REG - Power Metal - Tati Gold Project, Botswana - Exploration Plans
15/12/2022 15:45
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RNS Number : 8924J Power Metal Resources PLC 15 December 2022
15 December 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Tati Gold Project, Botswana - Exploration Plans
Company in Final Stages of Planning Next Exploration Steps which will Include
Soil Sampling, Geophysics, Trenching and Reverse Circulation & Diamond
Drilling
Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an exploration update from its 100% owned and operated Tati Gold
Project ("Tati" or the "Project") located within the Tati Greenstone Belt near
Francistown, Botswana.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
"At the Tati Gold Project we are focused on discovering a large gold deposit.
So far, in our view, the evidence gathered is increasingly compelling.
We have therefore accelerated next stage Project exploration plans, through
which we believe we can move the Project forward quite considerably.
Those plans are outlined in further detail below and will test a much larger
portion of the 8km gold-in-soil anomaly. The plans also include the first
testing of gold at depth to add to the near surface mineralisation already
identified.
Further announcements will follow in due course as we execute on the plans
outlined below."
KEY PROJECT FEATURES
Gold-in-soil anomaly identified (the "Anomaly"). Anomaly coincident with a major regional shear structure extending over a
strike distance of approximately 8 kilometres through the centre of Project
(Figure 1 below).
Soil sampling and reverse circulation ("RC") drilling undertaken within the To date, shallow high-grade and bonanza grade gold (up to 47.1g/t Au)
Anomaly. intersected within northwest and southeast segments of the Anomaly.
Extensive near-surface gold mineralisation. Identified from the 175m strike length tested with the prospect of further
mineralisation across the remainder of the 8km Anomaly.
Potential for further gold mineralisation at depth. Maximum RC drillhole depth to date of 55m, additional drill testing expected
to test for further gold mineralisation at depth.
Cherished Hope, a former working gold mine, situated within the Project Extensive evidence of gold production from Cherished Hope, providing a focal
footprint. point for initial and follow-on exploration.
Local processing plant. Within 20km from the Project, capable of processing fines dumps and any other
material mined from the Project (subject to relevant local approvals).
DRILL RESULTS TO DATE LEAD TO EXPEDITED NEXT STAGE EXPLORATION
Assays results from the August 2022 reverse circulation ("RC") drilling
programme returned multiple near-surface bonanza grade intercepts including 1m
of 47.1g/t gold ("Au") from 6m downhole in drillhole CHRC0003 as well as 1m of
40.6g/t Au (from 2m of 23.2g/t Au) from 26m downhole in drillhole CHRC0006.
Due to the high-grade nature of the results achieved, the Company has fast
tracked planning for the next stage of exploration, the details of which are
highlighted below.
Full drill programme assays were released on 3 & 7 November 2022 and can
be found at the links below:
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862
(https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862)
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-final-drill-assay-results/15703794
(https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-final-drill-assay-results/15703794)
NEXT STAGE EXPLORATION HIGHLIGHTS
The next stage planned exploration programme will include various elements
which are highlighted below:
· High-resolution soil geochemistry programme focused on approximately
3km of strike-length extension from the Cherished Hope mine where a historical
widely spaced soil sampling programme highlighted multiple gold-in-soil
anomalies with individual results up to 2,150ppb (2.15g/t) Au-in-soil.
Approximately 500-600 individual soil samples are planned with follow up assay
testing of samples.
· A ground magnetometer geophysics survey focusing on the northwestern
strike length extension of the Cherished Hope Mine. The goal of the
magnetometer survey is to provide high-resolution imaging of any structures or
geology which may have had an influence on the emplacement of mineralised
quartz reef structures.
· A mechanised trenching programme focused on extending the known
strike-length extension of the main quartz reef structure at Cherished Hope
which has currently been intersected by drilling over a ~175m strike-length
(see Figure 2 below). The quartz reef currently remains open towards the
northwest and southeast as well as down dip.
Approximately 12-15 RC drillholes are planned which will be designed to test
for the along strike, and down dip extension of the main mineralised quartz
reef structure. Multiple holes from the 2022 programme intersected mined-out
voids, including drillhole CHRC0002 which was designed to test one of the
thicker portions of the quartz reef, but due to the shallow dip chosen, it
intersected a mining void from 10-15m downhole. Interestingly, 1m of 5.6g/t Au
was intersected from 15-16m representing the footwall of the main quartz reef
structure. At least one planned hole will have a steepened dip here in order
to drill test the entire section of this quartz reef.
· Following the completion of the RC drilling component, approximately
3-5 diamond drillholes are planned which will be designed to drill test select
portions of the quartz reef structures which were successfully delineated by
the RC drilling. Diamond drilling provides full core rock samples, and
therefore valuable information about structure, geology, and the nature of
gold mineralisation.
· Preparations for the above programme are currently underway and the
Company will provide further information in due course as programme elements
are launched, commencing in early 2023. Components of the planned exploration
programme could be changed dependent on results from the various elements
planned.
FURTHER INFORMATION
Figure 1 - Tati Project Overview Plan Map:
Figure 2 - Tati Project Q3 Drilling Area Zoomed Plan Map:
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.
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 holds a number of priority exploration projects with active
exploration underway currently. The status of each project is outlined in the
table below:
Project Operations POW % Project Status
Athabasca 12 properties covering an area of 842km(2) in the Athabasca Basin region 100% Exploration programmes undertaken across three properties during summer 2022
Canada. and preliminary planning for work in Spring/Summer 2023 is ongoing.
Uranium
Desktop review work ongoing across the existing portfolio and data rooms
established for all the projects, to enable third party review of
opportunities for potential acquisition, joint venture or earn-in.
Ongoing review of new opportunities to further expand the Company's Athabasca
uranium property exposure.
Molopo Farms 3 prospecting licences covering 1,723km(2) in south-west Botswana 87.71% Currently a 2,600m diamond drill programme is underway with a planned 5-6
holes targeting four previously identified magnetic conductors prospective for
Nickel - PGMs Nickel - Platinum Group Metals.
2 drill holes at target conductor T1-6 and one at T1-14 have been completed
and drilling at target T1-3 target is underway currently.
Downhole geophysics completed at DDH1-6A and underway at DDH1-14B.
Further Moving Loop Electro-Magnetic surveys are planned over additional
Airborne Electro-Magnetic targets identified, to develop further drill
targets.
Tati Project Botswana 100% Reverse Circulation drilling and soil sampling confirmed high-grade and
bonanza grade gold mineralisation within a gold-in-soil anomaly extending for
Gold - Nickel 8km across the Company's prospecting licences.
Next stage exploration plans announced 15.12.22.
Sampling of fines dumps, representing waste material from the Cherished Hope
gold mine on the project has confirmed circa 1g/t gold and suitability of the
fines dumps for processing to extract gold and generate income. Preparations
for the fines dumps processing are advancing.
( )
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 Operations Status POW % Further Information Link
First Class Metals PLC Exploration in the Schreiber-Hemlo region of Ontario, Canada Listed Investment 27.91% www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)
Kavango Resources PLC Exploration in Botswana Listed Investment 9.85% www.kavangoresources.com (http://www.kavangoresources.com)
First Development Resources PLC Exploration in Western Australia and the Northern Territory of Australia Planned IPO 62.12%* www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)
Golden Metal Resources PLC Exploration and development in Nevada, USA Planned IPO 83.13% www.goldenmetalresources.com (http://www.goldenmetalresources.com)
New Ballarat Gold PLC Exploration in the Victoria Goldfields of Australia Planned IPO 49.9% New website under development which can 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/) .
NewCo Exploration in Queensland's Mount Isa copper belt and in South Australia Planned IPO/Disposal 20%(^) NewCo website under development.
Uranium Energy Exploration PLC Uranium exploration in the Athabasca region of Canada Planned IPO 50-55%(~) www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)
(*) reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.
(^) subject to completion of Merger announced 15.12.22.
(~) subject to completion of disposal of Reitenbach and E-12 properties,
announced on 8.8.22 and 4.11.22, respectively.
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