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#POW Power Metal Resources PLC – Tati Project, Botswana – 2023 Exploration Underway

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces next stage exploration on its 100% owned and operated Tati Gold Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana, is underway.

EXPLORATION PROGRAMME KEY OBJECTIVES

–      To confirm the presence of a large gold-bearing system and delineate a deposit, through follow-on work over a larger portion of the approximately 8km long gold-in-soil anomaly.

–      Through Power Metal’s largest and most comprehensive exploration campaign across the Tati Project, to date.

 Programme will include mechanised trenching, geophysics surveys, high-resolution geochemical surveys, reverse circulation (“RC”) drilling and diamond core drilling.

 Both geophysical survey work and mechanised trenching are currently underway, with further soil sampling scheduled and RC and diamond drilling to follow on in order to test the emerging high priority gold targets.

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

The exploration campaign now underway is a key step forward for Power Metal with the various planned works tailored towards a single objective, namely the discovery of a large gold deposit.

Our exploration programmes in 2021 and 2022 have built a robust picture of the Project’s potential and we are particularly excited as we proceed with the next stage of exploration – the largest ever completed on the Project by Power Metal.

So far, we have confirmed near surface high-grade gold from reverse circulation drilling, conducted last year, which intersected the quartz reef structure near the Cherished Hope mine and delivered high-grade and bonanza-grade gold results. Figure 1 below provides an overview of those results.

Within the table immediately below is an overview of the work we are planning to undertake, with explanatory notes on the various steps to be implemented.”

EXPLORATION PROGRAMME OVERVIEW

Exploration Work

Rationale and Targeted Outcome

TRENCHING

A circa 500 metre mechanised trenching programme (underway).

Trenching will be focused along various strike-length extensions of the known outcropping gold mineralised quartz reef structure.

Quartz reef as well as mineralised wall rock will be sampled when intersected within the exposed trenches.

This work will look to extend the already known strike length extension of the main quartz reef structure at the Cherished Hope gold mine (the “Cherished Hope”) within the Project licence area. The quartz reef currently remains open towards the northwest and southeast as well as down dip.

If the main quartz reef is successfully intercepted, the trenching would highlight quartz reef continuity between known historical workings at Cherished Hope, as well as to the northwest and southeast of current (~175m) strike length extents as defined by the recently completed RC drilling campaign.

By extending the surficial expression of the mineralised quartz reef structure beyond the currently defined 175m strike length, Power Metal will be able to follow up drill test these areas to prove the downdip continuity, therefore increasing the size of the mineralised system in multiple dimensions.

SOIL GEOCHEMISTRY

High-resolution soil geochemistry programme focussed on approximately 3km of strike-length (see red area highlighted on figure 1 below).

Approximately 500-600 individual soil samples are planned with follow up assay testing of samples.

Soil samples will be collected along a grid which will be focussed northwest of the 2022 RC drilling area. The goal is to improve the resolution and definition over several kilometres of the currently defined ~8km long gold-in-soil anomaly.

Historical soil sampling completed over the majority of the Tati Project was undertaken by previous operators along 400m spaced lines at 40m sample spacing.

This programme looks to infill the line spacing so that the definition and location of already proven Au-in-soil anomalies is vastly improved.

This work will then allow Power Metal to follow up with more focussed next exploration steps which could include trenching and RC drilling of these new areas during subsequent work programmes.

By completing this work, a much larger percentage of the 8km long Au-in-soil anomaly can move to next exploration steps therefore increasing the overall attractiveness of the Project as well as the size of the mineralised footprint.

GEOPHYSICS

A ground magnetometer geophysics survey focussed on the northwestern strike length extension of the Cherished Hope Mine (underway).

The goal of the magnetometer survey is to provide high-resolution imaging of any structures or geology which may have had an influence on the emplacement of mineralised quartz reef structures.

Prospective structures and geology identified by the magnetometer survey can then be upgraded to further work streams which may include geochemical sampling, trenching and RC & diamond drilling.

REVERSE CIRCULATION (“RC”) DRILLING(1)

~15 RC drillholes are planned to an average planned  depth of ~100m for ~1,500m in total.

This RC programme is designed to test for the along strike and down dip extension of the main mineralised quartz reef structure.

The mechanised trenching programme will be completed prior to the RC drilling and will look to extend the known surficial expression of the mineralised quartz reef structure. Once the surface expression is well defined by trenching, RC drilling will be employed in order to test for the down dip or depth extension of the quartz reefs within the subsurface.

The goal is to prove continuity in the widths as well as grades of the quartz reef structure from surface down to depths targeted by the RC drilling.

DIAMOND CORE DRILLING(2)

~5 diamond drill holes are planned to an average expected depth of 100m for ~500m in total.

The diamond drilling programme is designed to drill test select portions of the quartz reef structures which were previously successfully delineated by the RC drilling conducted during fall 2022.

Diamond drilling provides full core rock samples, and therefore valuable information about structure, geology, and the nature of gold mineralisation.

The information extracted from diamond drilling will allow the company to gain a better understanding of the mineralised quartz reefs and surrounding wall rocks. This data will be important as exploration continues to develop across the broader Tati Project.

KEY:

(1)  RC drilling involves a “hammer” piston which repeatedly strikes the target rock. Simultaneously, a powerful drill-bit at the end made of tungsten rotates at high speed. This creates small chips of rock known as drill cuttings that are sucked up with a vacuum and transported to a cyclone at the surface through dedicated tubes. The chips are then sorted into a variety of sampling bags, each of which represents a certain depth section of the drill hole. These bags are then sent off directly to the assay lab where their mineral content can be analysed. In turn, a picture of the rock types the hole encountered throughout its length can be established.

(2)  Diamond core drilling involves rotating a hollow drill bit embedded with diamonds into the ground to a certain depth before extracting the solid, intact core recovered for analysis.

FURTHER INFORMATION

Figure 1 – Tati Project Overview Plan Map:

 

 

Figure 2 – Tati Project Q3 Drilling Area Zoomed Plan Map:

QUALIFIED 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 Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#POW Power Metal Resources PLC – £900,000 Equity Financing

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces it has completed a placing and subscription to raise £900,000 before expenses (the “Financing”).

HIGHLIGHTS

§ Power Metal has raised £900,000 before expenses for the advancement of priority exploration projects and for general working capital purposes with the Financing undertaken at the closing market bid price of 1.4 pence on 13 January 2023 (see below for detailed Financing terms).

§ The fundraising will be applied to a comprehensive exploration programme at the Tati gold project and will allow Power Metal to accelerate preparations for exploration at the Company’s strategic uranium portfolio in the Athabasca Basin region of Saskatchewan, Canada.

§ At Tati the Company’s exploration plans include soil geochemistry, geophysics, mechanised trenching, reverse circulation (RC) and diamond drilling.  This work will examine near surface gold mineralisation across a far larger proportion of the 8km gold-in-soil anomaly which extends through the centre of the Tati licence footprint and, through planned drilling, test for gold mineralisation at depth.

§ Power Metal is seeking to undertake exploration programmes at a number of its Athabasca uranium properties during the upcoming spring and summer, following snowmelt. The work programmes will be designed to follow up on high-grade uranium rock sample results achieved by the Company during the 2022 campaigns, as well as inaugural work programmes at other properties in the portfolio which have not been worked by Power Metal to date.

§ Diamond drilling has recommenced at the Molopo Farms Complex project in Botswana after the Christmas break and specifically at drillhole DDH2-3A into target area T2-3A. In addition, at the Company’s Victoria Goldfields joint venture a diamond drill programme is underway targeting extensions of the former high-grade working Berringa gold mine.

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

Power Metal continues to drive its exploration portfolio, with drilling underway currently and with additional programmes now to be launched in the near term at the Tati gold project in Botswana and expedited exploration at the Athabasca Uranium portfolio in Saskatchewan, Canada.

With multiple exploration work streams underway Power Metal expects to release further updates to the market over the coming weeks and months as operational activities advance.

In parallel Power Metal continues to work on the various corporate initiatives targeting the generation of material value for the Company and its shareholders.

The recent strong move higher in the price of gold from under US$1,650 at the start of November 2022, to US$1,920 at the close on Friday is an important event, with gold acting as a key indicator for the strength of our sector. I believe the future is bright for the junior resource sector and the proactive junior resource explorers within it.

Power Metal has, through relentless teamwork over recent years, built and advanced our global exploration portfolio and we believe that work has positioned the Company uniquely well for the near, medium and long term.

FINANCING FURTHER INFORMATION

§ The Company has raised £900,000 before expenses through the issue of 64,285,714 new ordinary shares of 0.1p each in the Company (the “Financing Shares”) at an issue price of 1.4p per share, the closing market bid price on 13 January 2023.

 

§ Each Financing Share has an attaching warrant to subscribe for one new ordinary share of 0.1p each in the Company (“Ordinary Share”) at an exercise price of 2.0p per share with a 24-month term from 30 January 2023 (“Financing Warrant”) creating 64,285,714 Financing Warrants.

 

§ Should the Power Metal share price exceed a volume weighted average share price of 6p for five trading days Power Metal may issue a written notice to Financing Warrant holders providing ten trading days to exercise Financing Warrants and twenty trading days to make payment of exercise monies, or the Financing Warrants may be cancelled.

 

§ The Financing was undertaken by the Company’s joint broker First Equity Limited.  Power Metal has issued First Equity Limited with 6,428,571 warrants to subscribe for new Ordinary Shares on the same terms as the Financing Warrants.

 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 64,285,714 Financing Shares to be admitted to trading on AIM which is expected to occur on or around 30 January 2023 (“Admission”). The Financing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,727,574,806 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and 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.

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#POW Power Metal Resources PLC – Victoria Goldfields Australia – Update

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a corporate and exploration update from the Company’s Victoria Goldfields joint-venture (“JV”).

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

Diamond drilling at the historic Berringa Gold Mine has efficiently recommenced after the Christmas break and the first hole is progressing well.

In other positive news we can announce the grant of 3 further licence applications as well as rock sampling results from the Dereel project which returned extensive gold mineralisation with a highlight result of 229g/t Au.

Work continues at pace in Victoria, Australia, and further updates will follow in due course.

HIGHLIGHTS:

Diamond Drilling – Berringa Gold Mine

On 13th December 2022, Power Metal announced the commencement of a 5 hole, approximately 1,000m, diamond drilling programme at the historic Berringa Gold Mine (“Berringa”). Drilling of the first hole (BE23D001), into the Birthday South target (see announcement 13.12.22 for further information), paused on 23rd December 2022, for the holiday season at a downhole depth of 125.7m.

Drilling successfully recommenced on 3rd January 2023 with BE23D001 at end-of-day 5th January 2023, at a downhole depth of 167m at which point the HQ (96mm) drill bit was replaced by an NQ (75.7mm) bit. Drilling continues with an expected final target depth of approximately 420m.

Grant of Exploration Licences

A further three exploration licences (“ELs”) have now been granted including:

–      EL 7756: a 22km2 inlier of Crown land within EL 7271, the prominent EL south of Ballarat gold mine within the Ajax project containing the old Monmouth and Happy Thought mines but where forest cover has limited modern exploration.

–      EL 7799: a 3km2 inlier of Crown land originally excluded from licence EL 7327 within the Dereel Project. Investigations have identified the Golden Reef (Dereel) mine as an active high grade mine at the turn of the last century and Crown land will improve access for any future drill programme. The JV has gathered a number of rock chip samples in the area.

–      EL 7826: a 4km2 tenement enhancing the land position surrounding Ballarat mine itself and covering potential for southern extension of the main Ballarat lode system known as Ballarat south within the Ajax project.

With the above now granted, seventeen EL grants have now been received from the nineteen original applications. Table 1 below provides a full breakdown.

Rock Sampling Results

A rock chip sampling programme was successfully completed within the Dereel project (EL 7799 & EL7327). The sampling campaign included the collection of 24 rock samples. Gold mineralisation was successfully identified with 16 of the 24 samples returning gold assays >0.1g/t, including a highlight result of 229g/t Au.

Table 2 below provides a breakdown of all rock sampling results.

JOINT VENTURE STRUCTURE

The joint venture (“JV”) is held through New Ballarat Gold Corporation PLC (“NBGC”), which is focused on the prolific Victoria Goldfields of Australia. The JV is held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources PLC (50.1%) (together the “JV Partners”).

NBGC has a wholly owned Australian operating subsidiary Red Rock Australasia Pty Ltd (“RRAL”) which holds a strong land position comprising 17 granted exploration licences and one purchased licence for a total area of 1,867km2 within the gold fields of Victoria, Australia, principally surrounding the mining centre of Ballarat, Australia.

In addition, 2 licences covering 467km2 await grant. The JV has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, which remain largely under-explored by modern explorers.

The JV Partners have the intention of listing the JV company on a recognised stock exchange and will make further announcements as appropriate.

TABLE 1: LICENCE TABLES

The seventeen granted and one purchased licence (EL005535) cover high priority areas, covering 1,867km2 as outlined below.

Licence Number

Project Name

Area (km2)

EL007271

 

Buninyong

(renamed)

133

EL007281

 

Blue Chip

74

EL007282

 

Blue Sky

489

EL007285

 

Blue Ribbon

8

EL007327

Dereel

60

EL007385

Sardinia

                   4

EL007329

Kilmore

484

EL007301

Pitfield/Mt. Bute

85

EL007328

Blue Yonder

164

State land within EL007271

 

EL007505

 

 

 

[9]

State land within EL007271

 

EL007506

 

 

[9]

State land within EL007271

 

EL007507

 

 

 

[8]

EL007330

Daylesford

(renamed)

 

202

EL 007294
Talbot

(renamed)

 

129

EL 5535
Berringa

9

(228 net ha)

EL007756
Monmouth

22

State land within EL007327

 

EL007799
Dereel (2)

[3]

EL007826
Ballarat East

4

 

Total

 

 

1,867

 

Licence Applications:

RRAL has applications in process for two other new gold exploration licence areas, covering 467 km2 in the Victoria Goldfields of Australia including:

Licence Application Number

Project Name

Area (km2)

EL007540*

(3 competing applications)

 

Outer Ballarat

142

EL007460

Kilmore West

 

325

TOTAL

467

 

*Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

 

The following applications have also been made in Western Australia.

EL45/5859

 

Paterson

227

EL45/5885

Pilbara/Paterson

70

Table 2: ROCK CHIP SAMPLING RESULTS

Each sample below represents a 1kg sample which was pulverised and analysed with a aqua regia digest (AAS finish).

Sample ID

Tenement

Easting

Northing

Gold (g/t)

41514

EL007799

743094.1

5809362

229

41562

EL007327

743239.5

5809050

1.67

41513

EL007799

743102.2

5809331

0.79

41515

EL007799

743095.4

5809397

0.39

41560

EL007327

743233.9

5809046

0.33

41564

EL007327

743248.8

5809037

0.3

41561

EL007327

743232.1

5809046

0.28

41563

EL007327

743252.6

5809041

0.15

41565

EL007327

743243.8

5809041

0.15

41511

EL007799

743110.2

5809315

0.08

41516

EL007799

743082.2

5809399

0.04

41512

EL007799

743108.7

5809318

0.02

41566

EL007327

743270.9

5809071

0.01

41510

EL007799

743119.2

5809285

0.01

52525

EL007327

743264.7

5809564

<0.04

58299

EL007327

743259

5809518

0.97

58300

EL007327

743262.8

5809508

0.21

58523

EL007327

743264.7

5809583

0.07

58524

EL007327

743267.8

5809572

0.1

58526

EL007327

743260.3

5809550

0.2

58295B

EL007327

743267.1

5809491

0.13

58296B

EL007327

743267.5

5809496

0.31

58297B

EL007327

743268.8

5809521

0.27

58298B

EL007327

743266.5

5809530

<0.04

QUALIFIED PERSON STATEMENT

The technical information in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and the Executive Officer and Exploration Manager of RRAL. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, published by AIM.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

#POW Power Metal Resources PLC – Merger Agreement – Wilan Project, South Australia

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a merger of its Wilan Project (“Wilan” or the “Project”), located in South Australia, with a number of other Australian exploration interests (the “Merger”). The Merger will create a new Australian exploration company and provide Power Metal with exposure to the world class Mount Isa copper belt located within Queensland, Australia

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

“Power Metal recognises the forward dynamic of copper as a commodity and the Merger will provide the Company with an immediate equity exposure to a strategic portfolio of exploration interests in the Mount Isa copper belt of Queensland, Australia.

The Queensland Projects are targeting major copper discoveries within a world class copper belt and are situated close to ground held by a number of substantial mining companies.”

 

HIGHLIGHTS

·The Wilan Project is comprised of two exploration licences (“ELs”) which cover a total area of 1,994km2, held within Power Metal Resources Australia Pty Ltd (“POW Australia”), which is a wholly-owned subsidiary of Power Metal Resources PLC.

·A heads-of-terms agreement (the “Agreement”) has been signed to combine POW Australia (100% owner of the Wilan Project) with two companies holding a 100% interest in a portfolio of two granted exploration licences and four licence applications covering 1,507km2 in the Mount Isa copper belt of Queensland, Australia (the “Queensland Projects”).

·The Queensland Projects are held by two private Australian companies, RAB Resources Pty Ltd (“RAB Resources” or “RAB”) and New Horizon Metals Pty Ltd (“New Horizon” or “NHM”).

·A new company (“NewCo”) will acquire outright the shares in POW Australia, RAB Resources and New Horizon (the “Merger Parties”). Following the Merger Power Metal Resources plc will hold a 20% interest in NewCo.

·POW Australia will be renamed Wilan Resources Pty Ltd shortly after completion of the Merger, enabling Power to retain the POW Australia name.

·Following the Merger, NewCo will then commence the process for a planned listing targeting Q2 2023 or the acquisition of NewCo and its interests from an existing listed vehicle, subject to agreement of all the Merger parties.

·Further information to follow with regard to the Merger progress & structuring, planned listing and project level developments across the combined project portfolio.

 

PROJECT MAPS

Project maps covering the Queensland Projects and Wilan Project licence footprints are provided below and will be uploaded to the Power Metal website in due course.

Fig. 1: Queensland Licence Footprint

Fig. 2 – Wilan Project Licence Footprint and Surrounding Area

 

TRANSACTION TERMS

 

NewCo will acquire 100% of the share capital of New Horizon, RAB Resources and POW Australia and then hold the Queensland projects and the Wilan Project.

 

The NewCo ownership on completion of the Merger and grant of the New Horizon licence applications below is outlined in the table below.

 

Company Name

% of NewCo Issued Share Capital

New Horizon

40%

RAB Resources

40%

POW Australia

20%

Total

100%

The Merger Parties will appoint the board of NewCo and will each have a right to nominate at least one board member.

Note: 20% of the NewCo shares will be issued to New Horizon immediately, with the balancing 20% issued on the grant of the Copper Creek and Bortala licence applications.  Should an acquisition of NewCo and/or its interests by an existing listed vehicle complete prior to any planned listing (which may only proceed with the agreement of all the Merger parties), then the remaining 20% of NewCo shares would be automatically issued to New Horizon on completion.

PROJECT LICENCE OVERVIEW

RAB interests include:

Gregory River – East and West

Tenures Exploration for Minerals (EPM’s) 28642 and 28643, the Gregory River (East and West) Project, are exploration licences in application by RAB Resources covering 169.6km2 and 220.8km2, respectively.

Gregory River East and West tenements are prospective for copper, gold, lead, zinc, and cobalt.

Fiery Creek

Tenure EPM 27879 the Fiery Creek Project is a granted exploration licence held outright by RAB Resources covering 320km2 with an expiry date of 16/03/2027.  Fiery Creek is believed to be prospective for copper, gold, lead, zinc, and cobalt.

Dynamite Creek

Tenure EPM 27870 the Dynamite Creek Project is a granted exploration licence held outright by RAB Resources covering 288km2 with an expiry date of 16/03/2027.  Dynamite Creek believed to be is prospective for copper, gold, and cobalt.

NHM interests include:

Copper Creek

Tenure EPM 28272, the Copper Creek Project is an exploration licence in application by New Horizon covering 195.2km2 with a lodgement date of 31/1/2022.  Copper Creek is prospective for copper, cobalt, silver, uranium, and rare earth elements.

Bortala

Tenure EPM 28271, the Bortala Project is an exploration licence in application by New Horizon covering 313.6km2 with a lodgement date of 31/1/2022.  Bortala is prospective for copper, cobalt, silver, lead, zinc, uranium, and rare earth elements.

POW Australia interests include:

Wilan Project

The Wilan Project includes two granted exploration licences (“ELs”) including EL6819 and EL6870.

EL6819, is a granted exploration licence held outright by POW Australia covering 999km2 with an expiry date of 23/08/2028.

A desktop technical review completed over EL6819 identified an approximately 4 x 6km coincident magnetic and gravity geophysical anomaly located in the southeastern part of the Project. Such coincident geophysical anomalies have been noted as potential targets for iron oxide copper-gold mineralisation (“IOCG”) elsewhere within the highly prospective Gawler Craton.

The Wilan Project also includes recently granted EL6870 which covers an area of 995km2 and lies to the northwest of EL6819 which carries an expiry date of 10/11/2028.

Exploration targets within EL6870 include potential surficial lacustrine uranium (U) and vanadium (V) mineralisation located within the western part of the Project. The lacustrine targets were identified by recently completed radiometric and hyperspectral analysis. In addition, within the northern part of EL6870, multiple kimberlitic indicator minerals have been identified by a previous operator, including occurrences of pyrope, kimberlitic ilmenite and picroilmenite.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

#POW Power Metal Resources PLC – Drilling Begins at Historic Berringa Gold Mine

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a diamond drill programme has commenced at the historic Berringa Gold Mine (“Berringa” or the “Project”) held within the Company’s Victoria Goldfields joint venture (“JV”).

HIGHLIGHTS:

  • Diamond drill rig has mobilised to site and drilling has commenced at the historic Berringa former high-grade producing gold mine in the Victoria Goldfields.

 

  • 1,000 metres of diamond drilling planned with an estimated 5 drill holes into 3 priority targets to test for the extensions of gold mineralisation in proximity of previously mined areas.

 

  •  Expedited assay testing arrangements in place with batch sampling process expected to deliver first gold focused assay results in early 2023.

 

  • A video showing the planned drill programme may be viewed through the following link:

https://www.youtube.com/watch?v=825WYdDVdyQ

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

“This is a notable moment for our joint venture focused on the Victoria Goldfields of Australia with diamond drilling to test three priority targets at the historic Berringa Gold Mine.

At Berringa there has been 293,250 ounces of historical high grade gold production and we believe there may be a considerable remaining gold endowment which this drill programme is designed to partly investigate.

It is common for exploration companies to start from ground up with grassroots exploration.  In our Victoria Goldfields JV, we are far further up the progress and value curve and are now drilling to test for the along strike and down dip extensions of previously mined out high-grade mineralised gold lodes.”

BACKGROUND

Acquisition of exploration licence (“EL”) EL5535 (the “Acquisition”), covering the footprint of the Berringa was announced on 22 September 2022 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/acquisition-complete-berringa-gold-mine/15640720

The JV is in the process of renewal for licence EL5535 seeking a 5-year exploration licence period with effect from 16 November 2022.

Background to the Acquisition, including the historical production from Berringa of 293,250 ounces of gold at 8.3g/t, and conceptual (but unproven) exploration targets totalling up to 2.91million ounces of gold was included in the Company’s announcement of 6 July 2022 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927

A map highlighting the location of Berringa may be seen on the Company’s website through the following link:

https://www.powermetalresources.com/berringa-map-2/

Diagrams, images and videos from the Victoria Goldfields will be available on the Company’s website through the following link:

https://www.powermetalresources.com/investors/gallery/VictoriaGoldfields-australia/  

Further information in respect if the JV and the Victoria Goldfields interests may be viewed on the Power Metal website through the following link:

https://www.powermetalresources.com/project/victoria-goldfields/

 

DRILL PROGRAMME FURTHER INFORMATION

Approximately 1,000m of diamond drilling is to be undertaken at Berringa by the JV drilling contractor, Trimac Drilling Pty Ltd based out of Ballarat, Victoria.

An estimated 5 drill holes are planned, with an average depth of 200m per hole which are designed to test three priority gold targets which are outlined below.

South Birthday: 

 

The South Birthday and Birthday mines at Berringa had the most consistent mineralisation within what is known as the Birthday Reef. This Reef consists of a laminated 1-2m quartz lode located within a black shale unit rolling from the west limb into the east limb of a main anticline. This mineralisation remains open to the south and planned drilling is designed to test for the southerly plunge of the Birthday Reef below the historical workings of the previously mined lode.

 

Berringa Syndicate:  

 

Targeting a previously identified non-JORC compliant resource at the Southland mine to confirm the potential grade and tonnage identified by the Berringa Syndicate in the 1980s. Here, drilling will be targeting the downdip mineralisation potential of the Kangaroo quartz reef found within the eastern limb of the main anticline.  

 

Kangaroo East: 

 

Previous mining at the Kangaroo Mine identified a secondary parallel reef named the Big Reef which is located east of the main Kangaroo shaft.  The Big Reef is a laminated quartz reef hosted within a black shale on the western limb of the eastern anticline. The drill target will test for the along-strike extension of the Big Reef.  The successful drill testing of this lodes along strike extension could lead to further exploration opportunities of this lode throughout the entire Berringa goldfields.

 

The first drill location has been prepared and the drill rig has mobilised to site and commenced drilling.

Arrangements have been made with local accredited assay laboratories for gold focused assay testing with expedited turnaround on a batch sampling basis.  Subject to the pre-Christmas drilling timetable, first assay results are expected in early 2023.

FURTHER PROJECT WORK

In parallel with drilling, the JV is currently investigating the potential to excavate and open a buried entrance to Berringa. If deemed to be possible, the reopened adit would provide access to the Berringa shaft sub-surface.

The JV is in ongoing discussions regarding the possibility of processing ore at the nearby Ballarat Gold Mine (located approximately 25km away), should the JV discover and develop an economic gold deposit. This arrangement would dramatically reduce both the mine build-out time horizons and heavy capital requirements for building a new standalone processing facility.

JOINT VENTURE STRUCTURE

The joint venture (“JV”) is held through New Ballarat Gold Corporation PLC (“NBGC”), which is focused on the prolific Victorian Goldfields of Australia. The JV is held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources PLC (50.1%) (together the “JV Partners”).

NBGC has a wholly owned Australian operating subsidiary Red Rock Australasia Pty Ltd (“RRAL”) which holds a strong land position comprising 15 granted exploration licences for a total area of 1,841km2 within the gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

In addition, 5 licences covering 493km2 await grant. The company has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

The JV Partners retain the intention of listing the JV company NBGC and will make further announcements as appropriate.

QUALIFIED PERSON STATEMENT

The technical information in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and the Executive Officer and Exploration Manager of RRAL. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, published by AIM.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a drilling update from the Molopo Farms Complex Project (“Molopo Farms” or the “Project”) targeting a large-scale nickel and platinum group element (“PGE”) discovery in southwestern Botswana.

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

“The Molopo Farms Complex Project represents a substantial discovery opportunity, both in terms of size and potential, and I am thrilled to report the presence of the targeted nickel sulphides* from the inaugural drillhole into target area T1-3, which is an immense target, the scale of which is clearly demonstrated within the figures below.

At T1-6, the targeted pyroxenite intervals originally intersected by the 2020/2021 drillhole KKME1-6 have successfully been intersected by the two new follow-up drillholes into this target area. Drill core samples from DDH1-6B are currently at the lab undergoing assay testing.

At target area T1-14 we await the detailed core logging results and the downhole geophysics survey data which recently completed.  We will report these findings in due course.

We push on with increased confidence and look forward to reporting further results as well as progress updates surrounding the completion of the drillhole at Target T1-3, as well as the commencement of inaugural drilling at target area T2-3.”

*The presence of nickel sulphides was determined via visual inspection of core and subsequent analysis of identified sulphides utilising a portable X-Ray Fluorescence (“XRF”) spectrometer.

 

DRILL OVERVIEW

 

Target T1-3

 

§   The inaugural drillhole (DDH1-3) into target area T1-3A is progressing well with the last reported depth being down to 355.66m. This drillhole is still underway.

 

§    Initial core review identified visible nickel sulphides at 327m and also within the interval from 348-354m, where an increase in intensity of visible disseminated sulphide mineralisation was identified. XRF readings taken within this interval have confirmed the sulphides to be nickeliferous.

 

§    It should be noted that the above findings are from the initial core review, and the grade of any nickel or other mineral intersections, can only be accurately determined from assay testing of homogenised samples at an accredited laboratory.

 

§    Hole T1-3 is continuing to the current planned target depth of approximately 450m. Additional technical details surrounding priority target area T1-3 were released on 30 September 2022 and can be found at the link below:

 

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15651506

 

Target T1-14

 

§    Drillhole DDH1-14B was successfully completed to a depth of 520m.

 

§   A downhole electromagnetic (“EM”) geophysical survey is now complete with results expected in the coming days.

 

§   Detailed technical core review is currently underway and the results of this work in conjunction with the results from the downhole geophysical survey, once received, will advise the Company of next steps at this target area.

 

Target T1-6

 

§   Drillhole DDH1-6B was successfully completed to a depth of 650m with interbedded mafic units, predominantly comprised of pyroxenites and serpentinites intersected throughout the majority of the hole. Pyroxenites were the host rock for nickel sulphide mineralisation found within original drillhole KKME1-6 drilled during the 2020/2021 campaign.

 

§   Preliminary technical core review from DDH1-6B has been completed and select samples were prepared and dispatched to the accredited assay laboratory in South Africa for analysis.

 

§   Drillhole DDH1-6B(2) was completed to a depth of 300m which was designed to test for the up-dip (shallower) extension of the targeting pyroxenites identified by drill hole KKME1-6. Hole DDH1-6B(2) successfully intersected (up-dip) pyroxenites units, with detailed core review currently underway.

 

§   A downhole EM geophysics survey has been completed at target area T1-6, the final results of which will be delivered to the company alongside the geophysical results from target area T1-14 in the near term.

 

Target T2-3

 

§    Following the completion of DDH1-3, the drilling rig will then move to target area T2-3, where the first ever drillhole into this target is planned. Additional details surrounding target area T2-3 were released on 28 September 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-update/15647138

 

FURTHER INFORMATION

A plan map of the Project area, including the location of various targets mentioned in this announcement is outlined in Figure 1 below.  

Figure 2 (below) depicts a three dimensional (“3D”) airborne geophysics magnetic inversion model of Target Area T1-3 showing the location of the planned drillhole DDH1-3A and the moving-loop electromagnetic (“MLEM”) geophysics cross-section with the new ‘Jelly Bean’ shaped conductor in blue. The 3D model shows how the ‘Jelly Bean’ conductor sits within an apparent magnetic trough.

Diagram, map Description automatically generated

Figure 1: Map of Molopo Farms Complex Project with Named Airbourne Electromagnetic (“EM”) Geophysics Target Locations and Current Drill Programme Status  (Projection: UTM Zone 35S WGS84)

 

Chart, diagram, surface chart Description automatically generated

Figure 2: Geophysical Interpretation Model of Priority Target Area T1-3 and the Targeted Jelly Bean Conductor. Depicted at 500m grid spacing (UTM Zone 35S WGS84 projection)

QUALIFIED 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 Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

Exploration Work Overview

Power Metal holds a number of priority exploration projects with active exploration underway currently. The status of each project is outlined in the table below:

Project

Operations

POW %

Project Status

Athabasca

Uranium

12 properties covering an area of 842km2 in the Athabasca Basin region Canada.

100%

Exploration programmes undertaken across three properties during summer 2022 and preliminary planning for work in Spring/Summer 2023 is ongoing. 

Desktop review work ongoing across the existing portfolio and data rooms established for all the projects, to enable third party review of opportunities for potential acquisition, joint venture or earn-in.

Ongoing review of new opportunities to further expand the Company’s Athabasca uranium property exposure.

Molopo Farms

Nickel – PGMs

3 prospecting licences covering 1,723km2 in south-west Botswana

87.71%

Currently a 2,600m diamond drill programme is underway with a planned 5-6 holes targeting four previously identified magnetic conductors prospective for Nickel – Platinum Group Metals. 

2 drill holes at target conductor T1-6 and one at T1-14 have been completed and drilling at target T1-3 target is underway currently.

Downhole geophysics completed at DDH1-6A and underway at DDH1-14B.

Further Moving Loop Electro-Magnetic surveys are planned over additional Airborne Electro-Magnetic targets identified, to develop further drill targets.

Tati Project

Gold – Nickel

Botswana

100%

Reverse Circulation drilling and soil sampling has confirmed high-grade and bonanza grade gold mineralisation across a gold-in-soil anomaly extending for 8km across the Company’s prospecting licences.

Next stage exploration plans are currently under development.

Sampling of fines dumps, representing waste material from the Cherished Hope gold mine on the project has confirmed circa 1g/t gold and suitability of the fines dumps for processing to extract gold and generate income.  Preparations for the fines dumps processing are advancing.

 

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below:

Company

Operations

Status

POW %

Further Information Link

First Class Metals PLC

Exploration in the Schreiber-Hemlo region of Ontario, Canada

Listed Investment

27.91%

www.firstclassmetalsplc.com

 

Kavango Resources PLC

Exploration in Botswana

Listed Investment

9.85%

www.kavangoresources.com

 

First Development Resources PLC

Exploration in Western Australia and the Northern Territory of Australia

Planned IPO

62.12%*

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Exploration and development in Nevada, USA

Planned IPO

83.13%

www.goldenmetalresources.com

 

New Ballarat Gold PLC

Exploration in the Victoria Goldfields of Australia

Planned IPO

49.9%

New website under development which can be found at www.newballaratgoldcorp.com.

In the interim further information in respect of NBGC can be found at:

https://www.powermetalresources.com/project/victoria-goldfields/.

Uranium Energy Exploration PLC

Uranium exploration in the Athabasca region of Canada

Planned IPO

50-55%~

www.uraniumenergyexploration.com

* reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.

~ subject to completion of disposal of Reitenbach and E-12 properties, announced on 8.8.22 and 4.11.22, respectively.

#BRES Blencowe Resources PLC – Metallurgical Test Work Update

Larger sample confirms same high quality end product as previous metallurgical test work.

Highlights:

·   Blencowe successfully completes critical metallurgical test work on substantially up-scaled quantities of Orom-Cross composite mix, as per what was previously tested by SGS in Canada.

·    Results continue to highlight a high grade, low impurity concentrate can be delivered from Orom-Cross.

·    Duplication of bench scale testing results now completed through to bulk sample test stage.

·    Test work completed by leading Australian metallurgical test firm IMO.

·    Blencowe now has considerably more volume of end product to send to interested end users for testing.

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Northern Uganda has been completed by leading technical specialist firm IMO based in Perth, Australia. This work is critical to understanding the quality of the end-product that Orom-Cross can deliver as a high-grade graphite concentrate, as well as what the process flow will look like to achieve this on a pre-commercial scale.  It also provides significantly greater quantum of end product for end user testing which is critical for the Definitive Feasibility Study.

Blencowe appointed IMO to undertake metallurgical test work on material gathered from its drilling campaigns which covered both the Northern Syncline and Camp lode areas within Orom-Cross. The program was designed to deliver the following objectives:

1.  Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (Thorium and Vanadium).

2.    Confirm ~90% recovery is achievable for this concentrate.

3.  Confirm the liberation process in order to maintain a high percentage of Jumbo/XL/Large flakes within the concentrate.

4.    Confirm the process flow diagram for plant design as part of the Definitive Feasibility Study.

5.    Deliver bulk concentrate samples to allow Blencowe to initiate discussions with potential off-take partners.

Blencowe is pleased to announce that all 5 objectives have been met or exceeded in this latest round of test work.  Open cycle floatation testing produced recoveries between 90-92% and concentrate grades consistently range between 95-98% which are battery grade.

The additional metallurgical test work was commissioned to test the upgradeability of the bench scale test work completed by SGS in Lakefield. A total of 1,400kg was processed (as compared to 100kg within SGS test work) and all metallurgical test-work undertaken to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross.

A total of eight rougher and cleaner flotation tests were carried out on the Master composite that culminated in the flowsheet that is atypical of similar graphite projects.  The flowsheet consists of a flash and rougher flotation stage followed by a primary cleaning circuit with a polishing mill followed by three stages of cleaner flotation. The intermediate concentrate is classified and then further upgraded in secondary cleaning circuits with stirred media mills (SMM) followed by cleaner flotation.

The proposed flowsheet was employed in a continuous pilot operation to determine the metallurgical response under typical operating conditions. The final concentrate graded 96.4% C(t) at 90.6% total carbon recovery which exceeded the company’s expectations and places the end product recovered at the higher end of the spectrum in comparison to its peers. 

Test work was focussed on the 5 points above and not geared towards optimising the flake size fractions.  As the resultant splits using an unoptimised circuit are within 5% of the fractions as determined by the original SGS bench scale works there may be further incremental value to be added by optimising ahead. The key takeaway from these results is that the scaling factors in the metallurgical testing will likely replicate the original test work and results through to commercial scale production.

At the end of this larger scale metallurgical program, approximately 80kg of concentrate was produced (versus 5-8kgs from SGS in Canada) which will be forwarded to potential end-users and project partners for additional test work on screening splits and grade analysis, as well as suitability for further downstream processing of the concentrate.

The design of the processing plant will be based on both the SGS and IMO test-work and best practice in similar operations. Importantly, the process requires no primary crushing or grinding of the ore, thus preserving the larger flake sizes, which is a material advantage over hard-rock graphite deposits.

 

Executive Chairman Cameron Pearce commented:

“We are delighted with these IMO met test results as they not only continue to underpin Orom-Cross concentrate as high quality in all key areas relevant to end users but the test work has highlighted that we can now deliver these end results on a much greater scale of raw material as processed.  This is a key steps towards commercial stage production testing in a pilot plant facility.  It also highlights the potential to increase the percentage of the more valuable coarse flake products through further optimisation of the processing circuits and this will be considered in the next round of testing. 

This latest set of results sets us up nicely for the bulk sample trial we will be conducting on 100 tonnes of Orom-Cross composite in 1H 2023 and if these same results are produced from that exercise we will be largely pre-qualified in terms of end products delivered as concentrate.”

 

 

 

 

 

 

 

For further information please contact:

 

 Blencowe Resources Plc

 Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

Background

Orom-Cross Graphite Project

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger flakes within the deposit.

A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is moving into the Definitive Feasibility Study phase shortly as it drives towards first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

#POW Power Metal Resources PLC – New Lithium Project – Ontario, Canada

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the acquisition by staking of the 100% owned, North Wind Lithium Project (“North Wind” or the “Project”) located in Ontario, Canada.

The staking was completed through Power Metal’s wholly-owned Canadian subsidiary, Power Metal Resources Canada Inc (“Power Canada”).

HIGHLIGHTS:

· Following a detailed review of several publicly available provincial government geological databases and reports, Power Metal have staked a total of 5,788.5-hectares over a 16km long trend of highly anomalous lithium-in-lake sediment results.

· The North Wind Lithium Project is considered by the Company to be prospective for lithium (Li), caesium (Cs), and tantalum (Ta) (“LCT”) bearing pegmatite occurrences.

· The Project is ideally located less than 25km northwest of the town of Beardmore, Ontario, and is criss-crossed by multiple access roads which connect up to the Trans-Canada Highway located less than 40km away.

· This Project acquisition provides Power Metal Resources with a significant land holding which is prospective for LCT pegmatite occurrences within the stable and supportive mining jurisdiction of Ontario, Canada.

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

“The addition of the North Wind Lithium Project is a significant boost for Power Metal Resources as it provides the Company with a new and potentially high-impact lithium focused opportunity.

We consider that lithium as a commodity has a particularly bright future with high demand and constrained supply.  In fact, the significant move higher in the lithium price has sparked considerable interest in available exploration properties around the world, and particularly those in safe jurisdictions.

It was a great achievement that through painstaking work, the Power Metal technical team have been able to identify this new opportunity and secure it through staking, one of the most cost-effective ways to secure new interests.

Further updates will follow as we advance our knowledge and set out exploration plans for the North Wind Lithium Project.”

ADDITIONAL INFORMATION:

The Project is located within the Onaman-Tashota greenstone belt, where historical exploration has traditionally focused on precious and base-metals – however the geology, in a provincial Open File Report (the “Report”), determined that the belt was prospective for LCT pegmatite occurrences – the main source of ‘hard rock’ lithium worldwide. 1

Other lithium explorers and operators within the region include Imagine Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported historical non-compliant resource of 2,000,000 tonnes at 1.09% Li2O), located 50km to the south of North Wind and Green Technology Metals (ASX: GT1) with their flagship Seymour Project (which hosts a JORC compliant total Mineral Resource of 9.9Mt at 1.04% Li2O) located approximately 65km to the northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes. Highly anomalous lake sediment results (detailed further below) suggest that a zoned LCT pegmatite system may be present but has never been investigated. North Wind was identified through detailed research and analysis by the Power Metal Resources technical team, utilising over 600,000 individual lake sediment sample points collected by the Ontario Geological Survey (OGS), who also prepared selected recommendations for exploration which were presented in the Report 1. Based on this data as well as information contained within the Report; the area encompassing the North Wind Project was selected for the strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the Project includes:

· Seven instances of >99th percentile (with respect to regional data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with 34.95 ppm representing the 99.95th percentile result.

· Of those seven samples, six are >95th percentile for caesium (1.26 to 2.21 ppm Cs), with three >99th percentile (1.94 to 2.21 ppm Cs).

· The seven samples are also noted to be highly elevated in tantalum with results ranging between 0.6 and 0.9 ppm Ta.

The presence of anomalous, or highly elevated concentrations of lithium, caesium and tantalum from samples collected within the same water body suggest a nearby mineralised source, and therefore the Project represents a highly prospective target for LCT pegmatite occurrences.  Further desktop analysis is currently underway, with a comprehensive Phase I Field Sampling Programme planned in Q1-Q2, 2023.  

STAKING PROCESS:

A total of 278 Mining Claim cells were registered by electronic staking through the Ontario Mining Lands Administration System, covering a total area of 5,788.5-hectares for a total cost to the Company of CAD $13,900 (circa £8,500). The mining cells are 100% owned by Power Canada, a wholly owned subsidiary of Power Metal Resources plc. Each Mining Claim cell covers 20.82-hectares and has an annual exploration spend commitment of CAD$400 from year two onwards.  The Project therefore has a total exploration spend commitment of circa £68,000 by the end of year 2 and then annually onwards, in order to keep all 278 Mining Claim cells in good standing.

 

A map showing the outline of the property, basic geological information and lake sediment results is below:

Fig. 1: Plan Map of the North Wind Lithium Project and Surrounding Area.

 

QUALIFIED 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 Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

REFERENCE NOTES;

1: Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P., Pettigrew, T.K., 2019, Ontario Geological Survey Open File Report 6352, Report of Activities, 2018 Resident Geologist Program.

Power Metals Resources #POW – Kalahari Key Acquisition Complete – Power Metal Now Holds 87.71% Interest. Molopo Farms Drilling Update

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the completion of the transaction to increase the Company’s interest in Kalahari Key Mineral Exploration Pty Limited (“KKME” or “Kalahari Key”) further details of which were provided in the Company’s announcement of 3 November 2022 (the “Transaction”):

https://www.londonstockexchange.com/news-article/POW/kalahari-key-acquisition-drilling-update/15701532

Kalahari Key holds a 100% interest in the Molopo Farms Complex Project (the “Project”, “Molopo Farms”), where a large-scale nickel platinum-group metal (“PGM”) discovery is being targeted in southwestern Botswana.

HIGHLIGHTS:

§ Following completion of the Transaction, Power Metal now holds 87.71% of Kalahari Key and therefore the Molopo Farms Project.

§ The 2,600m diamond drill programme at Molopo Farms is progressing well with two holes now completed at target area T1-6, and the third drill hole in progress at target area T1-14.

§ At T1-14 the Company is testing an electromagnetic superconductor identified by a recently completed moving loop electromagnetic (MLEM) survey. The last reported depth from the drillhole in progress, DDH1-14B, was 345 metres.

§ Downhole geophysics is now complete on drill hole DDH1-6B from Target area T1-6, with the geophysics interpretation results expected shortly.

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

“Today’s confirmation that Power Metal has now completed the transaction and increased its interest in Molopo Farms to 87.71% is great news for the Company. My thanks to all involved in enabling this Transaction to happen so efficiently.

We have completed the Transaction whilst in the midst of the Molopo Farms drill programme where we are progressing well with the third drill hole targeting the superconductor at target area T1-14.

A further exploration update is expected to follow in the near term as we continue, what for Power Metal, is a particularly exciting drill programme.”

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc – Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal has multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company’s priority exploration projects is outlined in the table below.

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

Ground exploration programme complete at 3 properties.  Preliminary planning for work in Spring/Summer 2023 is ongoing.

Assay results from samples collected during fieldwork.

Molopo Farms

Botswana

87.71%

First 2 holes at T1-6 conductor target drilling complete. T1-14 first hole underway. Further MLEM surveys planned over additional AEM targets identified.

Drill programme updates and findings from further MLEM survey work.

Tati Project

Botswana

100%

RC drilling and sampling of mine dumps complete.

Mine dumps processing and project commercial and exploration next steps.

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.  These interests are summarised in the table below:

Company

Status/Operations

Link

First Class Metals PLC

Investment – POW 27.91%

Exploration in the Schreiber-Hemlo region of Ontario, Canada

www.firstclassmetalsplc.com

 

First Development Resources PLC

Planned IPO – POW 62.12%

Exploration in Western Australia and the Northern Territory of Australia

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Planned IPO – POW 83.13%

Exploration and development in Nevada, USA

www.goldenmetalresources.com

 

Kavango Resources PLC

Investment – POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22 and issue of Kavango shares e.g. financing announced 24.10.22)

Exploration in Botswana

www.kavangoresources.com

 

New Ballarat Gold PLC

Planned IPO – POW 49.9%

Exploration in the Victoria Goldfields of Australia

A new website is currently in development which will be found atwww.newballaratgoldcorp.com .

In the interim further information in respect of NBGC can be found at:

https://www.powermetalresources.com/project/victoria-goldfields/ .

 

Uranium Energy Exploration PLC

Planned IPO – POW on listing estimated 50-55%

Uranium exploration in the Athabasca region of Canada

www.uraniumenergyexploration.com

#POW Power Metal Resources – Tati Project Botswana Final Drill Assay Results

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces final results from the Company’s recently completed drilling programme on the 100% owned and operated Tati Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana.

Assay results from the first three holes which included the bonanza intercept 1m of 47.1g/t gold (“Au”) from 6m downhole depth in reverse circulation (“RC”) drillhole CHRC0003, were previously announced to the market on 3 November 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862

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

Tati is becoming a significant Project for Power Metal – with only 175m strike distance of an 8km long gold-in-soil anomaly drill tested and extensive high-grade gold confirmed from the RC drilling.

Naturally the 47.1g/t Au and 40.6g/t Au grades peak excitement, which they should, however more important is the continuity of gold mineralisation over the 175m strike drill tested thus far, which bodes well for the significant amount of the anomaly yet to be tested.  That drill testing is now a priority for Power Metal.

Complementing the extremely exciting gold exploration results we have to note the practical advantages of the Tati Project.

The gold mineralisation identified to date is near surface, significantly de-risking any mining proposition. And the Project is centred on the former working gold mine, Cherished Hope, with gold fines dumps available for processing at a local processing site, potentially generating revenue for further exploration and development of the Project.

The processing site for the fines dumps is located within 20 minutes by road from the Project, and clearly also presents an avenue for processing of gold from the newly discovered mineralised areas, subject to undertaking commercial agreements and local regulatory approvals.

All told the Tati Project is making major progress and the Company intends to accelerate its activity to undertake RC drilling to more fully test the very large Au-in-soil anomaly, prove up more extensive gold mineralisation and in parallel develop avenues for future gold production from the Project.”

Highlights:

–      A total of nine RC holes totalling 490m were completed at Tati as part of the August 2022 exploration programme – representing the first ever known drilling programme carried out on prospecting licence (“PL”) 049/2022. Complete assay results have now been received for the remaining 6 holes and are presented herein.

–      In addition to multiple high-grade gold intersections reported from the first three RC drillholes, significant near-surface dolerite and quartz reef hosted gold mineralisation was successfully intersected in 5 of the 6 remaining holes. Key down-hole intersections (>1g/t Au) include:

§ Hole CHRC0004

Ø 1m @ 1.36 g/t Au from surface

Ø 2m @ 1.81 g/t Au from 2m

Ø 1m @ 1.56 g/t Au from 5m

Ø 1m @ 2.53 g/t Au from 36m

§ Hole CHRC0005

Ø 1m @ 1.13 g/t Au from 22m

Ø 2m @ 1.78 g/t Au from 52m

§ Hole CHRC0006

Ø 2m @ 23.17 g/t Au from 25m, including

§ 1m @ 40.63 g/t Au from 26m

§ Hole CHRC0007

Ø 1m @ 4.80 g/t Au from 1m

Ø 2m @ 6.59 g/t from 5m, including

§ 1m @ 11.27g/t Au

Ø 1m @ 1.55 g/t from 13m

Ø 1m @ 11.16g/t from 54m

§ Hole CHRC0009

Ø 2m @ 2.11 g/t Au from 49m

–      Drilling intersections have confirmed gold mineralisation over a strike length of 175m, with mineralisation remaining open towards the northwest, southeast and downdip.

–      Significantly, the Q3 2022 drilling area is located along a major northwest-southeast oriented regional shear that is thought to be the control of gold mineralisation observed within the area.

–      Along this major regional shear is a coincident Au-in-soil anomaly that extends for a strike distance of approximately 8km, and which is located entirely within the 100%-owned Tati Project. The majority of this geochemical anomaly remains underexplored, with additional mineralisation identified by Power Metal circa 6.5km to the northwest including Q1 2022 RC drillhole TGRC00017 which returned 3m of 5.17g/t Au from 9m 1, as well as the undrilled GoldSource Zone where rock sampling of a northwest-southeast oriented quartz reef returned up to 26.5g/t Au 2.

FURTHER INFORMATION

Figure 1 – Tati Project Overview Plan Map:

Figure 2 – Tati Project Q3 Drilling Area Zoomed Plan Map:

The maps presented above will also be uploaded to the Tati Project page on the Company’s website found at the link below:

Tati Greenstone Belt

One metre RC chip samples were riffle split and sent for analysis by Intertek Genalysis in Perth Western Australia, by 50g fire assay with inductively coupled plasma mass spectrometry (ICP-MS) analysis (method FA50/MS). High grade samples were additionally analysed by 50g fire assay with inductively coupled plasma optical emission spectroscopy (ICP-OES) (method FA50/OE).  Significant assay results are presented in Table 1, drill collar locations are set out in Table 2.

Table 1: Full Assay Results for Downhole Intersections >1g/t Au

Hole ID

From (m)

To (m)

Interval (m)

Au (ppb)

Au (g/t)*

Note

CHRC0001

21

22

1

2,154

24

25

1

1,344

33

34

1

12,490

10.2

CHRC0002

10

15

5

N/A

Mined out void

15

16

1

5,572

CHRC0003

0

1

1

1,816

1

2

1

1,261

5

6

1

1,251

6

7

1

44,821

47.1

7

8

1

1,360

CHRC0004

0

1

1

1,362

2

3

1

1,911

3

4

1

1,716

5

6

1

1,560

36

37

1

2,377

2.526

37

39

2

 

 

Mined out, poor return

CHRC0005

22

23

1

1,155

1.13

52

53

1

1,262

53

54

1

2,641

2.296

CHRC0006

25

26

1

8,761

5.721

26

27

1

41,037

40.625

CHRC0007

1

2

1

1,546

4.802

5

6

1

1,762

1.915

6

7

1

10,933

11.272

13

14

1

1,695

1.546

54

55

1

12,166

11.157

CHRC0008

No Significant Values

CHRC0009

49

50

1

2,514

 

50

51

1

2,608

1.707

*Overlimit assay analysed via Intertek Genalysis FA50/OE (50g Fire-Assay)

Table 2: Tati 2022 Drill Programme Collar Table

Drill Hole ID

Dip

Azimuth

Depth (m)

Northing*

Easting*

CHRC0001

45°

28°

40

564875

7650896

CHRC0002

45°

35°

30

564856

7650925

CHRC0003

45°

31°

30

564842

7650942

CHRC0004

45°

35°

60

564818

7650929

CHRC0005

45°

52°

80

564797

7650937

CHRC0006

45°

44°

50

564798

7650936

CHRC0007

45°

44°

70

564772

7650950

CHRC0008

45°

35°

30

564748

7650986

CHRC0009

45°

48°

100

564744

7650958

* Projection: UTM Zone 35S WGS84

Reference Notes

1.             Company announcement, Tati Project Botswana – Drill Programme Results, 4 April 2022

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w9klmer )

 

2.            Company announcement, Tati Project Botswana – Large Scale Gold Anomaly Confirmed, 14 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w6pve9x )

 

QUALIFIED 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 Qualified Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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