Tati Gold Project Botswana - Exploration Update

RNS Number : 1603Y

Power Metal Resources PLC

02 September 2022

 

2 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Gold Project Botswana - Exploration Update

Power Metal Completes Gold Focused Drilling Programme and Initial Results from Fines Sampling Demonstrate Extensive Residual Gold

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 Tati Gold Project ("Tati" or the "Project") located within the Tati Greenstone Belt near Francistown, Botswana.

The Company announced the commencement of reverse circulation ("RC") drilling on 22 August 2022 and a link to that announcement is provided below:

https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-drilling-commences/15595699

A map highlighting the location of the RC drill programme can be found at the link below:

https://www.powermetalresources.com/tati-project-cherished-hope-mine-rc-drilling/

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

"My thanks to the team in Botswana for the completion of a safe and effective drill programme. The samples have been prepared efficiently and sent to Intertek for assay testing and we look forward to receiving the results. Naturally having intersected the targeted geological structures repeatedly and at shallow depth, we are particularly enthused with progress thus far.

The sampling of the fines dumps has also delivered residual gold from all samples taken across the dumps.  The processing potential of this waste mine material is interesting and we are looking at this further based on the results of the sampling. In addition, the fact that the dumps retain material residual gold after previous processing is extremely positive, indicating that higher grade material was originally extracted and processed from the Cherished Hope former working mine.

In summary, we are moving forward at some pace with the Tati Gold Project, and I look forward to reporting further as the assay results are received."

HIGHLIGHTS:

RC Programme

§ RC drilling programme completed with a total 490m drilled across 9 holes for an average drillhole depth of 55m.

§ Drilling was designed to test for potential along-strike and down-dip extensions of the gold-bearing quartz vein structures, or 'quartz reef', worked at the former Cherished Hope mine located, in close proximity to the drilling sites, on the Project.

§ Quartz reef was successfully intersected within all holes drilled, with multiple holes intersecting multiple sub-parallel quartz reef structures. The largest single intersection was from RC hole CHRC00007 which intersected quartz reef from 11-19m (8m intersection).

§ Sulphide mineralisation, including chalcopyrite and arsenopyrite was logged within the quartz reef and in some instances up to 5m into the vein footwall.

§ RC drill chip samples have been prepared and sent to Intertek in Perth, Australia ("Intertek") for accredited laboratory assay testing to determine gold content.

Fines Sampling Update

§ In total 37 samples were collected from across the former mineral processing fines dumps found on the Project. These dumps consist fine grained waste material resulting from historical processing of ore material mined from the Cherished Hope gold mine.

§ The sampling was to test for residual gold in the dumps, which if confirmed, could offer the potential for reprocessing using more efficient modern gold recovery methods and to generate cashflow, subject to local approvals.

§ The 37 samples were sent to the nearby Mupane Gold Mine laboratory for gold assay testing, with received results confirming the presence of residual gold in every sample tested (ranging from 0.35g/t to 2.16 g/t Au with an average grade across all samples of 0.94g/t Au, see Table 1 below).  Duplicate samples were also sent to Intertek for independent check analysis, the Company is currently awaiting these assay results.

§ The presence of the residual gold in the fines material, could reflect the high grade nature of the ore originally mined at Cherished Hope or the less efficient gold processing methods previously employed there.

Table 1: Tati Gold Project Fines Dump - Assay Table

Sample ID	Au (g/t)
CHD09 67046	0.74
CHD09 67048	0.77
CHD10  67050	0.77
CHD10 67052	1.08
CHD11 67054	0.88
CHD11 67056	1.24
CHD12 67058	1.16
CHD12 67060	1.06
CHD13  67062	1.37
CHD13 67064	1.23
CHD14 67066	0.8
CHD14 67068	2.16
CHD15 67070	0.75
CHD15 67072	0.98
CHD16 67074	0.35
CHD16 67076	1.05
CHD17 67078	1.19
CHD17 67080	1.36
CHD18 67082	0.82
CHD18 67084	1.06
CHD19 67086	1.58
CHD01 67014	0.69
CHD01 67016	0.53
CHD02 67018	0.66
CHD02 67020	0.91
CHD03 67022	0.73
CHD03 67024	0.66
CHD04 67026	0.48
CHD04 67028	0.66
CHD05 67030	0.94
CHD05 67032	0.89
CHD06 67034	0.94
CHD06 67036	1.04
CHD07 67038	0.89
CHD07 67040	0.72
CHD08 67042	0.75
CHD08 67044	0.92
Average	0.94

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/ 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/ .

 

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