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

Power Metal ResourcesAnnouncement

30/05/2023 11:30

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RNS Number : 0356B  Power Metal Resources PLC  30 May 2023

30 May 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Gold Project, Botswana - Exploration Update

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 Tati Gold Project ("Tati"
or the "Project") located on the Tati Greenstone Belt ("TGB") near
Francistown, Botswana. The 2023 exploration programme including geophysics,
trenching, soil sampling as well as reverse circulation ("RC") and/or diamond
drilling was launched on 26 January 2023 and the announcement providing
further information may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-2023-exploration-underway/15812595
(https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-2023-exploration-underway/15812595)

Highlights

-      Ground geophysics and trenching have been completed with available
results presented herein. A longer than usual rainy season led to the delay in
the commencement of the planned infill soil geochemical sampling programme.
However drier conditions have now persisted long enough for the Company to
launch this next phase of work, which is expected to commence shortly.

 

-      Detailed geological mapping of the recently completed trenches has
confirmed the geological setting in the Cherished Hope Mine area which is
highlighted by gold mineralisation which is concentrated within quartz reefs
(massive veins, veinlets and silicified zones) hosted within predominantly
diorite units.

 

-      Analysis of ground magnetic geophysics results have highlighted
the location of multiple post-mineralisation dolerite dykes which are known to
persist throughout much of the TGB. Understanding the precise location of
these dykes is paramount as exploration continues to progress at Tati.

 

-      Following completion of the upcoming infill soil sampling
programme - as well as the receipt of the soil assay results - next
exploration steps, including planned reverse circulation and/or diamond
drilling, will be finalised and communicated to the market.

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

"I know shareholders have been keen to hear an update on Tati, and we are very
pleased to be able to deliver that. We have made significant progress on this
important project and we have further built our technical knowledge of the
gold potential across the 8km gold-in-soil-anomaly.  After the rainy season
we now move into the next stage including the high-resolution infill soil
sampling and, subject to review and interpretation of all results, exploration
drilling. Economic processing of the tailings also remains a priority and we
are actively exploring our options in that regard.

This work is being conducted in parallel with extensive other corporate and
exploration activities across the Power Metal group and we anticipate regular
news flow in the weeks and months ahead.  Activity levels across the Company
are able to accelerate, with the recently announced £2.7m financing providing
considerable working capital to pursue our ambitious corporate growth
objectives."

FURTHER INFORMATION

Figure 1 - Tati Project Overview Plan Map:

Figure 2 - Tati Project Zoomed Trenching Plan Map:

 

EXPLORATION PROGRAMME OVERVIEW

 Exploration Work                                                                 Latest Update
 TRENCHING - COMPLETE                                                             Further breakdown of trenching results are found in 'Notable Trenching Results

                                                                                Section'.
 A total of 431 metres of mechanised trenching has been successfully completed.

                                                                                Northwest Extension (Trench 3, 4, 7):
 Trenching was focussed along both the northwest and southeast strike-length

 extensions of the known outcropping gold mineralised quartz reef structures at   Overburden was determined to be between 0-1.5 meters in thickness and composed
 Cherished Hope Mine.                                                             predominantly of a brown clay-rich unit overlaying a poorly sorted quartz

                                                                                pebble unit. The bedrock is dominated by a quartz rich diorite. Only one
 A total of 8 trenches were completed of which 3 targeted the northwestern        post-mineralisation dolerite dyke was identified within the northwestern
 strike-length extension and 5 targeted the southeastern strike-length            trenches.
 extension.

                                                                                Multiple silicified and quartz rich zones were successfully identified in the
 Trench samples, comprising 1m long composites taken along the side of the        northwestern trenches. Several of these quartz-rich intervals returned
 trench, were then sampled for gold (30g Fire Assay) at the ALS Laboratory in     elevated gold results including: seven 1m intervals in Trench 3 which returned
 Johannesburg, South Africa. Detailed geological and structural mapping of the    >0.2g/t Au (up to 1.9g/t Au).
 trenches was also completed.

                                                                                Southeastern Extension (Trench 1, 2, 5, 6, 8): Overburden was determined to be
                                                                                  between 0-3 meters in thickness and composed predominantly of a brown

                                                                                clay-rich unit overlaying a poorly sorted quartz pebble unit. The bedrock is
                                                                                  dominated by a quartz rich diorite. Four post-mineralisation dolerite dykes
                                                                                  were identified which crosscut the diorites at various locales.

                                                                                  Multiple silicified and quartz rich zones were successfully identified
                                                                                  including in Trench 8 where they were determined to be the most abundant
                                                                                  (furthest southwest trench). Several of these quartz-rich intervals returned
                                                                                  elevated gold results including: Two 1m intervals in Trench 1 returning
                                                                                  >0.2g/t Au and two 1m intervals in Trench 5 returning >0.2g/t Au.

                                                                                  In general, the southeastern strike-length extension of Cherished Hope is
                                                                                  highly affected by the presence of post-mineralisation dolerite dykes.

                                                                                  Ground magnetic geophysics results highlight that beyond the southeastern
                                                                                  extent of the furthest southwest trench (8), there appears to be no further
                                                                                  dolerite dykes present for some considerable distance.

                                                                                  Notably, the quartz rubble horizon was sampled in Trench 1 which returned much
                                                                                  stronger gold results than in any of the trench bedrock samples (17 2m samples
                                                                                  were sent for analysis with 7 returning >0.2g/t Au as well as 3 returning
                                                                                  >1g/t Au (up to 2.32g/t Au)).

 GEOPHYSICS - COMPLETE                                                            Post-mineralisation dolerite dyke swarms are found throughout much of the TGB.

                                                                                As a result, within many of the historical and currently operating gold mines
 A ground magnetometer geophysical survey was completed over the northwestern     in the TGB, mapping the precise location of these dykes (magnetic highs) is
 and southeastern strike length extensions of the Cherished Hope Mine.            important as they often can cross-cut gold mineralisation. The 2023 ground

                                                                                magnetic results have successfully mapped the location and orientation of
                                                                                  approximately six of these dolerite dykes within the survey area, including
                                                                                  four which are proximal and/or within the Cherished Hope ("CH") Mine area.

                                                                                  The successful mapping of these dykes will allow for more precise and accurate
                                                                                  drill hole siting should drilling be undertaken going forward within CH and
                                                                                  the surrounding areas.

 SOIL GEOCHEMISTRY - STARTING SHORTLY                                             Historical soil sampling completed over the majority of the Tati Project was

                                                                                undertaken by previous operators along generally 400m spaced lines at 40m
 The planned high-resolution infill soil geochemical sampling programme is        sample spacing.
 focussed on approximately 2km of strike-length along the approximately 8km

 long broad Au-in-soil anomaly identified at Tati.                                This programme intends to infill the line spacing to between 100-200m by 40m

                                                                                so that the definition and location of already proven Au-in-soil anomalies is
 Soil samples will be collected along a grid which will be focussed to the        vastly improved.
 northwest and southeast of the 2022 RC drilling area.

                                                                                This work will then allow Power Metal to follow up with more focussed next
                                                                                  exploration steps which could include further trenching and drilling of these

                                                                                new areas.
 The high-resolution in-fill grids will focus on areas where at least two

 historical anomalies were identified within widely spaced soil sampling lines    By completing this work, a much larger percentage of the 8km long Au-in-soil
 (on average 400m spaced lines and up to 700m line spacing). These two-point      anomaly can move to next exploration steps therefore increasing the overall
 anomalies returned an impressive 2.15g/t Au and 0.84g/t Au. To date these        attractiveness of the Project as well as the overall size of the mineralised
 anomalies have never been further investigated to determine the provenance of    footprint.
 this gold mineralisation.

 REVERSE CIRCULATION ("RC") DRILLING((1))                                         RC drilling may be undertaken to test for the along strike and down dip

                                                                                extension of gold mineralisation intersected by trenching of the soil
 The RC drilling will be driven by the results of prior work streams including    anomalies.
 the soil sampling. Further updates in regard to this will be announced in due

 course.                                                                          In the Cherished Hope Mine area the goal is to demonstrate continuity in the

                                                                                major quartz reef structure width and gold grade as well as testing the
                                                                                  currently open down-dip extension potential at depth.

 DIAMOND CORE DRILLING((2))                                                       Diamond core drilling may be completed in order to drill test select portions

                                                                                of the Cherished Hope quartz reef structures.
 Diamond core drilling specifics will be dependent on results from prior work

 streams including soil sampling, trenching and RC drilling. Further updates in   Diamond drilling provides full core rock samples, and therefore valuable
 regard to this will be announced in due course.                                  information about structure, geology, and the nature of gold mineralisation.

                                                                                  The information extracted from diamond drilling would allow the Company to
                                                                                  gain a better understanding of the mineralised quartz reefs and surrounding
                                                                                  wall rocks.

Notable Trenching Results

 Trench ID          Trench Length (m)  From (m)*  To (m)*  Interval (m)*  Grade (g/t)
 Trench 1           31                 23         25       2              0.32

 Trench 1 (rubble)  32                 0          2        2              0.33
                    6                             12       6              1.35
                    18                            20       2              0.45
                    22                            26       4              0.85

 Trench 3           52                 31         32       1              0.43
                    37                            38       1              0.25
                    44                            49       5              0.74

 Trench 5           54                 6          8        2              0.38

          *Refers to lengthwise along trench (as opposed to depth).

KEY:

(1)  RC drilling involves a "hammer" piston which repeatedly strikes the
target rock. Simultaneously, a powerful drill-bit at the end made of tungsten
rotates at high speed. This creates small chips of rock known as drill
cuttings that are sucked up with a vacuum and transported to a cyclone at the
surface through dedicated tubes. The drilling chips derived from each depth
interval are collected in separate sample bags, and a representative
sub-sample of each interval is submitted to the assay lab where the
geochemical constituents and gold grade is analysed. In turn, the drill chips
provide a representation of the rock types the hole encountered throughout its
length, this data allows a geological log to be established.

 

(2)  Diamond core drilling involves rotating a hollow drill bit embedded with
diamonds into the ground to a certain depth before extracting the solid,
intact core recovered for analysis.

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
 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

 

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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