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Power Metal Resources #POW – Exercise of Ontario Options – Magical and Enable Properties

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire both the Magical Property (“Magical”) and Enable Property (“Enable” together the “Properties”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.

These are the final two of four gold exploration properties upon which the Company signed an exclusive option to acquire a 100% interest (as announced 26 January 2021) and follows the McKellar option exercise and the Coco East option exercise which were announced on 18th and  24th February 2021 respectively.

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

“The exercise of our options over the Magical and Enable properties concludes Power Metals’ current acquisition strategy over the Schreiber-Hemlo Greenstone Belt in Ontario. Power’s portfolio of exploration properties provides us the opportunity to build value, within a 120km strike length, of a prolific exploration belt.

We will now commence a phase of desk-based remote sensing targeting and exploration planning with a view to being in a position to initiate ground reconnaissance and target follow-up work after the snow thaw.  We look forward to providing further updates as plans progress.”

MAGICAL PROPERTY OVERVIEW

–  Magical is located 9km northwest of Barrick Gold Corporation’s Hemlo Mine which has produced more than 21Moz gold and has been operating continuously for more than 30 years1.

–  The property is located upon the North Limb of the Schreiber-Hemlo Greenstone Belt, the property is located at the prospective contact between the intrusive Gowan Lake Pluton and metavolcanic/metasedimentary rock packages, with a similar geological setting to the Hemlo deposit. Magical offers potential for orogenic style gold mineralisation.

–  The regional geophysics data shows a north trending regional scale magnetic structure intersects the intrusion within the centre of the property, defining a preliminary target for investigation.

–  Magical is largely unexplored apart from the easternmost Claim cell where, in 1995, Hemlo Gold Mines Inc drilled an induced polarisation (“IP”) geophysics anomaly. Diamond drill hole V95-2 reportedly intersected a 7m zone of silicification containing sericite and sulphides and 12.6m of feldspar porphyry with disseminated pyrite. 

–  Magical directly abuts and covers the westward strike extension of the Canadian listed junior Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property2 .

MAGICAL CLAIM STATUS

–  The Magical property consists of a total of 14 Single Cell Mining Claims (“Claims”) covering an area of circa 3.0km2.

–  Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. For renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,145) prior to the individual Claim renewal dates. 

ENABLE PROPERTY OVERVIEW

–  The Enable property is located on the western part of the Schreiber-Hemlo Greenstone Belt, at the contact of metavolcanic and volcano-sedimentary rock packages with the Terrace Bay Batholith. 

–  On a regional scale the Terrace Bay Batholith contact is spatially associated with at least 28 documented gold showings including the Northshore Property which has historical resources of 1.2Moz Au3. Northshore has recently been subject to open pit mining studies and is currently held by Canadian Securities Exchange listed Ready Set Gold Corp. (CSE:RDY).

–  Overburden cover has been attributed to the reason the Enable portion of the batholith contact remains unexplored. This presents an opportunity to discover new gold mineralisation utilising modern exploration technologies.

–  Access to the property is good, being 4km north of the town and railway stop of Terrace Bay and with the Trans-Canada Highway running within 200m of the eastern boundary. The centre of the property is crossed by a public highway with logging roads and a lake providing access to the western part of the property.

ENABLE CLAIM STATUS

–  The Enable property consists of a total of 41 Claims covering an area of circa 8.7km2.

–  Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. For renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,210) prior to the individual Claim renewal dates.

ACQUISITION TERMS

The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.

In exercising the Option to acquire a 100% interest in the Magical and Enable properties POW will make the following cash and equity consideration:

Property Name

Cash (CAD$)

POW Shares (CAD$)

Note: POW Acquisition Shares to be issued

Total Consideration

(CAD$)

Magical

20,000

20,000

384,000

40,000

Enable

30,000

30,000

576,000

60,000

The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).   The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.

The Vendors retain a 2% net smelter royalty (“NSR”) on each property, Power Metal may purchase 1% of each NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.

The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities. 

EXPLORATION PLAN

–  Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of the properties. 

–  Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

–  The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.

Admission and Total Voting Rights

Application will be made for the 960,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 4 March 2021 (“Admission”). The Acquisition 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 1,136,877,930 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.

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.

Reference Sources

1: Barrick Gold Corporation, Hemlo Project webpage:  https://www.barrick.com/English/operations/hemlo/default.aspx

2: Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property webpage: https://hemloexplorers.ca/projects/hemlo-north-limb/overview/  

3: Mineral resource estimate: Technical Report on the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada with an effective date of 28 April 2014, by Giroux Consultants Ltd. and Minorex Consulting Limited.

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Exercise of Ontario Option – Coco East Property

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire the Coco East Property (“Coco East” or the “Property”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.

Coco East is the second of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest, (the “Option”) (as announced 26 January 2021) and follows the McKellar option exercise which was announced 18 February 2021.

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

“Exercising the Option over the Coco East Property further strengthens Power Metals’ landholding in Ontario, following directly on from the acquisition of the McKellar Property which was announced last week. 

Coco East is sited upon the eastern end of the Big Duck Lake Porphyry intrusive which is associated with over twenty known gold and/or base metal occurrences including significant gold intersections which were drilled in a neighbouring property during 2017. The property is also directly east of Superior Lake Resources’ Pick Lake / Winston Lake Zinc Project which is currently advancing towards a high grade zinc mine restart.

We are continuing our due diligence review of the remaining two option properties and will provide a further update in due course.” 

COCO EAST PROPERTY OVERVIEW

  • Located upon the Schreiber-Hemlo Greenstone Belt, Coco East sits at the eastern end of a 4.5km long by 1km wide quartz feldspar porphyry intrusion (the ‘Big Duck Lake Porphyry’) that can be associated with up to twenty-two known gold and/or base metal occurrences.
  • Geology of the property consists of  intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (“VMS”) style copper-lead-zinc-silver mineralisation.
  • Regional magnetics survey data shows distinct areas of interest within the property including magnetic highs associated with the eastern end of the Big Duck Porphyry and magnetic ridges which may be indicative of structural faulting and deformation associated with the intrusive event.
  • Located approximately 3.5km east of the Coco-Estelle Deposit where diamond drilling during 2017 intersected significant intervals of gold mineralisation including 11m @ 1.96g/t Au from 42m and  5m @ 5.9g/t Au from 63m.1  This is part of the Big Duck Project held by Canada listed CBLT Inc (TSX-V:CBLT) which abuts the Coco western boundary.
  • Also 8.4km east of Australian listed Superior Lake Resources (ASX:SUP) high-grade Pick Lake / Winston Lake Zinc Project which has a Resource of 2.35 Mt at 17.7% Zn, 0.9% Cu, 0.38 g/t Au and 34 g/t Ag and for which a mine re-start Bankable Feasibility Study was published in August 2019. 2
  • Three historical drill holes are known to exist within the centre the property (on three Claims), these were drilled by Falconbridge Copper Corporation in 1984. Drill hole BD6 is reported to have assayed up to 1.74g/t Au although the exact nature of this intersection has yet to be verified by obtaining the historical core logs.  The remainder of the property is considered under explored.
  • Situated approximately 20 km due north of the town of Schreiber, Ontario on the Trans-Canada highway. Access to the property is via an old logging road and all-terrain vehicle (“ATV”) trails. Big Duck Lake is located on the western side of the property.

COCO EAST CLAIM STATUS

–  Consists of a total of 30 Single Cell Mining Claims (“Claims”) covering a total area of circa 6.4km2. 

–  Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. For renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the individual Claim renewal dates. 

ACQUISITION TERMS

The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.

In exercising the Option to acquire a 100% interest in the Coco East Property POW will make the following cash and equity consideration:

Property Name

Cash (CAD$)

POW Shares (CAD$)

Note: POW Acquisition Shares to be issued

Total Consideration

(CAD$)

Coco East

30,000

30,000

576,000

60,000

The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).  The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.

The Vendors retain a 2% net smelter royalty (“NSR”) on Coco East,  Power Metal may purchase 1% of the NSR, at any time, by making a cash payment to the Vendors of CAD$500,000. 

The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.

EXPLORATION PLAN

–    Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of Coco East.

–    Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

–   The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.

Admission And Total Voting Rights

Application will be made for the 576,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 2 March 2021 (“Admission”). The Acquisition 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 1,133,718,730 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.

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.

Reference Sources

1: GTA Resources and Mining Inc announcement, 29 January 2018 https://www.gtaresources.com/assets/jan-29-2018-big-duck-final-re-run-gold-sample.pdf

2: Superior Lake Resources Pick Lake / Winston Lake Zinc Project: https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Identification of additional visible sulphides deeper in hole KKME 1-6 gives further encouraging signals to the prospect of discovering significant mineralisation within the Molopo Farms Complex.

So far we are encouraged by the indications from core logging, and await assay results and mineralogical studies to confirm the sulphide minerals present. To be absolutely clear we make no assumption as to which sulphide minerals are present and await the assay results, and those results will likely guide the next exploration steps.

The identification of up to 14 new targets for ground exploration in the feeder zone from the Aster Mapping also adds to the evidence of district scale prospectivity.

Substantial new data continues to be generated on a relatively untested environment, advancing a journey of discovery in a geological setting where there is the clear potential for large scale metal deposits.”

Highlights:

  • The second diamond drill hole at the MFC Project, KKME 1-6, has been continued from 547m to a  final depth of 598 metres in ultramafic rocks.  The extra hole depth will provide further core from the geophysical target depth and will assist in further geophysical interpretation.
  • Core from KKME 1-6 and from the first drill hole at KKME 1-14 has been transported to Lobatse where it is being cut by the Botswana Geoscience Institute. Selected half core samples will be sent to a South African assay laboratory for base and precious metal analysis, this week. 
  • Logging KKME 1-6 cut core has identified disseminated sulphide mineralisation below 500m drill hole depth, notably in the section marked as a target by the geophysics. This is further to disseminated sulphide mineralisation identified around 308-313m drill hole depth from the initial KKME 1-6 core inspection (announced 11 January 2021). 
  • An agreement has been signed with the University of Witwatersrand in Johannesburg and selected quarter core samples will be sent to the University’s Geology Department this week for mineralogical and thin section analysis. 
  • A report received from Aster Funds Ltd (“Aster”) based in Toronto entitled ‘Satellite-Based Long Wave Infrared (LWIR), Short Wave Infrared (SWIR) and Synthetic Aperture Radar (SAR) Mapping, Molopo Farms Exploration Licences has identified about 14 new targets in the feeder zone, with priority targets recommended to be ranked for follow-up ground exploration.
  • Down-hole geophysics data is expected to be acquired in the next phase of the current programme, this should help identify any massive sulphide mineralisation proximal to the  disseminated sulphides encountered at around 308-313m drill hole depth and below 500m drill hole depth, in angled hole KKME 1-6.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$392,641 leaving a balance remaining of US$107,359 (approximately £76,801) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.  Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect 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.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m.  The hole was completed safely and securely and achieved near 100% core recovery. 

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 supports the geological proposition that the geology at Molopo Farm is that of a feeder zone.

DRILL HOLE KKME 1-6

Hole KKME 1-6, the second hole, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION

Kalahari Key have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing Kalahari Key airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement Kalahari Key’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three Kalahari Key Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016). 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling programme update, visible sulphides noted during core-logging process

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana. 

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“The identification of visible sulphides during the geological core-logging process for hole KKME 1-6 is a potentially significant development, subject of course to assay testing of samples, opening up the potential for PGM mineralisation besides the base metals originally targeted.

We are now in the midst of an extensive technical review of the entire licence areas with a particular focus around the first two drill holes. This will further refine our present targets and generate new targets for the remainder of the drill programme.

It is worth noting that the Molopo Project drill programme is an immense exercise and already we have over 1,000 metres of core to examine and process.  The size and scale of this exercise is matched only by the hard work and determination of the team in the field, for which I am particularly grateful.

I look forward to providing further updates as further material developments occur.”    

Highlights:

  • Following the successful drilling of the first two diamond drill holes (KKME 1-14 and 1-6), to their initial target depth, as previously announced, an extensive technical review is currently underway at the Molopo Farms Complex project.
  • Initial geological core-logging by KKME’s consulting geologist has identified 4.4 metres of ultramafic rocks with finely disseminated sulphides in angled hole KKME 1-6 at approximately 270m vertical depth.
  • The setting of this sulphide intersection is consistent with KKME’s geological model and suggests prospectivity for platinum group metals as well as base metals. The core will now be split to allow  more detailed examination of the mineralogy prior to dispatch for assay.
  • Assay testing of core samples from both drill holes including specifically the above intersection is to be undertaken at an accredited laboratory in South Africa.
  • The deepening of drill hole KKME 1-6 from 547 metres to circa 600-650 metres hole depth is set to commence in the week commencing 11 January 2021.
  • Downhole geophysics field work and interpretation for the two holes drilled to date is expected to be completed by the end of January.
  • Detailed data is also under review in respect of KKME’s engagement of Aster Funds Ltd and Bell Geospace Ltd to integrate innovative exploration survey and processing techniques with the existing KKME airborne, Natural Field Audio Magneto Telluric (“AMT”) ground and downhole geophysical datasets.  This should accelerate and refine the exploration targeting process for future drill testing.
  • Following consideration of the extensive data collected from the technical review work, KKME will determine the optimal locations for the two remaining planned drill holes and specific mineralisation targets.
  • Reflecting the above technical review process and the additional work to be undertaken including diamond drilling, the formal earn-in period (taking Power metal to a 40% Project level interest) has been amended with the mutual agreement of Power Metal and KKME, to the period ending 30 April 2021.  This will allow adequate time for the receipt and payment of invoices relating to the earn-in exploration activities.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.  Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect 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.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m.  The hole was completed safely and securely and achieved near 100% core recovery. 

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 successfully confirmed the geological proposition that the geology at Molopo Farm is that of a feeder zone.  

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole with a current end of hole depth of 547.4m (to be deepened to circa 600-650m). The hole was originally designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION TECHNICAL FOLLOW UP WORK

KKME have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing KKME airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement KKME’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three KKME Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016). 

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

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling programme update, conductive targets intersected at 2nd hole

Power Metal Resources plc (LON:POW) the AIM listed African focused metals exploration and development company is pleased to provide a further update on the recently completed second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Re-analysis has been undertaken of the airborne electromagnetic (“AEM”) conductivity depth sections on hole 1-6, and of the ground geophysics results interpreted by superconducting quantum interference device (“SQUID”), in the light of preliminary assessment of the drill core. 

This re-analysis has resulted in the following main conclusions:

• The AEM indicates an arched shape geophysical conductive anomaly, possibly close to flat-lying and with a depth to anomaly top of over 200m. 

• Drill hole 1-6 intersected this conductor and the source may be the sheared and serpentinised ultramafic rock encountered in the drill core, however there can be no certainty of this until full core analysis, including a review of mineralogy, has been undertaken.

• The AEM itself would not have penetrated a conductor below this observed conductor however the SQUID survey would have penetrated to any lower conductor but its signal will have been distorted by the shallower conductor, influencing the plate modelling results.

• Samples are to be assayed from a number of the 26 major cyclically layered ultramafic rock units intersected, including the units comprising the geophysical conductor zone.

• In addition, the hole is to be deepened to 600-650m as recommended by KKME’s geophysicist on both geological and geophysical grounds.

• Deepening of the hole will be undertaken when the drill team return from their Christmas break in January 2021.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“The confirmation from our consultants that we have intersected at least one conductive target in the over 500 metres of ultramafic rock through which we drilled in the second hole of our programme is most encouraging news.

Detailed logging and analysis of the core will continue, and further sections of interest may be identified in the 26 major units intersected. We are told that with ultramafic rock in this area it is difficult to see sulphides on the core surface, and easier on a cut surface, so there remains work to be done to determine metal content.

We now know that we should look deeper for a further significant target and that additional drilling work will start after the Christmas break. The drill has been left in place aligned with the hole.

We will provide further updates as material developments occur.”   

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 by 31 January 2021, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.  Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect 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.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme with a current end of hole depth of 547m (to be deepened as outlined above). The hole was originally designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling update – second hole successfully completed plus two new collaborations

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the completion of the second diamond drill hole (KKME 1-6) and the signing of  geophysics collaboration agreements, at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

UPDATES

  • Drill hole (KKME 1-6) which is the second hole of a planned four-hole programme, has completed successfully to a depth of 547 metres.
  • Ultramafic rocks were intersected immediately beneath the Kalahari Group sediments at 27m and continue to the end of hole, a total down hole ultramafic intercept of approximately 520m. Preliminary inspection of the core shows indications of possible cyclic layering within the ultramafics.
  • Two shear zones were intercepted by the drilling, at 501m and 515m respectively.  The hole will be surveyed with a downhole electromagnetic geophysics probe (“Downhole EM”)  to determine whether the conductive target interpreted from the surface deep penetrating anisotropic magnetic susceptibility (“AMT”) geophysics survey is related to these shears or whether a conductive body could be located beyond the current end of hole.
  • Core from the drill hole will now undergo detailed geological logging with selected core samples to be sent for both nickel and PGM assay at an accredited laboratory. The third drill hole will commence when the drilling team return from their scheduled December Christmas break.
  • KKME have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing KKME airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.
  • AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement KKME’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.
  • The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three KKME Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016).

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“We are pleased with progress at Molopo Farms Complex in Botswana where the second drill hole has intersected 520 metres of ultramafic rock. 

Results from the second drill hole continue to demonstrate the target geological model of an intrusive feeder zone which is a prospective setting for nickel and PGM mineralisation.

We are also excited to report that Kalahari Key has signed collaboration agreements with two companies which are at the cutting-edge of remote sensing and data processing for exploration targeting. 

These collaborations have the potential to provide valuable insight and efficiencies into the exploration process proving supplementary high resolution targeting over the extensive Molopo Farms Complex licences.

Drilling for the remaining two drill targets will recommence after the Christmas break and in the interim the extensive technical work in relation to the first two completed holes continues.  We will provide further updates as material developments occur.” 

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 by 31 January 2021, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect 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.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme with an end of hole depth of 547 m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling update – first & second holes have potential to host nickel and PGMs

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drilling update for the second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

  • The second exploration drill hole KKME 1-6 commenced on 19 November 2020 and intersected serpentinised ultramafic rocks at about 27m immediately beneath Kalahari Group sediments.
  • By end of day on 27 November 2020, the drill hole had reached a depth of about 286m and has continuously intersected ultramafic rocks comprising mostly serpentinite after dunite or harzburgite.  The rock is very altered to about 115m and generally quite sheared and fractured throughout, however the drilling team have been able to maintain near 100% core recovery.
  • Preliminary inspection of the core from the lower part of the hole shows indications of possible cyclic layering within the intrusive ultramafic rocks.
  • Geological logging of the core indicates a shear/feeder zone setting and samples including from the prospective layering features will be analysed for both nickel and PGMs.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Further significant progress has been achieved with the geological model of the feeder zone being demonstrated through the core from the first and second holes.

The first hole produced 167 metres of ultramafic rock and this second hole has already produced about 260 metres of ultramafic rock, which has potential to host nickel and PGMs, and will be subject to assay testing.

After a short weekend break the drilling team will now continue the hole down to target depth of circa 500 metres.” 

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

The original Earn-in period was to 31.12.20 however Power Metal and Kalahari Key have mutually agreed to extend this to 31.1.21 as some drill programme activities and invoices relating thereto and requiring payment may not be received until early in 2021.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect 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.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.

This second drill collar is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Botswana Molopo Farms Complex – Second Diamond Drill Hole Commences

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of the second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

  • The second hole (KKME 1-6) of a planned 2,505 metre four-hole programme commenced diamond drilling yesterday.
  • Hole KKME 1-6 is inclined at 60 degrees and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.
  • This second drill collar is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.
  • The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.
  • An analysis of data from agricultural water boreholes in the vicinity shows that serpentinite ultramafic units can be expected directly under the Kalahari cover in this area.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“I am pleased to report the second exploration hole, KKME 1-6, to test conductive targets within theMolopo Farms Complex feeder zone has now commenced.

This hole is designed to test Target 1-6 a conductive geophysical body within the Tshepo (Hope) Central Target Area, approximately 20km WSW of the previous hole KKME 1-14, which is located in the project’s Chipo (Gift) Northern Target Area.

We look forward to sharing further findings in due course.” 

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 (the “Drill Programme”). On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect 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.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide a drilling update confirming completion of the first hole (KKME 1-14) at the Kalahari Key Mineral Exploration Pty Ltd (“KKME”) Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

  • The first hole (KKME 1-14) of a planned 2,505 metre four-hole programme has been completed successfully and achieved target depth of 520 metres with near 100% core recovery.
  • The suite of rocks encountered in KKME 1-14 has successfully confirmed the proposition that the geology at the MFC Project is that of a feeder zone.
  • About 167 metres of ultramafic rock, a potential host for PGMs and nickel, has been encountered below an altered contact around 41 metres down hole. Samples to be prepared and assay tested.
  • Downhole geophysics to be undertaken at the end of hole to identify and clarify the conductive structures around and below the 520 metre hole depth.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented: “I am extremely pleased to report the programme has got off to a great start with successful completion of the first exploration hole KKME 1-14 down to the planned depth of 520m.

For the MFC Project we have successfully and significantly validated the geological proposition that the geology at the Project is that of a feeder zone.

We have some important work to undertake utilising the core from KKME 1-14 which includes field-based core review and sample preparation for assay testing. We are also to undertake downhole geophysics shortly to confirm the conductive structures at depth.

Whilst the analysis of the core and down hole geophysics is being carried out at KKME 1-14, and to keep the programme running efficiently, we will now move the drill rig to the second hole location where drilling is expected to commence imminently. Further details on this to follow shortly.

In summary, we are now full thrust into the MFC Project programme, and are already many steps forward from just a few weeks ago.  We have validated the geological model, successfully completed our first drill hole and have core from the 520m hole which we are now examining and will be testing.” 

DRILL PROGRAMME FURTHER INFORMATION

  • The first drill hole KKME 1-14 at the MFC Project has now attained a target depth of 520m.  The hole was completed safely and securely and has achieved near 100% core recovery.
  • KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion. (The next two holes are planned to intersect the same zone within the main part of the intrusion.)
  • KKME 1-14 has successfully confirmed the geological proposition that the geology at Molopo Farm is that of a feeder zone.  In addition, the hole appears to confirm the geophysical modelling, with some precision in the identification of conductors at depth.
  • The drill core is now the subject of field-based analysis and after cutting and visual inspection, samples will be prepared for assay testing at an accredited laboratory in South Africa.  In addition, thin sections of rock will be taken for petrographic analysis.
  • The assay testing will confirm the composition of the drill core and metal content.  The petrographic analysis is an in-depth investigation of the chemical and physical features of the rock which will add considerably to our geological understanding of the area.
  • The drilling has confirmed the presence of ultramafic rocks of the Molopo Farms Complex along the Jwaneng-Makopong Shear/Feeder zone.
  • The outcome of the drilling includes the discovery of a serpentinite intrusion into the Transvaal strata.  This intrusion comprises 167 metres of ultramafic serpentinite in the drill core (the planned petrographic and chemical analysis of the core will allow a more exact lithological description).
  • The ultramafic serpentinite extended from 41m to 208m (with the top 20m highly weathered) within the drill hole.  Serpentinite is a potential host rock for PGMs and nickel and therefore the rock will be subject to assay testing.
  • The hole finished after passing through 25m of pyritic and graphitic mudstones from around 480m to 505m which could be the conductor identified from geophysical work or could overlie it.
  • The graphitic and iron sulphide mudstones (“Mudstones”) encountered towards the bottom of the hole died out with depth, while the geophysics carried out before drilling indicated an anomaly stronger with depth.
  • Moreover, the Mudstones should be a continuous unit (at the base of the Segwagwa Group) and yet the geophysical conductor target appears to be more confined.
  • As a result further investigation is required to confirm or eliminate the presence of other conductive structures around or below the end of hole.
  • A down-hole geophysical probe is now being deployed into the first hole to gather additional deep-seated data to supplement the surface derived Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysical modelling.
  • The down-hole geophysics work will detect any other conductive structures for 300m around and below the drill hole. This will provide detailed and more precise data to help identify the location of any other conductive structures that should be targeted with further drilling.
  • Should the geophysical probe results and modelling show the presence of a significant conductor below the current end of hole, we have the option of reinstating the rig to extend or deviate the hole.
  • Whilst analysis work is undertaken at KKME 1-14 and to ensure programme continuity we are making preparations to move the drill rig to the second drill hole location out of a planned four-hole programme at the MFC Project and further information in respect of this drill target will be provided shortly.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently 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 (the “Drill Programme”). On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect 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.

FINANCING OF THE EARN-IN

In respect of the US$500,000 Earn-in spend Power Metal has to date sent cash payments for initial expenses of US$133,641 to Kalahari Key, leaving a balance of US$366,359 (approximately £278,000) remaining.

This balancing amount is fully funded and covered by Power Metal existing working capital comprising cash and listed investments which as at 13 November 2020 was approximately £1,734,000.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – First Drill Hole at Molopo Farms Complex Identifies Possible Massive Sulphide Mineralisation

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide a drilling progress update on the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal 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.

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“We are pleased to provide a drilling update for our first drill hole 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 drill hole has now reached a depth of 445m and is now approaching the start of the target zone and the upper edge of the geophysically  modelled conductive body at around 505m depth.

As this is the first hole on the project into unknown geology the drilling has been proceeding cautiously to maintain the 100% core recovery, but with the rig now expected to average around 30m/shift we expect the hole to reach the start of the conductive target within the next few days.

We look forward to providing further updates as the programme progresses.”

DRILLING HIGHLIGHTS:

  • Drill Hole 1 at the MFC Project has now attained a depth of 445m at end of shift on Tuesday 10th November. As the hole has deepened the drilling has been proceeding cautiously as it is the first hole of the project and the drilling team are getting accustomed to the ground conditions whilst continually achieving 100% core recovery.
  • Hole 1 is now approaching the start of the target zone and should reach the upper side of the modelled Target 1-14 conductor at a depth of  approximately 505m, within the next few days.
  • In addition to recovering core samples from the target zone for assay at an accredited laboratory, the drill hole will be used by a down-hole geophysical probe which will gather additional deep-seated data to supplement the surface derived Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysical modelling.
  • The downhole geophysics should enable the conductive target model to be refined and will help determine whether the drill hole could be extended or deviated to gather more data.

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 prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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