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Power Metal Resources #POW – December interview with CEO Paul Johnson

Alan Green talks to CEO Paul Johnson. We cover the drilling campaign at the Molopo Farms Complex project in Botswana, before Paul covers recent developments at the Tati Gold project, also in Botswana. We then look at developments in Canada, both at the group’s Athabasca Uranium project and the new Lithium project acquisition, before we turn to the upcoming IPO’s including Golden Metal Resources and First Development Resources. Paul looks at what the Christmas period will hold for the POW team and the likely news flow over the Xmas period and into the new year.

Power Metal Resources #POW – FDR Selta Lithium Exploration & Company Update

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio  provides an update to shareholders in respect of lithium focussed fieldwork at the Selta Project (“Selta” or the “Project”), located in Australia’s Northern Territory. Selta is held through its subsidiary  First Development Resources PLC  (“First Development Resources” or “FDR”) which is seeking a planned listing in the  London  capital markets (Power Metal holds 62.12% of FDR and 58.59% after transaction outlined below).

HIGHLIGHTS:

Phase II Lithium Focused Exploration Programme

· Lithium focussed Phase II follow-up fieldwork now underway to further examine the zonation of a prospective pegmatite system present at FDR’s 100% owned Selta Project. Pegmatites are the target lithology which have the potential to host lithium mineralisation.

· Approximately 700 potential outcropping pegmatites have been identified by desktop analysis, within a target area of circa 180km2 (see Fig.1 below). Given the size of the prospective area and the number of targets generated, the planned fieldwork will initially focus on a 30km2 area in the southeast of the Project (see Figure 1).

· The Phase II fieldwork follows on from the successful findings of the Phase I field reconnaissance programme in June 2022, which confirmed the presence of pegmatite geology over a small area within the south of the Project, with lithogeochemical analysis of 17 samples suggesting potential for a zoned pegmatite system originating from the nearby granites 1.

· A desktop analysis of lithium specific publicly available datasets, satellite imagery and purpose commissioned hyperspectral analysis previously outlined the presence of potentially pervasive outcropping pegmatites 2, 3 which are the subject of the current fieldwork campaign.

· Further information in respect of the lithium work programme is provided below.

Company Update

· FDR continues to advance preparations for its planned listing and is very close to completion of all material work streams.

· To further enhance FDR’s position in advance of the planned listing and in light of the positive progress across the exploration programmes at all projects, the net smelter return (“NSR”) royalties retained by the original vendors of FDR’s projects have been purchased by FDR.

· The two NSRs were originally announced on the acquisition of First Development Resources Pty Limited (“FDR Australia”)(RNS: 29.10.2021 4) and URE Metals Pty Ltd (“URE Metals”)(RNS: 19.11.2021 5) and were each a 2% NSR, with a 1% buyout right for A$1,000,000. The NSRs were held by the original shareholders of FDR Australia and URE Metals whose shareholdings were previously acquired, as outlined in the above dated announcements.

· Each NSR has been purchased for £150,000, payable through the issue of 1,875,000 new FDR ordinary shares of 1.0p (“New FDR Shares”) at an issue price of 8p per share, for a total consideration of £300,000 through the issue of 3,750,000 New FDR Shares. The price of 8p per New FDR Share  is specific to this NSR purchase transaction only and should not be taken as established pricing in relation to an IPO financing for the planned listing of FDR in the London capital markets.

· As a result, FDR holds a 100% interest in all projects and there are now no NSRs over any of its properties.

· Following the issue of the New FDR Shares, the total FDR issued share capital will amount to 65,894,076 shares of which Power Metal holds 38,605,697 shares representing 58.59% of FDR issued share capital.

Tristan Pottas, Chief Executive Officer of First Development Resources commented:

“Much of the recent focus has been on preparing for FDR’s planned UK listing, however, the team has also remained committed to advancing the project portfolio for the ongoing benefit of FDR shareholders.

Over the past several months the FDR team has worked hard to develop strong relationships with the key stakeholders at Selta to facilitate the efficient deployment of field teams to site to complete value enhancing work.

The technical analysis of the outcropping pegmatites will significantly improve our understanding of the system present at Selta and will help inform future work programmes with the intention of identifying zones within the Project with the potential to host lithium mineralisation.”

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

“The search for economic deposits of lithium continues to be the focus of many exploration companies globally as they look to capitalise on the strong market conditions which continue to reflect the lack of supply for the ever-growing demand for battery metals including lithium.

Importantly, with our readiness for diamond drilling at Wallal and the ongoing work programme at Selta, we are seeking to ensure FDR is a vibrant exploration business when listed.

The buyout of all project royalties by FDR was an important step, simplifying the structure of the planned listing interests and reflecting the value of FDR’s project portfolio which has been significantly enhanced since their original acquisition.”

Figure 1 : Selta Project showing lithium pegmatite and rare earth element prospective areas of interest and target area for current Phase II pegmatite focussed fieldwork

BACKGROUND – SELTA PROJECT LITHIUM REVIEW

The in-depth review of all publicly available geological, geophysical and geochemical data for the Selta Project identified multiple uranium and rare-earth element (“REE”) targets within the Selta Project area and highlighted the potential for lithium, gold and base-metal mineralisation. The potential for lithium presented an additional opportunity for a mineral discovery within the Selta Project area, an opportunity which had previously been unknown. To gain a better understanding of the potential for lithium-caesium-tantalum (“LCT”) type pegmatites, the Company immediately commenced a lithium review of all publicly available data to help refine target areas for further investigation and deployed a team to Selta to confirm the presence of pegmatite geology.

The announcement in respect of this lithium review and subsequent reconnaissance may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865

During the reconnaissance the site team was able to confirm the presence of pegmatite geology and collect samples to determine mineralogy.

The results of the sampling and subsequent geochemical testing of pegmatites on the property indicated that the pegmatites analysed on the southwest of the property are part of zoned pegmatite system, most likely originating from the nearby granite. The initial sampling campaign programme covered only a very small portion of the property but provided valuable information for future exploration programmes.

SELTA PEGMATITE SAMPLING PROGRAMME

The mineral deposit model for LCT pegmatites is well defined by the United States Geological Survey and suggests LCT pegmatites tend to show a regional mineralogical and geochemical zoning pattern with respect to the inferred parental granite, with the greatest enrichment in the more distal pegmatites. FDR’s initial analysis of data acquired during the Selta lithium review supports this model.

FDR now plans to expand on this initial interpretation and conduct further exploration over a broader area.  Using the data acquired from previous desktop analysis and reconnaissance, a field team led by FDR’s exploration manager will conduct a targeted pegmatite mapping and sampling programme to acquire representative geochemical and geological data in the south of the Selta Project, where previous work has proven the presence of a pegmatite system.

This work aims to constrain the zonation believed to be present in the pegmatite system. The field work will include the systematic mapping of the surface expression of pegmatites along with the collection of representative rock chip samples, which will then be sent for geochemical analysis. This field work will feed into FDR’s technical understanding of pegmatites at Selta, to provide targets and inform future work programmes.

QUALIFIED PERSON STATEMENT

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

REFERENCE NOTES

Company announcement, First Development Resources – Company Update,  29 July 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865 )

Company announcement, First Development Resources – Selta Lithium Update,  13 June 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241 )

Company announcement, Selta Project – Multiple Target Areas Identified,  16 March 2022
(
https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081 )

Company announcement, Power Metal Acquires 100% of FDR Australia,  29 October 2021
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w04g16x   )

Company announcement, Acquisition of Uranium & Rare-Earth Element Project – Australia,  19 November 2021
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w1ye76w )

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc – Background

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

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

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

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

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

Exploration Work Overview

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

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

Preliminary planning for work in Spring/Summer 2023 is ongoing.

Work programmes for Spring/Summer 2023.

Molopo Farms

Botswana

87.71%

Diamond drill programme underway. MLEM surveys planned over additional AEM targets identified.

Drill programme updates and findings from further MLEM survey work.

Tati Project

Botswana

100%

RC drilling and sampling of mine dumps complete.

Mine dumps processing and project commercial and exploration next steps.

 

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

Company

Status/Operations

Link

First Class Metals PLC

Investment – POW 27.91%

Exploration in the Schreiber-Hemlo region of Ontario, Canada

www.firstclassmetalsplc.com

 

Kavango Resources PLC

Investment – POW 9.85%

Exploration in Botswana

www.kavangoresources.com

First Development Resources PLC

Planned IPO – POW 62.12%* (58.59% post NSR buyout)

Exploration in Western Australia and the Northern Territory of Australia

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Planned IPO – POW 83.13%

Exploration and development in Nevada, USA

www.goldenmetalresources.com

 

New Ballarat Gold PLC

Planned IPO – POW 49.9%

Exploration in the Victoria Goldfields of Australia

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

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

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

 

Uranium Energy Exploration PLC

Planned IPO – POW on listing estimated 50-55%

Uranium exploration in the Athabasca region of Canada

www.uraniumenergyexploration.com

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

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

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

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

HIGHLIGHTS:

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

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

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

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

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

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

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

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc – Background

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

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

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

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

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

Exploration Work Overview

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

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

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

Assay results from samples collected during fieldwork.

Molopo Farms

Botswana

87.71%

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

Drill programme updates and findings from further MLEM survey work.

Tati Project

Botswana

100%

RC drilling and sampling of mine dumps complete.

Mine dumps processing and project commercial and exploration next steps.

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

Company

Status/Operations

Link

First Class Metals PLC

Investment – POW 27.91%

Exploration in the Schreiber-Hemlo region of Ontario, Canada

www.firstclassmetalsplc.com

 

First Development Resources PLC

Planned IPO – POW 62.12%

Exploration in Western Australia and the Northern Territory of Australia

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Planned IPO – POW 83.13%

Exploration and development in Nevada, USA

www.goldenmetalresources.com

 

Kavango Resources PLC

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

Exploration in Botswana

www.kavangoresources.com

 

New Ballarat Gold PLC

Planned IPO – POW 49.9%

Exploration in the Victoria Goldfields of Australia

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

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

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

 

Uranium Energy Exploration PLC

Planned IPO – POW on listing estimated 50-55%

Uranium exploration in the Athabasca region of Canada

www.uraniumenergyexploration.com

Power Metal Resources #POW November Interview – Alan Green talks to CEO Paul Johnson

Alan Green talks to CEO Paul Johnson. We cover the drilling campaign at the Molopo Farms Complex project in Botswana, where nickel sulphides have been identified, before Paul covers the bonanza gold grades announced this week at the Tati Gold project, also in Botswana. We then look at developments at the group’s uranium assets, including the development of Uranium Energy Exploration, before with turn to the upcoming IPO freight train, including Golden Metal Resources, First Development Resources and the New Ballarat Gold Company. Paul looks at what the IPO’s will mean for the POW balance sheet, before covering some of the other key upcoming value inflection points.

Power Metal Resources #POW – Molopo Farms Complex – Geophysics Update T1-14

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 where drilling is currently underway.

On 20 October 2022 the Company announced an update regarding the ongoing drilling programme and the link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-update/15681045

Further detailed work in regard to the moving loop electromagnetic (“MLEM”) survey results over the target area T1-14 has been ongoing, with an update relating to those results presented herein.

HIGHLIGHTS

§ A geophysical electromagnetic (“EM”) ‘superconductor’ has now been identified at target area T1-14, with a conductance reading akin to that of massive sulphides. 1

§ As a result, the superconductor at target area T1-14 has been upgraded to priority status and will be subject to diamond drilling in the coming weeks, being now the strongest MLEM conductor identified on the Project to date.

§ Diamond drilling at target area T1-14 will commence after the completion of diamond drillholes DDH1-6B and DDH1-6B(2), both targeting the conductor identified within target area T1-6.

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

“The momentum at our Molopo Farms Complex Project continues to build and we now have four Company designated priority (A+) targets that we plan to test during the ongoing drilling campaign.

The results from the extra MLEM work over target area T1-14 are quite definitive and have resulted in the upgrade of this target area following the identification of a superconductor.

I appreciate that the mineral discoveries under cover that we seek at Molopo Farms, and at other Company interests, often require a long lead time with complex preparatory work often needed to define drill targets.  However, we have the rig drilling now at Molopo Farms and the drill testing of the T1-14 superconductor, targeting a massive nickel sulphide discovery, is expected to commence in the coming weeks.”

FURTHER INFORMATION

Target Area T1-14

§ During the 2020/2021 drilling campaign, a 515.8m long diamond drillhole (KKME1-14) was drilled within target area T1-14 which was targeting a priority airborne EM conductor.

§ Drillhole KKME1-14 intersected three main geological units including serpentinites (40.4m – 208.5m) quartzites (208.5 – 479.6m) and graphitic mudstones (479.6 – 515.8m). It was originally assumed that the graphitic mudstone was the cause of the airborne conductive anomaly identified at this target zone – and as a result the hole was shut down at 515.8m.

§ The conductor at target area T1-14 was originally given a lower priority B ranking due to it being slightly deeper than priority conductors found at T1-6, T2-3 and T1-3. However, following further analysis of available datasets, the following conclusions have been reached:

The MLEM conductor modelled at target area T1-14 has been classified as a superconductor, ranking it as the strongest conductor identified at the Project to date. The conductance reading at T1-14 is akin to that of massive sulphides.

KKME1-14 was drilled mostly within a magnetic low, which is consistent with the drillhole intersecting mostly sedimentary rock units instead of targeted mafic/ultramafic rocks (which are typically strongly magnetic and can host primary magmatic nickel sulphides).

The MLEM superconductor now modelled at target area T1-14 has a discrete shape. If the graphitic mudstones were the cause of the conductor identified at this target area, it would be expected that this conductor would be flat-lying, consistent with the typically very flat-lying and continuous nature of Transvaal sedimentary units within the Molopo Farms Complex.

Three dimensional (“3D”) modelling of KKME1-14 shows that it intersected only the edge of the newly identified superconductor.

§ The combination of the ground MLEM and airborne EM geophysics datasets into a single 3D model has enabled a geological model to be developed. This is interpreted to show a geological contact zone between mafic/ultramafic magmatic intrusive rocks and potentially sulphur rich sedimentary rocks (as signified by overlapping highly magnetic and conductive bodies). Melting of the sedimentary rocks at this intrusive contact zone could have led to magma mixing, differentiation, and contamination that triggered sulphide saturation and the segregation of an immiscible sulphide melt which could have resulted in the accumulation of massive sulphide mineralisation.  It appears that this prospective, highly conductive, contact zone was not intersected by the previous drillhole KKME1-14.

§ As a result of further integration and analysis of available datasets, target area T1-14 has been upgraded by the Company to Priority A+ status and a 700m drillhole (DDH1-14A) is now planned following the completion of DDH1-6B(2). It is estimated that the superconductor could be reached at a downhole depth between 450-500m.

FURTHER INFORMATION

Figure 1 – Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.

Figure 2 – T1-14 3D View (Magnetics; Pink = Magnetic High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the ground magnetic inversion. KKME1-14 was drilled mostly within a magnetic low, which is consistent with the quartzites and carbonaceous mudstones.

 

Figure 3 – T1-14 3D View (MLEM: Blue = Conductivity High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the MLEM superconductor identified.

 

The diagrams and images presented above will be uploaded shortly to the Company’s website which may be reached through the following link:

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

Further photographs and videos from the drill programme are and will be available on the Company’s website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/ 

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 Mineral Exploration (Pty) Ltd (“KKME”).  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms 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.

Reference Notes

1              The term ‘superconductor’ is utilised here, to describe a region of very high geophysical conductivity as depicted by a very slow decay of the electromagnetic signal. In the case of T1-14, the electromagnetic signal has not decayed to system noise levels after 2,000 milliseconds (msecs). The calculated decay constant is between 400 and 550 msecs which is common for massive nickel sulphides.

Glossary 

Serpentinite: Mafic rock composed of one or more serpentine group minerals. Serpentinization is a form of low-temperature metamorphism of ultramafic rocks. They often are strongly magnetic. 

Quartzite: Hard, non-foliated metamorphic rock which was originally very quartz rich. It has a low magnetic and conductance response. 

Graphitic Mudstone: Graphite rich, fine-grained clastic sedimentary rock. It has a low magnetic and can have a high conductance response.

QUALIFIED PERSON STATEMENT

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc – Background

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

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

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

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

 

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

Power Metal Resources #POW – October 2022 interview with CEO Paul Johnson

A number of developments over the summer months, particularly the discovery at the Molopo Farms project in Botswana, has seen huge amounts of investor interest in Power Metal Resources #POW, plus as we’ve seen already with First Class Metals #FCM, the POW project spinout and IPO strategy is already reaping dividends. Paul covers the latest developments at the Molopo Farms drilling campaign, before looking at the company’s fast growing uranium portfolio. We look at progress on the other upcoming IPO spinouts, including Golden Metal Resources #GMT and First Development Resources #FDR, and then Paul discussed the latest Berringa mine acquisition at the New Ballarat Gold Company. We finish with 3 points for investors to weigh up when looking at a potential POW investment.

Power Metal Resources #POW – Uranium Portfolio Update – Athabasca Basin, Canada

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 respect of its uranium property portfolio in the Athabasca Basin area in Saskatchewan, Canada.

HIGHLIGHTS:

· New property added to Power Metal uranium portfolio. Badger Lake Uranium Property (“Badger Lake”), acquired through claim staking, covers an area of 16.71km2 within the prolific Athabasca Basin. Badger Lake is surrounded by claims held by uranium focussed companies including Orano SA, Hathor Exploration and NexGen Energy Ltd.

· Power Metal Athabasca uranium portfolio now consists of twelve properties, including a conditional disposal1, with a combined total area of 829.58km2.

· Exploration programme over the 100%-owned Thibault Lake, Clearwater and Tait Hill properties (announced on 10 August 2022 1) has completed successfully, resulting in:

Multiple locations of anomalous radioactivity noted across all three properties with rock sample assay results currently awaited.

Tait Hill property expanded by 32.42km2 to 110.56km2, based on work results and to include the full extent of the Mullis Lake Target as well as an anomalous lake sediment result.

· Following the acquisition of the Reindeer Lake, Old Woman Rapids and Porter Lake Uranium properties in July 2022 2, historical data compilation has now been completed. Fact sheets are being compiled highlighting the findings of this work which will be published on the Company’s website in due course.

· A hyperspectral remote sensing review has been completed on the Cook Lake and E12 uranium properties, aiding in the development of targets for future exploration.

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

“Power Metal is currently engaged on drilling large-scale conductors at the Molopo Farms Complex Project in Botswana, targeting a major nickel discovery or discoveries. That important and potentially transformational work continues.

Alongside its Botswana operations the Company has a broad portfolio of interests, many offering district scale potential, including notably our Athabasca uranium interests.

As readers of this announcement will see, we have been particularly active in the development of our Athabasca properties, furthering ground exploration and analysis, expanding the key Tait Hill property and securing a new property, Badger Lake.

We view the uranium portfolio of Power Metal to be a key part of our Company, seeing us uniquely well positioned for what we expect to be a significant increase in the level of interest in junior resource companies offering uranium exposure. 

Being listed in London, where there are few uranium investment opportunities, the building of our uranium portfolio in the Athabasca, and globally, is even more significant.

Shareholders can expect more developments from Power Metal’s current and potential future uranium interests over the balance of 2022 and into 2023.”

Thibault Lake, Clearwater and Tait Hill Exploration Programme Overview

The recently completed exploration fieldwork conducted over the three Thibault Lake, Clearwater and Tait Hill properties consisted of ground investigation, gamma-ray spectrometer surveying and rock sampling and over pre-defined target areas.

The field team successfully identified multiple locations of anomalous radioactivity across all three properties and collected a total 46 rock samples for assay. Notable findings in each property include:

· Clearwater uranium property: a historical mine associated with anomalous radioactivity was located and investigated;

· Thibault Lake uranium property: additional mineralised fault zones were encountered, expanding previously defined target areas mapped during the 2021 exploration programme; and

· Tait Hill uranium property: multiple occurrences of anomalously radioactive granites and pegmatites were mapped in the southwest of the property. This zone, named the ‘Mullis Lake Target’, is considered to have geological similarities to the setting of the Rössing Uranium Mine located in Namibia. The Tait Hill uranium property has been expanded by 32.42km2 in order to cover the entire extension of the Mullis Lake Target which was not previously held within the property boundary.

All samples collected during the 2022 field programme are currently in transit to Saskatchewan Research Council laboratories for multi-element assay analysis including uranium, REE’s and base metals. Full comment, discussion and analyses of the results of this fieldwork will be released upon completion of the analytical testing in the coming months.

Phase I exploration on the three properties has successfully contributed to the development and refinement of uranium focused exploration targets, with the intention of eventually progressing the highest priority targets to a drill-ready stage.

Further information in respect of the Phase II programme for Soaring Bay will be provided in due course.

A map highlighting the new Tait Hill property footprint may be viewed in Figure 1 below and through the following link: https://www.powermetalresources.com/tait-hill-uranium-property/

 

Map Description automatically generated

Figure 1 – Tait Hill Uranium Property Map: A map of the Tait Hill Uranium Project, including the locations (and counts per second or ‘CPS’  – a measure of radioactivity) of samples collected during 2022, the geology of the southwest of the property and location of the Mullis Lake, and North Western Targets.

Historical Data Compilation and Digitisation

Old Woman Rapids Property Overview

–  The Old Woman Rapids uranium Property (“Old Woman Rapids”) covers a total of 129.58km2 and is located 29.5km from the companies Soaring Bay uranium Property, approximately 120km southwest of the prolific Athabasca Basin.

–  Old Woman Rapids covers one Saskatchewan Mineral Deposit Index (SMDI) occurrence 3 of a radioactive pegmatite which returned assays of 0.43% and 0.57% U3O8, and also contained appreciable quantities of lead and zinc.

–  Historical work has highlighted elevated U-in-lake sediment results within the western part of the property, including 97thpercentile results of 23.3 ppm U, and further elevated results of 21 and 31 ppm U. Near the Old Woman Rapids western claim boundary there are multiple north-south trending radiometric anomalies over an area of 800 x 600 m (>20 counts per second).

Porter Lake Uranium Property Overview

–  The Porter Lake uranium Property (“Porter Lake”) covers an area of 108.54km2 and is located approximately 100km south of the Athabasca Basin edge and 4km from the Old Woman Rapids uranium Property.

–  Porter Lake is centred around two SMDI uranium occurrences which were discovered during previous exploration campaigns conducted by previous operators. SMDI 1055 4, is highlighted by rock samples taken near to the western claim boundary which returned up to 0.084% U3O8 as well as 0.14 oz./ton silver (Ag), 0.13% copper (Cu) and 0.14% nickel (Ni). Near to the eastern claim boundary; SMDI 1056 5, is highlighted by rock samples that returned between 0.1% and 0.2% U3O8 over 0.6 to 1.4m at shallow (<70 m) depths from drilling.

–  Historical work has highlighted an anomalous U-in-lake sediment result of 30 ppm U near to the western claim boundary, and multiple greater than 85th percentile results between 8.5 to 11.5 ppm U.

–  Near the eastern claim boundary, historical work has outlined multiple electromagnetic (“EM”) geophysical conductors which are coincident with airborne radiometric anomalies 6. While in the west, a radiometric anomaly is in close proximity to an elevated U-in-lake sediment result.

Reindeer Lake Uranium Property Overview

–  The Reindeer Lake Uranium Property (“Reindeer Lake Property” or “Reindeer Lake”) covers an area of 3,336-hectares (circa 33.36km2) located approximately 120km southeast of the prolific Athabasca Basin edge. 

–  The property is centred on one SMDI uranium occurrence, the Ghana Lake Radioactive Pegmatite Dyke, which returned assays of up to 1.9% U3O8 and 0.09% ThO2.

The Old Woman Rapids, Reindeer Lake and Porter Lake uranium properties are considered prospective for pegmatite-hosted uranium or rare earth element (“REE”) mineralisation.   A map highlighting results from the historical data compilation completed on the Old Woman Rapids and Porter Lake Properties are below in figures 2 & 3, and on the two links below:

https://www.powermetalresources.com/old-woman-rapids-uranium-property/

https://www.powermetalresources.com/porter-lake-uranium-property/

 

Diagram Description automatically generated

Figure 2 – Old Woman Rapids Uranium Property Map: A map of the Old Woman Rapids Uranium Project, including the locations of the radioactive pegmatite (SMDI 1057), elevated U in lake sediment results and coincident faulting and radiometric anomalies.

Diagram Description automatically generated

Figure 3 – Porter Lake Uranium Property Map: A map of the Porter Lake Uranium Project, including the locations of the two SMDI uranium occurrences, U in lake sediment results – including the anomalous result of 30 ppm U. In addition, in the west of the property, electromagnetic (EM) conductors are coincident with airborne radiometric anomalies

Hyperspectral Remote Sensing Review on Cook Lake and E-12

At the Cook Lake uranium property, the hyperspectral remote sensing data compilation and processing study has highlighted multiple northeast to southwest trending anomalies which have elevated levels of helium and hydrogen (produced as a result of radioactive decay of uranium).  Many of these helium/hydrogen anomalies are spatially related to radiometric anomalies determined through previous exploration and elevated U-in-lake sediments

On the E12 uranium property, the hyperspectral study has indicated potential expansions to areas of interest associated with boulder fields in the north of the property and highlights a spatial relationship with observed EM geophysics conductors.

The acquired hyperspectral data on these two properties is a valuable input to Power Metal’s comprehensive data rooms and will aid in future exploration.

The Badger Lake Property

Mineral Claim Staking Process

The Badger Lake uranium property (“Badger Lake”) was acquired directly through the Mineral Administration Registry Saskatchewan (MARS) electronic registry system. Where a previous claim owner is unable to satisfy the claim maintenance requirements, that ground becomes reopen to third party staking at a set time each month. At reopening, areas of high uranium prospectivity are typically highly contested due to their prime positions within the prolific Athabasca Basin, as was the case with the Badger Lake uranium property. The cost of staking was Canadian $1,002.43, and the newly staked licence comes with a two-year term with no minimum spend requirement and which can then be extended for subsequent years by spending a minimum of Canadian $25,065 per annum.

The Badger Lake Uranium Property Highlights

The Badger Lake is surrounded by ground held by major uranium operators and explorers including Orano SA, Hathor Exploration (owned by Rio Tinto; LSE: RIO) and NexGen Energy Ltd (TSX: NXE). The property is located 30 km east from the Patterson Lake Trend which hosts such deposits as Fission Uranium’s Triple R Project (reported Mineral Resource of 2.69 Mt @ 1.94% U3O8 Indicated) and Nexgen’s Arrow Project (reported Mineral Resource of 3.754 Mt @ 3.1% U3O8 Measured & Indicated and 4.399Mt @ 0.83 U3O Inferred). A private maintained road runs through Badger Lake, providing easy access for future field and drilling campaigns.

Property Geology

Geological reports highlight that the Badger Lake property is underlain by around 200-350m of sandstone that sits unconformably over crystalline basement. A single historical drillhole (BP-07-01) 7 is located on the property. Drill logs show this hole intersected 325m of Athabasca sandstone, which included brecciation, clay and hematite alteration, and vuggy quartz – textures which are typical of alteration within the Athabasca Basin. Below the geological unconformity contact (within the basement rocks) BP-07-01 intercepted meta-sedimentary rocks with 20m of hematite alteration. In addition, a common accessory mineral to uranium deposits, calcite, was reported to coat fractures.

The unconformity contact between the sandstone and the underlying crystalline basement lithologies is the main target for uranium exploration in Saskatchewan, and deposits such as McArthur River (416 Mlb at 15% U3O8) , Cigar Lake (152.4 Mlb at 7.55% U3O8 ), Hurricane and Phoenix (60 Mlb at 19.1% U3O8) are located at, or in close proximity to this geological contact zone.

Historical geophysical analysis 8 indicates the presence of a northeast to southwest trending conductor (which BP-07-01 was drilled in the vicinity of) which runs between two EM geophysical anomalies. This conductor has never been drill tested.

A map highlighting the newly staked Badger Lake property may be viewed in Figure 4 below and on the following link: https://www.powermetalresources.com/badger-lake-uranium-property/

Diagram Description automatically generated

Figure 4 – Badger Lake Uranium Property Map: A map of the Badger Lake Uranium Project, highlighting the location of the electro magnetic anomaly and the inferred conductor in the in the centre of the property, and the location of the historical drillhole in the east of the property.

URANIUM PROPERTIES – HOLDING STRUCTURE

Power Metal has a 100%-owned 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 the Company’s Athabasca uranium portfolio outlined in Table 1.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

Project

Licence ID

Area

(Hectare)

Area

(km2)

Clearwater Uranium Property

MC00015079

1,110

11.1

MC00015083

563

5.63

MC00015082

3,191

31.91

MC00015151

760

7.6

MC00015646

761

7.61

MC00015658

1,541

15.41

Tait Hill Uranium Property

MC00015078

1,576

15.76

MC00015081

968

9.68

MC00015153

1,530

15.3

MC00015152

1,886

18.86

MC00015647

725

7.25

MC00015648

1,129

11.29

MC00016158***

3,242

32.42

Thibaut Lake Uranium Property

MC00015077

2,206

22.06

MC00015659

2,195

21.95

Soaring Bay Uranium Property

MC00015080

1,255

12.55

MC00015155

3,375

33.75

MC00015874

748

7.48

MC00015875

2,529

25.29

Cook Lake Uranium Property

MC00015212

984

9.84

E-12 Uranium Property

MC00015213

1,323

13.23

Reitenbach Uranium Property*

MC00015214

2,135

21.35

MC00015474

1,235

12.35

MC00015655

4,570

45.7

MC00015656

5,322

53.22

MC00015657

886

8.86****

MC00015824

528

5.28

Reindeer Lake

MC00015522

3,336

33.36

Porter Lake

MC00015561

5,656

56.56

MC00015562

5,198

51.98

Old Woman Rapids

MC00015563

4,851

48.51

MC00015564

5,063

50.63

MC00015565

3,044

30.44

Durrant Lake

AC00018000

5,866

58.66

Badger Lake**

MC00016253

1,671

16.71

Total Licence Holding Area

82,958

829.58 km2

*Reitenbach Property conditionally disposed to Teathers Financial PLC as announced 8 August 2022.

**Newly staked Property

***Additional staked ground

****Previously shown in error as 8.56km2

GLOSSARY

Pegmatites: Pegmatites are coarse grained intrusive rocks which often carry economic mineralisation, they commonly form ‘sheets’ of rock close to larger intrusions.

U3O8 : Uranium oxide,  containing 84.8% uranium.

Uraniferous: Containing uranium

Reference Notes:

1  Power Metal Resources PLC company announcement, Uranium Exploration Update – Athabasca Basin: 2022 Phase I Field Programme Underway Targeting Clearwater, Thibault Lake and Tait Hill Uranium Properties, dated 10 August 2022:
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xjjon1x ). Note: the programme

2  Power Metal Resources PLC company announcement, Uranium Acquisitions – Athabasca Basin Canada, dated 26 July 2022:
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xz023lr )

3   https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1057

4   https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1055

5   https://applications.saskatchewan.ca/Apps/ECON_Apps/dbsearch/MinDepositQuery/default.aspx?ID=1056

6  Kennedy E.G., 1981, Final Report on the Mudjatik Lake and Complex Lake Projects- Mineral Prospecting Permits 1043 and 1111 and Containing Mineral Claims HUS 1-10 and S94793 to 94795 and S94799 and S9480 (74B06-0032).

7   Titan Uranium, 2008, 2007 Diamond Drill Program Meanwell Lake, Bishop I & Bishop II Projects (74F10-0049)

8  COGEMA, Laurie Project Cluff Lake Area, Saskatchewan Electromagnetic Maps (74F10-0035)

QUALIFIED PERSON STATEMENT

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc – Background

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

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

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

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

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

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

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

Assay result from samples collected during fieldwork.

Authier North Lithium

Canada

Earn-in to 100%

Property Evaluation Report completed.

Update covering exploration plans for target areas identified during the Evaluation.

Molopo Farms

Botswana

53%#

T1-6 conductor target drilling underway and MLEM surveys over T1-6, T1-14, T1-3 and T2-3 completed. Further MLEM surveys planned over additional AEM targets identified.

Drill programme updates and findings from further MLEM survey work.

Tati Project

Botswana

100%

RC drilling and sampling of mine dumps complete.

Review of mine dumps sampling and results from RC drill programme.

# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

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

These interests are summarised in the table below:

Company

Status/Operations

Link

First Class Metals PLC

Investment – POW 28.19%

Exploration in the Schreiber-Hemlo region of Ontario, Canada

www.firstclassmetalsplc.com

First Development Resources PLC

Planned IPO – POW 62.12%

Exploration in Western Australia and the Northern Territory of Australia

www.firstdevelopmentresources.com

Golden Metal Resources PLC

Planned IPO – POW 83.13%

Exploration and development in Nevada, USA

www.goldenmetalresources.com

Kavango Resources PLC

Investment – POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22)

Exploration in Botswana

www.kavangoresources.com

New Ballarat Gold PLC

Planned IPO – POW 49.9%

Exploration in the Victoria Goldfields of Australia

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

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

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

Uranium Energy Exploration PLC

Planned IPO – POW on listing estimated 40-55%

www.uraniumenergyexploration.com

Power Metal #POV Molopo Farms Complex – Geophysics Update T1-14

pow

Power Metal #POV Molopo Farms Complex – Geophysics Update T1-14

 

On 20 October 2022 the Company announced an update regarding the ongoing drilling programme and the link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-update/15681045

Further detailed work in regard to the moving loop electromagnetic (“MLEM”) survey results over the target area T1-14 has been ongoing, with an update relating to those results presented herein.

HIGHLIGHTS

 A geophysical electromagnetic (“EM”) ‘superconductor’ has now been identified at target area T1-14, with a conductance reading akin to that of massive sulphides. 1

 As a result, the superconductor at target area T1-14 has been upgraded to priority status and will be subject to diamond drilling in the coming weeks, being now the strongest MLEM conductor identified on the Project to date.

 Diamond drilling at target area T1-14 will commence after the completion of diamond drillholes DDH1-6B and DDH1-6B(2), both targeting the conductor identified within target area T1-6.

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

The momentum at our Molopo Farms Complex Project continues to build and we now have four Company designated priority (A+) targets that we plan to test during the ongoing drilling campaign.

The results from the extra MLEM work over target area T1-14 are quite definitive and have resulted in the upgrade of this target area following the identification of a superconductor.

I appreciate that the mineral discoveries under cover that we seek at Molopo Farms, and at other Company interests, often require a long lead time with complex preparatory work often needed to define drill targets.  However, we have the rig drilling now at Molopo Farms and the drill testing of the T1-14 superconductor, targeting a massive nickel sulphide discovery, is expected to commence in the coming weeks.”

 

FURTHER INFORMATION

Target Area T1-14

§ During the 2020/2021 drilling campaign, a 515.8m long diamond drillhole (KKME1-14) was drilled within target area T1-14 which was targeting a priority airborne EM conductor.

§ Drillhole KKME1-14 intersected three main geological units including serpentinites (40.4m – 208.5m) quartzites (208.5 – 479.6m) and graphitic mudstones (479.6 – 515.8m). It was originally assumed that the graphitic mudstone was the cause of the airborne conductive anomaly identified at this target zone – and as a result the hole was shut down at 515.8m.

§ The conductor at target area T1-14 was originally given a lower priority B ranking due to it being slightly deeper than priority conductors found at T1-6, T2-3 and T1-3. However, following further analysis of available datasets, the following conclusions have been reached:

 The MLEM conductor modelled at target area T1-14 has been classified as a superconductor, ranking it as the strongest conductor identified at the Project to date. The conductance reading at T1-14 is akin to that of massive sulphides.

 KKME1-14 was drilled mostly within a magnetic low, which is consistent with the drillhole intersecting mostly sedimentary rock units instead of targeted mafic/ultramafic rocks (which are typically strongly magnetic and can host primary magmatic nickel sulphides).

 The MLEM superconductor now modelled at target area T1-14 has a discrete shape. If the graphitic mudstones were the cause of the conductor identified at this target area, it would be expected that this conductor would be flat-lying, consistent with the typically very flat-lying and continuous nature of Transvaal sedimentary units within the Molopo Farms Complex.

 Three dimensional (“3D”) modelling of KKME1-14 shows that it intersected only the edge of the newly identified superconductor.

§ The combination of the ground MLEM and airborne EM geophysics datasets into a single 3D model has enabled a geological model to be developed. This is interpreted to show a geological contact zone between mafic/ultramafic magmatic intrusive rocks and potentially sulphur rich sedimentary rocks (as signified by overlapping highly magnetic and conductive bodies). Melting of the sedimentary rocks at this intrusive contact zone could have led to magma mixing, differentiation, and contamination that triggered sulphide saturation and the segregation of an immiscible sulphide melt which could have resulted in the accumulation of massive sulphide mineralisation.  It appears that this prospective, highly conductive, contact zone was not intersected by the previous drillhole KKME1-14.

§ As a result of further integration and analysis of available datasets, target area T1-14 has been upgraded by the Company to Priority A+ status and a 700m drillhole (DDH1-14A) is now planned following the completion of DDH1-6B(2). It is estimated that the superconductor could be reached at a downhole depth between 450-500m.

FURTHER INFORMATION

Figure 1 – Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.

Figure 2 – T1-14 3D View (Magnetics; Pink = Magnetic High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the ground magnetic inversion. KKME1-14 was drilled mostly within a magnetic low, which is consistent with the quartzites and carbonaceous mudstones.

 

Figure 3 – T1-14 3D View (MLEM: Blue = Conductivity High): A 3D view showing the location of the planned drillhole DDH1-14A and historical drillhole KKME1-14 with the MLEM superconductor identified.

  

 

The diagrams and images presented above will be uploaded shortly to the Company’s website which may be reached through the following link:

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

Further photographs and videos from the drill programme are and will be available on the Company’s website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/

 

Power Metal #POW Tati Project Botswana – Drill Programme Results

Tati Project Botswana – Drill Programme Results

Company’s Inaugural Drill Programme Confirms Target Geological Formations, Returns Near Surface Gold and Application for Adjacent Prospective Land Successfuly Lodged

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

Highlights:

– Drill programme completed safely and on-budget. Primary programme objective to confirm prospective geological formations was completed successfully.

–  Near surface gold mineralisation intersected, including shallow depth Reverse Circulation (“RC”) drilling results of up to 5.17g/t gold (“Au”) over 3m from 9m downhole.

–  Further Prospecting Licence (“PL”) application lodged, covering along strike extension of identified major regional gold prospective structure.

–  The 1614-hectare lodged PL application covers a strong gold-in-soil anomaly and the historical Cherished Hope Gold Mine.

 

Maps highlighting various aspects of the 2021 drilling programme can be found below at the following link:

https://www.powermetalresources.com/tati-project-drill-results/

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

It took a certain boldness for our team to advance the Tati Project to the drilling stage so quickly.  However, due to the thin sand cover over most of the Project, we felt that gaining knowledge of the underlying geological formations through relatively inexpensive RC drilling was crucial in order to better gauge the overall prospectivity of the Project. The drilling results achieved will now allow us to continue to push our Tati exploration forward at pace.

The RC drillholes completed within PL126/2019 targeted a relatively small area within a much broader gold-in-soil anomaly. Our main goal was to better understand how the geochemical anomaly correlated with the thinly blanketed geological formations.  What we found was very encouraging.

Whilst our main programme goals were to gain a better understanding of the subsurface geology over the Project, we were encouraged to obtain near surface gold including results of up to 5.17g/t Au over 3m from a shallow depth of only 9m. Importantly, as noted above, these results were achieved from only a small area tested within a much larger geochemical anomaly.

In parallel with our ground exploration work programmes, we completed a further detailed analysis of the broader Tati Greenstone Belt surrounding the Project – with the hopes of identifying additional gold targets located near to the Project.

Significantly, we were able to identify a 1614-hectare area adjacent to our PL126/2019 licence, and further along strike of a regionally important northwest-southeast trending structure, which contained widespread, strong gold soil anomalism – including several targets of greater than 100ppb gold-in-soil (much stronger than the area tested by the 2021 drilling campaign). As a result, we moved swiftly to secure this area by submitting a new licence application to cover all anomalous zones identified.

By applying the positive drill findings from this early RC programme across the entire Project and specifically into this new application area, we have in our view confirmed that the Tati Project is a major target for gold discoveries.

We are seeking to accelerate our work on this exciting Project.”

Programme Background:

Drill Programme

A total of 1,062m of RC drilling was completed across five target zones which was undertaken by Power Metal’s drill partners Equity Drilling Ltd and Mindea Exploration and Drilling Services (Pty) Ltd.

All drill holes as part of this programme were shallow, and completed to depths ranging from 21-81m, with an average depth of 47m. RC drilling provides a inexpensive, and rapid testing method which is well suited for an early-stage drilling campaign.

The RC chip samples collected were sent to Intertek Group plc’s laboratory located in Perth, Australia, for multi-element analysis.

Exploration to Date

Exploration on the Project has advanced at a rapid pace to its current stage since Power Metal exercised its option to acquire a 100% interest in the Project on 28 July 2021.

Work to date has included soil sampling, ground-based magnetics and radiometrics, as well as intermittent prospecting and rock sampling over select targets.

Rationale for Early Drilling

Kalahari sands which blanket the majority of the Project have precluded widespread geological mapping and prospecting, as a result the Company decided to launch the drilling campaign in order to obtain bedrock RC chip samples from the various target areas below Kalahari sand cover.

The main goal of the drill programme was to test for the presence of the geological formations which host many of nearby historic and currently operating gold and nickel mines within the Tati Greenstone Belt.

The laboratory assay results, combined with geological logging of the RC bedrock samples have provided the company with important geological information which will help guide future exploration and drilling campaigns on the Project.

Key Findings Include:

A northwest-southeast oriented quartz reef was intersected in multiple drillholes over a combined strike length of 200m; including highlight results of 5.17g/t Au over 3m (TGRC00017) from 9-12m and 1.3g/t Au over 3m from 15-18m.

· The drillholes were targeting only 200m of strike length along a 2,000m Au-in-soil anomaly (open to east and west) discovered by the Company during a Phase I geochemical survey completed over PL126/2019 and announced on 14 September, 2021. The Au-in-soil anomaly is coincident with a prominent northeast-southwest oriented structure which extends for at least 14km to the nearby Monarch Gold Mine.

· Based on the work undertaken to date, Power Metal, through its 100%-owned Botswana subsidiary Tati Greenstone Resources Pty Ltd., lodged a new Prospecting Licence (“PL”) application in order to cover the southeastern extension of this regionally important gold prospective structure.

· The PL applicaton covers an additional 6km of strike-length along this significant structure, including several large-scale Au-in-soil anomalies as well as the historical Cherished Hope Mine. If granted, this area represents a high-priority exploration target for the Company going forward.

All RC samples were shipped to Johannesburg for sample preparation at Intertek Genalysis’ (“Intertek”) prepararatory facility, and further sent on to Intertek’s laboratory located in Perth, Australia, where they underwent analysis. All samples from this programme were sent as 3m composite samples. Subsequently, 1m samples from the zones of interest returned from the sample composites have been compiled and sent off to Intertek for further sample preparation and analysis.

PL126/2019 Drill Results

A total of 7 RC drillholes (TGRC00017-TGRC00023) were completed on PL126/2019 targetting 200m of strike length within a >2,000m long (open to the east and west) Au-in-soil anomaly defined by the company during its 2021 Phase I geochemical work programme. 6 of the drillholes were completed within a fan array, at a set dip of -50 ° , with each hole being stepped back 20m from another. The two fans were positioned exactly 200m along strike from one another, with the 7th hole being completed within the middle of the array – approximately 100m equidistant from each drillhole fan.

 

Drillholes intersected a modest to shallow dipping quartzite unit with variable gold grades including highlight results up to 3m of 5.17g/t Au. The drill results highlighted the down dip extent of the quartzite, which remains open at depth and along strike.  

 

Mapping within the area identified a northwest-southeast oriented structure which extends at least 17km, intersecting the nearby Monarch Gold Mine along its extent. The structure extends from the 2021 drilling area, as well as to previously unstaked ground to the southeast of PL126/2019. Additionally, Power Metal was able to obtain historically geochemical data collected over this ground, which showed a larger and higher-tenor Au-in-soil anomaly than the area targeted during the 2021 drilling campaign. As a result, a Prospecting Licence application was lodged with the Botswana Department of Mines (“DOM”). The Company is waiting for the results of this PL application, and will update the market once an update is available.

PL127/2019 Drill Results

A total of 6 RC drillholes (TGRC0001-TGRC0006) were drilled targeting along the strike extension of the Signal Hill gold mine. The drillholes were drilled along two fan arrays, which included 3 holes per fan. The holes were drilled to a maximum depth of 81m. No significant results were achieved in these holes. The drillholes all intersected various banded iron formation (“BIF”), schist and siltstones intervals with variable calcite alteration.

 

A total of 6 RC drillholes (TGRC0007-TGRC0012) were drilled targeting a nickel (“Ni”)-in-soil anomaly which was postulated to represent an extension of mafic-ultramafic units which host the nearby Selkik and Tekwane nickel mines. The drillholes were drilled along two fan arrays, which included 3 holes per fan. The holes were drilled to a maximum depth of 81m. Several holes intersected variable BIF, dacite, shale and schist intervals, and locally, disseminated pentlandite and pyrite mineralisation were logged.

 

A total of 4 RC drillholes (TGRC0013-TGRC0016) were drilled targeting a northwest-southeast oriented As-in-soil anomaly identified by the Company during its Phase I soil sampling programme. The holes were drilled to maximum depth of 51m. The drillholes were drilled along two fan arrays, which included 2 holes per fan. The drillholes intersected variable meta andesite, dolerite, schist and quartzite with variable hematite alteration.

 

In all instances, the drillholes completed as part of the programme on PL127/2019 were targeting geochemical anomalies identified by Power Metal during its 2021 Phase I soil samping programme. In many cases, these Ni- and arsenic (“As”)-in-soil anomalies were kilometre scale, and as a result only minimal parts of these anomalies were adequately tested during this programme.

 

Programme Data:

Tati 2021 Drill Programme Assay Table

Hole ID

From (m)

To (m)

Interval (m)

Au (ppb)

Au* (gram/ton)

TGRC00001 to TGRC00016

No Significant Values

TGRC00017

9

12

3

>2,000

5.174

TGRC00018

0

3

3

101

TGRC00019

No Significant Values

TGRC00020

0

3

3

106

Incl.

15

18

3

1,299

TGRC00021

21

24

3

591

TGRC00022

39

42

3

255

TGRC00023

0

3

3

131

*Overlimit assay anaylsed via FA25/OE (25g Fire-Assay)

Tati 2021 Drill Programme Collar Table

Drill hole ID

Dip

Azimuth

Hole Depth (m)

Northing**

Easting**

TGRC00001

-50°

90°

21

584342

7635151

TGRC00002

-50°

66°

51

589342

7634767

TGRC00003

-50°

90°

81

584303

7635156

TGRC00004

-50°

90°

21

584324

7634902

TGRC00005

-50°

90°

51

584305

7634903

TGRC00006

-50°

90°

81

584284

7634903

TGRC00007

-50°

340°

21

581941

7638331

TGRC00008

-50°

340°

51

581965

7638298

TGRC00009

-50°

340°

81

581965

7638298

TGRC00010

-50°

270°

21

582330

7638996

TGRC00011

-50°

270°

51

582347

7638985

TGRC00012

-50°

270°

81

582366

7638972

TGRC00013

-50°

66°

21

589360

7634776

TGRC00014

-50°

66°

51

589342

7634767

TGRC00015

-50°

66°

21

589752

7634113

TGRC00016

-50°

66°

51

589735

7634113

TGRC00017

-50°

45°

21

559931

7653529

TGRC00018

-50°

45°

51

559916

7653512

TGRC00019

-50°

45°

81

559904

7653493

TGRC00020

-50°

45°

21

559780

7653652

TGRC00021

-50°

45°

51

559763

7653639

TGRC00022

-50°

45°

81

559749

7653624

TGRC00023

-50°

45°

30

559849

7653602

TGRC00001

-50°

90°

21

584342

7635151

**  Projection: WGS84 – UTM Zone 35S

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

 

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

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

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

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

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

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project

Location

POW %

Work Completed or Underway

Results Awaited

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field and assay results from on-site work programme.

Athabasca Uranium

Canada

100%

Data compilation across uranium properties

Interpretation results from 2 of 7 properties.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Technical Review of exploration results & define next exploration steps.

Ditau Project

Botswana

50%

Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.

Field updates and receipt & review of laboratory assay results.

Kalahari Copper Belt

Botswana

50%

Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas

Field programme findings and defined drill targets for near term drilling.

Molopo Farms

Botswana

53%

Review of recent exploration findings.

Determine next exploration steps and action plan.

Haneti Project

Tanzania

35%

Diamond drill programme completed

Receipt & review of laboratory assay results.

Victoria Goldfields

Australia

49.9%

Diamond drill programme underway

 

Field updates and receipt & review of laboratory assay results.

Paterson Projects

Australia

83.33%

Wallal passive seismic and 2D seismic processing work programme completed.

Review of historical data and target generation for Ripon Hills & Braeside West projects.

 

 

Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.

Selta Project

Australia

83.33%

Field reconnaissance work now underway, including mapping and sampling.

Field updates.

 

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.

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