Kalahari Copper Belt - Exploration Update

RNS Number : 6985J

Power Metal Resources PLC

23 December 2020

 

23 December 2020

Power Metal Resources plc

("Power Metal" or the "Company")

Kalahari Copper Belt - Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update for the South Ghanzi Project ("South Ghanzi" or the "Project") in the Kalahari Copper Belt (the "KCB").

The Project includes two prospecting licences in the KCB held in a Strategic Joint Venture with Kavango Resources plc (LON:KAV) ("Kavango").

Highlights

· Portable x-ray fluorescence "pXRF" analysis of 335 previously collected soil samples completed:

-  Encouraging concentrations of zinc identified.

-  Zinc is a recognised pathfinder element for the less mobile copper ions in the soil.

-  Elevated levels of zinc in soil samples can be associated with shallow strata-bound copper mineralisation.

· 127 new soil samples collected, dried and sieved:

-  Soil samples taken in areas of particular interest.

-  pXRF analysis ongoing.

· Interpretation of regional aeromagnetic surveys has identified favourable stratigraphy in anticlines and synclines within the licences:

-  Anticlines and synclines are types of rock strata fold that respectively form crests and troughs. Where anticlinal folds also vary in slope along the fold axis-strike they can also create stratigraphic "domes" which can be favourable sites for the formation of orebodies.

-  Anticlinal "domes" can bring the mineralisation close to surface and within reach of open pit mining.

· Higher concentrations of soil zinc anomalies identified near several anticlines

-  Soil samples have been submitted for TerraLeach™ assay testing, an analytical method designed to remove the mobile ion component from soil samples with a view to detecting metal dispersion from a buried orebody.

-  Assay results expected in the New Year.

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

"I am delighted to report very positive initial exploration findings from the KCB, with the soil sampling results highlighting target areas, in very similar geological settings to other material copper/silver discoveries, made in neighbouring projects in recent years.

This area of Botswana is evidently highly prospective for copper and Power Metal and Kavango Resources are particularly excited to be proactively exploring in the heart of the KCB.

Of note, both Power Metal and Kavango have a strong working capital position meaning we have the financial means, alongside the operational determination, to push on with proactive exploration through the Strategic Joint Venture."

Progress at South Ghanzi

Portable XRF analysis ("pXRF") was completed on the 335 soil samples previously collected at South Ghanzi (4 December 2020).

Results from the XRF analysis revealed elevated concentrations of zinc in several key areas.

In parallel to this, Kavango's geophysicists completed reinterpretation work on data gathered from government sponsored regional aeromagnetic surveys. Magnetic data collected by previous exploration companies is also available on "open source".

Thanks to the reinterpretation of this data, Kavango's exploration team has identified a number of significant anticlines and synclines that occur close to geochemical reduction-oxidation ("redox") boundaries across the South Ghanzi Project.

Anticlinal "domes" often act as trap sites for high-grade copper/silver deposits across the KCB. Their proximity to surface makes them extremely attractive exploration targets.

Because zinc in soil anomalies occur close to several anticlines, Kavango's exploration team collected an additional 127 new soil samples in those areas.

A selection of these samples has been sent to a laboratory in Johannesburg for assay testing using the TerraLeach™ method. Results are expected in the New Year.

Together with Power Metals, Kavango expects to conduct airborne electromagnetic geophysics ("AEM") surveys over prospective sections of the South Ghanzi project in Q1 2021. If results are favourable, the Strategic Joint Venture will work quickly towards test drilling of shallow targets once a 3 dimensional model has been developed.

STRATEGIC JOINT VENTURE INTERESTS IN THE KALAHARI COPPER BELT

The Strategic Joint Venture South Ghanzi Project covers two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km².  Power Metal has a 50% ownership interest in the Strategic Joint Venture with Kavango holding 50%.

THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING

The South Ghanzi Project area includes lengthy redox boundaries, close to surface, that represent prospective exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges.

Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

Notes to Editors:

P ower Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

 

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