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Power Metal (POW)

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Wednesday 06 April, 2022

Power Metal

Quarterly Business Operational Update

RNS Number : 5060H
Power Metal Resources PLC
06 April 2022
 

6 April 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Quarterly Business Operational Update

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces the March 2022 quarterly business operational update for shareholders.

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

"We built our portfolio for a time when metal prices would rise, when metal supply shortages would become exposed, and when participants in the metals space would see the strategic value of a well-constructed portfolio of active mineral projects. 

Power Metal has benefited from a 3-year long opportunity to build this portfolio, through challenging market conditions. With entrepreneurial hard work, our team has positioned the business with the right combination of commodity, geographical and geological diversification.

Although we face many global challenges, we find ourselves today in an environment where governments, financial institutions, large corporations and major metal producers openly recognise the importance of secure strategic metal supply. These various organisations know that the large-scale discoveries of tomorrow rely upon the gregarious and bold explorers of today.

Below you will see our highlights for the quarter to March 2022.  Here we present details of Power Metal's four operational drill programmes, four spin-out/disposal activities, an advancement of strategic uranium interests and our other various district scale mineral opportunities.

We did not build our portfolio to stay wedded to underperforming or sub-optimal projects and in the last three years the Company has taken action to cease expenditure in the Ivory Coast, Cameroon and DRC, in the latter case, on hold pending ongoing operational conditions being met.  If we don't see real value or an adequate commercial pathway for any project we will act as we always have; decisively.

I trust this quarterly report, and future reports that follow, will help investors track our operational progress and expectations. We have slimmed down the content in this report to focus on the latest project status and planned next steps for each."

 

QUARTER HIGHLIGHTS:

African Exploration

-  Launch and completion of deep diamond drill programme at the Haneti Nickel Project located in Tanzania, targeting nickel, copper, cobalt and platinum group element ("PGM") mineralisation.

 

-  Launch of diamond drill programme at the Ditau Camp Project located in Botswana, targeting multiple prospective carbonatite structures with potential for rare-earth element ("REE") and base-metal mineralisation.

 

-  Results from Reverse Circulation ("RC") drilling programme at the Tati Project, Botswana, confirming prospective geological formations and near surface gold mineralisation, with additional licence application lodged to cover newly identified gold-in-soil anomalies.

 

Australian Exploration

 

-  First Development Resources team conducted ground exploration and field reconnaissance completed at the Selta Project located in the Northern Territory, Australia, which highlighted multiple target areas with polymetallic potential including uranium, REE's and lithium.

 

-  Field reconnaissance completed at the Wallal Project located in the Paterson Province of Western Australia, Australia, confirming ideal operational conditions and access for planned deep diamond drilling programme.

 

-  At our Victoria Goldfields joint venture continuation of diamond drilling, originally commenced in late 2021, at the O'Loughlins and Mt. Bute targets located in the State of Victoria, Australia.

 

Canadian Exploration

 

-  Canada: Technical review of data in respect of the Company's Athabasca Basin uranium interests confirms extensive uranium prospectivity across 5 of the 7 uranium properties so far, with additional ground staked to cover newly identified prospective areas.

Corporate

 

-  Spin-out vehicles continue to make progress with First Class Metals plc and Golden Metal Resources plc targeting listings on the London capital markets in the current quarter, and First Development Resources Ltd and New Ballarat Gold Corporation plc targeting listings in the London and/or Australian markets in early Q3 2022.

 

Operational working capital comprising cash and listed investments at 28/02/2022 amounted to £2.48M and unaudited total assets at 28/02/2022 of £10.93M.

 

New environmental, social and governance initiative launched (the "ESG Initiative") which will include an appointed ESG Officer for Power Metal and select associated companies.  The Initiative will also involve the embedding of wide ranging ESG policies across the Company and training of all staff members.

 

Capital Reduction exercise progressed with shareholder approval secured at General Meeting in March 2022. Subject to High Court approval enables the Company to consider shareholder distributions with effect from mid-2022.

 

Note: in addition to the material presented below, investors are encouraged to review Power Metal's corporate presentation which is available on the Company's website through the following link:

https://www.powermetalresources.com/presentation/

PROJECT OPERATIONS UPDATE

The tables below provide the latest status of each project within the Company's portfolio and include:

-  Exploration project updates from African, North American and Australian interests;

 

-  Corporate development updates for project packages advancing towards spin-out into their own listed vehicles;

 

-  Further updates in respect of the Company's new project pipeline;

 

-  Additional management, compliance and financial information for shareholders.

African Exploration Projects

Project

Latest Position

Molopo Farms Complex Project

Botswana

(Nickel - Copper - Platinum Group Element)

POW: Effective Economic Interest circa 53% held as a 40% direct project interest and c 21.5% interest in Kalahari Key Mineral Exploration Pty Ltd (60% project owner)

The proposal from Kavango Resources to acquire Kalahari Key did not lead to a successful outcome, further details of which were announced on 22/03/2022 and may be viewed here:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-update-ditau-drilling-commences/15379084

This was disappointing; however, we are working with Kalahari Key and its shareholders to find a suitable way forward. 

The first drill programme announced in 2021 confirmed nickel results up to 1.7%.  The next step is a follow-up round of drilling, which we are seeking to undertake urgently.

The Molopo Farms Complex Project has attracted considerable interest and we intend to capitalise on that interest and the positive technical findings to date.

Kalahari Copper Belt  Project (KCB Project)

Botswana

(Copper - Silver)

POW: 50% (50% JV Partner Kavango Resources plc LON:KAV)

 

We continue to work on drill target refinement at the KCB Project. Whilst this has taken longer than previously anticipated, drill planning is now advancing rapidly. 

 

The ground under prospecting licences ("PLs") totals some 4,257km2 over 10 PLs and is considered highly prospective for Cu-Ag mineralisation.  Precise drill targeting is key to maximising the return on investment from exploration dollars expended over a very large licence footprint area.

 

Ditau Camp Project

Botswana

(Rare Earths - Base Metals)

POW: 50% (50% JV Partner Kavango Resources plc LON:KAV)

The launch of drilling at the Ditau Camp Project was announced on 22/03/2022 and a detailed follow up announcement linked below outlined the drill targets:

https://www.londonstockexchange.com/news-article/POW/ditau-project-rare-earth-element-drill-targets/15388479

With the programme underway, there will be various updates provided to the market outlining progress in respect of this important rare-earth element focused drilling programme.

Tati Project

Botswana

(Gold - Nickel)

POW: 100%

 

The Company announced the results from a maiden drill programme at the Tati Project on 04/04/2022 and this may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-programme-results/15396365

 

From a limited dataset received in early 2021, effort applied to Tati has been focused on building technical understanding.  The work undertaken by the Company in 2021, which included soil sampling, ground-based magnetics & radiometric surveys, as well as prospecting and rock sampling led to the delineation of multiple prospective kilometre scale soil anomalies.

 

Drill testing confirmed various target geological formations below Kalahari sand cover and confirmed near surface gold mineralisation.  Our work also identified more intensive geochemical anomalies within adjacent land, representing an extension of an identified major regional structure - a new prospecting licence application has been submitted covering this new area.

 

We expect to announce next steps on this highly prospective Project in the near future.

 

Haneti Project

Tanzania

(Polymetallic)

POW: 35% (65% JV Partner Katoro Gold plc LON:KAT)

 

We announced the commencement of deep diamond drilling on 26/01/2022 which may be viewed here:

 

https://www.londonstockexchange.com/news-article/POW/haneti-project-diamond-drilling-commences/15302016

 

The drill programme completed as announced on 14/02/2022 and further details of the completed programme may be viewed in the link below:

 

https://www.londonstockexchange.com/news-article/POW/haneti-project-diamond-drilling-complete/15326468

 

Samples from the drill programme were prepared and sent to SGS Tanzania for laboratory assay testing. First assay results are expected in the near term.

 

 

North American Exploration Projects

Project

Latest Position

Silver Peak Project

British Columbia, Canada

(Silver)

POW: 30%

The diamond drill programme conducted in 2021 delivered bonanza grade silver results, further bolstered by overlimit assays for copper, antimony, zinc & lead, as may be viewed here:

https://www.londonstockexchange.com/news-article/POW/silver-peak-canada-overlimit-assay-results/15233399

We are currently working with our Canadian partner to finalise commercial plans for the Project against a backdrop of considerable interest in this Project. This has taken more time than planned, however we expect to make a further announcement of progress in the near future.

Alamo Gold Project

Arizona, United States of America

(Gold)

POW: Earn-in to 75%

 

Following a lengthy permitting delay, a planned exploration programme finally launched in late 2021. Further information in respect of that programme may be viewed here:

 

https://www.londonstockexchange.com/news-article/POW/alamo-gold-project-usa-exploration-update/15221692

 

Under the original 2020 Alamo agreement, a US$50,000 pre-production royalty payment ("PPR Payment") was due by 31/12/2021 and given the late start of the exploration work programme, an amended PPR Payment deadline date was previously agreed being 14 days after the receipt of all analytical results from the 2021 test pitting programme, or 31/03/2022, whichever was the earlier.

 

Power Metal awaits receipt of a technical report highlighting the results from the exploration programme and has therefore agreed a further extension of the PPR Payment deadline date to 14 days after the receipt of that report or 15/06/2022, whichever is earlier.

 

The amendment will allow Power Metal to review all 2021 exploration data before making a decision on next steps with the Project.

 

 

Athabasca Uranium

Saskatchewan, Canada

(Uranium)

POW 100%

 

Uranium projects in the Athabasca Basin region in the Province of Saskatchewan, Canada are attracting considerable interest, with a rising uranium price stimulating a rush to secure prospective exploration properties.

 

Power Metal are positioned well here and now has exposure to 7 projects which cover some 450km2 of highly prospective land.

 

Internal development and commercialisation of our uranium interests are both valid pathways and we expect both will play a part in the development of our Canadian uranium portfolio going forward.  With that in mind, we undertook an extensive data compilation exercise in respect of all 7 properties building a database of historic exploration findings.

 

Technical review across all the property data has been underway for some time, and we have brought a uranium specialist into the Power Metal team to accelerate this technical work and assist with commercialisation activities thereafter.

 

In the quarter we have released the findings of the technical review across 5 of our 7 properties so far. An overview of the data compilation exercise, together with results from the first property reviewed, Tait Hill, can be viewed in our 14/01/2022 announcement found below:

 

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin/15287392

 

The Reitenbach Property findings can be viewed below in our 08/02/2022 announcement found below:

 

https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141

 

Reitenbach is considered likely to be the first to enter a commercialisation process and we are advancing this at present.  As a result, the Company commissioned a National Instrument 43-101 ("NI 43-101") technical report on the Property, as announced on 24/03/2022. The commissioning of the NI 43-101 report along with technical findings from the Cook Lake and E-12 properties can be viewed at the link below:

 

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520

 

Also, on 31/03/2022 Power Metal released the findings from a technical review of the Soaring Bay property, with uranium prospectivity confirmed and new ground staked increasing the property size by 71% to cover the additional prospective areas identified.

 

We expect that the Canadian uranium opportunities will be a highly active area of our business over the coming weeks and months.

 

 

Authier North

Quebec, Canada

(Lithium)

POW earn-in to 100%

 

The Company continues to monitor progress being made by Sayona Mining (ASX: SYA) who control the neighbouring Authier Lithium Project.

 

Sayona Mining on 01/03/2022 announced a significant increase in their Authier lithium resource, which now includes a stated total JORC compliant Mineral Resource of 17,136,000 tonnes at an average grade of 1.01% Li2O. A link to this announcement is below:

 

https://sayonamining.com.au/wp/wp-content/uploads/2022/03/SYA_Doubling-resource-base_1-Mar-22.pdf

 

Sayona Mining's upcoming major milestones include the delivery of a feasibility study, with updates expected on this front within the next few weeks.

 

Power Metal is further reviewing the results achieved from their 2021 geochemical sampling and prospecting programme and will update the market in due course with the next planned steps as southern Quebec moves into the spring/summer exploration season.

 

 

Australian Exploration Projects

Project

Latest Position

Gawler Project

South Australia

(Gold, Copper)

POW: 100%

 

Work continues on the review of publicly available historic data in order to further refine geological understanding and prepare detailed exploration plans in readiness for ground operations when licences are granted.

The Gawler Project comprises two licence applications (submitted October 2021) targeting Olympic Dam style mineralisation. Power Metal's announcement confirming the lodgement of applications may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456

 

Disposal/Spin-Out Vehicle Packages *

* Please note other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.

Project

Latest Position

New Ballarat Gold Corporation (NBCG)

Victoria, Australia

(Gold)

POW: 49.9% 50.1% JV Partner Red Rock Resources plc LON:RRR)

Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia.  This comprises over 1,500km2 of granted exploration licences and circa 800km2 of licence applications.

In December 2021, a diamond drill programme commenced targeting two prospects, further details of which can be viewed in the following link:

 

https://www.londonstockexchange.com/news-article/POW/business-update-red-rock-resources-australasia/15240196

 

A further detailed announcement is expected shortly covering latest developments from exploration work in Victoria.

NBGC is seeking a listing in early Q3 2022 and is working with advisors in this regard.

Golden Metal Resources plc (GMR)

Nevada, USA

Gold - Base Metals

POW 83.13%

Power Metal provided an update covering Golden Metal Resources ("Golden Metal") on 16 February 2022 which may be viewed below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15331658

Golden Metal continues to progress towards its IPO listing on the London markets targeting planned for this quarter. This includes working with various advisors across legal, accounting, technical, and finance in order to finalise its listing admission documentation in advance of launching into GMR's planned IPO listing and equity raise.

Golden Metal is in the final stages of collapsing its various Australian subsidiaries which hold the Pilot Mountain Project, this will drastically simplify GMR's corporate structure once completed.

Additionally, preparatory work has continued across Golden Metal's portfolio of Nevada based assets in order to ensure work programmes can commence rapidly post-listing.

Golden Metal has officially engaged and scheduled a Vancouver-based geophysical contractor to undertake a high-resolution 3D-Induced Polarisation ("IP") survey across the entire Pilot Mountain Project.

This preparatory work will feed into the drill programme which will be testing multiple high priority exploration targets across the Pilot Mountain Project. Golden Metal is currently finalising contract details with its preferred drilling contractor.

The strategic importance of the Pilot Mountain Project was emphasised recently with the continuing inclusion of tungsten within the United States Geological Survey's 2022 list of critical metals.  Further information in respect of this was provided in the Company's non-regulatory announcement on 25/02/2022 which may be viewed in the following link:

https://www.londonstockexchange.com/news-article/POW/usgs-releases-2022-list-of-critical-minerals/15342867

First Development Resources Ltd (FDR)

Western Australia

(Gold - Copper - Rare Earth Elements - Uranium - Lithium)

POW: 83.33%

 

FDR has a 100% interest in three exploration projects targeting gold and copper mineralisation within the Paterson Province of Western Australia (Wallal, Braeside West & Ripon Hills). This package includes five granted exploration licences in total covering a total footprint of 751km2. FDR also has 100% ownership of the Selta Project which includes three granted exploration licences targeting uranium, rare-earth element, and lithium mineralisation located within Australia's Northern Territory (1,575km2).

The latest licences to be granted were at the Selta Project and the announcement on 23/02/2022 can be viewed in the link below:

https://www.londonstockexchange.com/news-article/POW/selta-uranium-ree-project-all-licences-granted/15340329

During the quarter, initial ground reconnaissance work was undertaken at the Wallal Project, reviewing planned drill locations, primarily from an infrastructure and access perspective.  This work was successful and an announcement on 11/01/2022 covering this may be viewed below:

https://www.londonstockexchange.com/news-article/POW/wallal-project-exploration-update/15281969

The latest findings from FDR's Western Australia exploration data technical review were published by the Company on 21/02/2022 and may be viewed through the link below:

https://www.londonstockexchange.com/news-article/POW/replacement-paterson-project-exploration-update/15337136

An in-depth project review was undertaken for the Selta Project which confirmed multiple target areas for uranium, rare-earth element, and lithium mineralisation, the detailed findings of this review may be viewed in the 16/03/2022 announcement linked below:

https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081

A further detailed site visit covering all FDR properties was conducted In March 2022 by the FDR CEO and various members of the ground operational team.  An update to market covering the work undertaken during that site visit, and the latest outcomes from ongoing exploration work, is expected shortly.  

FDR is seeking a listing on the London capital markets and is working with advisors in this regard and targeting early Q3 2022.

 

First Class Metals plc (FCM)

Schreiber-Hemlo, Ontario, Canada

(Gold - Base Metals)

POW c.36%

 

Power Metal currently has an interest of 36.3% in FCM which is seeking a listing on the London capital markets this quarter.

The Company is working with FCM to support their listing plans and looks forward to reporting further progress in this regard.

On listing Power Metal will be a significant shareholder in FCM and expects to be an enthusiastic and longstanding shareholder.

 

New Opportunities

Project

Latest Position

Power Metal Resources plc

The near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles and project value generative disposals.

We remain alert to new opportunities and will undertake review of exceptional opportunities if they are presented to us.

Power Capital Investments Limited

Global Resource Project Incubator

(Multi-Commodity)

POW: 100%

 

Power Capital Investments ("Power Capital") continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities. 

This is occurring against a backdrop of intense activity across the Power Metal business and rightly is not a main priority as we seek to advance our major business interests.

 

Management and Financial

Project

Latest Position

Board

 

The Board currently comprises:

Scott Richardson Brown - Interim Non-executive Chairman

Paul Johnson - Chief Executive Officer

Ed Shaw - Non-executive Director

Power Metal has been engaging with a number of potential board candidates for Power Metal and associated companies. The Company expects to announce new appointments to its Board in the coming weeks.

Management and Team

 

Power Metal is actively seeking to bring new team members in to support the growth in business activities and recently launched a "Join-Us" page on the Company's website with further details.  This may be viewed through the following link:

https://www.powermetalresources.com/join-us/

We have received a considerable response to this campaign and will be speaking to all those who got in touch.

In the quarter we have brought a uranium specialist onto the team with a specific focus of developing our uranium interests located in the Athabasca Basin region of Saskatchewan, Canada.

Financial Position

 

Power Metal Working Capital

As at 28/02/2022 Power Metal held cash and listed investments of £2,482,960 ("Working Capital").

Working Capital is money available to deploy on payment of corporate costs and operational, notably exploration, expenditure.

Power Metal Assets

As at 28/02/2022 Power Metal's unaudited Balance Sheet showed total assets of £10,929,668 ("Total Assets").

Total Assets includes the following categories:

-  Project investments and Power Metal group intercompany loans

-  Pre-IPO vehicle valuations (always acquisition/investment cost until pre-IPO financing is undertaken)

-  Working Capital (see above)

-  Other sundry assets.

Future Financing Sources

The Company has multiple sources of additional financing, not all of which may be necessary or occur in the foreseeable future:

-  As an AIM listed vehicle traditional equity financing can be undertaken to raise additional sums where considered necessary.

 

-  Through the exercise of financing and transactional warrants or the exercise of director, team member or adviser options (see Table 1 below for a full breakdown of all warrants and options outstanding as at 31/03/2022). If exercised in full, this will bring in £8,232,573 additional cash into the Company (£9,232,573 if Thor Mining plc exercise their 4p warrants within 12 months and exercise replacement warrants at an exercise price of 8p).

 

-  In addition to the above, the Company will benefit from the planned listing of four pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value.

 

-  It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests. 

Audit and Compliance

 

Power Metal with the support of One Advisory, completed the audit work with auditors PKF, and the financial results for the year ended 30 September 2021 were published on 3 March 2022.

The Company will now work with One Advisory to finalise its financial results for the half year to 31 March 2022, an announcement of which must be made to the market by 30 June 2022 but is expected sometime before.

Power Metal has launched a new environmental, social and governance ("ESG") initiative which will include:

-  Appointment of an ESG Officer for Power Metal and all associated companies. 

-  Design, implementation of new and wide ranging ESG policies across the Company and embedded at local project or investment level for all Company activities.

Training of all staff members to develop Company-wide core ESG understanding, with in-depth training where required to maintain optimal ESG capability at all levels

 

Table 1: Power Metal Resources plc - Share Warrants and Options Outstanding at 31/03/2022

Instrument Type

Note

Number

Exercise Price

Expiry Month

Amount Raised for POW on Exercise

Instrument

Total








Financing Warrants














Dec 19 Financing Warrants - POW Director Held


11,250,000

0.7p

Jun-22

£78,750


July 20 Financing Warrants - POW Director Held


27,500,000

0.75p

Jul-22

£206,250


July 20 Financing Warrants - General Holders


65,706,079

0.75p

Jul-22

£492,796


Nov 21 Financing Warrants - General Holders


66,000,000

3.5p

Dec-23

£2,310,000

£3,087,796








Transaction Warrants














Alamo Gold Project Aquisition


15,500,000

1p

Jul-23

£155,000


Silver Peak Acquisition (Signing)


9,000,000

1.75p

Sep-23

£157,500


Silver Peak Acquisition (Earn-In Complete)


2,568,641

2.89p

Mar-24

£74,263


Garfield & Stonewall Acquisitions


2,250,000

3.75p

Jun-23

£84,375


First Development Resources Acquisition


13,333,333

4.5p

Oct-24

£600,000


First Development Resources Acquisition


10,000,000

5p

Oct-24

£500,000


Pilot Mountain Acquisition

(1)

12,500,000

4p

Oct-24

£500,000


Kanye Resources Earn-in


5,000,000

5p

Jul-23

£250,000

£2,321,138








Management, Staff, Consultant & Advisor Options














Advisor/Consultant Options


15,000,000

2p

Jul-23

£300,000


POW Team Options


25,000,000

3.25p

Jul-24

£812,500


Director Options:


1,000,000

5.0p

Jul-23

£50,000




13,613,929

1p

May-22

£136,139




15,000,000

1p

Feb-23

£150,000




20,000,000

2p

Jul-23

£400,000




10,000,000

3.25p

Jul-24

£325,000




20,000,000

3.25p

Aug-24

£650,000

£2,823,639








Totals


360,221,982



£8,232,573









Notes:







(1) - If exercised within 1 year replacement warrants issued at 8p exercise price

 

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)

+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 carbonatites and targeting rare-earth elements.

Field updates and receipt & review of laboratory assay results.

Kalahari Copper Belt

Botswana

50%

Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas

Field programme findings and defined drill targets for near term drilling.

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.

Review of historical data and target generation for Ripon Hills & Braeside West projects.

 

 

Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.

Selta Project

Australia

83.33%

Field reconnaissance work now underway, including mapping and sampling.

Field updates.

 

 

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