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Power Metal #POW – Acquisition Complete – Berringa Gold Mine

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to its joint venture (“JV”) subsidiary New Ballarat Gold Corporation PLC (“NBGC”), which is focused on the prolific Victorian Goldfields of Australia. The JV is held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources PLC (50.1%).

Red Rock Australasia Pty Ltd (“RRAL”), the 100% owned Australian operating subsidiary of NBGC, entered an agreement (“Agreement”) on 6 July 2022 to acquire the exploration licence EL5535 covering the historic Berringa Mine (“Berringa” or the “Project”) from Balmaine Gold Pty Ltd (“Vendor”) which is a wholly owned subsidiary of Golden Point Group Pty Ltd (“GPG”), itself the subsidiary of Shen Yao Holdings Ltd, a company listed on the Singapore Exchange (the companies collectively being the “Vendor Group”).

The original announcement in respect of the Agreement may be viewed through the link below:

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

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

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

ACQUISITION COMPLETION

· EL5535 has now been successfully transferred to RRAL, which now holds a 100% interest in the exploration licence.

· RRAL has paid the initial consideration of AUD$20,000 to the Vendor, with further milestone consideration payments detailed in the Further Information section below.

· RRAL are finalising a detailed exploration plan for the period up to and following the five year renewal being applied for to the licence which expires on 16 November this year, which will include planned drilling at EL5535. The exploration plan will be based on abundant historical exploration data available, allowing for highly refined drilling programme design.1,2

· Planned drilling will test for extensions of known gold mineralisation at the Berringa Gold Mine, which has historical production of 293,250 ounces of gold (Au) from 1898-1952 at an average grade of 8.3g/t Au.1

· The focus of planned drilling is to demonstrate the remaining gold endowment which as outlined in 2004 and 2014 technical reports, includes possible exploration target ranges down to 1000m of 0.91 to 3.89million*,** and 0.70 to 2.91million*,** ounces of Au respectively.1,2 Further details in respect of these exploration targets are provided below.

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

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

“Investors often tell me of their excitement with regard to New Ballarat Gold Corporation and the opportunity it represents.  We share that excitement as NBGC holds a significant land position in the Victoria Goldfields of Australia, which across its footprint has extensive evidence of gold prospectivity.

Centered in Ballarat we have an established operational team who have been running the local operations diligently and building the potential across the licence areas we hold.  These licence areas contain advanced opportunities, with a number of high-grade former producing mines and also the wider blue-sky exploration potential that offers the potential for significant valuation uplift on discovery.

Power Metal is keen to see NBGC flourish, and today’s news is an important step forward.”

FURTHER INFORMATION

Exploration Licence 5535 was previously held by Balmaine Gold Pty Ltd, which is a wholly owned subsidiary of Golden Point Group Pty Ltd (“GPG”), itself the subsidiary of Shen Yao Holdings Ltd, a company listed on the Singapore Exchange (the companies collectively being the “Vendor Group”).

GPG are the owners of the nearby Ballarat Gold Mine, which has annual production guidance of 40,000 to 50,000 ounces of gold per year.4

The Vendor Group’s licence has its origins in the acquisition of the tenement area in 1998 with the view of the tenement, supplying additional gold to the nearby Ballarat Mine. After passing through Lihir Gold, the tenement came into the hands of the Vendor Group. The mining licence was surrendered in 2014, with an exploration licence covering the same area then being granted to the Vendor. For various reasons, the work on the tenement has not been as extensive as planned.

A 2004 Berringa Exploration Strategy Technical report was produced by Hamish Forgan & Steven Olsen on behalf of a previous owner of the Licence, Ballarat Goldfields NL (“Ballarat Goldfields”). Mr Olsen was an employee of Ballarat Goldfields and a compent person as defined by the JORC code. The 2004 report highlighted a proposed exploration target ranging from 913,488 to 3,889,718 ounces of gold down to a depth of 1000m at Berringa.2

Subsequently, on the surrender of the previous mining licence, a further technical report was prepared which summarised the findings from work undertaken from 1992 to October 2014. The 2015 report was produced by Jason Fothergill on behalf of the operators at the time, Caslemaine Goldfields Pty Ltd.  Within the 2015 report, an updated proposed exploration target was calculated and which ranged from 697,112 to 2,907,790 ounces of gold down to a depth of 1000m.1 The results from this report are summarised in the below table.*,**

Depth Extent

Theoretical tonnage

Assumed Grade

Target Size

Risk Weighted Exploration Target

0 – 300m

475 – 2,974k t

5.8 – 14.2g/t Au

554k oz. Au

217k oz. Au

300 – 600m

494 – 5,793k t

5.8 – 14.2g/t Au

1.080 Moz. Au

225k oz. Au

600 – 1,000m

558 – 6,827k t

5.8 – 14.2g/t Au

1.273 Moz. Au

255k oz. Au

TOTAL

1.5 to 15.6 Mt

5.8 -14.2g/t Au

2.907 Moz. Au

0.697 Moz. Au

*The exploration targets tabled above are not to be considered as an estimate of a Mineral Resource or Ore Reserve as those terms are defined in the JORC (2012) Code. The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource It is uncertain if further exploration will result in the subsequent estimation of any Mineral Resource. A drilling programme planned to test the valididy of the exploration target outlined above is currently being planned, and details will be included in the licence renewal application which will be submitted prior to the expiration date of 16 November 2022. Further updates regarding the proposed drilling programme will be supplied to the market in due course.

**The top end of the exploration target ranges produced represents the total ounce potential that would exist if each target area (0-300m, 300-600m, 600-1000m) had the same gold endowment as the historically mined orebodies at Berringa. Several risk factors were applied to the above calculation, which take into account the unknown location of various faults, folds and diltational jogs down to 1000m. The low end of the exploration target range reflects the full application of all calculated risk factors to the top end estimate.

Transaction Terms

For the purchase of 100% of the Vendor’s interest in the Licence to RRAL, covering the historical Berringa Gold Mine, the following consideration is payable:

· The issue to the Vendor staged cash payments totalling AUD$500,000 as outlined below:

 Initial payment of AUD$20,000 payable on successful transfer of the exploration licence to RRAL. This payment has now been made.

 On successful renewal of the Licence for an additional term of 5 years, which currently expires on 16 November 2022, an additional payment of AUD$130,000, which can be satisfied through the issue of either cash and/or publically traded shares.

 On public release of a initial JORC Compliant resource estimate of greater than 100,000 cumulative ounces of gold in the Inferred category, a further payment of AUD$350,000, which can be satisfied through the issue of either cash and/or publically traded shares.

· Upon the successful commencement of commercial production, a 1.5% Net Smelter Return (“NSR”) royalty will be issued to the Vendor over the Licence, with total payments capped at AUD$1,500,000 over the life of the NSR royalty.

· RRAL inherits the responsibility for a pre-existing 2.5% NSR Royalty, with total payments capped at AUD$50m, payable to Altus Strategies Plc. This royalty is part of a wider royalty covering actual or potential gold production from a number of licences including that from the Ballarat gold mine.  Of the AUD$50m, to date AUD$14.5m has been received by the royalty holder and therefore AUD$35.5m of the capped amount remains.5

New Ballarat Gold Corporation

NBGC through its wholly owned local operating subsidiary RRAL, holds a strong land position comprising 15 granted exploration licences for a total area of 1,841km2 within the gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

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

With the first tenements granted only in 2021, RRAL has already conducted detailed exploration of its initial targets, including a diamond drill test of two prospects starting in December 2021.

References

1 Final Technical Report Berringa Gold Project MIN 4191 Oct 2014. J Fothergill Balmaine Gold Pty Ltd

2 Berringa Exploration Strategy Technical Report: Sept 2004, H Forgan 

3 Sharp, D. & Sheerin K: OreTech Mining Solutions – Tenement Review and Exploration Strategy – EL007330 Daylesford. Unpublished independent geologist report prepared for Red Rock Australasia Pty Ltd. (2020).

 

4 https://ballaratgoldmine.com.au/our-mine/

5 Royalty Overview Dashboard – Altus Strategies ( https://altus-strategies.com/projects/royalty-dashboard/caserones-2/ )

QUALIFIED PERSON STATEMENT

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

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

Power Metal #POW – Molopo Farms Complex, Botswana – Drilling Underway

 

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.

On 15 September 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-geophysics-drill-update/15631016

HIGHLIGHTS

Drill Programme

§ Power Metal’s inaugural drilling campaign at Molopo Farms has now commenced.

§ Diamond core drilling at drillhole DDH1-6B is now underway and is targeting a large southerly dipping conductor that was identified by the Company’s recently completed moving loop electromagnetic (“MLEM”) geophysics survey over the priority Target area 1-6 (“T1-6”).

§ DDH1-6B is located 530m to the south of December 2020 drill hole KKME 1-6 which intersected significant nickel mineralisation 1, 2  subsequently interpreted to be on the  edge of a large electromagnetic (“EM”) conductor.

§ The second diamond core drillhole DDH 1-6C planned for the ongoing drilling campaign will be located 830m to the south of KKME1-6.  Site preparations are underway and will be completed shortly.

Geophysics

§ Additional ground magnetic and MLEM geophysics surveys over target areas 1-3, 2-3 and 1-14 have now been completed.

§ Preliminary geophysical data has now been received, and the Company is now compiling and interpreting these results.

§ Power Metal will release a further update to the market in due course with the findings of this geophysical work and the additional drill targets derived from the analysis undertaken.

 

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

“The world needs security of metal supply, which is enhanced if from a stable and supportive operating environment, such as Botswana. 

Molopo Farms presents the possibility for a district scale nickel exploration opportunity, with priority drill target T1-6 expected to be the first in a series of prospective drill targets based on current geophysical work and exploration planning.

We are targeting a large-scale nickel-copper-PGE discovery or discoveries, which would be transformational for the Company and, importantly, may lead to Molopo Farms being a focal point for investment and lead to significant job creation and opportunity.

We are therefore enthused with the opportunity the Molopo Farms Complex Project offers and are particularly pleased to announce the commencement of drilling.

I appreciate all our shareholders, and other current and potential stakeholders in the Project, will be watching developments with interest.”

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 – Priority Target Area T1-6 Cross-Section: A cross section showing the location of the first two planned holes, DDH1-6b and DDH1-6c, can be found in Figure 2 below.

Image – Diamond Drill Rig in Position at K1-6: In addition, an image of the drill rig at hole DDH1-6b is provided below, after positioning with the azimuth and dip set for drilling.

A picture containing sky, outdoor, ground, transport Description automatically generated

The diagrams and image presented above may also be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/molopo-farms-complex-drill-commencement/

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.

 

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.

REFERENCES

 

1:  Power Metal PLC announcement, Botswana Molopo Farms Complex – Drilling Progress Update, 14 December 2020

  ( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w )

 

2:  Power Metal PLC announcement, Significant Nickel Intersections Confirmed by Drill Sample Assay Results, 8 April 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw )

 

Stockbox Research Talks Special. Alan Green discusses the investment case for Evrima #EVA

Stockbox Research Talks Special. Alan Green discusses the investment case for Evrima #EVA

Power Metal #POW – MFC Project Update – Drill Programme Mobilisation

 

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.

On 30 August 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-drill-contract-signed/15604332  

Key Updates: 

§ Mindea Exploration and Drilling Services (Pty) (“Mindea”), an experienced Botswana-based company with extensive experience in-country has officially commenced mobilisation for the upcoming drilling programme. 

§ The planned drilling start date is now set for mid-September 2022. A further RNS will be provided to the market once drilling has officially commenced. 

§ The current planned programme is for circa 2,600m of drilling across an expected 6 drillholes, with at least two drillholes planned into the newly identified conductor within the T1-6 target area. 

§ As announced on 5 September 2022 the Company raised additional funds totalling £1,080,000, before expenses allowing for the potential expansion of the ongoing geophysics and upcoming drilling programme. 

§ Additional geophysics, including further Moving Loop Electromagnetic (“MLEM”) surveys as well as high-resolution ground-based magnetic surveys are underway. A further update in regard to this work, as well as survey results, are expected shortly. 

§ The programme is being designed to ensure expeditious core analysis to include: geologists on site to conduct continuous core inspection and logging, identification of visible sulphides, selection of core samples for assay testing and the arrangement where appropriate of expedited laboratory assays to minimise turnaround time. Hiring of the personnel required for the above is in the process of being finalised with crews arriving to site shortly. 

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

“The preparations for this important diamond drill programme continue at pace, with mobilisation of equipment to site and a target date for drill commencement next week.

This is a big moment for Power Metal and we are eager to commence drilling as soon as possible. Investors will appreciate that, with the financing we announced on Monday, we mean business and have the financial means to commit fully to this work in 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.

Power Metal #POW – Reitenbach Uranium Disposal – Progress Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a progress update in respect of the conditional disposal of its Reintenbach uranium property (“Reintenbach” of the “Property”) located east of the Athabasca Basin in Northern Saskatchewan, Canada.

The conditional disposal of Reitenbach to Teathers Financial Plc (“Teathers Financial” or “Teathers”), was announced on 8 August 2022 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269

Teathers is an unlisted public company which is planning an initial public offering (“IPO”) on the London capital markets.   Subject to the conditional terms of the agreed  Property Purchase Agreement  (the “Agreement”) being met, the Power Metal group would be expected to hold an estimated 40-55% interest in the newly listed company.

HIGHLIGHTS

§ Teathers to be renamed Uranium Energy Exploration PLC for its planned listing on the London capital markets.

§ Preparations for planned listing progressing well and £125k pre-IPO fundraising round completed.

§ Multiple significant uranium prospective anomalies identified across the Property.

§ A significant ‘New Lake Geochem Zone’ has been identified which is demonstrated by high-

tenor uranium results from historical lake sediment geochemical sampling

§ Additional staking of 1,333 hectares (13.33Km2) completed to cover new prospective zone and increasing the size of the Property to 15,979 hectares (159.79km2).

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

“The planned disposal of the Reitenbach uranium Property into what will be Uranium Energy Exploration PLC is progressing well, with significant corporate and technical progress having been made in the last 4 weeks since the transaction was announced.

We are seeing uranium shares move sharply higher across UK, Canadian and Australian exchanges, reflecting the increasing recognition across the globe of an urgent need for the uptake in utilisation of nuclear power generation.

Regrettably the UK capital markets do not have many uranium focused shares, and there is limited opportunity for UK investors to participate in the uranium sector. This new planned listing will add another opportunity, and we understand the investor engagement thus far, has demonstrated there is a great deal of interest.

Should you wish to be kept informed of developments, please email info@uraniumenergyexploration.com.”

FURTHER INFORMATION

Corporate:

–      Teathers Financial recently completed a £125,000 pre-IPO financing.

–      Teathers has secured the company name, Uranium Energy Exploration and ticker symbol UEE, in advance of its planned listing on the London capital markets in the near term.

–      Teathers has also secured the website holding page (https://uraniumenergyexploration.com) as well as the Twitter handle @uranium_energy as it continues to build out its online presence.

Reitenbach Technical:

Prior to the acquisition of the Property becoming unconditional, Power Metal’s technical team have continued to undertake exploration work on the Property. The outcome of that work is outlined below.

–      Hyperspectral remote sensing analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance was recently obtained over the Reitenbach area. The results of this spectral survey highlighted the existence of several anomalies located across the Property.

–      These spectral results, combined with government and historical geophysical data, have allowed for the refinement of several high-priority targets for inspection during future work programmes, which includes a strong northeast-southwest trending anomaly in close proximity to the original ‘Lake Geochem Zone’ identified in 2021 by Power Metal.

–      A significant ‘New Lake Geochem Zone’ was also identified through further historical data digitisation, which includes lake sediment sample results up to 346ppm Uranium (“U”) (with 6 results returning > 285ppm U) which represent very high tenor results for this type of geochemical sample. The combined Lake Geochem Zone now stretches for greater than 7km.

–      The spectral results also have highlighted a significant hydrogen and helium anomaly present along the regionally important Needle Falls Shear Zone.

–      As a result of the spectral results and the identification of the ‘New Lake Geochem Zone’, an additional 1,333 hectares have been claim staked (13.33 km2), bringing the total Property area under licence to 159.79 km2. The new ground staked covers the extension of a northeast-southwest trending uranium-rich boulder train as well as spectral anomalies identified at the ‘New Lake Geochem Zone’. All Reitenbach Property claims are being held by Power Metal, in trust for Teathers, pending completion.

A map highlighting the newly staked area and results from the ‘New Lake Geochem Zone’ be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/reitenbach-property-overview-sept-22/

Power Metal #POW – Investee Update – First Class Metals PLC

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the announcement today from First Class Metals PLC (LON:FCM) (“First Class”) providing an exploration update confirming a high grade nickel sulphide discovery at Pickle Lake within the Schreiber-Hemlo region, Ontario, Canada.

This announcement and other announcements released by First Class may be viewed through the following link:

https://www.firstclassmetalsplc.com/rns-announcements

Power Metal and its wholly owned subsidiary Power Metal Resources Canada Ltd hold 18,516,097 First Class shares representing 28.19% of issued share capital (the “FCM Holding”).

The FCM Holding is subject to a lock-in agreement preventing the sale of the FCM Holding until 29 July 2023 and an orderly market arrangement for 12-months thereafter until 29 July 2024.

In addition, Power Metal holds 517,705 warrants to subscribe for a further 517,705 First Class shares at an exercise price of 10p per FCM share and with an expiry date of 29 July 2023.

 

Alan Green covers Power Metal Resources #POW & Tekcapital #TEK on this week’s Stockbox Research Talks

Alan Green covers Power Metal Resources #POW & Tekcapital #TEK on this week’s Stockbox Research Talks

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

 

Power Metal Completes Gold Focused Drilling Programme and Initial Results from Fines Sampling Demonstrate Extensive Residual Gold

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 from its Tati Gold Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana.

The Company announced the commencement of reverse circulation (“RC”) drilling on 22 August 2022 and a link to that announcement is provided below:

https://www.londonstockexchange.com/news-article/POW/tati-gold-project-botswana-drilling-commences/15595699

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/

 

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

“My thanks to the team in Botswana for the completion of a safe and effective drill programme. The samples have been prepared efficiently and sent to Intertek for assay testing and we look forward to receiving the results. Naturally having intersected the targeted geological structures repeatedly and at shallow depth, we are particularly enthused with progress thus far.

The sampling of the fines dumps has also delivered residual gold from all samples taken across the dumps.  The processing potential of this waste mine material is interesting and we are looking at this further based on the results of the sampling. In addition, the fact that the dumps retain material residual gold after previous processing is extremely positive, indicating that higher grade material was originally extracted and processed from the Cherished Hope former working mine.

In summary, we are moving forward at some pace with the Tati Gold Project, and I look forward to reporting further as the assay results are received.”

HIGHLIGHTS:

RC Programme

§ RC drilling programme completed with a total 490m drilled across 9 holes for an average drillhole depth of 55m.

§ Drilling was designed to test for potential along-strike and down-dip extensions of the gold-bearing quartz vein structures, or ‘quartz reef’, worked at the former Cherished Hope mine located, in close proximity to the drilling sites, on the Project.

§ Quartz reef was successfully intersected within all holes drilled, with multiple holes intersecting multiple sub-parallel quartz reef structures. The largest single intersection was from RC hole CHRC00007 which intersected quartz reef from 11-19m (8m intersection).

§ Sulphide mineralisation, including chalcopyrite and arsenopyrite was logged within the quartz reef and in some instances up to 5m into the vein footwall.

§ RC drill chip samples have been prepared and sent to Intertek in Perth, Australia (“Intertek”) for accredited laboratory assay testing to determine gold content.

Fines Sampling Update

§ In total 37 samples were collected from across the former mineral processing fines dumps found on the Project. These dumps consist fine grained waste material resulting from historical processing of ore material mined from the Cherished Hope gold mine.

§ The sampling was to test for residual gold in the dumps, which if confirmed, could offer the potential for reprocessing using more efficient modern gold recovery methods and to generate cashflow, subject to local approvals.

§ The 37 samples were sent to the nearby Mupane Gold Mine laboratory for gold assay testing, with received results confirming the presence of residual gold in every sample tested (ranging from 0.35g/t to 2.16 g/t Au with an average grade across all samples of 0.94g/t Au, see Table 1 below).  Duplicate samples were also sent to Intertek for independent check analysis, the Company is currently awaiting these assay results.

§ The presence of the residual gold in the fines material, could reflect the high grade nature of the ore originally mined at Cherished Hope or the less efficient gold processing methods previously employed there.

Table 1: Tati Gold Project Fines Dump – Assay Table

Sample ID

Au (g/t)

CHD09 67046

0.74

CHD09 67048

0.77

CHD10  67050

0.77

CHD10 67052

1.08

CHD11 67054

0.88

CHD11 67056

1.24

CHD12 67058

1.16

CHD12 67060

1.06

CHD13  67062

1.37

CHD13 67064

1.23

CHD14 67066

0.8

CHD14 67068

2.16

CHD15 67070

0.75

CHD15 67072

0.98

CHD16 67074

0.35

CHD16 67076

1.05

CHD17 67078

1.19

CHD17 67080

1.36

CHD18 67082

0.82

CHD18 67084

1.06

CHD19 67086

1.58

CHD01 67014

0.69

CHD01 67016

0.53

CHD02 67018

0.66

CHD02 67020

0.91

CHD03 67022

0.73

CHD03 67024

0.66

CHD04 67026

0.48

CHD04 67028

0.66

CHD05 67030

0.94

CHD05 67032

0.89

CHD06 67034

0.94

CHD06 67036

1.04

CHD07 67038

0.89

CHD07 67040

0.72

CHD08 67042

0.75

CHD08 67044

0.92

Average

0.94

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.

Power Metal Resources #POW – Total Voting Rights

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that as at 31 August 2022 there were 1,537,512,064 ordinary shares of 0.1 pence each in issue, none of which are held in treasury. Therefore, the total number of voting rights in the Company is 1,537,512,064 .

The above figure of 1,537,512,064 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

Alan Green covers Power Metal Resources #POW & GreenX Metals #GRX on this week’s Stockbox Research Talks

Alan Green covers Power Metal Resources #POW & GreenX Metals #GRX on this week’s Stockbox Research Talks

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