, Botswana, Exploration Update

Power Metal ResourcesAnnouncement

06/10/2023 07:00

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RNS Number : 8982O  Power Metal Resources PLC  06 October 2023

6 October 2023

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Exploration Update

Identification of High-Priority Drill Target

Power Metal Resources PLC (AIM:POW), the AIM listed exploration Company
seeking large-scale metal discoveries across its global project portfolio,
announces an exploration update from its Molopo Farms Complex Project ("Molopo
Farms" or the "Project" or "MFC") where the Company is targeting a
district-scale nickel ("Ni") and platinum group element ("PGE") discovery in
southwestern Botswana.

KEY FINDINGS

·    The previously conducted airborne electromagnetic ("EM") geophysics
surveys flown in 2018, followed up with ground moving loop electromagnetic
("MLEM") geophysics surveys completed in 2022, led to the identification of
targets subsequently drilled during the 2022/2023 campaign.

·    Target area T1-14 demonstrated the highest potential due to the
strength of the super conductor originally identified.

·    Drillhole DDH1-14B from the 2022/2023 drill campaign did not
intersect the modelled superconductor. This led the Company to engage a
geophysicist to complete inversions of widely spaced audio-frequency
magnetotelluric ("AMT") survey results from 2020 that was completed over
target area T1-14. AMT technology can measure a wider range of conductivities
compared to airborne and/or ground EM and to a greater depth.

·    Significantly, this work has led to the identification of two
distinct conductors at target area T1-14 (compared to one moderately dipping
conductor identified by the MLEM) including a very strong steeply dipping
multi-kilometre long conductor which is co-incident with the keel of the
feeder zone intrusion (see figure 1 and figure 2). This conductor has the
potential to host massive sulphide mineralisation and thus has been deemed a
high priority exploration target which has never been drill tested to date.

·    The second conductor identified is relatively flat lying and
determined to be sedimentary in origin which led to the false targeting during
the previous drilling campaign.

·    The Company is working with its technical consultants regarding the
implementation of a drill programme at target area T1-14 to test this newly
modelled steeply dipping conductor (see figure 1 and figure 2).

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

 

"Historical exploration work at Molopo Farms has been multi-year, extensive
and absolutely necessary in order to narrow down key targets for exploration
drilling within a very large licence footprint.  The Company is targeting
major discoveries and the work completed to date has confirmed that the MFC
has the required geological ingredients to host a significant nickel deposit
as found in other mafic/ultramafic belts worldwide.

 

"In exploration, geophysics alone is never enough and drilling is always
necessary to firm up the geological model and confirm economic deposits.  As
drilling is undertaken, the additional data gathered can, with other
exploration techniques, provide a step-change enhancement of the technical
understanding of a project and its potential.

 

"On this basis, the work focussed on target area T1-14 has delivered a
superior database and is now the highest priority conductor target, based on
all the evidence we have gathered thus far.  We are particularly excited by
this development and look forward to updating the market in due course with
drilling plans for this target.

 

"This exploration work, which is currently focussed on target area T1-14, is
being conducted in parallel with our ongoing engagement with third parties
with regard to commercial avenues for Molopo Farms as previously highlighted."

 

 

KEY TECHNICAL HIGHLIGHTS

 

·    EM surveys and drilling have proven the presence of a funnel shaped
ultramafic intrusion within the northeastern part of the Molopo Farms
Complex.  This dyke-like intrusion ("the intrusion") can be traced on
magnetic maps for at least 20km towards the southwest where it is seen to
merge with a thick sequence of layered ultramafic rocks.

 

·    The intrusion follows a well-established NE-SW fault zone and is
interpreted to be the geological feeder zone to the Molopo Farms Complex and
therefore an important target when searching for magmatic nickel and PGE rich
sulphides.

 

·    Such feeder zones are known to be potential loci of sulphide
mineralisation associated with the intrusion, for example at Voisey's Bay in
Canada or Uitkomst in the eastern Bushveld Complex located in South Africa
which is an age equivalent unit to the MFC.

 

·    Inversions of a historical AMT survey completed over target area T-14
in 2020 in the region of the known feeder zone have identified a very strong
steeply dipping conductor co-incident with the keel of the intrusion.

 

·    The base, or keel, of such a feeder intrusion may well be the site of
massive sulphide mineralisation and is thus a priority exploration target
which has never been drill tested to date.

 

·    As a result, drilling plans are currently being developed by Power
Metal's technical team in order to optimally test this target.

 

·    Given the success of the AMT technology and inversions thereof to
decipher between multiple conductors at target area T1-14. A MobileMT survey
(airborne AMT) is also being considered in order to further image other target
areas which have only been investigated by airborne or ground EM to date.

 

Discussion on Future MFC Exploration

As the demand for nickel continues to increase, exploration for magmatic
sulphide deposits within mafic/ultramafic complexes will continue to be of
significant interest to junior and major mining companies.

 

Compared to many other significant mafic provinces, the MFC is comparatively
underexplored, likely as a result of the extensive Kalahari sand cover.
However, based on the information provided above it is evident that the MFC
has the required ingredients which could allow for the formation of a magmatic
sulphide deposit(s).

 

To that end, one of the major challenges of exploration within the MFC is due
to the fact that the mafic-ultramafic rocks intruded into Transvaal Supergroup
sediments, many of which are known to be sedimentary conductors (e.g. pyritic
carbonaceous mudstones).

 

While the presence of these iron rich sedimentary rocks is one of the key
ingredients required in order to form primary magmatic nickel sulphides, the
presence of multiple conductors can make drill targeting difficult, especially
considering the lack of outcrop exposure within the MFC.

 

Due to the above considerations, Power Metal is of the belief that significant
further exploration is warranted in the future at Molopo Farms, including:

 

·    Drilling of further drillholes at target area T1-14 where recently
completed inversions of AMT data have clearly established the presence of two
distinct conductors (not one moderately dipping conductor as imaged and
targeted previously). Of particular interest is the steeply dipping conductor
which was traced for several kilometres and which has never been drill tested.
This conductor is coincident with the funnel shaped ultramafic intrusion and
therefore represents a very compelling target compared to the shallow dipping
lying sedimentary conductor.

 

·    Based on the success of the AMT survey results, complete a
high-resolution mobile magnetotellurics ("MobileMT") airborne geophysical
survey. MobileMT® is on the cutting edge of geophysical survey methodology
and compared to time domain electromagnetics ("TDEM") has multiple advantages
including:

 

o  Allows for good discrimination between resistive units (e.g. TDEM cannot
effectively map resistive units or discriminate between 1000 ohm-m and 5000
ohm-m formations). In the case of target area T1-14 it can more easily image
multiple conductors within a given survey area (compared to other EM
techniques which often 'average' these conductors).

o  Provides superior depth penetration compared to high powered TDEM systems
(up to 2km in certain geological environments).

o  System experiences no problems with induced polarisation ("IP") effects,
zero coupling zones or super para-magnetic effects.

o  Highest efficiency and quick surveying over flat areas like southern
Botswana and can average data acquisition of 100 line-km per day with a
comparatively low production cost. A quote for this work has been obtained and
will be held pending finalising of any next exploration steps at the MFC.

 

Figure 1: 1(st) vertical derivative magnetics show in the background. 4 AMT
cross-section lines highlight the presence of a steeping dipping conductor
(blue) as well as a shallow conductor which was ultimately drilled by both
historical drillholes at target area T1-14 (see Figure 2 for inset
cross-section line A-A'). The total distance between L3 and L4 is approx. 6km.

 

Figure 2: Cross-section A-A' showing inversion results from AMT line 1. The
red traces represent the location of the historical drillholes which targeted
what has now been determined to likely be a shallow dipping sedimentary
conductor. The large purple to blue conductor is the newly discovered steeply
dipping conductor which has not yet been drill tested. The black line
represents a possible drill location to target this priority conductor.

 

 

Glossary

 

Dyke
Magmatic intrusion that is discordant with the surrounding geology.

Feeder
zone
The plumbing system from which magma is supplied into the intrusive from the
lower crust.  These can often form as elongated dykes at the base of an
ultramafic layered intrusion.  Sulphide mineral accumulations can often form
in the vicinity of the feeder zone.

Induced Polarisation                       IP is a
geophysical imaging technique used to identify the electrical chargeability of
subsurface materials.

 

Keel
Semi-confined area with a magmatic intrusion.

 

Lopolith
A lens shaped intrusion of igneous rock.

Para-magnetic
Refers to the state of an atom with one or more unpaired electrons.

Pyritic mudstone
Mudstone containing elevated amounts of iron pyrite - with refence to nickel
sulphide deposits, these represent important sources of sulphur.

Transvaal Supergroup                    The Transvaal
Supergroup is a group of rocks in northern South Africa and southern Botswana,
situated on the Kaapvaal Craton, composed of sedimentary and volcanic
lithologies.

Ultramafic
rock                                 An
igneous rock in which has a very low silica content and in which more than 90%
of the rock is composed of magnesium and iron-rich minerals like pyroxenes,
amphiboles, and olivine.

 

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.

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been reviewed 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.

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 (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

 BlytheRay (PR Advisors)

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

 

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.

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