REG - Power Metal - Tati Gold Project Botswana – Exploration Update

Power Metal ResourcesAnnouncement

02/09/2022 15:15

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RNS Number : 1603Y  Power Metal Resources PLC  02 September 2022

2 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Gold Project Botswana - Exploration Update

Power Metal Completes Gold Focused Drilling Programme and Initial Results from
Fines Sampling Demonstrate Extensive Residual Gold

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 Tati Gold Project ("Tati" or the
"Project") located within the Tati Greenstone Belt near Francistown, Botswana.

The Company announced the commencement of reverse circulation ("RC") drilling
on 22 August 2022 and a link to that announcement is provided below:

https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-drilling-commences/15595699
(https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-drilling-commences/15595699)

A map highlighting the location of the RC drill programme can be found at the
link below:

https://www.powermetalresources.com/tati-project-cherished-hope-mine-rc-drilling/
(https://www.powermetalresources.com/tati-project-cherished-hope-mine-rc-drilling/)

 

 

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

"My thanks to the team in Botswana for the completion of a safe and effective
drill programme. The samples have been prepared efficiently and sent to
Intertek for assay testing and we look forward to receiving the results.
Naturally having intersected the targeted geological structures repeatedly and
at shallow depth, we are particularly enthused with progress thus far.

The sampling of the fines dumps has also delivered residual gold from all
samples taken across the dumps.  The processing potential of this waste mine
material is interesting and we are looking at this further based on the
results of the sampling. In addition, the fact that the dumps retain material
residual gold after previous processing is extremely positive, indicating that
higher grade material was originally extracted and processed from the
Cherished Hope former working mine.

In summary, we are moving forward at some pace with the Tati Gold Project, and
I look forward to reporting further as the assay results are received."

 

HIGHLIGHTS:

RC Programme

§ RC drilling programme completed with a total 490m drilled across 9 holes
for an average drillhole depth of 55m.

 

§ Drilling was designed to test for potential along-strike and down-dip
extensions of the gold-bearing quartz vein structures, or 'quartz reef',
worked at the former Cherished Hope mine located, in close proximity to the
drilling sites, on the Project.

 

§ Quartz reef was successfully intersected within all holes drilled, with
multiple holes intersecting multiple sub-parallel quartz reef structures. The
largest single intersection was from RC hole CHRC00007 which intersected
quartz reef from 11-19m (8m intersection).

 

§ Sulphide mineralisation, including chalcopyrite and arsenopyrite was logged
within the quartz reef and in some instances up to 5m into the vein footwall.

 

§ RC drill chip samples have been prepared and sent to Intertek in Perth,
Australia ("Intertek") for accredited laboratory assay testing to determine
gold content.

 

Fines Sampling Update

 

§ In total 37 samples were collected from across the former mineral
processing fines dumps found on the Project. These dumps consist fine grained
waste material resulting from historical processing of ore material mined from
the Cherished Hope gold mine.

 

§ The sampling was to test for residual gold in the dumps, which if
confirmed, could offer the potential for reprocessing using more efficient
modern gold recovery methods and to generate cashflow, subject to local
approvals.

 

§ The 37 samples were sent to the nearby Mupane Gold Mine laboratory for gold
assay testing, with received results confirming the presence of residual gold
in every sample tested (ranging from 0.35g/t to 2.16 g/t Au with an average
grade across all samples of 0.94g/t Au, see Table 1 below).  Duplicate
samples were also sent to Intertek for independent check analysis, the Company
is currently awaiting these assay results.

 

§ The presence of the residual gold in the fines material, could reflect the
high grade nature of the ore originally mined at Cherished Hope or the less
efficient gold processing methods previously employed there.

 

Table 1: Tati Gold Project Fines Dump - Assay Table

 Sample ID      Au (g/t)
 CHD09 67046    0.74
 CHD09 67048    0.77
 CHD10  67050   0.77
 CHD10 67052    1.08
 CHD11 67054    0.88
 CHD11 67056    1.24
 CHD12 67058    1.16
 CHD12 67060    1.06
 CHD13  67062   1.37
 CHD13 67064    1.23
 CHD14 67066    0.8
 CHD14 67068    2.16
 CHD15 67070    0.75
 CHD15 67072    0.98
 CHD16 67074    0.35
 CHD16 67076    1.05
 CHD17 67078    1.19
 CHD17 67080    1.36
 CHD18 67082    0.82
 CHD18 67084    1.06
 CHD19 67086    1.58
 CHD01 67014    0.69
 CHD01 67016    0.53
 CHD02 67018    0.66
 CHD02 67020    0.91
 CHD03 67022    0.73
 CHD03 67024    0.66
 CHD04 67026    0.48
 CHD04 67028    0.66
 CHD05 67030    0.94
 CHD05 67032    0.89
 CHD06 67034    0.94
 CHD06 67036    1.04
 CHD07 67038    0.89
 CHD07 67040    0.72
 CHD08 67042    0.75
 CHD08 67044    0.92
 Average        0.94

 

 

COMPETENT 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 Competent 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 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%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 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/) .

 

 

 

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