Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to announce an update on the Ditau Project which is exploring for Rare Earth Elements (“REEs” or “Rare Earths”) in Botswana.
Ditau is held in a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“It is extremely positive to be able to confirm high priority drill targets at Ditau in Botswana, particularly as the strategic objective is the discovery of Rare Earth Elements at a time when the world is seeking secure and safe supply sources.
If successful, and we are able to identify carbonatite hosted deposits of Rare Earths through the planned upcoming drill programme, we believe that Ditau will become an extremely valuable project.
As JV project operator Kavango is powering ahead with the various exploration work streams and we are extremely excited with these developments at Ditau which also coincide with highly significant developments at the JV South Ghanzi Project in the Kalahari Copper Belt, which is targeting large scale copper – silver discoveries.”
· Geophysical and geochemical surveys completed on 7 of the 12 target areas consisting geophysical ring structures – named I1 to I12 (below), with data processing and interpretation carried out by Kavango’s technical team.
· 3 specific targets prioritised for drilling
– Each target includes a possible carbonatite intrusive body lying within an interpreted 300m depth from surface.
– Targets will be tested using the cost effective reverse circulation (“RC”) drilling method in the first instance.
· Target I1 is a large, intense magnetic dipole geophysics anomaly
– Spans 17km by 8km
– Shallow target depth, which is interpreted to be less than 100m
– Kavango believes I1 sits under just 70m of Kalahari sand cover
– Lies at the interpreted intersection of two major regional fault zones
– Anomalous niobium values identified in soil sample results.
· Target I4
– Spans 7.5km by 5km
– Shallow depth to source interpreted as less than 100m
· Target I10
– Spans 2.5km by 2.8km
– Geophysics shows high AMT resistivity, coincidental with a gravity high
· Data processing and interpretation in progress for final drill hole orientation
· Geophysical and geochemical surveys to continue on the remaining 5 target areas
· Environmental Management Plan for drilling in place
EXPLORATION AT DITAU
Kavango has identified 12 geophysical ring structures within the two prospecting licences (PL169/2012 and PL010/2019) that constitute the Ditau Project.
Falconbridge Explorations Ltd identified a large ring structure (KW2), located 23km to the north of Ditau. On drilling KW2, anomalous values of niobium were detected in carbonatite rock (REEs were not assayed for at the time). Niobium is used in various superconducting materials and industrial alloys.
KW2 is thought to be part of a “cluster” of post-Karoo (less than 200 million year old) carbonatites in the Kang area, an area in which Ditau is also situated.
There is increasing evidence that at least some of the ring structures at Ditau could contain carbonatite. An integrated exploration programme of surveys is being undertaken over the 12 ring structures (targets).
Each target is undergoing the following assessments/surveys:
SOIL GEOCHEMISTRY: 3 lines of soil geochemical sampling with specific attention to values of Niobium and REEs.
CSAMT & AMT SURVEYING: To “map” the lithological contacts to determine conductivity and resistivity. The Controlled Source Audio-frequency Magneto-tellurics (“CSAMT”) surveys were carried out using Geometrics’ Stratagem EH4 unit, which measures ground electromagnetic signals and calculates ground resistivity down to depths of 1km.
Most targets were surveyed using the low-frequency version of the Stratagem without a transmitter (Audio-frequency Magneto-tellurics or “AMT”), which has a depth capability of up to 1.6km. Readings were taken at 50m station intervals along a profile.
GROUND MAGNETIC SURVEYING: Carbonatites usually produce magnetic “high” anomalies compared to their host rocks.
The G856AX proton precession magnetometer was used in the ground magnetic surveys. Readings were taken at 12.5m intervals along profiles.
GRAVITY SURVEYING: Carbonatites usually have higher density than their host rocks.
An Autograv CG-3 gravimeter was used in the survey on Target I10. Readings were taken every 50m with a local base station visited 3 times a day. The Autograv obtains a reading by continuously averaging a series of one-second samples.
DATA INTERPRETATION: The Company’s approach to this involves “layering” survey data sets on geological and structural maps, to produce drill targets.
· Interpretation of the results from the first 7 ring structure drill targets has identified 3 priority targets which demonstrate good potential to host carbonatite (I1, I4 and I10 target metrics set out in highlights above).
· These targets appear to sub-outcrop just below the Kalahari sand cover (c.70m), within easy reach of RC drilling.
· Anomalous niobium values in soil samples have been detected on one of these targets (Target I1).
PLANS FOR FURTHER WORK
· Further surveys will be completed on the remaining 5 ring structure targets.
· It is proposed to drill the 3 top priority targets before the end of the year. The Environmental Management Plan to conduct drilling is in place to allow this to occur.
· Samples from the drilling will be assayed for whole rock geochemistry and REEs.
THE POWER METAL / KAVANGO JOINT VENTURE STRUCTURE
The Ditau PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
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)
+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 large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects 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.