Molopo Farms Complex - Geophysics & Drill Update

RNS Number : 6031Z

Power Metal Resources PLC

15 September 2022

 

15 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Geophysics and Drilling Update

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project ("Molopo Farms" or the "Project") targeting a large scale nickel-copper-platinum group element ("PGE") discovery in southwestern Botswana.

On 8 September 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/mfc-project-update-drill-programme-mobilisation/15621071

HIGHLIGHTS

§ High-resolution ground magnetic geophysics ("Ground-Mag") survey completed over high priority Target 1-6 ("T1-6").

§ Three dimensional ("3D") inversion modelling of Ground-Mag data and all other available geophysical datasets covering the T1-6 electromagnetic ("EM") conductor, also completed.

§ Interpretation of historical airborne electromagnetic ("AEM") survey data with recently collected moving-loop EM ("MLEM") geophysics results, estimates the T1-6 conductor has an approximate strike length of 2,600m and an estimated down dip extent of 1,000m.

§ Diamond core drillhole parameters for the first two planned holes at T1-6 have now been established, with the two drill collar sites under preparation and drilling expected to commence shortly.

§ MLEM surveys are ongoing at additional target areas T1-3 and T2-3, and MLEM and Ground-Mag surveys are ongoing at target area T1-14, with further updates to follow shortly.

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

"Our work at Molopo Farms is gathering pace with the parameters for the first two diamond core drillholes into Target 1-6 now confirmed. With the drill rig now on-site we expect to start drilling the first priority target hole shortly.

Significantly, based on recently completed 3D geophysical modelling the strike-length of the priority conductor at T1-6 is interpreted to be 2,600m, a considerable target.

We are working closely with the team in Botswana who have done an incredible job thus far.  It is less than a month since the initial geophysical survey findings at T1-6 that inspired this acceleration to drilling and I look forward to providing further progress updates."

FURTHER INFORMATION

§ A high-resolution Ground-Mag survey covering an area of approximately 2,700m by 1,600m has now been completed over priority target area T1-6. A strong east-west trending magnetic anomaly was identified near the southern edge of the survey area.

§ Magnetic inversions of this newly identified anomaly show that the magnetic body intersects the down dip extent of the southerly dipping EM conductor identified by the previously completed ground-based MLEM survey over T1-6.

§ As a result of the recently completed geophysics work at T1-6, as well as the extensive 3D analysis and inversion modelling now completed, two priority drillholes have now been planned for T1-6. The two drill collar sites are now being prepared and cleared in preparation for the programme start. The two sites selected are summarised below:

o  Diamond core drillhole DDH1-6B : Located 530m directly south of drillhole KKME 1-6 (completed  December 2020 ¹). Planned 600m hole depth, inclined at 80° dip and 0° azimuth (to the north). Based on the 3D modelling completed, DDH1-6B has been planned to intersect the southerly dipping conductor at a relatively shallow depth of 300m.

o  Diamond core drillhole DDH1-6C : Located 830m directly south drillhole KKME 1-6 ¹. Planned 650m hole depth, inclined at 80° dip and 0° azimuth (to the north). Based on the 3D modelling completed, DDH1-6C is planned to test the intersection zone between the southerly dipping conductor and the newly identified strongly magnetic E-W trending body, which is estimated to be at a depth of approximately 350m.

§ Based on 3D modelling of all available geophysical data including the previous AEM survey, the targeted T1-6 EM conductor been estimated to have an approximate strike-length of 2,600m in a broadly E-W direction and is estimated to extend for around 1,000m down dip (towards the south).

§ Power is currently preparing a short video which highlights the above information and will include a demonstration of the 3D geophysical modelling with the plots of previous drillhole KKME 1-6 and the planned drillholes DDH1-6B and DDH1-6C.

§ Camp setup and preparation for the upcoming programme continues at pace. The Company will announce to the market once drilling has commenced, which is expected shortly.

§ MLEM surveys are ongoing at target areas T1-3 and T2-3, and MLEM and Ground-Mag surveys are ongoing at target area T1-14. A further update in regard to this work, as well as survey results, are also expected shortly.  

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the "Transaction").  The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

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.

REFERENCES

1:  Power Metal PLC announcement, 14 December 2020

  ( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w )

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/ 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

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 POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme underway at 3 properties.  Continuing data analysis across the property portfolio.	Results from ground exploration including spectrometer analysis, sampling and 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 surveys over T1-6, T1-14, T1-3 and T2-3 targets.	Commencement of T1-6 drill programme, and findings therefrom and results from 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% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
First Development Resources PLC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
Kavango Resources PLC	Investment - POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22) Exploration in Botswana	www.kavangoresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .
Uranium Energy Exploration PLC	Planned IPO - POW on listing estimated 40-55%	www.uraniumenergyexploration.com

 

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