Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update on the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.
OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT
Power Metal has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure in 2020, notably the diamond drilling of selected targets. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.
For clarity, the US$500,000 cost is fully funded and covered by Power Metal existing working capital.
·Drilling contract signed with experienced drilling company Discovery Drilling Contractors Africa (“Discovery”). Discovery have a great deal of experience in Botswana including being instrumental in the drill out of the T3 Deposit now owned by Sandfire Resources.
· The Molopo Farms Complex is a major ultramafic-mafic layered intrusion straddling the southern border of Botswana with South Africa. It lies within the south-western part the large igneous province that includes the famous Bushveld Complex which contains the world’s largest reserves of PGMs.
· The Phase 1 Drilling programme is for an initial planned 2,505m across four diamond core drill holes. Target hole depths vary from 525m to 710m and will test the first four of several high priority targets delineated as prospective for massive nickel sulphide mineralisation by airborne and ground geophysics survey data.
·Discovery have started mobilisation of equipment to site and the drilling is expected to commence shortly.
Paul Johnson Chief Executive Officer of Power Metal Resources commented:
“The build up to any one exploration drill programme is a monumental affair for any junior exploration company and at Power Metal we have multiple projects in the build up to exploration drilling.
The Power Metal approach is one of relentless drive in the search for potential new large-scale metal discoveries and we are driven by the desire to find multiple large-scale metal deposits. In part this is because we want to be proven right in our decision making, however we also seek the share price appreciation that comes with a major metal discovery. The Board of Power Metal and connected parties own 14% of Company stock and will benefit with all shareholders from successful exploration outcomes.
Maiden exploration drilling at the Molopo Farms Complex Project is a major event for Power Metal not least because our partners are targeting not just a possible large-scale metal discovery, but a district scale opportunity. Standing in our favour are the years of research of the Kalahari Key team backed by helicopter airborne electromagnetic surveys, ground geophysical surveys and Audio-Magnetotelluric (“AMT”) surveys that indicate particularly strongly that something of interest may lie beneath the sand cover of south-west Botswana and within the Kalahari Key licence area.
We will update the market with key developments as this exciting drill programme progresses.”
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)||+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 (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 metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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.