REG - Power Metal - Tati Project Botswana – Drill Programme Results

Power Metal ResourcesAnnouncement

04/04/2022 07:00

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RNS Number : 0574H  Power Metal Resources PLC  04 April 2022

4 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Project Botswana - Drill Programme Results

Company's Inaugural Drill Programme Confirms Target Geological Formations,
Returns Near Surface Gold and Application for Adjacent Prospective Land
Successfuly Lodged

 

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces results from the Company's inaugural drilling programme on the Tati
Project ("Tati" or the "Project") located within the Tati Greenstone Belt near
Francistown, Botswana.

Highlights:

-    Drill programme completed safely and on-budget. Primary programme
objective to confirm prospective geological formations was completed
successfully.

 

-      Near surface gold mineralisation intersected, including shallow
depth Reverse Circulation ("RC") drilling results of up to 5.17g/t gold ("Au")
over 3m from 9m downhole.

 

-      Further Prospecting Licence ("PL") application lodged, covering
along strike extension of identified major regional gold prospective
structure.

 

-      The 1614-hectare lodged PL application covers a strong
gold-in-soil anomaly and the historical Cherished Hope Gold Mine.

 

Maps highlighting various aspects of the 2021 drilling programme can be found
below at the following link:

https://www.powermetalresources.com/tati-project-drill-results/
(https://www.powermetalresources.com/tati-project-drill-results/)

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

"It took a certain boldness for our team to advance the Tati Project to the
drilling stage so quickly.  However, due to the thin sand cover over most of
the Project, we felt that gaining knowledge of the underlying geological
formations through relatively inexpensive RC drilling was crucial in order to
better gauge the overall prospectivity of the Project. The drilling results
achieved will now allow us to continue to push our Tati exploration forward at
pace.

The RC drillholes completed within PL126/2019 targeted a relatively small area
within a much broader gold-in-soil anomaly. Our main goal was to better
understand how the geochemical anomaly correlated with the thinly blanketed
geological formations.  What we found was very encouraging.

Whilst our main programme goals were to gain a better understanding of the
subsurface geology over the Project, we were encouraged to obtain near surface
gold including results of up to 5.17g/t Au over 3m from a shallow depth of
only 9m. Importantly, as noted above, these results were achieved from only a
small area tested within a much larger geochemical anomaly.

In parallel with our ground exploration work programmes, we completed a
further detailed analysis of the broader Tati Greenstone Belt surrounding the
Project - with the hopes of identifying additional gold targets located near
to the Project.

Significantly, we were able to identify a 1614-hectare area adjacent to our
PL126/2019 licence, and further along strike of a regionally important
northwest-southeast trending structure, which contained widespread, strong
gold soil anomalism - including several targets of greater than 100ppb
gold-in-soil (much stronger than the area tested by the 2021 drilling
campaign). As a result, we moved swiftly to secure this area by submitting a
new licence application to cover all anomalous zones identified.

By applying the positive drill findings from this early RC programme across
the entire Project and specifically into this new application area, we have in
our view confirmed that the Tati Project is a major target for gold
discoveries.

We are seeking to accelerate our work on this exciting Project."

 

Programme Background:

 Drill Programme                A total of 1,062m of RC drilling was completed across five target zones which
                                was undertaken by Power Metal's drill partners Equity Drilling Ltd and Mindea
                                Exploration and Drilling Services (Pty) Ltd.

                                All drill holes as part of this programme were shallow, and completed to
                                depths ranging from 21-81m, with an average depth of 47m. RC drilling provides
                                a inexpensive, and rapid testing method which is well suited for an
                                early-stage drilling campaign.

                                The RC chip samples collected were sent to Intertek Group plc's laboratory
                                located in Perth, Australia, for multi-element analysis.

 Exploration to Date            Exploration on the Project has advanced at a rapid pace to its current stage

                              since Power Metal exercised its option to acquire a 100% interest in the
                                Project on 28 July 2021.

                                Work to date has included soil sampling, ground-based magnetics and
                                radiometrics, as well as intermittent prospecting and rock sampling over
                                select targets.

 Rationale for Early Drilling   Kalahari sands which blanket the majority of the Project have precluded
                                widespread geological mapping and prospecting, as a result the Company decided
                                to launch the drilling campaign in order to obtain bedrock RC chip samples
                                from the various target areas below Kalahari sand cover.

                                The main goal of the drill programme was to test for the presence of the
                                geological formations which host many of nearby historic and currently
                                operating gold and nickel mines within the Tati Greenstone Belt.

                                The laboratory assay results, combined with geological logging of the RC
                                bedrock samples have provided the company with important geological
                                information which will help guide future exploration and drilling campaigns on
                                the Project.

 

Key Findings Include:

A northwest-southeast oriented quartz reef was intersected in multiple
drillholes over a combined strike length of 200m; including highlight results
of 5.17g/t Au over 3m (TGRC00017) from 9-12m and 1.3g/t Au over 3m from
15-18m.

 

·    The drillholes were targeting only 200m of strike length along a
2,000m Au-in-soil anomaly (open to east and west) discovered by the Company
during a Phase I geochemical survey completed over PL126/2019 and announced on
14 September, 2021. The Au-in-soil anomaly is coincident with a prominent
northeast-southwest oriented structure which extends for at least 14km to the
nearby Monarch Gold Mine.

 

·    Based on the work undertaken to date, Power Metal, through its
100%-owned Botswana subsidiary Tati Greenstone Resources Pty Ltd., lodged a
new Prospecting Licence ("PL") application in order to cover the southeastern
extension of this regionally important gold prospective structure.

 

·    The PL applicaton covers an additional 6km of strike-length along
this significant structure, including several large-scale Au-in-soil anomalies
as well as the historical Cherished Hope Mine. If granted, this area
represents a high-priority exploration target for the Company going forward.

 

All RC samples were shipped to Johannesburg for sample preparation at Intertek
Genalysis' ("Intertek") prepararatory facility, and further sent on to
Intertek's laboratory located in Perth, Australia, where they underwent
analysis. All samples from this programme were sent as 3m composite samples.
Subsequently, 1m samples from the zones of interest returned from the sample
composites have been compiled and sent off to Intertek for further sample
preparation and analysis.

PL126/2019 Drill Results

A total of 7 RC drillholes (TGRC00017-TGRC00023) were completed on PL126/2019
targetting 200m of strike length within a >2,000m long (open to the east
and west) Au-in-soil anomaly defined by the company during its 2021 Phase I
geochemical work programme. 6 of the drillholes were completed within a fan
array, at a set dip of -50°, with each hole being stepped back 20m from
another. The two fans were positioned exactly 200m along strike from one
another, with the 7(th) hole being completed within the middle of the array -
approximately 100m equidistant from each drillhole fan.

 

Drillholes intersected a modest to shallow dipping quartzite unit with
variable gold grades including highlight results up to 3m of 5.17g/t Au. The
drill results highlighted the down dip extent of the quartzite, which remains
open at depth and along strike.

 

Mapping within the area identified a northwest-southeast oriented structure
which extends at least 17km, intersecting the nearby Monarch Gold Mine along
its extent. The structure extends from the 2021 drilling area, as well as to
previously unstaked ground to the southeast of PL126/2019. Additionally, Power
Metal was able to obtain historically geochemical data collected over this
ground, which showed a larger and higher-tenor Au-in-soil anomaly than the
area targeted during the 2021 drilling campaign. As a result, a Prospecting
Licence application was lodged with the Botswana Department of Mines ("DOM").
The Company is waiting for the results of this PL application, and will update
the market once an update is available.

 

PL127/2019 Drill Results

A total of 6 RC drillholes (TGRC0001-TGRC0006) were drilled targeting along
the strike extension of the Signal Hill gold mine. The drillholes were drilled
along two fan arrays, which included 3 holes per fan. The holes were drilled
to a maximum depth of 81m. No significant results were achieved in these
holes. The drillholes all intersected various banded iron formation ("BIF"),
schist and siltstones intervals with variable calcite alteration.

 

A total of 6 RC drillholes (TGRC0007-TGRC0012) were drilled targeting a nickel
("Ni")-in-soil anomaly which was postulated to represent an extension of
mafic-ultramafic units which host the nearby Selkik and Tekwane nickel mines.
The drillholes were drilled along two fan arrays, which included 3 holes per
fan. The holes were drilled to a maximum depth of 81m. Several holes
intersected variable BIF, dacite, shale and schist intervals, and locally,
disseminated pentlandite and pyrite mineralisation were logged.

 

A total of 4 RC drillholes (TGRC0013-TGRC0016) were drilled targeting a
northwest-southeast oriented As-in-soil anomaly identified by the Company
during its Phase I soil sampling programme. The holes were drilled to maximum
depth of 51m. The drillholes were drilled along two fan arrays, which included
2 holes per fan. The drillholes intersected variable meta andesite, dolerite,
schist and quartzite with variable hematite alteration.

 

In all instances, the drillholes completed as part of the programme on
PL127/2019 were targeting geochemical anomalies identified by Power Metal
during its 2021 Phase I soil samping programme. In many cases, these Ni- and
arsenic ("As")-in-soil anomalies were kilometre scale, and as a result only
minimal parts of these anomalies were adequately tested during this programme.

 

Programme Data:

Tati 2021 Drill Programme Assay Table

 Hole ID                 From (m)  To (m)  Interval (m)  Au (ppb)   Au* (gram/ton)
 TGRC00001 to TGRC00016  No Significant Values
 TGRC00017               9         12      3             >2,000     5.174
 TGRC00018               0         3       3             101        -
 TGRC00019               No Significant Values
 TGRC00020               0         3       3             106        -
 Incl.                   15        18      3             1,299      -
 TGRC00021               21        24      3             591        -
 TGRC00022               39        42      3             255        -
 TGRC00023               0         3       3             131        -

*Overlimit assay anaylsed via FA25/OE (25g Fire-Assay)

 

Tati 2021 Drill Programme Collar Table

 Drill hole ID  Dip    Azimuth  Hole Depth (m)  Northing**  Easting**
 TGRC00001      -50°   90°      21              584342      7635151
 TGRC00002      -50°   66°      51              589342      7634767
 TGRC00003      -50°   90°      81              584303      7635156
 TGRC00004      -50°   90°      21              584324      7634902
 TGRC00005      -50°   90°      51              584305      7634903
 TGRC00006      -50°   90°      81              584284      7634903
 TGRC00007      -50°   340°     21              581941      7638331
 TGRC00008      -50°   340°     51              581965      7638298
 TGRC00009      -50°   340°     81              581965      7638298
 TGRC00010      -50°   270°     21              582330      7638996
 TGRC00011      -50°   270°     51              582347      7638985
 TGRC00012      -50°   270°     81              582366      7638972
 TGRC00013      -50°   66°      21              589360      7634776
 TGRC00014      -50°   66°      51              589342      7634767
 TGRC00015      -50°   66°      21              589752      7634113
 TGRC00016      -50°   66°      51              589735      7634113
 TGRC00017      -50°   45°      21              559931      7653529
 TGRC00018      -50°   45°      51              559916      7653512
 TGRC00019      -50°   45°      81              559904      7653493
 TGRC00020      -50°   45°      21              559780      7653652
 TGRC00021      -50°   45°      51              559763      7653639
 TGRC00022      -50°   45°      81              559749      7653624
 TGRC00023      -50°   45°      30              559849      7653602
 TGRC00001      -50°   90°      21              584342      7635151

**  Projection: WGS84 - UTM Zone 35S

 

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.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                Location   POW %            Work Completed or Underway                                                       Results Awaited

 Alamo Gold Project     USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                         Field and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                       Interpretation results from 2 of 7 properties.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential             Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 Kalahari Copper Belt   Botswana   50%              Exploration programme underway across the South Ghanzi Project and further       Field programme findings and defined drill targets for near term drilling.
                                                    exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                    licence areas
 Molopo Farms           Botswana   53%              Review of recent exploration findings.                                           Determine next exploration steps and action plan.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                                 Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  83.33%           Wallal passive seismic and 2D seismic processing work programme completed.       Findings from multiple work programmes including final approvals and

                                                                                preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills & Braeside
                                                    West projects.

 Selta Project          Australia  83.33%           Field reconnaissance work now underway, including mapping and sampling.          Field updates.

 

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