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Power Metal Resources #POW – Drilling Commences at Botswana Molopo Farms Complex

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 cash resources.

HIGHLIGHTS:

· Drilling has commenced for the first of four planned holes constituting the Phase 1 Drilling Programme at the Molopo Farms Complex Project in Botswana.

· The Phase 1 Drilling programme is for an initial planned 2,505m across four diamond core drill holes.  Planned target hole depths vary from 525m to 710m.

· Hole 1 has been designed to intersect the first of an initial four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

· The drilling, logging and sampling is being overseen at site by an experienced independent geological consultancy in line with international best practice.

· Drilling and hole casing is commencing with a rotary tri-cone drill bit through the Kalahari sand cover before switching to a diamond core drill bit at HQ and NQ core diameters for drilling through the host lithologies.

· Core will undergo geological and geotechnical logging and photography ahead of appropriate core sampling and analysis by an accredited laboratory.

· Images from the drilling programme may be viewed through the following link: https://www.powermetalresources.com/gallery/7/molopo-farms-complex-botswana

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“We are very pleased to report the commencement of drilling at the Molopo Farms Complex where high-resolution geophysics has identified a series of exciting high conductivity bodies which could be related to massive sulphide mineralisation. 

The drilling is the culmination of a great deal of high quality technical work and studies undertaken by KKME including a helicopter magnetics and electromagnetics survey and targeted Time Domain Electromagnetic and Natural Field Audio Magneto Telluric (“NF-AMT”) ground geophysics surveys.

The technical work is being overseen by a respected independent geological consultancy who have good experience of working on this style of target mineralisation and within Botswana. 

We look forward to providing further updates as the 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.

Power Metal Resources #POW – Botswana Molopo Farms Complex – Drilling Update

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.

HIGHLIGHTS:

·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.

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 – Business Operational Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide a Business Operational Update (the “Update”) to shareholders, outlining the current status of operations across the Company’s six existing projects and two projects under due diligence.

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

“Power Metal is an operationally diversified business with precious metal interests in North America and base metal interests in Africa.  The Company has multiple live exploration programmes running and significant corporate activity underway.

The summary below outlines where we are across each project, and the anticipated next steps or developments which, where material, will be notified to shareholders through regulatory news announcements.

Power Metal is at a key stage in its development and aided by our strong underlying financial position, we are pushing ahead proactively across the business, seeking to secure a large-scale metal discovery.” 

KEY HIGHLIGHTS

· Two significant drill programmes impending, in Botswana and Tanzania, targeting large-scale nickel sulphide targets and with current levels of local regulation allowing the Company to plan to commence drilling in 2020

· Significant advancement made in the Australia JV, with 2,188 km2 of ground under application in the Victoria Goldfields over 12 distinct project areas and a draft of the NI 43-101 technical report under review;

· Due diligence ground exploration programme underway at the Silver Peak project in Canada, where channel sampling for silver is the key focus and where exploration results are expected shortly and within the 30-day option period announced 17 August 2020;

· Reconnaissance survey completed successfully at the Alamo gold project in Arizona, USA reviewing the key areas where the bulk of gold nuggets were found in alluvium on the property. The findings have been received in a project report and are being reviewed currently.  A market update will follow including next stage exploration plans;

· Power Metal remains in a strong financial position with working capital comprising cash and listed investments of circa £1.6 million;

· Further specific updates will be provided for each project as material developments occur.

OPERATIONAL UPDATE

Power Metal provides the following overview of its six main projects and two projects under due diligence.

Note: all exploration and corporate work is subject to COVID-19 restrictions which may impact work programmes and timescales.  Power Metal and its partners are focused on the safety of operational teams and the conduct of programmes in line with local requirements in relation to COVID-19, and all applicable operational regulatory requirements.

PROJECTCURRENT OPERATIONAL STATUS
  
Australia JV – Victoria Goldfields(Gold)(POW holds a 49.9% interest in Australian JV Company Red Rock Australasia Pty Limited “RRAL”)Twelve licence applications have been submitted by RRAL covering 2,188 km2 in the Victoria Goldfields with three licenses having completed the mandatory 14 day public advertising period.  The JV team is working with Earth Resources Victoria to secure early grant of the advertised licenses to enable exploration to commence.Ten detailed historic exploration and target assessment reports now received from local consulting geologists (four reports have been released to the market and six are under review, and will be announced shortly).The NI 43-101 Technical Report covering seven key licenses is in final drafting stage and is expected to be received in final form in the coming week.  The findings of this report will be released shortly after receipt and following internal review. Receipt of the Technical Report will also allow the potential listing of some or all of the JV interests to be progressed to the next stage.In addition, liaison with various external parties is underway with a view to further potential corporate transactions, including external joint ventures, in respect of certain license applications. 
Botswana – Ditau Camp Project(RARE EARTHS)(Under Due Diligence)(Subject to due diligence POW may acquire a 51% project interest)Power Metal remains in due diligence and related discussions with Kavango Resources plc (LON:KAV), the current 100% project owner, with a view to crystallising a transaction in respect of the Ditau Camp project.For clarity the due diligence period in respect of the Ditau Camp Project ends on 30 September 2020.
Botswana – Molopo Farms Complex Project(Nickel Copper PGMs)(POW holds 18.26% of project holding company Kalahari Key and additionally may earn in up to a 40% project interest)Kalahari Key Mineral Exploration Pty Limited (“Kalahari Key”), the JV partner and current 100% project owner is making considerable progress in respect of planning for drill commencement at the Molopo Farms Complex Project (“MFC Project”).Drilling proposals have now been received from multiple contractors and a review is underway at present leading to contractor selection and thereafter, subject to rig availability, to confirmation of drill rig mobilisation at the earliest opportunity.The drill programme will be focused on high profile nickel sulphide targets within the Chipo area of the MFC project.
Cameroon – Cobalt Blue Project(Cobalt – Nickel)(POW holds a 100% project interest)Power Metal is continuing to review the exploration and corporate options in respect of the Cameroon project interests and will provide a further update as material developments occur.
Canada – Silver Peak Project(Silver)(Under Due Diligence)(POW may earn in to a 30% project interest)As part of the due diligence process Power Metal is funding an initial exploration programme at the Silver Peak project including channel sampling to help determine silver prospectivity.Initial results are expected from this programme in the next week and Power Metal will update the market upon completion of an internal technical review of findings.
The DRC – Kisinka Project(Copper – Cobalt)(POW holds a 70% project interest)The Company is awaiting the receipt of assay results from the pitting and mapping programme conducted earlier this year.  The results will help inform next stages of exploration on the ground at the 6.8km copper anomaly discovered within the Kisinka Project.The results so far justify the magnetic ground survey and electromagnetic (“EM”) survey the Company is currently planning in order to increase understanding of structure in the target area defined by the exploration to date.The license renewal was recently underway but the decision has been taken instead to convert the license to a Permis d’Exploitation (production license) with a 25 year life. 50% of the less prospective ground is being surrendered, leaving the Company with 41 carrés miniers (each 84.95 ha),
Tanzania – Haneti Project(Nickel – PGMs – Gold – Lithium)(POW holds a 35% project interest)Power Metal is working with Katoro Gold plc (LON:KAT or Katoro) the JV partner in respect of the Haneti Project in Tanzania.Katoro are in the final stages of planning for drill commencement.  Specifically, Katoro are seeking to confirm rig availability and confirmation of a drill mobilisation date.Power Metal and Katoro hope to confirm the launch of the drill programme to the market in the near term.
USA Arizona – Alamo Gold Project(Gold)(POW may earn in up to a 75% project interest)A Reconnaissance Survey (“Survey”) has been completed successfully at the project in Arizona which was focused on a review of the key areas where the bulk of gold nuggets were found in alluvium on the property.The Survey report from the work undertaken has been received and is being reviewed.Power Metal are also working with its local partners to design the next stage exploration programme at the project based on the Survey report findings.Upon completion of our review of the Survey report and confirmation of the next stage exploration programme Power Metal will update the market in full.

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 Molopo Farms Complex – AMT Geophysics Refine and Scale Drill Targets

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of 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 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 expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

NATURAL FIELD AUDIO MAGNETO TELLURIC SURVEY RESULTS

The Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics survey (announced 11 August), has been completed over a selected four of eight high priority targets for nickel-platinum group metals identified by KKME’s previous high-resolution airborne electromagnetic (“EM”) and ground geophysics. 

The NF-AMT technique is used to measure the electrical conductivity of the Earth’s subsurface and is an important additional exploration tool in the search for conductive massive sulphide deposits. The method has been successfully utilised in Sudbury, Canada to sense nickel deposits at depths up to 1,750m (1). Unlike controlled-source EM geophysical methods which use a generator and an inductive loop as an electromagnetic field source, NF-AMT is a passive electromagnetic exploration method that relies on naturally-occurring electromagnetic field variations generated by sources including lightning and solar winds. 

The processed NF-AMT results have produced high quality Conductivity Depth Images (“CDIs”)  which correlate, confirm and reinforce the results of the previous ground EM geophysics, highlighting significant depth extensions and increasing conductivity interpreted to be indicative of mineralisation with depth.

The NF-AMT data, which in ideal conditions has the capability to produce CDIs to several kilometres depth, has helped to fine tune the depth and shape of the drill targets, refining the collar positions for the planned drill holes designed to intersect the centres of the first four high priority targets. The NF-AMT data has also shown that these targets appear to continue at depth as well as identifying additional areas for future investigation.

A full analysis of the data will be completed prior to the commencement of drilling.

(1)  Essentials of Mineral Exploration and Evaluation – S. M. Gandhi, B. C. Sarkar – Elsevier, 10 May 2016

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

“The KKME team have been excited to receive the processed conductivity depth imagery from the recent NF-AMT survey at the Molopo Farms Complex Project in south-eastern Botswana.  These results show very good correlation to both the ground and high-resolution airborne EM results, adding significant resolution to the depth, size and shape for prospective massive nickel sulphide targets.  Moreover, the results show increasing conductivity with depth, possibly relating to an increase in the tenor of possible mineralisation with depth.

We are looking forward to receiving the full geophysical analysis and report ahead of KKME commencing drilling.”

BACKGROUND:

A helicopter-borne high-resolution electromagnetic survey, followed by ground geophysics, and subsequent desktop review, has to-date identified a total of eight high priority targets prospective for nickel – platinum group metals (“PGMs”).  The first four high priority targets selected for drill testing have also been surveyed by NF-AMT geophysics, refining the target morphology and refining the parameters for eight drill holes designed to test these targets.

DEVELOPMENTS:

OPERATIONAL ELEMENTUPDATE
Natural Field Audio Magneto Telluric SurveyKKME has completed NF-AMT ground geophysical investigations on four high priority targets for massive nickel sulphide mineralisation in the Chipo Target Zone within the Molopo Farms Complex Project.The AMT survey was designed to provide a clearer 3D shape to the four EM targets being investigated and allow for further refining of the drill targets as KKME leads up to the drilling programme.
Method OverviewNF-AMT is an electromagnetic geophysical method for inferring the Earth’s subsurface electrical conductivity from measurements of natural geomagnetic and geoelectric field variation at the Earth’s surface.
RationaleThe advantage of the Natural Field Audio Magneto Telluric (NFAMT) method is, that in ideal conditions, Conductivity Depth Images (CDIs) can be derived to several kilometres depth.The CDIs will facilitate the understanding of the geology around the electromagnetic (EM) derived target areas. In addition, the method is not affected by zero-coupled zones and IP effects and can therefore reduce some of the ambiguity associated with large loop EM interpretation.
Work DoneThe NF-AMT survey was undertaken by Spectral Geophysics of Gaborone, Botswana, between 9 – 21 August, on four targets within the Chipo Target Zone of Licence PL311/2016.
Preliminary OutcomesThe fieldwork has successfully completed and has shown that all four EM targets are directly associated with NF-AMT conductors with good depth extension and increasing conductivity probably indicative of mineralisation with depth.The depths of all EM targets were confirmed with the top of a second priority target at about 200m below surface.All the targets are confirmed as steeply dipping with additional keel-shaped conductors identified to the south of priority targets 1 and 2, that will need follow-up in the near future.A full analysis of the new data will be completed prior to commencement of drilling.

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.

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 Molopo Farms Complex – Environmental Management Plan Approval Received

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of 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 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 expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

ENVIRONMENTAL MANAGEMENT PLAN APPROVAL

Power Metal advises that Kalahari Key has received written confirmation from the Department of Environmental Affairs (“DEA”) in Botswana, that the Environmental Management Plan (“EMP”) submitted to the DEA has now been approved.

The EMP covers planned drilling operations at the MFC Project and represented the last formal regulatory step prior to commencement of drilling.

Kalahari Key is now finalising drilling plans and is looking to commence work as soon as possible.

CHIEF EXECUTIVE OFFICER’S COMMENTS

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

” The receipt of EMP approval is a major step forward for Kalahari Key and Power Metal. We have the funds reserved in a USD account to cover the cost of drilling and are working with Kalahari Key on finalising drill plans, with a view to mobilisation at the earliest opportunity.

“Power Metal has a diverse portfolio of interests, but undeniably the launch of a drill programme targeting prospective large-scale massive nickel sulphide mineralisation must be one the key moments in a junior exploration company’s life cycle.

“As part of the preparatory work Kalahari Key, and their geophysical consultants, have been completing the Audio Magneto-tellurics survey (“AMT Survey”) to further refine drill targets, which was announced recently.  The AMT Survey is well advanced and the initial results in terms of target confirmation are positive.

“I look forward to providing further information with regard to the AMT Survey and drilling plans in the near future.”

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.

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 Molopo Farms Complex – Progress Update

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of 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 mineralisation in Botswana.

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 expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

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

“KKME continue to make progress toward the objective of drilling major nickel sulphide targets in Botswana.  The team at KKME are continuing to work with the Botswana authorities to secure approval of the Environmental Management Plan, which is the final regulatory step before launch of the drill programme.

As with many nations, Botswana has been managing the impact of Covid-19 and has taken a number of robust steps in this regard.  We are optimistic with the measures taken and subject to regulatory approvals, the Molopo Farms Complex drill programme can commence in the near term.

As a result, we are making final preparations in drill programme planning, and further refining the drill targets through the launch of the Audio Magneto-tellurics survey (“AMT”) described below.  We have also now established a dedicated US Dollar account covering the US$500,000 earn-in expenditure for the drilling programme.

To be clear the US$500,000 cost is fully covered by the existing financial resources of Power Metal.  As at today’s date the cash and listed investments held by the Company amounted to £1.65million or circa US$2.15million.

Implementation of the planned drill programme will be a significant event for Power Metal and KKME, as we will be targeting nickel sulphide targets of considerable scale.  We are therefore switched and honing our focus on high impact project drilling.”

BACKGROUND:

A helicopter-borne electromagnetic survey, followed by ground geophysics, and subsequent desktop review, has to-date identified a total of eight targets prospective for nickel – platinum group metals (“PGMs”).  Four high profile drill targets have been selected for drilling, with eight drill holes designed to test these targets.

DEVELOPMENTS:

OPERATIONAL ELEMENT

UPDATE

MFC Project Drill Targeting

Project targets remain in four target groups as follows:

Chipo – Northern Targets

Tshepo – Central Targets

Galaletsang – Southern Targets

Tshenolo – Western Magnetic Targets

Initial drilling remains focused on the Chipo target group in the Northern area of the MFC Project where the decay constant from ground geophysics (up to 530 milliseconds for certain MFC Project targets) reaches or exceeds the high levels  associated with other massive sulphide discoveries in the region (including above 250 milliseconds in eastern Botswana).

The drill programme will target prospective massive nickel sulphide mineralisation.

MFC Project Drill Budget

In recognition of the planned drill programme and imminent need to cover operational costs in this regard, Power Metal has transferred US$500,000 to a dedicated US Dollar account ready to make payments for drill programme related costs.

Audio Magneto-tellurics Survey

KKME has commenced AMT ground geophysical investigations on four of its targets for massive nickel sulphide mineralisation in the Molopo Farms Complex of south-east Botswana.

The AMT survey will provide a clearer 3D shape to the four targets being investigated and allows for further refining of the drill targets as KKME leads up to the drilling programme.

The AMT survey is being undertaken by Spectral Geophysics of Gaborone, Botswana.

As part of KKME’s commitment to supporting local scientists, a PhD student from Botswana’s University of Science and Technology (BUIST) will participate in the AMT fieldwork under the supervision of our geophysical consultant, Cas Lötter.

Impact of Covid-19 on Botswana Operations

The impact of Covid-19 on Botswana and operations in country is being monitored on an ongoing basis.

All activities conducted in country will follow the guidelines and requirements of the local authorities and with full regard for the safety of local communities and operational team members.

Environmental Management Plan (“EMP”)

Following submission of the EMP feedback was received from the Department of Environmental Affairs (“DEA”), Botswana and the EMP was updated as required and resubmitted in Q2 2020. Feedback from the DEA is awaited.

Review of New Project Opportunities

Given the extremely positive findings from ongoing work KKME have decided to focus their operational activities entirely on the planned drill programme at the Molopo Farms Complex.

 

Kalahari Key and MFC Project Background

Kalahari Key Mineral Exploration Company (Pty) Ltd, registered in Botswana, is a mineral exploration and geological consultancy company.

The MFC Project originally consisted of three licenses in covering an area of 2,725 square kilometres that are considered prospective for Nickel-Copper-PGMs mineralisation and 100% owned by Kalahari Key.

In November 2016 the company acquired two mineral exploration licences (PL310/2016 and PL311/2016) from the Botswana Government. The licences cover the eastern and central parts of a shear/feeder zone through the centre of the Bushveld-related Molopo Farms Complex in southern Botswana. A third licence (PL202/2018) was acquired in early 2018 immediately to the south of PL311/2016.

Licences PL310/2016 and PL311/2016 were due for renewal in late 2019 and renewal applications were submitted including evidence of work undertaken and associated costings in excess of the minimum stipulations for maintaining the licences and seeking renewal.  Renewals have been granted, with the usual provision of circa 50% land area relinquishment.

The exploration work undertaken to date has proved extremely useful in identifying the ground hosting the potential mineralisation and the remaining areas held under the renewal applications contains the key potentially mineralised structures.

A helicopter-borne electro-magnetic (“EM”) survey over the Molopo Farms Feeder Zone project area completed in Q2 2019 identified 17 sub-surface conductor targets and follow up ground EM surveys over 14 of the targets produced eight priority targets of considerable size and scale.  Four high-priority targets will be subject to initial drilling for which 8 drill holes have been designed to penetrate all targets.

The targets are highly conductive bodies which could potentially be host to massive nickel sulphides due to the spatial location, particular geological setting and associated magnetic response.

KKME appointed consultants Wellfields Consulting Services in Gaborone, Botswana to complete a pre-drilling Environmental Management Plan (“EMP”) and the EMP was submitted to the DEA in Q4 2019.  Feedback was received from the DEA and the EMP updated as required and resubmitted in Q2 2020.  Further feedback is waited from the DEA.

KKME implemented gravity surveys over the key drill targets, to eliminate as far as possible any chance that the targets are graphite rather than sulphide bodies, since the former although conductive would not be of interest, although this is considered unlikely given the geological setting.  This work was successfully completed and the final gravity survey report confirms that all targets remain valid.

KKME is undertaking an AMT survey to further refine the four key drill targets in the final run up to implementing the drill programme.

In addition, final preparations are now being implemented to ensure, on receipt of EMP approval, that KKME is in a position to mobilise and launch the drill programme as soon as possible.

Liaison with drilling contractors has continued in 2020, including with some who have expressed a willingness to consider equity in lieu of cash for a portion of their drilling costs in respect of the initial programme.  A final decision on the specific contractor will be made shortly after receipt of the EMP approval.

There is continuing interest in the MFC Project from third parties and KKME is maintaining liaison with external organisations in this regard.

Power Metal Interest in Kalahari Key and the MFC Project

Power Metal has an 18.26% shareholding in Kalahari Key and on 31 December 2019 elected to earn into a 40% direct project interest in the MFC project by investing US$500,000 in the Project by 31 December 2020 (the “Earn-In”).

Following completion of the Earn-In, Power Metal will hold an effective economic interest of 50.96% in the Project.

The Company’s Kalahari Key acquisition agreement was announced on 13 May 2019 and readers can review this announcement through the following link:

https://www.powermetalresources.com/n/n104/acquisition-and-earn-in-agreement-botswana-project

Further Information on the Power Metal Project Level 40% Earn-In to the MFC Project

On 31 December 2019 Power Metal elected to earn-in to 40% of the MFC Project by entering into and then fulfilling a commitment to spend US$500,000 (“Committed Spend”) during the period to 31 December 2020.

Upon Power Metal entering into the Earn-In an MFC Project operational committee (the “Committee”) was established comprising members Roger Key (Kalahari Key Director), Andrew Bell (Power Metal Director) and Andrew Moore (Kalahari Key Director).  The Committee will determine the allocation of the Committed Spend and management of operational activities.  Upon completion of the Earn-In expenditure requirement Power Metal will hold 40% of the MFC Project.

The Committed Spend will be applied primarily to the completion of drilling of four targets at the MFC Project.

Also, following Power Metal electing to Earn-In, Paul Johnson (Power Metal Director) joined the Board of Kalahari Key.

Also, now Power Metal has elected to Earn-In, a Joint Venture Agreement (“JVA”) is being established between the parties which will determine strategy, operational management and corporate structuring.  This will include the usual fund or dilute provisions unless an alternate structure is agreed by the parties.

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.

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.

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