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Clean Energy Metals – Dealing with the Supply Squeeze

#TM1- Technology Minerals

 

Clean Energy Metals – Dealing with the Supply Squeeze

Critical window of opportunity to create a circular ecosystem for battery metals

The failure of national governments to reach a major agreement at the COP27 Summit this year underlined the difficulty and urgency in reaching net zero. The lack of progress from the governmental side means that it falls to the private sector to provide meaningful solutions. Resource efficiency, energy, and mobility transition are crucial strategies to mitigate climate change. The focus is on reducing the consumption of resources, especially energy and raw materials.

While raw materials are the basis of our material world, their excessive consumption over recent decades has also contributed significantly to climate change. However, raw materials, and, in this case, especially metals, play a key enabling role for climate protection technologies, such as electro mobility, the hydrogen economy, and solar and wind power plants, and also for digitalisation. It is now vital to make the use of raw materials much more resource-efficient and to use them as purposefully as possible.

Source: https://link.springer.com/article/10.1007/s13563-022-00319-1

Source: https://www.alliedmarketresearch.com/battery-recycling-market

There is overwhelming evidence to show that advanced circular economy systems and sophisticated recycling technologies can build the backbone for the development of a resource efficient and sustainable society. Closed metal cycles are a key part of this equation, securing relevant parts of the raw material supply for high-tech products and reducing CO2 emissions in their production at the same time.

Many mineral-producing countries that supply critical minerals are politically unstable, making them risky to invest in and to rely on as a source. This underscores the importance of developing sources of domestic supply, which offers greater political stability, greater safety for workers, and can provide a pipeline of young talent. These provide a foundation for the sector to build innovative solutions in response to the demands of the green transition.

The sources of many critical minerals for energy use are much less diversified than for hydrocarbons and sometimes concentrated in geographies that are highly problematic from an environmental and social perspective, such the Congo. The Congo accounts for almost 80% of the global supply of cobalt, much of which comes from so called ‘artisanal mining’ with its attendant exploitative labour conditions and environmental degradation.

 

The Delivery Challenge

To deliver on the green revolution and minimise emissions that contribute to climate change, industries will need access to significant quantities of critical minerals.

If you can’t make it or grow it, you have to mine it, so there will be an inevitable growth in the mining of critical raw materials, such as lithium-containing minerals. Source: https://britishlithium.co.uk/lithium-market/

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

The production of lithium in 2030 will need to be 60 times the market size of 2015, if production of the internal combustion engine becomes a reality within the 2030 to 2035 timescale. Electric vehicles are the primary driver of lithium demand and given lithium’s unique properties of light weight and high energy storage potential, it is highly likely to remain the material of choice in non-stationary batteries, whether in wet electrolyte or solid-state form.

The sustainable supply of the battery metals cobalt, nickel, lithium, manganese, and copper is a decisive factor for the success of electro mobility. Given the current global availability of resources and the imminent tsunamic surge in demand to sustain surging production levels recycling and reuse of batteries represents an increasingly important component of the future raw material supply. An effective circular economy for batteries can only be achieved if—in contrast to the current situation with many consumer goods — spent batteries can be fed into a comprehensive, technically advanced recycling network to re-enter the supply chain.

 

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

A London listed company Technology Minerals (LON: TM1) is seeking to meet these challenges head on. Billed as the UK’s first stock market listed ‘circular economy’ company, Technology Minerals combines a fast-growing lead acid and lithium-ion battery recycling network through its wholly owned subsidiary Recyclus Group with a series of battery metal mining projects sited strategically around the globe. Technology Minerals Chairman Robin Brundle explains: “The strategy of Technology Minerals is to build out its IP protected battery processing capacity in Europe while evaluating its portfolio of early-stage critical minerals projects. The current European market for Li-ion and lead-acid batteries totals 1.2mte pa of which some 72% are lead-acid and of which the automotive market consumes 70%. Within automotive, Li-ion currently accounts for just 10% but that is set to grow exponentially in line with increased EV penetration.”

The global recycling batteries market size was valued at $11.1 billion in 2020 and is expected to reach to $66.6 billion by 2030.

While EVs don’t emit CO2, lithium-ion batteries are made from raw materials, including lithium, cobalt, and nickel. With the coming supply squeeze, the mining of many of these materials can also raise ethical and environmental concerns.

Currently, there are very few lithium-ion battery recycling centres, due in part to lithium-ion batteries being both costly and difficult to recycle. According to some estimates, the current recycle rate is less than 5%. According to a recent Wired article, “While you can re-use most parts in EVs, the batteries aren’t designed to be recycled or reused.” And if the batteries are disposed into landfill sites, the battery metals can contaminate both water and soil.

Source: https://www.alliedmarketresearch.com/battery-recycling-market

 

The Size of the Problem

  • Global stock of electric vehicles (EVs) could reach 245 million units by 2030, according to the International Energy Agency.
  • While EVs emit less CO2, their batteries are tough to recycle.
  • Ming cobalt, lithium, and nickel can raise ethical and environmental concerns.
  • Creating a circular supply chain by recycling the batteries’ raw materials will be vital in reducing their environmental impact.

Source: https://www.weforum.org/agenda/2021/05/electric-vehicle-battery-recycling-circular-economy/

Lithium-ion batteries are also used for 90% of grid energy storage around the world, especially for wind and solar energy. Initiatives such as the EU’s plan to reduce its dependence on Russian natural gas by two-thirds, which relies in part on accelerated generation of renewable energy, will significantly increase demand for battery storage.

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

The sustainable supply of battery metals such as lithium, cobalt, nickel, manganese, and copper is a decisive factor for the success of electro mobility and clean technologies. The current targets set by governments at home and abroad for the switch to EVs and clean technology leaves recycling and reuse of batteries as the only practical step available to meet demand based on current forecasts for sourcing new battery metal production hubs. This circular economy for batteries can only be realised if—in contrast to the current situation with many consumer goods—there is a global network to collect spent batteries allied to large scale, high-quality recycling facilities.

 

Does the UK offer practical battery metal / clean-tech project opportunities?

Accelerating the shift to zero-emission vehicles is a key element if the 68% reduction in carbon emissions targeted by the Government by 2030 is to be achieved. The UK’s EV market is growing rapidly, with EV registrations increasing by approximately 173% from 2019 to 2020.

Current projections state that approximately 1.4 million EV battery packs will be coming to the end of their “useful life” every year by 2040. This roughly equates to 203,000 tons of batteries for recycling annually (based on a 60% recycling rate) at that point.

The UK currently lacks industrial capacity for lithium-ion battery recycling, resulting in the current costly reliance on mainland Europe when supplying batteries for material recovery after their useful life. With the average value of materials contained in an end-of-life automotive pack in 2018 being £1,200 for Battery Electric Vehicles (BEVs) and £260 for Plug-in Hybrid Electric Vehicles (PHEVs), there is a huge opportunity in the UK to recycle lithium-ion batteries.

Source: https://hvm.catapult.org.uk/news/automotive-battery-recycling-an-opportunity-the-uk-cant-afford-to-miss/#

Technology Minerals Chairman Robin Brundle comments; “The automotive sector is doing its part to pivot to all-electric, but it needs an effective and competitive ecosystem that will be largely self-sustaining, with job creation, skillset expansion and support for COP27 goals, both domestically and abroad, coming to the fore. This way, our automotive industry will continue to advance our extraordinary UK R&D and engineering skillsets so that they are fit for purpose well into the next sustainable decade.  Recycling is forecast to only be able to provide 22% of the supply that’s needed to power the transition. 78% will need to be extracted or brought in from elsewhere and each continent is facing this challenge – with many places creating barriers to export.”

 

Right Under Our Feet?

The UK has a rich history of mining, yet exploration and mine development have been neglected since WWII, with no new metalliferous mine being successfully built for 45 years.

Large-scale mining and modern processing can extract minerals that were not previously economic, safely, and with improved protection of the environment and community. New deposits could be found near old, narrow-veined, high-grade mines or in unexplored areas. Modern environmental controls, surveys, management, and remediation techniques can ensure that mineral production limits environment impact.

Technology Minerals Chairman Robin Brundle points out that the markets are very much aware that recycling alone will not generate sufficient raw materials and believes an ethical mining programme is critical: “We were once a prolific mining nation and those mines are still there – dormant, but in 2022, many appear to be economic once again due to the advancement in technology and commodity prices.”

Some steps have already been taken in this direction. After listing on London’s AIM market, Cornish Lithium #CUSN has assembled a large portfolio of mineral rights in Cornwall and has begun exploration for lithium-rich geothermal fluids.

 

Gigafactory Investment is Coming to the UK

There is progress in at least one area of the electro mobility and clean-tech supply chain: the British government is in talks with several companies to build gigafactories in the UK. Envision AESC has announced a new gigafactory next to its facility in Sunderland, while AMTE Power has also announced plans for a megafactory in Dundee. Further gigafactory and several supply chain announcements are expected in the coming months.
These developments are vital in maintaining a strong and prosperous automotive industry in the UK. On top of the global challenges from the COVID-19 pandemic, the war in Ukraine, and the rising costs of living, the challenges facing the UK automotive industry are very real and specific. 

“We all need not one but several gigafactories in the UK,” said Brundle. “Not having the ability to create batteries at home puts the future of the UK automotive sector in jeopardy—and the 823,000 direct and indirect jobs that go with it.  We need to secure more lithium for the UK and Europe, to create a flexible, sustainable supply chain that could also include developing domestic sources of key battery metals.”

 

How the Macro Backdrop and Supply Squeeze Will Make Recycling Increasingly Important

The Committee for Climate Change has suggested that 50% of new car and van sales would be battery electric or plug-in hybrid by 2035. Bringing forward deadlines for zero emission vehicles means we are now looking at 100% of new cars and vans being zero emission at the tailpipe by 2035.

The supply crunch will not hit immediately. Even though the price of lithium has surged more than tenfold over the past two years, there’s enough capacity to meet anticipated demand until around 2025—and potentially through 2030 if enough recycling operations come online. After that, chronic shortages are expected. Even assuming that all the new lithium-mining projects that the industry currently regards as probable or possible resources go into operation, as well as a significant expansion of lithium-recycling projects, lithium supply in 2030 is expected to fall around 4% short of projected demand, or by around 100,000 metric tons of lithium carbonate equivalent (the processed form of raw lithium). By 2035, that supply gap is projected to be acute—at least 1.1 million metric tons, or 24% less than demand.

 

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

It is more vital than ever that metals are recycled responsibly and effectively. This will:

  • Contribute to the conservation of raw materials, complementing the primary supply of important and partially critical metals for our society.
  • Significantly improve supply security, especially for many technology metals which currently are imported from outside Europe. Many metal imports derive from regions with higher geopolitical risks, hence making the European economy vulnerable to supply disruptions. Exploiting the European “urban mine” built from our end-of-life (EoL) products, infrastructure, and other residue streams reduces import dependence, improves the resilience of crucial value chains, and hence supports economic activities and jobs in Europe. The need for more supply chain resilience has become even more obvious in the context of the Covid-19 pandemic and the Ukraine war.
  • Contribute to cushion volatile metal prices as the additional supply of recycled metals can help to overcome demand–supply imbalances and increases the number of metal sources beyond the primary producers.
  • Reduce the CO2 footprint and overall environmental impact of raw materials supply. If taking place in state-of-the-art recycling facilities, in most cases the energy efficiency (per kg of metal) is better and the impact on water, air, soil, and biosphere is considerably lower than in mining operations. The main reason for this is that the metal concentration in most products is much higher than in geological deposits.
  • Be one pillar of responsible sourcing by providing transparent and clean supply chains.
  • Protect the environment as non-recycling or landfilling of end-of-life products, such as batteries, can emit hazardous substances.

 

How the Technology Minerals #TM1 Blueprint for Lithium-ion and Lead-acid Battery Recycling Will Be a Vital Part of the Supply Chain

The battery recycling market is growing at an accelerated rate, driven by automotive and industrial sectors transitioning to more environmentally friendly and sustainable electric solutions. The UK needs industrial-scale battery recycling technologies. There is currently no major UK capability to recycle lithium-ion batteries. Technology Minerals’ plants in Tipton and Wolverhampton aim to provide a national capability to recycle lead-acid and lithium-ion batteries. As a first-mover in the battery recycling sector, the company expects to open 10 plants over the next six years, with its innovative IP in the lithium-ion sector a driving factor in the expansion strategy.

Technology Minerals has developed a unique frontend process that can safely break open Li-ion batteries which are not suitable for repurposing, to recover the battery mineral rich ‘black mass’ they contain as well as other battery components. This is the only process currently capable of handling all five li-ion battery compositions simultaneously on an industrial scale. The solution is also modular and can be easily built on-site at OEMs, minimising transportation costs.Technology Minerals has also developed a significantly improved process to recover the lead from end-of-life lead-acid batteries as well as recovering the acid for re-use as electrolyte or for the manufacture of fertiliser or gypsum, subject to the preferred economics.

 

Conclusion

As the world races to decarbonise, industry needs a secure source of critical minerals to fuel the transition. Brundle said, “The only ways this can be achieved is creating new mines, opening old mines, and building a secondary source of supply through recycling.”

It is necessary to dramatically escalate new production of battery metals to allow industry to make the green switch. This must be coupled with the implementation of a circular ecosystem so that each mineral mined is used to its full potential. The urgency and scale of the transition means that nothing less than a maximal approach will suffice.

On the strategic level, there are two temporal considerations. Brundle explained, “We have a very narrow window of opportunity so there is a necessity to take action to avert the incoming supply crunch in the short-term, but there is also a longer-term need to create a sustainable, circular ecosystem for battery metals.” Urgent action is required to avoid the immediate shortfall of supply, but there is also a wider structural shift to circularity needed to ensure a decarbonised economy can continue to grow sustainably.

 

#POW Power Metal Resources – Tati Gold Project Botswana – Drilling Commences

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the commencement of reverse circulation (“RC”) drilling at its 100% owned Tati Gold Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown,  Botswana.

A map highlighting the location of the RC drill programme can be found at the link below:

https://www.powermetalresources.com/tati-project-cherished-hope-mine-rc-drilling/

 

HIGHLIGHTS

 

§ Drilling team and equipment have mobilised to site and RC drilling has commenced targeting near surface high-grade gold mineralisation.

§ 500 metres of RC drilling are planned within nine holes which are designed to test for the along strike and down-dip extension of the Cherished Hope mine mineralised quartz reef structures.

§ Due to efficiency of RC drilling and the Project’s proximity to Francistown, the drill programme is expected to take approximately 1 week to complete and will be undertaken while preparations for the upcoming Molopo Farms Complex drilling campaign are ongoing.

§ Sampling for gold content in fines dumps at the Project (holding waste material from the Cherished Hope gold mine) is complete, with laboratory assay results awaited.

 

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

 The Company remains focused on preparations for the upcoming Molopo Farms Complex drilling campaign targeting a large-scale nickel-copper-platinum group metal discovery. 

 

The Tati Project, also in Botswana, has demonstrated potential for high grade and near surface gold mineralisation, and we are therefore moving ahead with an expedited next stage drill programme.

 

The drilling will take place adjacent to the Cherished Hope former working gold mine, situated within our recently secured exploration licence PL049/022.

 

In parallel we await the laboratory assay results from sampling of the fines dumps from the Cherished Hope mine, which we expect will contain residual gold that potentially may be capable of processing at an existing plant nearby, subject to any appropriate local approvals.”

 

FURTHER INFORMATION

 

A recent exploration update covering the Tati Project, and specifically the newly pegged prospecting licence (“PL”) 049/2022, was released on 18 July 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploration-update/15543783

 

PL049/2022 was staked to cover the southeastern extension of the large gold-in-soil anomaly discovered by the company on its licence PL126/2019. Site visits following the pegging of PL049/2022 led to the identification of the historical Cherished Hope Gold mine, as well as multiple fines dumps in the vicinity of the workings. Following that, the company completed a full in-depth review of historical data covering the newly acquired PL. It was determined that the Cherished Hope Gold Mine and associated fines dumps cover only a small portion of the gold-in-soil anomaly which extends across the majority of PL049/2022 (see map linked above).

 

The ongoing drilling is located approximately 6km to the southeast along the same regional mineralising structure where the Company drilled earlier in 2022 – where up to 5.17g/t gold (“Au”) was intersected over 3m from only 9m downhole.

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

Kavango takes major step towards JV partnership at key KSZ project – Will Schafer

NB: This article is written by Brand Comms contributor Will Schafer

Please note the Brand UK Ltd Disclosure Policy here

Kavango Resources (LSE:KAV) took a major step towards opening the door for joint venture partners at its flagship Kalahari Suture Zone (“KSZ”) project today.

In an update, the explorer released a comprehensive “Proof of Concept” report authored by industry veteran Richard Hornsey that concludes its drilling programme for the Botswana-based asset.

The company was not only able to provide geochemical proof of mineralising processes for magmatic nickel, copper, and platinum group elements (“PGEs”), but it was also able to identify previously unrecognised PGE potential at the south of its project.

The KSZ is a 450km-long anomaly in Botswana where Kavango is searching for nickel, copper, and PGE-rich orebodies across a land package spanning nearly 9,000km2. Signs of the project’s prospectivity are by no means new, with work previously outlining a number of highly prospective targets.

However, in today’s report, which follows a drilling campaign that concluded earlier this year, Kavango has been able to introduce new deposits that will allow it to vector towards the right host rocks and upgrade future targeting.

Not just that, but it has also been able to confirm it is using the appropriate geophysical technologies and data analysis techniques to isolate potential mineral-bearing targets in a scalable programme.

The company will now make Hornsey’s reports, of which there are three, available to potential joint venture partners and other parties interested in the KSZ project. A detailed executive summary can be viewed here.

As highlighted by CEO Ben Turney earlier today, the company Kavango has now completed “the most comprehensive and successful exploration programme ever” at the KSZ.

Indeed, the KSZ was first investigated by explorers back in the 1980s. However, the depth of sand, or “Kalahari cover”, overlying the project was so extreme it precluded further work. Using modern-day exploration techniques, Kavango is now mapping out and drilling the trend to an unprecedented degree.

“When Kavango first set out on this project it was purely conceptual in nature. Today, we have assembled a significant data set that validates the discovery potential,” said Turney.

“We are the first company to demonstrate that mineralising processes have occurred throughout the KSZ, based upon evidence of nickel, copper and PGE depletion and enrichment. This suggests there is a high likelihood that potentially economic magmatic mineralisation may exist, both within the Karoo and the Proterozoic Tshane Complex. The main questions to answer now are where and at what depth.” 

Included in today’s report were recommendations for improvements to Kavango’s exploration programme. Using these, the company will now launch into two parallel streams of work.

One of these will focus on deploying CSAMT and TDEM surveys in the field to learn more about the “B conductors” it is preparing to drill. Meanwhile, the other will involve Kavango stepping up its efforts to search for JV partners, with today’s report representing a substantial piece of work that contextualises the KSZ based on the company exploration efforts to date.

As Turney states, this should enable the company to undertake “much more informed discussions with interested parties.”

Today’s report refers specifically to the “Norilsk-style” mineralisation Kavango is proving at the KSZ. Norilsk is located 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs, and the company’s licences display a geological setting with some similarities to the project.

But it’s worth remembering that, beyond this Norilsk potential, the KSZ also offers a second mineralisation target type.

Indeed, Kavango’s drill holes over the KSZ’s Great Red Spot anomaly at the project appear to support a late 1990’s theory that the area could host a form of Iron Oxide-Copper-Gold, or “IOCG”, style mineralisation.

IOCG systems can host highly valuable copper, gold and uranium ores. The large size and relatively simple metallurgy can produce extremely profitable mines. Specifically, the Great Red Spot exhibits similar geophysical signatures to the world-renowned Olympic Dam IOCG ore deposit in Australia.

Kavango is currently investigating the KSZ’s IOCG potential by way of further AMT surveying and reporting ahead of drill testing.

#KAV Kavango Resources – KSZ – Proof of Concept Drill Campaign Final Report

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) has successfully concluded its “Proof of Concept” exploration programme in the Kalahari Suture Zone (“KSZ”). This is the most comprehensive exploration programme ever undertaken in the KSZ and the results will guide the Company’s future commercial strategy.

Kavango is pleased to announce that the Proof of Concept exploration programme has:

§ Provided geochemical proof of magmatic Ni-Cu-PGE mineralising processes (depletion and enrichment) throughout the KSZ, for both the Karoo and Proterozoic (Tshane Complex) intrusions

§ Identified previously unrecognised PGE potential in the KSZ South

§ Introduced new ore deposit models (Norilsk, Insiswa, Eagle, Tamarack, and Uitkomst), which will allow Kavango to vector towards the right host rocks and upgrade future targeting

§ Confirmed Kavango is using appropriate geophysical technologies and data analysis techniques to isolate potential mineral bearing targets in a scalable programme

Richard Hornsey, a leading authority on nickel sulphide and platinum group element (PGE) exploration, has completed a comprehensive review of all available exploration data on the KSZ on behalf of Kavango.

Mr Hornsey has provided the Company with three detailed reports on the exploration undertaken, drill core review, intrusion lithogeochemistry, and implications for prospectivity of the KSZ, with suggestions for optimising future exploration strategy (the “Reports”). The Reports will be made available to potential Joint Venture partners and other interested parties, subject to non-disclosure agreement (“NDA”).

Highlights

In summary, the Reports detail:

§ Geochemical proof of magmatic mineralising processes (metal depletion and enrichment) throughout the entire KSZ:

§ Potential for Nickel-Copper-(Platinum Group Element) (“Ni-Cu-(PGE)”) massive sulphide associated with the Karoo Large Igneous Province (“LIP”) in the KSZ North

§ Potential for low sulphide Platinum Group Element-(Nickel-Copper) & Ni-Cu-(PGE) massive sulphide associated with the regionally extensive Proterozoic (Tshane Complex) encompassing KSZ North and KSZ South

§ Confirmation that Kavango is using appropriate geophysical exploration technologies to discover economic metal deposits should they exist within discovery range; including Controlled Source Audio Magnetotellurics (“CSAMT”) and Surface Large Loop Time Domain Electromagnetics (“TDEM”)

§ The new data has enabled assessment of potential variations of intrusion style and geochemical processes associated with the KSZ Project. Ongoing data collection will further focus model definition

§ Recommendations for improvements to Kavango’s exploration programme

Mr Hornsey has provided a detailed executive summary of his review (the “Executive Summary”), which the Company will make available on its website via the following link:

https://kavangoresources.com/media-library/technical-reports

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“Kavango has now completed the most comprehensive and successful exploration programme ever conducted on the Kalahari Suture Zone (KSZ).

When Kavango first set out on this project it was purely conceptual in nature. Today, we have assembled a significant data set that validates the discovery potential.

This is a regionally extensive project, but thanks to Richard Hornsey’s detailed work we will be able to focus our programme. Specifically, we now have several exploration vectors to enable us sharpen future targeting.  

We are the first company to demonstrate that mineralising processes have occurred throughout the KSZ, based upon evidence of nickel, copper and PGE depletion and enrichment. This suggests there is a high likelihood that potentially economic magmatic mineralisation may exist, both within the Karoo and the Proterozoic Tshane Complex. The main questions to answer now are where and at what depth?

Encouragingly, Richard’s work confirms we are using the right remote sensing technologies (CSAMT & TDEM) to identify potentially mineralised targets. If mineralised nickel, copper and/or PGE deposits exist within range of detection and economic exploitation, we are utilising techniques that would identify them. Our objective will then be to rank any targets in order of priority and to drill them.

Meanwhile, the previously unrecognised PGE potential of the Tshane Complex is an intriguing development, especially considering regional variations in PGE endowment. This is an area Kavango will focus on in the coming months.

Our strategy in the KSZ will now involve two parallel streams of work. In the field, we will continue deploying CSAMT and TDEM surveys, while preparing to drill the B Conductors. At the corporate level, we will step up our efforts in search of potential JV partners. The technical review is a substantial piece of work that contextualises the project based upon our exploration results and enables Kavango to undertake much more informed discussions with interested parties.” 

Review of the Proof of Concept Exploration Programme

The 2021/22 exploration programme objectives (the “Proof of Concept Drill Campaign”) were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness. 

This work has been substantively completed, with the primary objectives achieved. 

This review of the Proof of Concept Drill Campaign has included:

§ Initial review of the project data, provided by Kavango, including petrography reports, drillhole data for 13 exploration boreholes in the region, including 7 drilled by the Company (2019 and 2021/22), and limited GIS information

§ A site visit to the Hukuntsi core shed over a two-day period to examine drill core from Kavango holes KSZDD001 and TR2DD002 that intersected both the Karoo sills and Tshane Complex

§ Report 1 “Kalahari Suture Zone Review” (56 pages) on the exploration setting and technical analogues, petrography, drill core review and initial observations

§ Report 2 “Lithogeochemistry Review of the Karoo and Tshane Complex” (173 pages) based upon the routine and detailed lithogeochemistry sampling dataset using ioGAS software and a dedicated proprietary template for igneous intrusion analysis

§ Report 3 “Kalahari Suture Zone Drill Sections and Spatial Dataset Interpretation” (74 pages) outlining review of the data using Micromine software to examine and describe the spatial variation and assess whether prospectivity trends are present

§ The Reports are commercial in confidence, and will be made available to potential Joint Venture partners and other interested parties, subject to NDA.

Report Highlights & Key Actions

§ Technical confirmation of major large-scale targets:

o Potential for Nickel-Copper-(Platinum Group Element) (“Ni-Cu-(PGE)”) massive sulphide associated with the Karoo Large Igneous Province (“LIP”) in the KSZ North

o Potential for low sulphide Platinum Group Element-(Nickel-Copper) & Ni-Cu-(PGE) massive sulphide associated with the regionally extensive Proterozoic (Tshane Complex) encompassing KSZ North and KSZ South

§ Lithogeochemical indications of mineralising processes (metal depletion and enrichment) throughout the entire KSZ (both Karoo and Tshane Complex)

o Future Nickel-Copper (and possible PGE) (Ni-Cu-(PGE)) exploration focus to target more primitive, non-magnetic intrusions in the Karoo and the shallower Tshane Complex in KSZ South

o Future PGE (and possible Nickel-Copper) (PGE-(Ni-Cu)) exploration focus to target Tshane Complex in KSZ South

§ All Karoo sills appear to have been emplaced under similar conditions indicating metal depletion due to sulphur saturation has occurred,  therefore ore-tenor mineralisation could exist within the system . Notable shared features of the sills include:

o Internal complexity indicates repeated periods of activation and sufficient hiatus periods that allowed the magma to lithify

o All Karoo sills are remarkably coarse-grained, suggesting emplacement closer to a source region

o All Karoo sills in KSZ North have experienced sulphur saturation and metal stripping, indicating the probability that metal-enriched intrusions exist

§ Evidence that chalcophile (e.g. Nickel-Copper-PGE) metal depletion exists in the Karoo.  The Company has identified strong conductors that require drilling:

o Kavango’s strategy of using CSAMT to identify areas within the Karoo stratigraphy that relate to larger, more primitive, non-magnetic intrusions, and  TDEM to identify conductive targets is valid

o Confirmation that drilling to date has not intersected any TDEM conductors

o Kavango has identified three very strong conductors in KSZ North, at the Great Red Spot, that are interpreted to be associated with Karoo intrusions  (>>> see announcement 11 July 2022 )

§ Based on analogous Ni-sulphide mineralised intrusions (Insiswa, Norils’k, Eagle, Tamarack, Uitkomst) it is considered that mineralisation in the Karoo may be sourced from both large and relatively thin localised intrusions:

o Kavango will consider this during anomaly targeting and discrimination

o It is highly likely there will be more than one control on mineralisation location or style in the Karoo Large Igneous Province (“LIP”)

§ It is highly likely that intermediate and ultramafic rocks exist in the Tshane Complex that may host magmatic sulphide mineralisation:

o The Tshane intrusion layering dips either to the east or west indicating that target stratigraphy may subcrop beneath the Karoo at explorable depth

o Kavango can optimise exploration of the Tshane Complex in KSZ South, where the overlying stratigraphy is significantly thinner

§ A new regional 3D Magnetic Model to map stratigraphy and structure will help target potential mineralisation

o Combined use of CSAMT and TDEM surveys for 3D mapping and direct detection is optimal exploration solution to identify potential Ni-Cu-(PGE) targets

§ Previously unrecognised PGE potential across the entire Proterozoic (Tshane Complex) system:

§ Tshane 1 (encountered in the Great Red Spot) is strongly PGE depleted, suggesting mineralisation has occurred deeper in this system

§ Tshane 2 (encountered along the 30km strike) contains low to moderate PGE, suggesting mineralisation has occurred deeper in this system

§ Tshane 3 (across KSZ South) has elevated PGE content, suggesting mineralisation could be at a higher level in the intrusion could be closer to surface

§ Tshane 1 is geochemically distinct, while Tshane 2 and Tshane 3 exhibit more similar chemistry

§ PGE exploration presents different geophysical targets, therefore- Kavango will undertake a review of exploration strategy to focus on this mineralisation style

KSZ Background

The Kalahari Suture Zone (KSZ) is located at the western margin of the Kaapvaal Craton.  This is a geologically favourable geodynamic location for mafic-ultramafic mineralisation as deep-seated structures are repeatedly activated and may enable ascent of fertile mantle derived magma to surface.  The exploration targets are for massive Ni-Cu-PGE sulphide associated with the Karoo Large Igneous Province (LIP), and/or for low-sulphide PGE or massive Ni-Cu-PGE sulphide associated with the regionally extensive Proterozoic ( Tshane Complex) that extends over a length of 650km parallel to the craton margin.

A detailed conceptual, geological, and geochemical review of the Kalahari Suture Zone (KSZ) project has been undertaken for Kavango Resources plc (“Kavango” or “the Company”).  This included a two-day core review at Hukuntsi, followed by data compilation into a standardised ioGAS template designed for mafic-ultramafic intrusions.  Three detailed reports have been provided, on the drill core, lithogeochemistry, and spatial interpretation. The reports are commercially sensitive and are not for public distribution. They may be shared with parties under non-disclosure agreement with Kavango.

Report Technical Summary

The 2021/22 exploration programme objectives (the “Proof of Concept Drill Campaign”) were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness.  This work has been substantively completed, with the main objectives achieved.  The Executive Summary focusses on the geology and lithogeochemistry, providing an interpretation of the results and recommendations for ongoing exploration.

–  The Kalahari Suture Zone (KSZ) is located at the western margin of the Kaapvaal Craton.  This is a geologically favourable geodynamic location for mafic-ultramafic mineralisation as deep-seated structures are repeatedly activated and may enable ascent of fertile mantle derived magma to surface.  The exploration targets are for massive Ni-Cu-PGE sulphide associated with the Karoo Large Igneous Province (LIP), and/or for low-sulphide PGE or massive Ni-Cu-PGE sulphide associated with the regionally extensive Tshane Complex that extends over a length of 650km parallel to the craton margin.

–  The 2021/22 exploration programme objectives were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness.  This work has been substantively completed, with the main objectives achieved.  Report 1 focusses on the geology and lithogeochemistry, providing an interpretation of the results and recommendations for ongoing exploration.

–  The Karoo sills are highly fractionated gabbros with internal variability and chilled margins indicative of repeated periods of emplacement.  Lithogeochemistry indicates the Karoo sills are high Fe tholeiitic basalt with low – intermediate TiO2 possibly derived from E-MORB mantle.  The most primitive intrusions are Karoo 4 (10.69% MgO), Karoo 5 (9.21% MgO), and KSZ Karoo 1 (8.54% MgO).

–  Cu/Pd, Cu/Zr (PM) & Pd/Yb (PM) indicate that all sampled Karoo sills were emplaced under similar conditions.  All sills have magma that has experienced sulphur saturation and metal stripping.  This is proof of process.  The Karoo sills are remarkably homogeneous in these ratios, indicating that metal accumulation occurred prior to emplacement of these metal-depleted sills.

–  The Karoo Exploration Target is conduit-hosted Ni-Cu-PGE sulphide associated with Continental Flood Basalt volcanism.  Process analogues include Norils’k-Talnakh (Siberian Traps, Russia), Eagle and Tamarack (Mid Continental Rift, USA), and Insiswa (Karoo, South Africa).  These mineralised intrusions show variations of geology, morphology, and metal content.  They are all associated with the most primitive intrusions within their respective terranes.

–  It is necessary to identify the most magnesian Karoo intrusions, or more primitive intrusive centres that have accommodated greater magma flux.  Lithogeochemistry can achieve this.  Karoo intrusions may also be present within the Proterozoic stratigraphy, particularly the layered Transvaal Supergroup, these may include the deeper-seated, more primitive components of the LIP.

–  Proterozoic age intrusion(s), collectively referred to as the Tshane Complex , form a 650 x 50km regional magnetic anomaly parallel to the Kaapvaal Craton margin.  The Tshane Complex core indicates the intrusions are lithologically similar but have different textural relationships.  The coarse grain sizes, layering, and variability are indicative of large plutonic complexes.

–  The Tshane intrusions are fractionated, magnetite-bearing gabbros with approximately double the base metal and five times the precious metal endowment of the Karoo sills.  The intrusions are high Mg and high Fe tholeiitic basalts with variable Ti content, from low Ti through intermediate then splitting into two high Ti trends.  The REE plots also split the intrusions into two distinct groups, one with more alkaline character, derived from intermediate mantle depth at the komatiite-picrite boundary, the second a komatiite derived from shallower mantle.  The REE indicate an E-MORB character, split into two groups.  This indicates a more complex process of magma generation and limited mixing and that Tshane 1 may be a different intrusion to Tshane 2 and 3 , which are more similar in their chemistry.

–  The Tshane Intrusions have variable PGE endowment, Tshane 1 is strongly PGE depleted, whereas Tshane 2 has low to moderate PGE and Tshane 3 has elevated PGE content.  The intrusion was variably sulphur saturated and depleted, indicating proof of process, and that sulphur exerted a control on metal distribution.

–  The Tshane Complex could be a large intrusion, or more likely a group of intrusions derived from complex mantle melting that has produced fertile magma with variable REE signatures.  The intrusion could host either or both of low sulphide PGE-(Ni-Cu) and Ni-Cu-(PGE)-sulphide mineralisation.

–  It is recommended that east-west cross sections should be drilled to provide a cross section through the Tshane Complex to enable mapping of chalcophile distribution, enrichment, and depletion.

–  Physical property plots of magnetic susceptibility and conductivity indicate the intrusions are magnetically susceptible, with Tshane having significantly greater intensity than the Karoo sills.  The conductivity plots show most host rocks are non-conductive apart from very thin zones within carbonaceous stratigraphy immediately adjacent to the upper and lower contacts of the Karoo sills.  This indicates that the intrusions have contact metamorphosed carbon to form graphite.  This is unlikely to impact upon exploration strategy.

–  Exploration Strategy : KSZ is an early-stage project, exploring for one of the more technically challenging styles of mineralisation.  The total coverage by younger stratigraphy adds a layer of complexity that precludes the use of first-pass regional techniques such as stream or soil geochemistry.  Geophysics is therefore the only exploration option.

–  Magnetics is an important tool for regional mapping of structure and geology and may be used to identify less fractionated parts of the intrusions that may have potential to be targets for Ni-Cu-PGE sulphide mineralisation.

–  Kavango’s targeting strategy for Karoo exploration is to use a combination of Controlled Source Audio Magnetotelluric Surface (“CSAMT”) and Time Domain Electromagnetic (“TDEM”) geophysical surveys to map subsurface geology and structure and identify discrete conductive anomalies that may relate to Ni-Cu-PGE sulphide.  Kavango employs an internally developed ranking system to prioritise potential drill targets.

–  For Tshane , geophysical methodology will also vary dependent upon the style of mineralisation being targeted.  Massive Ni-Cu-(PGE) will present a dense, conductive, magnetic target, best resolved using electromagnetic methods ( CSAMT , TDEM ).  Reef-style PGE-Cu-Ni mineralisation may be more difficult to detect geophysically, but other deep mapping techniques ( CSAMT ) could be used to map and define target intervals once the stratigraphy is understood.

Report Conclusions

The Karoo Sill project was conceptual at inception. Kavango has compiled sufficient data to enable geochemical analysis that indicates sulphur saturation has occurred. This may have accumulated potentially economic Ni-Cu-PGE sulphide mineralisation within some parts of the system.

The KSZ is a valid geodynamic setting for ascent of mantle-derived magma and there are geochemical indicators of chalcophile element depletion (process). Although it has yet to be proven that intermediate to ultramafic intrusions are present, this will be further investigated by drilling the recently identified conductors (B1, B3 & B4).

The Karoo targeting strategy incorporates that the most prospective parts of the system are likely to be non-magnetic; whereas the most magnetic sills are likely to be fractionated and therefore have lower discovery potential.  Therefore, CSAMT followed up by TDEM may be able to resolve areas within the Karoo stratigraphy that are related to larger, more primitive, non-magnetic intrusions.

Contact metamorphism of carbonaceous stratigraphy has been observed in drill core to upgrade carbon to moderately conductive graphite.  Although the observed conductivities are too low to explain modelled TDEM conductors, target discrimination should consider potential for non-sulphide conductors.

The Tshane Complex is a very large, complex intrusion or set of intrusions that share some lithogeochemical parameters, but are lithogeochemically variable, derived from complex mantle melting.  Some drillholes indicate sulphur saturation and removal of base metals and the PGE, indicating that these metals have been concentrated elsewhere in the system. Individual sub-intrusions may have experienced different evolution and therefore more direct data (drill intersections) are required to unravel the puzzle.  The intrusions may be very thick, but core angles indicate they are moderately dipping, therefore stepping to east or west may enable drilling different stratigraphic sections and vector towards the base of the intrusion.  Future drilling should provide oriented drill core.

It is concluded for the Tshane Complex that there is potential for both low-sulphide PGE-(Ni-Cu) reef and Ni-Cu-(PGE) mineralisation associated with basal ultramafic rocks.  These contrasting styles of mineralisation present different geophysical targets, (IP and TDEM).  It is necessary to map stratigraphy using CSAMT and regional drilling.  This programme would be optimised in the south of the project, where the overlying stratigraphy is significantly thinner.  This should consist of east-west sections to provide information on the full stratigraphy and lithogeochemistry of the Tshane Complex, which would define ongoing strategy.

The discovery potential of this project has been advanced by the 2021/22 programme, but it is important to revisit the exploration model(s) and implement the technical recommendations made in this report.  The Karoo project is considered more challenging because no potential host intrusion has yet been identified, although evidence of chalcophile metal depletion exists and strong conductors have been identified that require drilling.  The Tshane Complex has all the indications of being another large, geochemically complex Proterozoic intrusion into the Kaapvaal craton that has chalcophile element accumulation and depletion.  Tshane is considered to have the lowest technical risk but is likely to require deeper drilling, dependent upon the intrusion orientation, and whether the deeper northern section or shallower south section is targeted.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

Power Metal Resources #POW – Molopo Farms Complex Discovery. Paul Johnson talks to Alan Green

Alan Green talks to Power Metal Resources #POW CEO Paul Johnson about today’s discovery at the Molopo Farms Complex in Botswana. Paul talks through the images and drill results from Molopo, and the nickel samples taken on the edge of what appears to be a substantial ore body.

#POW Power Metal Resources – Molopo Farms Complex Project – Drill Target K1-6

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

 

KEY HIGHLIGHTS: 

§ Two ground-based electromagnetic (“EM”) geophysics surveys now complete, covering areas hosting 2020/2021 diamond drillholes KKME 1-14 (“K1-14”) and KKME 1-6 (“K1-6”).

§ Preliminary survey results have highlighted a large shallow dipping magnetic conductor at drillhole K1-6. 

§ Plotting of drillhole K1-6 shows that the drillhole penetrated the edge of the newly identified magnetic  conductor at a similar stratigraphic level to nickel-sulphide mineralisation averaging 7.0m @ 0.443% Ni from 445m, including 0.6m @ 1.69% Ni, 0.55g/t Pt & 0.14g/t Au from 446.7m downhole.1 This is within a broader mineralised interval from 294.7m (when pentlandite was first logged – assay result of 6606ppm Ni from 294.7 – 295.28m) to the end of the hole at 597.8m (minor sulphides logged – assay result 2852ppm Ni from 597.0 – 597.8m).

§ Planned 2022 diamond drill programme start date now being brought forward. The upcoming programme will now focus on testing the central and stronger part of this magnetic conductor. At present the plan is to drill 6 drillholes for approximately 2600m during this upcoming programme.

A map highlighting a location plan map of the Project (Fig.1) as well as a zoomed out (Fig. 2) and zoomed in (Fig. 3) cross-section of the MLEM results over target area K1-6 can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-rns/

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

“Today’s exploration news is, in my view, potentially one of the more significant the Company has released in its 3-year history as Power Metal.

We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of the magnetic conductor was mineralised, with widespread nickel sulphides demonstrated from assay testing and follow up petrological analysis.

As a result of the findings, multiple drillholes planned for the 2022 programme will target the centre of the magnetic conductor where we believe there is the potential for a more strongly mineralised system where the conductive response is considerably stronger and larger.

The EM survey over K1-6 captured 800m of magnetic conductor length where it remains open at depth. The magnetic conductor is also shallow dipping and expands in magnitude and size at depth based on the preliminary processed survey images we hold at present.

As a result we believe we have a compelling reason to accelerate drilling at Molopo Farms and are working in order to achieve that.

In the link above to our website you will see the survey images, with explanatory information, for review. The further information below explains the findings in more detail and also gives additional information in regards to an additional strong magnetic conductor identified below target 1-14, which was not tested by the 2020/2021 drillhole in that area.

This is an exciting time for the Power Metal team and we are now pushing ahead at pace.”

GEOPHYSICAL SURVEY – OVERVIEW

§ Spectral Geophysics have completed the 2022 Phase I exploration programme which included two moving loop electromagnetic (“MLEM”) geophysics surveys over targets 1-6 and 1-14. The MLEM survey results will assist the company in further refining drill collar locations prior to the planned 2022 diamond drilling campaign.

§ Preliminary MLEM survey results over the I-6 target suggest that the 2021 drillhole (K1-6) targeting this zone clipped this sizeable shallow-dipping (south) magnetic conductor. The magnetic conductor appears to be increasing in magnitude with depth where it remains completely untested by drilling.  

§ Preliminary MLEM results over the 1-14 target suggest the presence of a strong magnetic conductor located directly south of the 2021 drillhole (K1-14) that targeted this zone. While there are conductive Transvaal carbonaceous mudstones in the area of the survey, the centre of this anomaly is strongly coincident with a magnetic high caused by the ultramafic rocks in the area – suggesting that the magnetic conductor detected by this survey may be located within the ultramafic intrusive rocks. 

§ A Botswana based drilling contractor has been selected for the upcoming planned diamond drilling programme at Molopo Farms and a site visit with the drilling company’s foreman and Power’s in-country geological consultant is planned for later this week. 

FURTHER INFORMATION

Spectral Geophysics has now completed MLEM surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. Preliminary results have been made available to the Company, with finals results expected within the coming weeks.

The rationale for these surveys was as follows:

Target 1-6 : Previous 2020/2021 drill programme results returned nickel (sulphide) values of up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au, within a composite intersection of 7.0m @ 0.44% Ni from 445 to 452.0m in K-1-6, hosted by layered ultramafic rocks of the Molopo Farms Complex .1,2

The preliminary results from the recently completed MLEM survey have allowed for significantly enhanced resolution of the original EM anomaly that was targeted by drilling in 2021.

Specifically, the results now indicate that drillhole K1-6 intersected the edge of the large shallow-dipping magnetic conductor in the area, which also appears to be increasing in size and magnitude with depth where it remains completed untested by drilling.

The 2022 drilling programme will test this intriguing target.

Target 1-14 : Defined by a broad strong EM anomaly which was targeted by a single drillhole during the 2020/2021 drill programme.2 The drillhole (1-14) intersected carbonaceous mudstones at depth which, although highly conductive, were determined to be flat lying and therefore did not explain the magnetic conductor which was indicative of a shallower, steeply dipping body. 3

The preliminary results from the 2022 MLEM survey over this target have identified a magnetic conductor that is coincident with a magnetic high associated with ultramafic rocks in the area.

The results therefore suggest that the magnetic conductor may be located within the ultramafic intrusive rocks in the area, making it a highly viable drill target for the 2022 drilling campaign. 

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key.  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo increasing to 87.71% (the “Transaction”).  The announcement may be viewed through the following link: 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701 

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration. 

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete. 

References:

1  Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw ) 

Diamond Drill Hole KKME 1-6 Assay Data – reported 24 September 2021 – with 7.0m composite

Drill Hole ID

From (m)

To (m)

Interval (m)

Ni (ppm)

Au (g/t)

Pt (g/t)

1-6

445.0

446.0

1.0

2663

<0.05

<0.05

1-6

446.0

446.7

0.7

3012

<0.05

<0.05

1-6

446.7

447.3

0.6

16961

0.14

0.55

1-6

447.3

448.0

0.7

6948

<0.05

0.11

1-6

448.0

449.0

1.0

3056

<0.05

0.06

1-6

449.0

450.0

1.0

3187

<0.05

<0.05

1-6

450.0

451.0

1.0

2504

<0.05

<0.05

1-6

451.0

452.0

1.0

2474

<0.05

<0.05

Weighted average Ni intersection

7.0

4,433

* All depths and intervals are as measured downhole. 

2  Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

3  Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w   )

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

#POW Power Metal Resources – Disposal of Reitenbach Uranium Property – Canada

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the conditional disposal of its 100% owned Reitenbach Uranium Property (“Reitenbach” or the “Property”) located east of the prolific Athabasca Basin in Northern Saskatchewan, Canada.

HIGHLIGHTS:

–  A Property Purchase Agreement (the “Agreement”) has been signed with Teathers Financial Plc (“Teathers Financial” or “Teathers”).  Teathers Financial is to conditionally acquire 100% ownership of the Property, subject to a 2% net smelter return (“NSR”) royalty, in exchange for cash and shares.

–  The consideration payable is £360,000 (to be settled by the issue of Teathers Financial new ordinary shares of 0.1p (“Ordinary Shares”) and a cash payment of £10,000 (see detailed terms below)).

–  Reitenbach is one of ten uranium properties held by 102134984 Saskatchewan Ltd (“Power Sask”), a wholly owned subsidiary of Power Metal Resources Canada (“POW Canada”) which itself is a wholly owned subsidiary of Power Metal.

–  Teathers Financial is currently in the advance stages of preparing for a change of business to become a uranium focused exploration company which plans to list on the London equity capital markets – targeted for Q3 2022.

 

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

“Power Metal has secured another crystallisation event with the disposal of Reitenbach into a vehicle planning to list in the London markets in the near term.

With the refocussing of Teathers into a uranium exploration vehicle with Reitenbach as their flagship property, we believe the proposition will attract pre-IPO and IPO financing interest, and trade successfully as a listed vehicle.

Outside of Reitenbach, we continue to own 100% of our remaining nine Athabasca properties, some of which we expect to explore ourselves and, given the level of interest in quality uranium projects, some may be the subject of further disposals. In this regard, datarooms are being established for all projects to enable expeditious third party review.

Further information to follow regarding this disposal and other exploration and corporate activities in respect of our Athabasca property portfolio.”

 

TRANSACTION TERMS

For the sale of 100% of the Company’s interest in the Reitenbach Property, one of ten uranium focused properties held by Power Metal surrounding the Athabasca Basin, Saskatchewan, Canada, the consideration of £360,000 is to be settled by:

· The issue to Power Sask of 98,700,000 Teathers Financial Ordinary Shares at a price of 0.35461p per share for a total value of £350,000.

· A cash payment to Power Sask  totalling £10,000, which covers several costs incurred by Power Metal on behalf of Power Sask and Power Canada in preparation of this transaction. This also covers costs of the National Instrument 43-101 report that was completed over the Property – which will allow Reitenbach to be the main listing asset for Teathers Financial during its upcoming planned listing.

Power Sask will retain a 2% Net Smelter Return (“NSR”)[1] royalty across the Property, 1% of which can be bought back by Teathers Financial at anytime prior to production for £750,000.  

The transaction is conditional on:

–  Teathers Financial securing a £125,000 initial pre-IPO financing to cover transactional costs in relation to the planned listing.

–  The approval of Teathers Financial shareholders to the transaction; to a Rule 9 Whitewash arrangement, enabling Power Metal to acquire its interest without a requirement to make an offer for the entire company and approval of a capital reorganisation of Teathers.

–  Admission of Teathers shares to trading on the London equity capital markets.

After the issue of further shares following completion of  Teathers Financial pre-IPO and IPO financings, Power Metal anticipates its holding will amount to 40-55% of Teathers Financial issued share capital on listing. Power Metal will provide further updates on this in due course.

NEXT STEPS

 

· Exploration programmes are currently being planned across the Reitenbach Property, which subject to completion of the Agreement will be carried out by Teathers Financial following their planned listing in the London capital markets.

· Power Metal, with its in house technical group with expertise in uranium exploration, have agreed to provide Teathers with ongoing technical consulting services, to be paid for by Teathers, relating to planned and future exploration programmes on the Reitenbach Property.

· Reflecting the growing interest shown from third parties, comprehensive datarooms and factsheets are being established for all of the Company’s Saskatchewan based uranium assets.

THE REITENBACH PROPERTY

A detailed breakdown of all publically available technical information over the Reitenbach Uranium Property was released to the market on 8 February 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141

The Power Metal book value of the Reitenbach Property is £55,292 and no losses have been recorded in respect of the Property in the year ended 30 September 2021, with all costs capitalised.

URANIUM PROPERTY HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”). which acts as the holding company for certain Canadian project operations. 

Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of all the uranium properties.

 

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 Project – Exploration Update

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

 

MOLOPO FARMS EXPLORATION HISTORY

 

–  The Project is targeting nickel (Ni), copper (Cu) and platinum-group-element (PGE) mineralisation within the Molopo Farms Complex (“MFC”) of the Bushveld Large Igneous Province.

 

–  Airborne geophysics previously completed confirmed an exploration model focusing on magmatic feeder zones within the MFC.

 

–  Significantly, the previous drill programme which concluded in 2021 intersected nickel-sulphides downhole with individual grades up to 1.69% Ni including 0.55g/t platinum (Pt)  over 0.6m from 446.7m downhole 1.

 

–  Follow-up petrographical work undertaken identified primary nickel and copper sulphides (incl. pentlandite, bornite and chalcocite).

NEXT EXPLORATION PHASE COMMENCES

 

–  Spectral Geophysics have mobilised to the Project to conduct two electromagnetic geophysics surveys to facilitate the precision targeting of planned diamond drill holes for a drill programme expected to commence in the autumn.

 

–  Power Metal technical team have compiled all project data into a dataroom to underpin forward project development and which is available for third parties who have expressed an interest in potential engagement on the Project.

 

–  Final negotiations proceeding with Botswana drill contractors for the upcoming planned diamond drill programme at the Project.

 

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

“We are making very important progress as we look to reinvigorate the Molopo Farms Project, arguably one of the Company’s major exploration success stories from 2020/2021.

The main next step is planned diamond drilling focused on the discovery of economic nickel sulphides and following up on the highly positive results from the drill programme completed in early 2021.

To ensure we are optimising drill hole targetting, Spectral Geophysics have been engaged to conduct a geophysics programme, and whilst that continues we are making arrangements for the engagement of drill contractors.

Molopo is a priority exploration Project for Power Metal and I look forward to providing further updates to the market on our operational progress and drill plans.”

FURTHER INFORMATION

Power Metal has amalgamated and compiled all data received from previous operators and organised it into a singular dataroom. Third-parties that have previously expressed interest in the Project have been re-engaged by Power and have been supplied with the updated database.

The Company is in final stages of negotiation with two Botswana-based drill contractors and is looking to finalise and sign a contract within the next few weeks in advance of a diamond drilling programme currently expected to commence in the autumn.

 

Weekly technical meetings are being conducted between Power Metal and representatives from the project partner Kalahari Key Mineral Exploration (Pty) Ltd (“Kalahari Key” or “KKME”), in order to finalise the planned drilling campaign and deliniate future exploration works.

Spectral Geophysics has mobilised to the Project and has commenced a geophysical work programme which will include moving loop electromagnetic (“MLEM”) surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. The rationale for these surveys is as follows:

 Target 1-6 : previous 2020/2021 drill programme results returned nickel values up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au over 0.6m from 446.7m downhole, within layered ultramafic rocks of the Molopo Farms Complex 1,2. The ongoing MLEM survey will aid in the further refinement of the original electromagnetic (“EM”) geophysics anomaly that was targeted by drilling in 2021. The results from this survey will allow for optimum drillhole siting prior to the 2022 drilling programme.

 Target 1-14 : is defined by a broad strong EM anomaly which was targeted by a single hole 2020/2021 drill programme 2. That drilling intersected carbonaceous mudstones at depth 3 which, although highly conductive, were determined to be flat lying and therefore did not explain the anomaly which was indicative of a shallower, steeply dipping body. The MLEM survey will provide higher resolution and further refinement of the original EM response, aiding the effective siting of future drill holes.

 

PROJECT BACKGROUND AND OWNERSHIP

 

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key.  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest  in Molopo increasing to 87.71% (the “Transaction”).  The announcement may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

 

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

 

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

 

References:

 

1  Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )

 

2  Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

 

3  Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w   )

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

#POW Power Metal Resources – Tati Project, Botswana – Exploration Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update in respect of the Company’s 100% owned Tati Project (“Tati” or the “Project”) located within the prolific Tati Greenstone Belt near Francistown, Botswana.

Collectively the Tati Project covers three individual prospecting licences (“PLs”) for gold and nickel mineralisation including PL126/2019, PL127/2019, as well as the newly acquired 16.14km2 PL049/2022 which covers the historic Cherished Hope gold mine.

A map highlighting the current licences and key features can be found on the Company’s website through the following link:

Cherished Hope Gold Mine

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

“It is particularly exciting to get on the ground at our newly granted prospecting licence PL049/2022 and the initial findings are extremely positive.  Not only have we identified extensive gold workings, but also two large sized fines dumps.

We will be back on site to undertake further mapping and sampling, including the fines dumps to assay test for gold as there may be sufficient gold grades remaining to consider processing the material to generate income to fund more extensive exploration.

Importantly we have moved to plan for the near term launch of reverse circulation drilling to test along-strike and the down-dip extent of the Cherished Hope mineralised quartz reef structures.

Further updates will follow in the near term on this exciting project where Power Metal has a 100% interest.”

Highlights

–  A site visit has been successfully completed to the historical Cherished Hope gold mine which is located entirely within the newly acquired PL049/2022.

–  Ground mapping has shown the historical gold workings are significantly more extensive than previously understood, with at least 10 individual workings comprising a combination of vertical shafts and trial pits, extending over approximately 175m of strike-length.

–  Two fines dumps (representing waste material from the Cherished Hope gold mine) are located proximal to the historical workings.  A survey is required to determine the volume of fines material in each dump, against which, with sampling, the amount of contained gold may be estimated.

–  It is a common practice within the Tati Greenstone belt, to excavate and truck historical fines dump material to operational processing plants, as these modern plants are capable of extracting gold from lower grade material rendering historical waste as potentially economic.  This possibility is being investigated further as a potential source of low-cost near-term revenues to help fund more extensive and expeditious exploration activities.

–  The Cherished Hope gold mine and fines dumps cover only a small portion of the gold-in-soil anomaly which extends across the majority of PL049/2022 (see map linked above).

–  The Company is undergoing an in-depth review of the site visit report covering the newly acquired licence and is finalising next exploration steps. It is anticipated that this programme will include sampling of the fines dump material and a volumetric survey in order to determine an average gold grade range for each fines dump.

–  In addition, planning is underway for an early and low-cost reverse circulation (“RC”) drilling programme aimed at testing the along-strike and down-dip extent of the Cherished Hope mineralised quartz reef structures.

–  Further updates in regards of this programme will be announced to the market in due course.

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

#BRES Blencowe Resources – Airborne EM Program Commences at Akelikongo Nickel Project

Highlights

·    Blencowe commences exploration program at synergistic nickel sulphide project

·    Substantial 3,200-line kilometres of survey to be conducted

·    Partnering with highly regarded Airborne survey firm in SkyTEM Aps

·    Targeting increased definition of several targets identified in project data review

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce the commencement of an Airborne Electro-Magnetic (AEM) survey over leases associated with the Akelikongo Nickel Project in Uganda. As part of the farm-in arrangements for this highly prospective asset, Blencowe has commissioned SkyTEM Surveys Aps to undertake High Definition AEM over several prospective areas on the leases. The program will consist of approximately 3,200-line kilometres of survey to be flown by helicopter on a 200m spacing. The survey will add significant additional information to assist the company in targeting both extensions to the existing defined mineralised lenses and better define targets identified by the Company in view of the previous work undertaken in the region.

SkyTEM Surveys Aps has undertaken many similar projects in Africa and worldwide and this extensive experience is being leveraged by Blencowe to progress the project. The survey program is expected to run for 2 weeks.

 

Cameron Pearce, Executive Chairman commented;

“We are delighted to commence work on the Akelikongo nickel project so soon after picking up this asset in the first quarter 2022.  We are well aware of the increasing demand for nickel both now and forecast ahead.  Nickel is a key input metal to lithium-ion batteries and as a result it will likely remain in high demand for a long period ahead, and the current exceptional prices for nickel reflect that demand, as well as potential shortages that might emerge as a result of Russia, one of the worlds’ largest nickel producers, involved in a protracted war and resultant sanctions.

 

Our task at Akelikongo is to expand on the good work initially delivered by SIPA and Rio Tinto in order to broaden the mineralised zone.  This AEM work being conducted will highlight further areas of interest that our experienced team of geologists will then consider for a further drilling program expected in 3Q 2022.”

 

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

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