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Power Metal Resources #POW – Business Financial Review and Warrant Update

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a business financial review and warrant update for shareholders.

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

“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.

Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.

Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position.  This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.

In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants.  Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.

Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020.  Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”

BUSINESS AND FINANCIAL REVIEW

Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.

The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.

The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.

The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.

The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.

Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.

Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:

PROJECT

EXPLORATION FOCUS

POW

INTEREST

OPERATIONAL POSITION

PROJECT FINANCIAL INFORMATION(Cash Costs)

AUSTRALIA

Victoria Goldfields

JV with Red Rock Resources plc (LON:RRR)

 

Gold

49.9%

13 licence applications covering a footprint of 2,336 km2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives.

Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences.

BOTSWANA

Ditau Camp Project

SJV with Kavango Resources plc (LON:KAV)

 

Rare Earths

50%

2 licences (1,386km2) with Rare earths potential established from recent exploration work.  First stage orientation work complete and follow up work announced 4.1.21.

Power Metal has made  advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule.  Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential  listing of the SJV in 2021.

BOTSWANA

Kalahari Copper Belt Project

(SJV with Kavango Resources plc (LON:KAV)

 

Copper

Silver

50%

2 licences (1,294km2 ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20.

BOTSWANA

Molopo Farms Complex Project

 

Nickel

Copper

PGMs

Up to 50.96%

3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway.  Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21.

Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal.  To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21.

CAMEROON

Cobalt Blue Project

 

Cobalt

Nickel

100%

4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit.  Review of exploration and commercialisation options reaching an advanced stage.

Further update to follow regarding the Company’s plans and financial commitment.

CANADA

Silver Peak Project

 

Silver

 

Earn -in to 30%

Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins.

Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20.

Planned recommencement of drilling in Spring 2021.

 

As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021.  To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021.

THE DEMOCRATIC REPUBLIC OF THE CONGO

Kisinka Project

 

Copper

Cobalt

70%

Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified.

Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life.

Advance payments made to cover geophysical programme costs.   Further costs of circa US$30,000 are expected in the period to 31.3.21.

TANZANIA

Haneti Project

JV with Katoro Gold plc (LON:KAT)

 

Nickel

Copper

Platinum Group Metals (‘PGM’)

Gold etc

35%

Large polymetallic land package of c.5,000 km2 including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets.  Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20).

Power Metals has already made advance payments towards maiden drill programme costs.  Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21.

USA

Alamo Gold Project

 

Gold

Earn-in up to 75%

Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly.

Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21.  In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment.

 

WARRANT UPDATE

On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000  warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”). 

The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.

The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.

For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.

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 and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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.

Power Metal Resources #POW – Botswana Strategic Kavango Resources #KAV Joint Venture Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update with regard to the Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV) covering precious, base and strategic metal opportunities in Botswana.

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

“The Strategic Joint Venture with Kavango is gathering considerable momentum with proactive exploration underway at the Ghanzi Project in the Kalahari Copper Belt and at the Ditau Project.

Power Metal and Kavango are to accelerate the SJV both from an exploration and corporate perspective, including the plans for  a potential  listing on a North American or UK stock exchange as soon as practicable.

To fund the proactive exploration programmes and the preparation for a listing of the SJV, Power Metal has accelerated remaining payments under the SJV agreement, meaning all financial commitments thereunder have now been satisfied in full, and earlier than initially planned.

Further information in respect of ongoing exploration findings and the SJV listing plans will be provided in the near future.”

Highlights:

  • Power Metal and Kavango announced a new SJV on 21 September 2020, bringing four Botswana prospecting licences held by Kavango into the SJV arrangement.
  • The four licences form two distinct projects, namely:
    • the Ghanzi Project (two licences covering 1,294.2km2 in the Kalahari Copper Belt (“KCB”) in south west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries);
    • the Ditau Project (two licences covering 1,386km2 and prospective for rare earths and other mineralisation).
  • The SJV agreement included a condition that Power Metal will pay the first US$75,000 toward Ditau Project and Ghanzi Project exploration spend within 12 months and a further US$75,000 in the subsequent 12 months (the “Initial Spend”).  Power Metal was able, at its sole discretion, to accelerate the Initial Spend of US$150,000 into the first 12 months of the SJV agreement period.
  • Power Metal has satisfied the US$75,000 first 12 months Initial Spend and has now elected to accelerate the second year Initial Spend and has therefore paid Kavango a further US$75,000.
  • In addition the SJV agreement stipulated Power Metal was to provide a fund of up to £10,000 to cover the costs of the corporate structuring necessary in respect of the SJV.  To clear this amount Power Metal has made a payment to Kavango of £10,000.
  • All initial SJV agreement related Power Metal amounts due have now been satisfied in full on an accelerated basis.  Going forward both Power Metal and Kavango will be required to fund 50% of SJV costs, or be diluted in line with standard industry dilution provisions.
  • Exploration work on the two SJV projects continues at pace, with the latest updates provided in the Power Metal market announcements of 23 December 2020 (Ghanzi Project – Kalahari Copper Belt) and 4 January 2021 (Ditau Project).

 

THE SOUTH GHANZI PROJECT

The SJV South Ghanzi Project covers two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km 2 .

The South Ghanzi Project area includes lengthy geological reduction-oxidation (“redox”) boundaries, close to surface, that represent prospective exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges.

Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock. 

THE DITAU PROJECT

The SJV Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019)that cover an area of 1,386km2.

Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 magnetic geophysical “ring structures” (including at least one possible kimberlite structure).

The “ring structures” are potential associated with alkaline and carbonatite intrusions.

Alkaline rocks are the principal source of REEs including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (“EVs”), magnets and other high-tech applications.

One of the geophysical ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites. 

Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.

Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo weathered carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.

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 metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently 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.

Power Metal Resources #POW – Kalahari Copper Belt exploration, very positive initial findings

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update for the South Ghanzi Project in the Kalahari Copper Belt.

The Project includes two prospecting licences in the KCB held in a Strategic Joint Venture with Kavango Resources plc (LON:KAV).

Highlights

  • Portable x-ray fluorescence “pXRF” analysis of 335 previously collected soil samples completed:
    • Encouraging concentrations of zinc identified.
    • Zinc is a recognised pathfinder element for the less mobile copper ions in the soil.
    • Elevated levels of zinc in soil samples can be associated with shallow strata-bound copper mineralisation.
  • 127 new soil samples collected, dried and sieved:
    • Soil samples taken in areas of particular interest.
    • pXRF analysis ongoing.
  • Interpretation of regional aeromagnetic surveys has identified favourable stratigraphy in anticlines and synclines within the licences:
    • Anticlines and synclines are types of rock strata fold that respectively form crests and troughs. Where anticlinal folds also vary in slope along the fold axis-strike they can also create stratigraphic “domes” which can be favourable sites for the formation of orebodies.
    • Anticlinal “domes” can bring the mineralisation close to surface and within reach of open pit mining.
  • Higher concentrations of soil zinc anomalies identified near several anticlines
    • Soil samples have been submitted for TerraLeach™ assay testing, an analytical method designed to remove the mobile ion component from soil samples with a view to detecting metal dispersion from a buried orebody.
    • Assay results expected in the New Year.

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

“I am delighted to report very positive initial exploration findings from the KCB, with the soil sampling results highlighting target areas, in very similar geological settings to other material copper/silver discoveries, made in neighbouring projects in recent years.

This area of Botswana is evidently highly prospective for copper and Power Metal and Kavango Resources are particularly excited to be proactively exploring in the heart of the KCB.

Of note, both Power Metal and Kavango have a strong working capital position meaning we have the financial means, alongside the operational determination, to push on with proactive exploration through the Strategic Joint Venture.”

Progress at South Ghanzi

Portable XRF analysis (“pXRF”) was completed on the 335 soil samples previously collected at South Ghanzi (4 December 2020).

Results from the XRF analysis revealed elevated concentrations of zinc in several key areas.

In parallel to this, Kavango’s geophysicists completed reinterpretation work on data gathered from government sponsored regional aeromagnetic surveys. Magnetic data collected by previous exploration companies is also available on “open source”.

Thanks to the reinterpretation of this data, Kavango’s exploration team has identified a number of significant anticlines and synclines that occur close to geochemical reduction-oxidation (“redox”) boundaries across the South Ghanzi Project.

Anticlinal “domes” often act as trap sites for high-grade copper/silver deposits across the KCB. Their proximity to surface makes them extremely attractive exploration targets.

Because zinc in soil anomalies occur close to several anticlines, Kavango’s exploration team collected an additional 127 new soil samples in those areas.

A selection of these samples has been sent to a laboratory in Johannesburg for assay testing using the TerraLeach™ method. Results are expected in the New Year.

Together with Power Metals, Kavango expects to conduct airborne electromagnetic geophysics (“AEM”) surveys over prospective sections of the South Ghanzi project in Q1 2021. If results are favourable, the Strategic Joint Venture will work quickly towards test drilling of shallow targets once a 3 dimensional model has been developed.

STRATEGIC JOINT VENTURE INTERESTS IN THE KALAHARI COPPER BELT

The Strategic Joint Venture South Ghanzi Project covers two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.  Power Metal has a 50% ownership interest in the Strategic Joint Venture with Kavango holding 50%.

THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING

The South Ghanzi Project area includes lengthy redox boundaries, close to surface, that represent prospective exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges.

Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.

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 metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently 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.

Power Metal Resources #POW – Kalahari Copper Belt Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of exploration fieldwork on the South Ghanzi Project on the Kalahari Copper Belt (“KCB”) in northwest Botswana.

South Ghanzi comprises two prospecting licences PL036/2020 and PL037/2020 (total area 1,294km2) held in a 50% owned strategic joint venture (“JV”) with Kavango Resource PLC, as announced 21 September 2020.  The JV holds of a total 2,680km2 portfolio of base and strategic metal project interests in Botswana which include the South Ghanzi project.

Exploration Rationale

The Botswana KCB is an emerging world-class exploration province for strata-bound copper-silver deposits with a trend extending over 1,000km along the northern boundary of the Kalahari carton in Botswana and Namibia.

The JV’s highly prospective South Ghanzi licences are strategically placed in the centre of this trend and are located immediately adjacent and interstitial to exploration targets and resource projects held by Sandfire Resources who recently committed to the commercial development of the T3 Copper-Silver Project (30km from JV) and to the regional Motheo Production Hub strategy targeting satellite high-grade copper deposits such as their A4 Maiden Resource Project (approximately 20km from the JV).

HIGHLIGHTS

  • Field based exploration activities targeting the discovery of sedimentary copper deposits at the South Ghanzi Project have recently commenced under the operational management of Kavango.
  • Workstreams consist of soil sampling and ground magnetic geophysics surveys which seek to delineate regional targets for future airborne electromagnetic (“AEM”) geophysical surveying.  This is the same exploration strategy which led to the discovery of a number of the neighbouring copper deposits.
  • JV Project comprises 1,294km2 of highly prospective ground held under licence PL036/2020 and PL037/2020.
  • Mobile exploration fieldcamp has been established on the outskirts of Ghanzi town.
  • To date, initial soil sampling has completed with 335 samples taken over 33.5 line km (on six lines at 100m spacing) over targeted areas selected on an interpretation of geological structures from regional magnetic and geological mapping data.
  • Encouragingly only thin overburden Kalahari sand cover has been encountered to date with soil samples tested by a portable X-ray fluorescent analyser (“XRF”) ahead of being selected for assay at an accredited laboratory.
  • Ground geophysics completed to date, and currently being processed, consists of 68.8 line km of magnetic survey based on 200m line spacing and 10m survey stations targeting  potential geological reduction-oxidation (redox) boundaries and deformation zones which are considered prospective for the concentration of copper mineralisation.
  • Results of sampling and geophysical surveying will be published as soon as available.

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

“We are very excited to undertake ground exploration work at the South Ghanzi Project, our highly prospective joint venture tenements on the Kalahari Copper Belt.

The tried-and-tested regional exploration strategy of soil geochemistry, ground geophysics, follow-on airborne electromagnetic surveying techniques and drilling, has led to the discovery of a number of the high-profile adjacent copper deposits in close proximity to the JV.

Personally, I am delighted to return to the Kalahari Copper Belt and follow a similar pathway with this programme to that leading to the discovery of the T3 copper deposit in 2016 whilst I served as CEO of Metal Tiger plc, a joint venture partner in that discovery.

With this programme in full swing, yet another Power Metal project is the subject of proactive exploration in the search for a large-scale metal discovery.”

FURTHER INFORMATION:

South Ghanzi Work Programme

The first phase of field exploration on the JV South Ghanzi Project is an orientation programme, designed by the Kavango technical team, to map out the soil geochemistry and geological structures across the areas of initial interest. This will help identify targets for follow up work.

335 soil samples have been taken across 6 lines, totalling 33.5km. Only thin Kalahari sand cover was encountered, which is encouraging for future exploration work. The samples were sieved to 50 microns and are now being analysed using a portable XRF Analyser. Selected samples will then be sent to a laboratory for further testing.

Meanwhile, ground magnetic surveying was conducted over 68.8km. The surveying covered a number of sub-outcropping redox boundaries, which are believed to be typically associated with copper mineralisation. Line spacing was set at 200m, with 10m-station spacing. The survey data is now being processed and plotted.

Results from the laboratory testing of the soil samples and the reprocessing of the ground magnetic data are expected later this month.

The JV expects to conduct AEM surveys over prospective sections of the South Ghanzi project in the New Year.

The JV will work quickly towards test drilling of shallow targets once a 3 dimensional exploration model has been developed following the completion of the exploration activities described above.

The  work has been reviewed and compiled by Kavango’s Mike Moles who is the competent person for fieldwork reporting.

Kalahari Copper Belt Project

The KCB stretches 1,000 km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored but is emerging as a globally significant copper belt , boosted by the fact it is located in stable and pro-mining Botswana which consistently ranks in the top three African countries in the Fraser Institute Investment Attractiveness Index (2015-2019).

In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:

  • Cupric Canyon Capital’s Zone 5 deposit, which hosts a Total Mineral Resource of 91.7 million tonnes (“Mt”) grading at 2.1% copper and 14 grams a tonne (“g/t”) of silver. In July 2019 Cupric raised US$650M for the construction of the Khoemacau Starter Project with previously announced plans to begin mining Zone 5 in mid-2021. ( https://www.khoemacau.com/assets/docs/2019_07_18_Cupric_KCM_Funding_Increase-20190718061954.pdf )
  • MOD Resources’ and Metal Tiger’s (LON:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) (“Sandfire”) in October 2019. Following the completion of a definitive feasibility study Sandfire announced the investment decision to develop the T3 Copper-Silver Project as a mine on 1 December 2020. This involves a US$259 million development of the T3 Motheo Copper-Silver Project on a base case 3.2Mtpa operation with clear visibility to expand rapidly to 5.2Mtpa and an estimated life-of-mine (LOM) revenue of US$2.45 billion. https://www.sandfire.com.au/site/PDF/8dfc69c6-9a2e-43cc-9079-c9880da7a102/SandfireApprovesDevelopmentofnewLonglifeCopperMine   
  • Sandfire’s A4 Dome satellite deposit, which is a high-grade vein hosted system, located 8km  west of T3, also announced a maiden resource and recent high grade  drill intersections (including 33.0m @ 4.6% Cu and 74.3 g/t Ag from 109m down-hole) on 1 December 2020. https://www.sandfire.com.au/site/PDF/db4fbfe1-563a-4b8b-8577-dd857fd123c0/MaidenMineralResourceforA4CopperSilverDeposit  The Project’s two JV Prospecting Licences (“PLs”) were awarded in April 2020, they lie in a highly prospective area immediately south of the District capital of Ghanzi. The PLs covering a total of 1,294.2 km2 are as follows:
    • PL 036/2020 – (590.20km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500)
    • PL 037/2020 – (704.00km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500)

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, MIMMM, 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.

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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 prospects currently the subject of 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.

Power Metal Resources #POW – Project Portfolio Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a project portfolio update for shareholders.

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

“Power Metal has built a diverse portfolio of interests and has multiple projects in the active exploration phase.  The latest position for all our project interests is outlined below, together with details of targeted near-term news flow across our business.

To assist investors and shareholders keep track as we push ahead with multiple exploration programmes we continue to enhance our communications tools embracing both public and investor relations disciplines.  The Company’s corporate website is being updated at present and a new website is to be launched in the coming month.  We are also looking to launch or enhance project level websites where appropriate.

We work hard to keep our corporate presentation fully up to date with each Company announcement, so it should remain a primary tool for shareholders wishing to learn more.  Today we are also launching  a Project Dashboard for shareholders which will be held on our website and contain an updated overview of each project, its status and near-term plans.

Power Metal are seeking large scale metal discoveries through active exploration, much of which is currently underway or about to commence.  Given the level of activity it’s important we remain open to feedback.  Therefore, should shareholders have any questions, or suggestions, please let us know via info@powermetalresources.com.”

Project Information Sources for Shareholders:

Further details in respect of Power Metal’s nine project interests can be found on the Company’s website https://www.powermetalresources.com/s/30/projects

The Company maintains a frequently updated Corporate Presentation which provides an overview of each project and additional corporate information and this may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

Recognising the breadth of the Company’s projects, and the ongoing active exploration across numerous projects, Power Metal have today launched a Project Dashboard.  This provides an updated list of Company’s projects, their current status and each project’s targeted near term newsflow.

The Dashboard is now embedded into the Company’s website and a pdf copy may be downloaded through the following link:

https://www.powermetalresources.com/Uploads/8668-POW_Project_Summary_Updated.pdf

The latest project status and targeted news flow is also outlined below.  Shareholders should note that the targeted outcomes and plans may be impacted by a variety of factors, of which readers will be aware the continuing Covid-19 pandemic remains a material factor.  Power Metal works with its in-country partners to mitigate and manage all risks proactively and efficiently to ensure where possible the safe continuation of ground operations.

Power Metal Project Status and Targeted News Flow:

PROJECTMETALPOWINTERESTCURRENT STATUSTARGETED KEY NEWS 2020
     
AUSTRALIAVictoria Goldfields Joint Venture Gold49.9%12 applications over (2,188 km2.) Completed historic project reports, exploration planning and NI 43-101. Potential grant of exploration licences, starting with first 3 priority applications, then launch of exploration programmes.Progress updates for listing on North American stock exchange.
BOTSWANADitau Camp Project Rare Earths50%2 licences (1,386km2) Rare earths potential established from recent exploration work.Commence orientation study to assist in the characterisation and exploration vectoring for the Ditau Project carbonatite ring-structures potentially hosting rare earths.
BOTSWANAKalahari Copper Belt Project CopperSilver50%2 licences (1,386km2) southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries.Exploration results from soil sampling, then ground magnetic surveying, and possibly airborne electromagnetic surveying, leading into drill target development.
BOTSWANAMolopo Farms Complex Project NickelCopperPGMsUp to 50.96%3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays.
CAMEROONCobalt Blue Project CobaltNickel100%4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit.  Announce findings from review of exploration strategies and potential commercialisation options.
CANADASilver Peak Project Silver 30%Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins.Planned launch of drill programme targeting high grade silver veins and following channel sampling in September 2020 which highlighted bonanza grade of up to 14,937g/t (482 oz/t).
DRCKisinka Project CopperCobalt70%Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper anomaly identified.Copper/cobalt assay results pending from 2020 pitting programme.C onversion of the licence to a Permis d’Exploitation (production license) with a 25 year life.
TANZANIAHaneti Project NickelCopperPGMsGold etc35%Large polymetallic land package of c5,000 km2  including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets.Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays
USAAlamo Gold Project GoldUp to 75%Package of mining claims covering c766 acres prospective for gold following the discovery of native gold nuggets near surface.Planned follow on exploration programme after initial short reconnaissance survey conducted successfully in August 2020.

REGULATORY STATEMENT

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.

Power Metal Resources #POW – Botswana Kalahari Copper Belt – Exploration Commences

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of exploration at the Kalahari Copper Belt Joint Venture (“KCB JV”) with Kavango Resources plc (LON:KAV)( “Kavango”).

HIGHLIGHTS

·    The KCB JV includes two prospecting licenses prospective for copper and covering 1,294.2km2, situated in the Kalahari Copper Belt in central west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries.  Power Metal has a 50% interest in the KCB JV.

·    Exploration now underway in the KCB JV will initially focus on soil sampling and geophysics to identify dome structures that are known to host potential copper deposits.

·    Geology of the area is well known and the JV will work quickly towards test drilling of shallow targets, once it has been able to develop a geological model.

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

“Power Metal is seeing a number of its projects launch exploration programmes and it is particularly positive to see the expeditious launch of exploration at the KCB JV in Botswana which is targeting a large scale copper-silver discovery.

The KCB JV is following an efficient, disciplined and methodical approach designed to build a geological model that can be tested through drilling at the earliest opportunity.

I look forward to providing further updates on this exploration programme.”

FURTHER INFORMATION:

Prospecting licences on the KCB

The KCB JV Project is located within an area of newly discovered sediment-hosted copper deposits, such as Cupric Canyon’s Zone 5 deposit and MOD’s T3 deposit, both of which are now being developed as mining operations. The KCB extends 1,000km by 250km from NE Botswana to central Namibia.

The KCB JV covers 1,294km2 over two prospecting licences, PL036/2020 and PL037/2020.  These lie in a highly prospective area immediately south of the district capital of Ghanzi and are along strike to the west of Sandfire Resource’s T3 and A4 Dome copper-silver discoveries.

The position of the KCB JV prospecting licences can be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/p/226/kalahari-copper-belt-project

The KCB soil-sampling programme

Exploration across the Company’s interests in the KCB will initially focus on soil sampling and ground based geophysics, using Controlled-source audio-frequency magnetotellurics (“CSAMT”) to identify dome structures that are known to host potential copper deposits.

For the initial orientation programme, soil samples are being taken at 100m intervals on lines 4km apart. The first sample lines are intended to map out the soil geochemistry across undeformed sequences of the late Proterozoic Ghanzi Formation sediments.

Samples are being collected and sieved in the field and transported back to Kavango’s base camp to be tested for metal elements with a portable Niton X-ray Fluorescence Analyser (“XRF”).

Sieved samples reserved for check analysis (or duplicates) and for comparison will be sent for laboratory assay analysis to an accredited laboratory in South Africa.

Initial results are expected in Q4 2020

Geophysical surveying

Kavango’s geophysical team have identified a number of deformation zones within the KCB licences, which will be followed up once the orientation sampling has been completed.

Ground magnetic surveying will be conducted at 25m intervals over the deformation zones to supplement the regional data. This will be supplemented by CSAMT surveying over structural/geochemical anomalies.

If results warrant, an Airborne Electromagnetic (“AEM”) survey will be considered.

Project Drilling

Geology of the area is well known and the JV partners will work quickly towards test drilling of shallow targets, once it has been able to develop a geological model.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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.

Power Metal Resources #POW Establishes A New Strategic Joint Venture In Botswana

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the acquisition of a 50% interest in a 2,680 km2 portfolio of base and strategic metal project interests in Botswana (the “Acquisition”) to be held in a new strategic joint venture holding company further details of which are provided below. 

BACKGROUND

On 15 April 2020 Power Metal and Kavango Resources plc (LON:KAV)(“Kavango”) announced a conditional acquisition agreement in respect of the Ditau Camp project in Botswana, held 100% by Kavango.

In recent months the companies have been involved in discussions, the outcome of which is a new strategic joint venture (“JV”) agreement to create a new joint exploration company, with the objective of floating the company as a Botswana-focused vehicle on a major stock exchange in 2021.

HIGHLIGHTS

–     Power Metal to acquire a 50% interest in four Botswana prospecting licenses currently 100% owned by Kavango and forming a new JV between the companies.

–    Two prospecting licenses prospective for copper and covering 1,294.2km2 are situated in the Kalahari Copper Belt in central west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries;

–      Two further licenses comprise the Ditau Camp project covering 1,386km2 and prospective for rare earths in south west Botswana;

–     Consideration for the acquisition payable to Kavango comprises £75,000 in cash, 6 million new ordinary shares of 0.1 pence each in the Company (“new Ordinary Shares”) at a price of 1.25p each and 5 million Power Metal warrants at 2.0p with a two year life to expiry and in the event of early exercise of 2.0p warrants, replacement warrants at 5.0p;

–     In addition, Power Metal commits to sole funding of US$150,000 over a two year period for exploration expenditure across the Ditau Camp and Kalahari Copper Belt projects to ensure expeditious and proactive project exploration with any further expenditure above US$150,000 being funded jointly by Power Metal & Kavango;

–      The four project licenses are to be held in a new Botswana private holding company, with an appropriate holding company structure to enable the possibility of the new vehicle to seek a listing on a Canadian or UK stock exchange in 2021.

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

“The new acquisition announced today is a significant development for Power Metal, adding further strategic metal projects into the business portfolio and in the secure, stable and supportive operating jurisdiction of Botswana.  The acquisition also complements Power Metal’s interest in the Molopo Farms Complex project, which is seeking a large-scale nickel-platinum group metal discovery in Botswana, and where a maiden drill programme is planned.

We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration which we intend to undertake with our JV partners.  Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries.  Again, ground exploration is key, and we intend to be proactive.

It is a pleasure to be working with the Kavango team who have considerable operational experience and a commitment to finding a new large-scale metal discovery in Botswana. This commercially focussed outlook is what we share at Power Metal.  We have found the two teams have complementary skills and intend to blend our resources in the search for a metal discovery.”

FURTHER INFORMATION:

Transaction Terms 

Power Metal is to acquire a 50% interest in the two licenses comprising the Ditau Camp project (PL169/2012 and PL010/2019) and two licenses in the Kalahari Copper Belt (PL036/2020 and PL037/2020).

Consideration for the acquisition comprises payment to Kavango as follows:

–      An immediate payment £75,000 in cash;

–      The issue to Kavango of 6,000,000 Power Metal new Ordinary Shares at a price of 1.25p each, for value of £75,000 (the “Acquisition Shares”);

–      The issue to Kavango of 5,000,000 warrants to subscribe for Power Metal new Ordinary Shares at a price of 2.0p each with a two year life to expiry from admission to trading on AIM of the Acquisition Shares (the “Acquisition Warrants”).

Should the Power Metal Volume Weighted Average Share Price (“VWAP”) meet or exceed a price of 7.5p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Acquisition Warrants and make payment to Power Metal or the Acquisition Warrants will be cancelled.

Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive replacement warrants to subscribe for Power Metal new Ordinary Shares at a price of 5.0p each with a two year life to expiry from admission of the Acquisition Shares (the “Super Warrants”).

Should the Power Metal VWAP meet or exceed a price of 10.0p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Super Warrants and make payment to Power Metal or the Super Warrants will be cancelled.

Power Metal will pay the first US$75,000 toward Ditau Camp and KCB exploration spend within 12 months of today’s date and a further US$75,000 in the subsequent 12 months (the “Initial Spend”).  Power Metal may at its sole discretion accelerate the Initial Spend into the first 12 months.

Kavango and Power Metal must pay their share of additional spend after the Initial Spend on Ditau Camp or the KCB licenses or will dilute their percentage interest in line with standard industry provisions. 

Kavango and Power Metal will be joint operators.

The Ditau Camp and KCB projects will be transferred into a new private Botswana company which will be held 100% by a UK or overseas public company which will seek a listing on a Canadian or UK stock exchange targeting a listing in 2021.

Power Metal will provide a fund of up to £10,000 to cover the costs of the above corporate structuring which will be undertaken in line with local regulations for the licenses and the holding companies and which will seek regulatory approvals where relevant.

Kalahari Copper Belt Project (“KCB”)

The KCB stretches 1,000 km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored and is a key emerging trend globally, located in stable and pro-mining jurisdictions.

In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:

Cupric Canyon’s Zone 5 deposit (“Zone 5”), which hosts a mineral resource of 91.7 million tonnes (“Mt”) grading at 2.1% copper and 14 grams a tonne (“g/t”) of silver.

MOD Resources’ and Metal Tiger’s (LON:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) (“Sandfire”) in October 2019.

The T3 Project currently hosts a mineral resource of 60.2Mt grading at 1.0% copper and 14.0g/t silver and an Ore Reserve of 342,700 tonnes of contained copper and 14.6 million ounces (“Moz”) of silver.

Sandfire’s A4 Dome satellite discovery, which is located directly to the west of T3 and is subject to an ongoing resource drilling campaign. 

Prior to applying for any Prospecting Licenses (“PLs”), Kavango undertakes extensive desktop and due diligence studies. In addition, Kavango analyses publicly available exploration data to enhance its geological and geophysical understanding of the area.

Kavango was granted two PLs, in April 2020 and which lie in a highly prospective area immediately south of the District capital of Ghanzi. The PLs covering a total of 1,294.2 km2 are as follows:

–      PL 036/2020 – (590.20km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango

–      PL 037/2020 – (704.00km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango

The JV plan to commence field work on the two KCB licenses shortly and will likely comprise both regional and detailed soil geochemistry. Planned work also includes a ground magnetic survey to refine the positions of the prospective geological contacts, below Kalahari sand cover, with the option of follow-on electromagnetic survey work to identify potential conductors associated with those contacts.  Controlled-source audio-frequency magnetotellurics (“CSAMT”) surveying will be carried out over soil anomalies to define the stratigraphy, structures and mineralisation.

Drilling is planned by the JV partners when suitable targets have been identified.

Ditau Camp Project

Ditau comprises of two prospecting licenses (PL169/2012 and PL010/2019), which cover an area of 1,386km2. Surface prospecting work by Kavango has involved geochemical soil sampling and magnetic and gravity geophysical surveys. Analysis of results from this work, and pre-existing airborne magnetic geophysics data, has enabled the identification of 10 separate magnetic “ring structures” within the Ditau license area. 

One of these ring structures is a 7km by 5km magnetic and gravity anomaly (the “Ditau Prospect”). In Q1 2019 Kavango conducted an initial 1,000m diamond drill programme at the Ditau Prospect across two holes, 1.8km apart. 

Drill core assay and whole rock geochemistry results from the two holes were released in August 2019 and whilst they did not identify economic mineralization, the results confirmed the presence of highly altered Karoo sediments, sitting above a mafic intrusive body. The alteration observed in the drill cores stretched to >300m depth.

These results were considered encouraging because the age of the Karoo rocks (c.120million years), the high level of their alteration and the fact this alteration stretched to >300m depth; valuable geological pointers, when exploring for potentially economic mineral deposits.

Further, the geochemistry obtained from the drill core of the two Ditau Prospect holes suggested the metasomatic alteration encountered was due to a process known as fenite alteration or “fenitization”. Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive, and it has significant potential to be used as an exploration tool to find mineralised intrusions in a similar way alteration patterns are used in other ore systems, such as porphyry copper deposits.

Carbonatites and alkaline-silicate rocks are the most important sources of Rare Earth Elements and niobium. REEs include much sought after elements, such as Neodymium and Praseodymium, which are used in the manufacture of the new generation of electric vehicles (EVs) and other high-tech applications.

By way of comparison, Kavango consider the post-Karoo age of the fenitized rocks intersected by drilling at the Ditau Prospect, is comparable to the post-Karoo at the Longonjo carbonatite which is being developed as a neodymium and praseodymium open pit mine, by Pensana Metals Limited in Angola.

Subsequent to the release of the August 2019 drill results from Ditau, Kavango learned that Canadian miner Falconbridge Limited (“Falconbridge”) drilled into 3 carbonatites (the “Falconbridge Carbonatites”) in the early 1970s at a location less than 50km from Ditau and hosted by similar Karoo country rocks.

Falconbridge was looking for kimberlites in this area, which lies within a cluster of over 20 kimberlites discovered at the same time. Kimberlites, otherwise known as “diamond pipes”, are the most important source of diamonds mined today. However, carbonatites have similar looking magnetic and gravity anomalies to these diamond-bearing formations.

The carbonatites that Falconbridge intersected were just below the Kalahari sand cover and therefore would have been amenable to open pit mining. This implies they are post-Karoo age and therefore potentially comparable to the Ditau ring structures. 

Although the Falconbridge Carbonatites are located outside of the Kavango held ground the company is reviewing the Falconbridge results and designing an orientation study to assist in the characterisation and exploration vectoring for the Ditau ring-structures. As part of this orientation study the Falconbridge Carbonatites will be surveyed using ground magnetic and gravity geophysics and soil geochemistry.

The JV partners will provide further updates, concerning future work plans at Ditau Camp project in due course.

NEXT STEPS

Commencement of exploration at both the Ditau Camp and KCB projects.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 6,000,000 Acquisition Shares to be admitted to trading on AIM which is expected to occur on or around 28 September 2020 (“Admission”). Following Admission of the Acquisition Shares, POW’s ordinary issued share capital will comprise 816,066,542 ordinary shares of 0.1 pence each.

This number will represent the total voting rights in the Company, and following Admission, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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.

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