REG - Power Metal - Tati Project, Botswana – 2023 Exploration Underway

Power Metal ResourcesAnnouncement

26/01/2023 15:30

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RNS Number : 0141O  Power Metal Resources PLC  26 January 2023

26 January 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Gold Project, Botswana - 2023 Exploration Underway

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces next stage exploration on its 100% owned and operated Tati Gold
Project ("Tati" or the "Project") located within the Tati Greenstone Belt near
Francistown, Botswana, is underway.

EXPLORATION PROGRAMME KEY OBJECTIVES

-      To confirm the presence of a large gold-bearing system and
delineate a deposit, through follow-on work over a larger portion of the
approximately 8km long gold-in-soil anomaly.

-      Through Power Metal's largest and most comprehensive exploration
campaign across the Tati Project, to date.

 

o  Programme will include mechanised trenching, geophysics surveys,
high-resolution geochemical surveys, reverse circulation ("RC") drilling and
diamond core drilling.

 

o  Both geophysical survey work and mechanised trenching are currently
underway, with further soil sampling scheduled and RC and diamond drilling to
follow on in order to test the emerging high priority gold targets.

 

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

"The exploration campaign now underway is a key step forward for Power Metal
with the various planned works tailored towards a single objective, namely the
discovery of a large gold deposit.

Our exploration programmes in 2021 and 2022 have built a robust picture of the
Project's potential and we are particularly excited as we proceed with the
next stage of exploration - the largest ever completed on the Project by Power
Metal.

So far, we have confirmed near surface high-grade gold from reverse
circulation drilling, conducted last year, which intersected the quartz reef
structure near the Cherished Hope mine and delivered high-grade and
bonanza-grade gold results. Figure 1 below provides an overview of those
results.

Within the table immediately below is an overview of the work we are planning
to undertake, with explanatory notes on the various steps to be implemented."

 

EXPLORATION PROGRAMME OVERVIEW

 Exploration Work                                                                 Rationale and Targeted Outcome
 TRENCHING                                                                        This work will look to extend the already known strike length extension of the

                                                                                main quartz reef structure at the Cherished Hope gold mine (the "Cherished
 A circa 500 metre mechanised trenching programme (underway).                     Hope") within the Project licence area. The quartz reef currently remains open

                                                                                towards the northwest and southeast as well as down dip.
 Trenching will be focused along various strike-length extensions of the known

 outcropping gold mineralised quartz reef structure.                              If the main quartz reef is successfully intercepted, the trenching would

                                                                                highlight quartz reef continuity between known historical workings at
 Quartz reef as well as mineralised wall rock will be sampled when intersected    Cherished Hope, as well as to the northwest and southeast of current (~175m)
 within the exposed trenches.                                                     strike length extents as defined by the recently completed RC drilling

                                                                                campaign.

                                                                                By extending the surficial expression of the mineralised quartz reef structure
                                                                                  beyond the currently defined 175m strike length, Power Metal will be able to
                                                                                  follow up drill test these areas to prove the downdip continuity, therefore
                                                                                  increasing the size of the mineralised system in multiple dimensions.

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

                                                                                undertaken by previous operators along 400m spaced lines at 40m sample
 High-resolution soil geochemistry programme focussed on approximately 3km of     spacing.
 strike-length (see red area highlighted on figure 1 below).

                                                                                This programme looks to infill the line spacing so that the definition and
 Approximately 500-600 individual soil samples are planned with follow up assay   location of already proven Au-in-soil anomalies is vastly improved.
 testing of samples.

                                                                                This work will then allow Power Metal to follow up with more focussed next
 Soil samples will be collected along a grid which will be focussed northwest     exploration steps which could include trenching and RC drilling of these new
 of the 2022 RC drilling area. The goal is to improve the resolution and          areas during subsequent work programmes.
 definition over several kilometres of the currently defined ~8km long

 gold-in-soil anomaly.                                                            By completing this work, a much larger percentage of the 8km long Au-in-soil
                                                                                  anomaly can move to next exploration steps therefore increasing the overall
                                                                                  attractiveness of the Project as well as the size of the mineralised
                                                                                  footprint.

 GEOPHYSICS                                                                       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
 A ground magnetometer geophysics survey focussed on the northwestern strike      of mineralised quartz reef structures.
 length extension of the Cherished Hope Mine (underway).

                                                                                Prospective structures and geology identified by the magnetometer survey can
                                                                                  then be upgraded to further work streams which may include geochemical

                                                                                sampling, trenching and RC & diamond drilling.

 REVERSE CIRCULATION ("RC") DRILLING((1))                                         This RC programme is designed to test for the along strike and down dip

                                                                                extension of the main mineralised quartz reef structure.
 ~15 RC drillholes are planned to an average planned  depth of ~100m for

 ~1,500m in total.                                                                The mechanised trenching programme will be completed prior to the RC drilling

                                                                                and will look to extend the known surficial expression of the mineralised
                                                                                  quartz reef structure. Once the surface expression is well defined by

                                                                                trenching, RC drilling will be employed in order to test for the down dip or
                                                                                  depth extension of the quartz reefs within the subsurface.

                                                                                  The goal is to prove continuity in the widths as well as grades of the quartz
                                                                                  reef structure from surface down to depths targeted by the RC drilling.

 DIAMOND CORE DRILLING((2))                                                       The diamond drilling programme is designed to drill test select portions of

                                                                                the quartz reef structures which were previously successfully delineated by
                                                                                  the RC drilling conducted during fall 2022.

 ~5 diamond drill holes are planned to an average expected depth of 100m for      Diamond drilling provides full core rock samples, and therefore valuable
 ~500m in total.                                                                  information about structure, geology, and the nature of gold mineralisation.

                                                                                  The information extracted from diamond drilling will allow the company to gain
                                                                                  a better understanding of the mineralised quartz reefs and surrounding wall
                                                                                  rocks. This data will be important as exploration continues to develop across
                                                                                  the broader Tati Project.

 

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 chips are then sorted into a variety of
sampling bags, each of which represents a certain depth section of the drill
hole. These bags are then sent off directly to the assay lab where their
mineral content can be analysed. In turn, a picture of the rock types the hole
encountered throughout its length can 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.

 

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.

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