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Tertiary Minerals #TYM – Pyramid Drilling Update

Tertiary Minerals plc (LON: TYM), the AIM traded mineral exploration and development company, whose strategic focus is on energy transition and precious metals, hereby announces results from the Company’s recent drill programme at the Pyramid Silver‑Gold Project in Nevada. In summary, drilling at the North Ruth target has not, to date, demonstrated significant mineralisation at depth.

Follow the link to view the announcement in full including Figure 1 here.

Highlights

  • A programme of soil and rock chip sampling and trenching was conducted in phases throughout 2021 which established wide intervals of significant silver and associated gold mineralisation at surface at North Ruth along a zone over 500 metres in length;
  • Additional trenches were excavated in February 2022, providing additional evidence for the surface extent of the mineralised zone;
  • Reverse circulation (RC) drilling, comprising 6 holes for a total of 1,050 metres (3,445 feet), was completed in early March 2022 in order to explore the potential continuation of this mineralisation at depth;
  • The drilling completed has not, however, returned favourable results and the continuity of mineralisation at depth has therefore not yet been established. The Company will now spend some time reviewing these results in more detail, while at the same time continuing its activities on its other exploration projects in Nevada and in Zambia.

Commenting today, Managing Director Patrick Cullen said:

“The surface sampling and trenching completed throughout 2021 and early 2022, as well as the presence of extensive historic underground workings in the area, confirmed North Ruth as a drill target that warranted drilling.

We executed a limited and cost-effective drill program, utilising RC, to determine if the mineralisation is present at depth but the results have been disappointing. A detailed analysis of the results will be needed before any further exploration is undertaken. Indications are that localised supergene enrichment of silver has resulted in the grades observed at surface.

In the meantime, progress has been made with permitting at our Brunton Pass Copper Project, also in Nevada, and we will recommence activities there soon. In addition, we have already begun field work on the Jacks Copper Project in Zambia and expect to commence drilling in late April or early May 2022.

For more information please contact

Tertiary Minerals plc:
Patrick Cullen, Managing Director +44 (0) 1625 838 679
SP Angel Corporate Finance LLP – Nominated Adviser and Broker
Richard Morrison +44 (0) 203 470 0470
Caroline Rowe
Peterhouse Capital Limited – Joint Broker
Lucy Williams + 44 (0) 207 469 0930
Duncan Vasey

 

Note to Editors

Tertiary Minerals plc (LON: TYM) is an AIM traded mineral exploration and development company whose strategic focus is on energy transition and precious metals. The Company’s projects are located in stable and democratic, geologically prospective, mining-friendly jurisdictions. Tertiary’s principal activities are the discovery and development of copper, gold and silver resources in Nevada and in Zambia.

Market Abuse Regulation

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

Detailed Information

Background

The Pyramid Gold-Silver Project was established through a lease agreement, targeting epithermal gold and silver mineralisation at the northwest end of the prolific current and past producing Walker Lane Mineral Belt.

The Company conducted systematic exploration at Pyramid undertaking extensive soil sampling, rock-ship sampling, mapping, and three phases of trenching over soil anomalies between April 2021 and February 2022. At the North Ruth target, surface silver and gold mineralisation was demonstrated to extend over a strike extent of at least 530 metres, with a zone width of up to 59 metres and yielding up to 595 g/t silver (17.35 ounces/ton) and 0.66 g/t gold (Announcement dated 14 October 2021).

Drill Programme

Envirotech Drilling LLC (“Envirotech”) of Winnemucca, Nevada were contracted to conduct RC drilling and commenced on 8 March, operating on a 24-hour basis until completion on 13 March 2022. The program was designed to test continuity of mineralisation at depth and along strike at the North Ruth target and comprised 6 holes (NR-01 to 06) for a total of 3,445 feet (1,050 metres).

RC samples were collected on 5-foot (1.52 metre) intervals providing 689 samples. 39 Field duplicates were collected throughout sampling. Additionally, 41 certified reference materials (“CRMs”) and 40 blanks were inserted into the sample run. Significant drilling results are shown in Table 2. Upon completion of a drillhole International Directional Services (“IDS”) performed downhole surveys using a gyroscopic survey tool to record azimuth and dip deviation. Collar locations were surveyed by handheld GPS and where two collars are adjacent, their relative position estimated to nearest metre.

Figure 1 below shows the collar locations for the holes drilled, Table 1 lists the collar coordinates and drillhole azimuths and Table 2 the most significant results.

 

(This figure, along with the announcement in full, can be viewed here.)

 

Figure 1: Location of RC drill holes NR-01 to NR-06 relative to rock chip samples and trenches. Historic underground activities are also indicated.

 

DHID NAD83_11_X NAD83_11_Y MASL_Z EOH (M) COLLAR_AZI COLLAR_INC EOH_AZI EOH_INC
NR-01 273863 4415628 1352 152.4 218 -45 225 -55
NR-02 273864 4415629 1352 219.5 217 -55 227 -58
NR-03 273916 4415597 1347 193.5 223 -46 234 -56
NR-04 273918 4415594 1347 214.9 205 -45 213 -45
NR-05 274075 4415284 1394 121.9 045 -60 046 -64
NR-06 273991 4415322 1362 147.8 044 -55 044 -63

Table 1: RC collars, azimuths and inclinations

 

DHID From (ft) To (ft) Interval (ft) From (m) To (m) Interval (m) Au (ppm) Ag (ppm)
NR-05 195 200 5 59.4 61.0 1.5 0.697 81
NR-05 170 175 5 51.8 53.3 1.5 0.089 18
NR-06 240 245 5 73.2 74.7 1.5 0.003 18
NR-06 15 20 5 4.6 6.1 1.5 0.249 16
NR-06 25 30 5 7.6 9.1 1.5 0.088 16

Table 2: Significant1 silver drill intersections

Holes NR-01, NR-02, NR-03 and NR-04 were designed to intersect targets beneath the highest grade surface mineralisation in Trench 1, Trench 1 Ext and Trench 8. No significant intersections are noted. Minor intersections are noted in holes NR-05 and NR-06 which were drilled towards to the southern extent of the North Ruth target.

At this stage the discrepancy between surface and drill results in not explained and further evaluation is required. Faulting or surface enrichment are possible explanations.

Phase 3 Trenching

The Company also conducted a further, short program of trenching, comprising 3 trenches in February 2022 while drill pad and access construction was underway. Field observations and assay results continued to confirm the presence of mineralisation at surface and supported the plan to drill. The Samples collected from the trenches were prepared and analysed by Paragon using the same methods as previous phases3. Significant intersections are presented below.

Trench From (m) To (m) Interval (m) Ag (g/t) Au (g/t)
2b 42.67 46.63 3.96 20 0.30
14 3.05 9.14 6.09 18 0.09
14 13.41 17.37 3.96 41 0.33
14 61.57 64.62 3.05 16 0.29

 

Drill Sample Analysis and QA/QC

Drill samples were collected on-site by Paragon Geochemical (“Paragon”) and transported under chain of custody to their facility in Reno, Nevada for sample preparation and analysis. Samples were prepared using code PREP-PKG where samples were crushed to 70% passing 10 mesh (2000 micron) and 1 kilogramme riffle split and crushed to 85% passing 200mesh (74 micron).

RC material was sampled over continuous 5 foot (1.53 metre) intervals. Gold and silver were analysed by method Au-AA Ag-GR, a 30g fire assay with gravimetric finish for silver and an atomic absorption spectroscopy finish for gold. As routine, Paragon implemented internal QA/QC procedures which were reviewed by the Company and are considered acceptable.

The Company implemented its own QA/QC protocol which involved field insertion of greater than 5% blanks, greater than 5% field duplicates and greater than 5% CRMs. QA/QC samples were inserted blind and assigned the same continuous sample number sequence as original samples. Two different CRMs were used to access both high- and low‑grade material. A review of assay results from the Company’s QA/QC inserts were found to be acceptable.

 

Notes:

  1. ‘Significant’ is defined as a minimum 2 metres width of sample grading a minimum of 15 g/t silver or 0.25 g/t gold in trenching and surface sampling. A width of 1.52 metres (5 feet) is applied for RC drilling in Nevada which relates to the standard sampling width. Narrow lower grade material may be included where they are internal to the reported intervals. Reported thicknesses of drill intersections are thicknesses measured downhole and therefore cannot be considered true thickness.

 

  1. Units:         

Rock samples reported in g/t = grammes/tonne

1 g/t = 0.029167 ounce/ton (i.e. troy ounces/US ton)

1ppm = 1 g/tonne

1 (Troy) ounce =31.105 g

 

  1. Trench samples were collected by consulting Geologist Ivan Johnson as continuous chip samples over a maximum of 10 feet per sample. Samples were transported under chain of custody to Paragon Geochemical facilities in Reno, Nevada, for sample preparation. Samples were crushed to 85% passing 200mesh using method PREP-RMB. Gold was analysed by method Au-AA30 which comprises 30g fire assay with aqua regia digest/AAS finish. Multielement analysis (including Ag) was performed using method 33 MA-OES which comprised a 4-acid digest with ICP/OES finish. Ag overrange analysis was performed using method Ag-Gr50, a 30g fire assay with gravimetric finish. Paragon carries out duplicate, and standard and blank materials analysis as part of its internal QA/QC procedures. Grades reported above are weighted average grades of samples taken over varying widths from within the reported intervals.

 

  1. The information in this release has been reviewed by Mr. Patrick Cheetham (MIMMM, M.Aus.IMM), Executive Chairman of Tertiary Minerals plc, who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies. Mr. Cheetham is a Member of the Institute of Materials, Minerals & Mining and also a member of the Australasian Institute of Mining & Metallurgy.

 

  1. The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company’s proposed strategy, plans and objectives or to the expectations or intentions of the Company’s directors. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

#POW Power Metal Resources – Ditau Project – Rare-Earth Element Drill Targets

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a update for the Ditau Project (“Ditau” or the “Project”) located in southwestern Botswana.

The Ditau Project is held by Kanye Resources Pty Ltd (“Kanye Resources”), a Botswana joint venture company in which Power Metal and Kavango Resources plc (“Kavango”) (LON:KAV) each hold a 50% interest.

 

Ditau is targeting rare-earth element (“REE”) discoveries.  A diamond drill rig is now being mobilised to the first drill location and drilling is expected to commence within the next few weeks.

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

“It is imperative for the world to find new sources of rare-earth elements in secure and stable mining jurisdictions. At Ditau, several years of preparatory work utilising modern remote sensing and various geophysical techniques have culminated in multiple high-priority exploration targets which we believe offer the potential for new discoveries of rare-earth element mineralisation within mining friendly Botswana.

For Power Metal and Kavango to jointly launch another drill programme in Botswana demonstrates our confidence in the geological prospectivity across our project interests in country, and we look forward to the progression of this important drilling programme at Ditau and its findings.”

 

HIGHLIGHTS

Kanye Resources has identified 12 airborne magnetic targets at Ditau of which 9 are clear ring structures that are believed to represent possible carbonatites that are considered by the Company to be prospective for rare-earth element mineralisation. Kanye is now commencing on a diamond drilling campaign which will include up to 6 deep drillholes (up to 2,400m estimated in total) targeting three of the highest priority targets identified to date:

–  The “i10” target, a discrete circular airborne magnetic anomaly of 2.2km diameter (a independent orientation study concluded that the magnetic source of the i10 target is not related to intrusive kimberlitic bodies)

–  The “i8” target, a larger ring like target of about 4km diameter, and

–  The “i1” target that may represent a large, 7km x 18.5km intrusive complex where structures have been identified which may be indicative of potential carbonatite intrusives.

Whilst the drilling campaign is primarily targeting REE mineralisation hosted within interpreted carbonatites or felsic intrusives, the geophysical targets could also be related to layered mafic intrusive systems, which are considered by the Company to be prospective for nickel, copper, and platinum group element (“PGE”) mineralisation.

The target depth horizons at all targets are less than 400m for each drillhole, and the estimated Kalahari sand cover is between 60m-120m thick based on estimates from the recently completed Audio-frequency Magnetotelluric (“AMT”) surveys at Ditau. The drill programme may be revised as it progresses. While the nominal targets are carbonatites, other mineralisation styles may also be intersected within the ring structures. The programme has been designed with this flexibility in mind.

The 12 airborne magnetic targets identified at Ditau are not known to have been tested for either REEs, base or precious metal mineralisation historically. Kanye has identified these structures, which range in size from 1km to 20km in diameter using geophysical techniques which are more advanced than that available to previous operators. Kanye has employed airborne magnetic, ground magnetic, gravity and AMT surveys at Ditau and the results from these surveys have allowed for precise drill targeting.

 

DITAU DRILLING RATIONALE

Carbonatites have the potential to host both rare-earth element and base-metal mineralisation. Carbonatites are often unique geologically and can show marked differences from one intrusive complex to the next. Notably they can form very large, world class mineral deposits highlighted by examples in the region (e.g.  the Palabora Cu deposit in South Africa) and around the world (e.g. Jacupiranga REE deposit in Brazil, and the Kovdor REE deposit in Russia).

In addition to primary REE mineralisation, Carbonatites are also known as a source of secondary REE mineralisation located within the supergene/weathering zone. Kanye believes that both primary and secondary mineralisation are legitimate target styles at the Ditau Project.

Carbonatites often occur in “swarms” or clusters, oriented along favourable and clearly defined geological trends. The 12 structures identified at Ditau occur along a southwest-northeast oriented regional corridor which further along strike hosts the Mabuasehube and Kokong kimberlite groups. Desktop analysis of regional geological data by Kanye’s geologists suggest that this trend is subparallel to corridors that host other kimberlite groups within Botswana and northwest Angola. Significantly, in both countries these trends are known to host both kimberlite and carbonatite intrusives.

In addition to the known presence of kimberlites and carbonatites within this geological trend, further supporting the possible presence of carbonatites at Ditau are a small cluster of carbonatite intrusives including KW2, definite, and KS12 & KS36 (the “Falconbridge Carbonatites”), located near to the Project. The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970’s-early 1980’s, to the immediate north and 30km along strike to the northeast of the Ditau Project.

Kanye Resources commissioned GeoResources Consultancy to conduct a reconnaissance soil sampling survey for kimberlite indicator minerals over the i10 target. The survey report concluded:

” The laboratory reported no kimberlitic grains picked from any of the (soil) samples. If the target were related to any intrusive kimberlitic body, the samples would have at least produced some kimberlitic indicator minerals since an optimum sample volume (60 litres) and sampling density was used in this programme. The cause of the magnetic anomaly is still to be established but is non kimberlitic.

The areas covered by the prospecting licence still has potential for the occurrence of kimberlite bodies. Some of the known kimberlite fields in Botswana, from the Orapa field in the north-east, through the Gope field, Kikao-Khutse field, Kokong field and down to the Tsabong field in the south-west corner of the country. These kimberlite fields form the north-east, south-west kimberlite intrusive corridor. The areas with the sampled magnetic targets fall within or close to the margins of this corridor. “

In addition, analysis of the gravity survey results by Kavango’s in-house team of geophysicists suggests the i10 target has a dense underlying body causing a high gravity anomaly. The coincidence of the gravity and magnetic anomalies strengthens Kanye’s view that this target could be prospective for either carbonatite or base or precious metal mineralisation

Additionally, the larger geophysical targets at the Ditau Project have a more complicated geophysical signature that may be caused by magmatic layered intrusive bodies. Layered mafic intrusives are known sources of base and precious metals within Botswana and worldwide. Kanye believes it is possible that the magnetic anomalies being drill tested have the potential to host ultramafic rocks, which could be prospective for magmatic nickel and precious metal mineralisation. Drill samples from the programme will be sent to the laboratory where they will undergo multi-element analysis.

As noted above, apart from recent exploration by Kanye, no known REE, base or precious metal exploration has been conducted within the Ditau Project. As a result, Kanye will be the first known company to drill test these exciting targets.

 

JOINT VENTURE STRUCTURE

The Ditau Project is held by Kanye Resources Pty Ltd, a Botswana joint venture company in which Power Metal and Kavango each company hold a 50% interest. Exploration costs are equally shared. Kavango is the operator.  Mindea Exploration and Drilling Services (Pty) has been contracted to conduct the drilling.

 

THE DITAU CAMP PROJECT

The Ditau Camp Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Detailed geophysical and geochemical analyses by Kanye has identified 12 ring structures within the two PLs. These ring structures have the potential to host REE-rich carbonatites.

Carbonatites are a principal global source of rare-earth elements including the much sought-after elements neodymium (Nd) and praseodymium (Pr) which are used in the manufacture of the new generation of electric vehicles (EVs), permanent magnets and other high-tech applications. Other elements/minerals known to be associated with carbonatites include niobium, phosphates, monazite, strontium, magnetite and copper.

Additionally, layered mafic intrusives have the potential to host base- and precious-metals as evidenced in the Molopo Farms Complex, Selebi-Phikwe and Tati Nickel projects in Botswana.

 

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

#KAV Kavango Resources – Ditau Drill Targets Confirmed

The Ditau Camp Project (“Ditau”) presents Kavango Resources plc (LSE:KAV) with an opportunity to enter into a new commodity space. Rare earth elements (“REEs”) are crucial to the green industrial revolution. Most of the world’s REEs are found in carbonatite “ring structures”.

Kavango has identified 12 geophysical structures/targets at Ditau, which the Company believes could be possible carbonatites and/or intrusive complexes that may host carbonatites. 9 of these are particularly well defined. Kavango is now commencing on a diamond drill campaign to test 3 of these targets, by drilling up to 2 holes in each (up to 2,400m estimated drilling in total):

–  The “i10” target, a discrete circular anomaly of 2.2km diameter

–  An independent orientation study concluded that the magnetic source of the i10 target is not related to intrusive kimberlitic bodies

–  The “i8” target, a slightly larger ring like target  of about 4km diameter, and

–  The “i1” target that may represent a possible large 7km x 18.5km magmatic intrusive complex, within which are circular structures indicative of potential carbonatite intrusives

–  Target depth horizon of less than 400m for each borehole

–  Kalahari sand cover 60m-120m over planned boreholes, based on results from Audio-frequency Magnetotelluric (“AMT”) surveys

–  The primary target(s) are REE mineralisation in possible carbonatites, or secondary REE deposits derived from the primary source (dependant on relative age of intrusion and/or erosional history)

–  Secondary target mineralisation style includes possible Nickel/Copper/Platinum Group Elements (“Ni/Cu/PGEs”), in layered mafic intrusives

–  Drill programme designed to be flexible to allow for possible revisions as it progresses

The 12 Ditau geophysical targets are not known to have been tested for either REEs or base/precious metal mineralisation. Kavango identified these structures, which range in size from 1km to 20km in diameter, using modern geophysical interpretative software which is considerably more powerful than that previously available. Kavango has used combined and integrated airborne magnetics, ground magnetics, gravity and AMT surveys in the exploration of the area and for drill targeting.

 

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

“Over recent years, Kavango has completed detailed survey and interpretation work at Ditau. We’ve deployed some of the latest remote sensing technologies to create a series of comprehensive targeting models.

Diamond drilling will represent the culmination of this latest exploration campaign at Ditau. Our primary objective is to confirm whether one or more of the ring structures/intrusives we’ve identified are carbonatites with potential for rare earth elements, or mafic intrusives potentially hosting base/precious metals.

Drill testing the ring structure targets should be relatively straightforward. While the geophysical signatures are complex and varied, confirming the presence of carbonatite/mafic bodies would be the first step towards defining the potential for REE and base/precious metal mineralisation.

We will release more results from this in the coming weeks, as we progress through the drill campaign.”

 

Supporting rationale for drilling at Ditau

Apart from exploration by Kavango previously, no known REE or base metal exploration has been conducted in the Ditau area. This project is unexplored for these commodities and yet has several very positive indications that the appropriate geological systems could exist here.

Carbonatites can host both rare earth elements (“REE’s”) and base metal mineralisation. This is the primary target mineralisation model Kavango is pursuing at Ditau.

Carbonatites are often complicated geologically and show marked differences from one intrusive complex to the next. They can however form very large, world class mineral deposits exemplified by examples in the region (e.g. the Phalaborwa deposit in South Africa, and the Ngualla deposit in southern Tanzania) and around the world.

In addition to the primary mineralisation they are also known as a source of secondary REE deposits in the supergene/weathering zone. Kavango believes both primary and secondary mineralisation would be legitimate target styles in the Ditau project area.

Carbonatites often occur in “swarms” or clusters, oriented along favourable and clearly defined geological trends. The 12 Ditau geophysical structures occur along a southwest-northeast regional corridor, along the south-eastern edge of trend that hosts the Mabuasehube and Kokong kimberlite groups. Desktop analysis of regional data by Kavango’s geologists suggests this trend is parallel to other corridors that host other kimberlite groups in Botswana and northwest Angola. In the latter these trends are known to host both kimberlite and carbonatite intrusives.

In addition to the known presence of kimberlites within the “Ditau trend” (in numerous published reports and maps), and supporting the possible presence of carbonatites, are an as yet small cluster of carbonatite intrusives (KW2, definite, and KS12 & KS36 possible bodies) in the vicinity of the project (the “Falconbridge Carbonatites”). The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970’s-early 1980’s, to the immediate north and 30km along strike to the northeast of the Ditau project.

 

An independent report by GeoResources Consultancy, commissioned by the Company, tested the i10 target with reconnaissance indicator minerals soil sampling for kimberlites. This concluded:

” The laboratory reported no kimberlitic grains picked from any of the (soil) samples. If the target is related to any intrusive kimberlitic body, the samples would have at least produced some kimberlitic indicator minerals since an optimum sample volume (60 litres) and sampling density was used in this programme. The cause of the magnetic anomaly is still to be established but is non-kimberlitic.

The areas covered by the prospecting licence still has potential for the occurrence of kimberlite bodies. Figure 2** some of the known kimberlite fields in Botswana, from the Orapa field in the north-east, through the Gope field, Kikao-Khutse field, Kokong field and down to the Tsabong field in the south-west corner of the country. These kimberlite fields form the north-east, south-west kimberlite intrusive corridor. The areas with the sampled magnetic targets fall within or close to the margins of this corridor. “

In addition, analysis of the gravity survey results by Kavango’s in-house team of geophysicists suggests the i10 target includes a dense underlying body causing a high positive gravity anomaly. The coincidence of the gravity and magnetic anomalies strengthens the Company’s view that this target could be prospective for either carbonatite or base/precious metal mineralisation.

Meanwhile, the larger geophysical targets at Ditau have a more complicated signature that could be due to magmatic layered intrusive bodies.  Layered intrusives are known to contain base and precious metals. The Ditau area lies on the margins of the Molopo Farms Nickel Project, known to have nickel mineralisation in ultramafic rocks. Kavango believes it is possible these geophysical features could be ultramafic intrusives with the potential for nickel mineralisation.

 

The POW/KAV Joint Venture at Ditau

Ditau is held in a 50/50 Joint Venture (“Kanye Resources”) with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator. Mindea Exploration and Drilling Services (Pty) (“Mindea”) will conduct the drilling.

**Figure 2 can be viewed in the Company’s media library by clicking the following link:

https://www.kavangoresources.com/media-library/news-release-media  

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

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com  

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

#SVML Sovereign Metals – Sovereign Joins UK Critical Minerals Association

SOVEREIGN JOINS UK CRITICAL MINERALS ASSOCIATION

TITANIUM METAL MARKETS CONTINUE TO SEE TIGHTENING SUPPLY

 

·

Sovereign has become a member of the UK’s Critical Minerals Association which works to increase the self-sufficiency of supply chains for the UK’s industrial strategy

·

Discussions with governmental groups are ongoing as Sovereign’s Chairman attended the UK Government’s Critical Minerals Strategy Roundtable

·

Sovereign’s Kasiya project in Malawi will produce rutile – the purest natural source of titanium, and natural graphite as a by-product – both designated Critical Raw Materials for the US and the EU

·

Importance of robust supply chains and security of supply for titanium metal and feedstocks highlighted by recent instability in Eastern Europe

·

Rutile market fundamentals including current and forecast pricing remaining very strong

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that it has become a member of the UK’s Critical Minerals Association (CMA). Sovereign’s Kasiya Rutile Project (Kasiya) is the world’s largest undeveloped rutile deposit, the purest natural form of titanium, as well as containing a natural graphite by-product. Titanium and natural graphite have already been identified as Critical Raw Materials by the United States, the European Union and Australia.

 

Recent developments in Eastern Europe have highlighted the importance of robust supply chains and security of supply for critical raw materials. Sovereign’s membership of the CMA is part of the Company’s ambition of supporting sustainable, socially responsible, and environmentally beneficial supply of natural rutile and natural graphite. With an urgency to identify new sources of critical minerals, the CMA’s objectives include increasing the self-sufficiency of supply chains for the UK’s low-carbon, sustainability-driven industrial strategy. To this end, the CMA will provide a direct line of communication between Industry and Government.

 

Last week, Sovereign’s Chairman Ben Stoikovich attended the Critical Minerals Strategy Roundtable held by the UK’s Department for Business, Energy and Industrial Strategy. Sovereign’s attendance follows a number of discussions between the Company and the UK’s Department of International Trade focussing on Sovereign’s potential to supply high purity titanium feedstocks and natural graphite as critical raw materials required by the UK. .

 

Sovereign’s Chairman Ben Stoikovich commented: “The world’s economies are rightly focusing on developing sustainable and secure supply chains of raw materials deemed critical based on their economic, environmental, and social importance. In this regard, Sovereign’s Kasiya project in Malawi is well positioned to potentially supply two critical raw materials to economies across the globe over several decades.”

 

ENQUIRIES

 

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)
+61(8) 9322 6322

Sapan Ghai (London)
+44 207 478 3900

 

 

Nominated Adviser on AIM

RFC Ambrian

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

+44 20 3207 7800

Matthew Armitt

Jennifer Lee

Varun Talwar

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

Mariela Jaho

Christian Dennis

#POW Power Metal Resources – Results for the Year Ended 30 September 2021

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces its consolidated audited results for the year ended  30 September 2021, for the Company and its subsidiaries (together the “Group”).  

Highlights from the year under review:

Operational

 

· After an extensive preparatory period drilling commenced in October 2020 at the Molopo Farms Complex Project (“MFC Project”) in Botswana, where the Company funded US$500,000 of exploration costs to earn-in to a 40% direct project interest. Results were released during the course of the year with potentially significant nickel sulphides identified from the three hole drill programme and the company completed its earn-in during April 2021, securing a direct 40% interest in the MFC Project.

 

· In January 2021 an option was secured over exploration interests in the Paterson Region of Western Australia and during 2021 various amendments were made to this original option culminating in the acquisition of a 5 licence exploration package covering 751km2 post-year end. Work undertaken during the year demonstrated the presence of magnetic bullseye anomalies demonstrating geological and geophysical similarities to the Havieron deposit discovered by Greatland Gold plc.

 

· January 2021 saw option agreements signed over exploration project interests in the Hemlo Schreiber region in Ontario Canada, with options crystallised in the year and it was then announced in September 2021 that the entire interests in the Hemlo Screiber region were sold to First Class Metals Limited (“FCM”) for £1 million through the issue to wholly owned subsidiary Power Metal Canada Inc of 333,334 FCM shares at £3 per share. FCM is seeking a listing on the London capital markets.

 

· The Company saw its 49.9% owned joint venture in the Victoria Goldfields see its first licence applications granted and the launch of inaugural ground exploration in February 2021, with various updates released during the year confirming additional licence grants and gold exploration progress.

 

· In March 2021 the Company confirmed the acceleration of its earn-in to a 30% holding in the Silver Peak silver project in British Columbia, Canada, and in July 2021 diamond drilling commenced which would ultimately lead to the discovery of further bonanza grade silver, with significant copper, lead and antimony credits.

 

· Also in March 2021, the company announced a business update from its 50% owned joint venture with Kavango Resources plc in the Kalahari Copper Belt (“KCB”), Botswana that saw the signing of conditional acquisition agreements to acquire 8 new KCB licences and increasing the joint arrangement’s KCB ground footprint to 4,255km2.  The acquisitions were completed in August 2021 and saw all KCB interests transferred to a new 50% joint operating company Kanye Resources Pty Ltd.

 

· In May 2021 the Company secured an option agreement over two gold – nickel prospecting licences in Botswana, and after due diligence exercised the option in July 2021. Accelerated exploration led to the discovery of multiple kilometre-scale gold, nickel and arsenic anomalies announced in July, ultimately leading into a post-year end reverse circulation drill programme. Following option exercise the two licences underlying the properties (the “Tati Project”) were successfully transferred post-year end into a new 100% Power Metal owned Botswana holding company, Tati Greenstone Resources Pty Ltd.

 

· June 2021 saw the Company sign an Assignment and Assumption Agreement to acquire a right to earn into a 100% interest in the Golconda Summit Gold Property in Nevada USA, marking the Company’s first project in Nevada.

 

· Also in June 2021 acquisitions in Nevada continued with the acquisition of a 100% interest in the Stonewall and Garfield exploration projects from fellow AIM listed Sunrise Resources plc.

 

· July 2021 saw the identification of rare earth element drill targets at the Ditau Camp project in Botswana, also held in the 50% owned joint venture with Kavango Resources plc, Kanye Resources Pty Ltd.

 

· The Company signed an agreement in July 2021 through which it may acquire a 100% interest in the Authier North lithium exploration property in Quebec, Canada, situated adjacent to Sayona Mining’s (ASX:SYA) Authier lithium project.

 

· In September 2021 the Company launched a uranium staking programme in the Athabasca area of Saskatchewan, Canada which ultimately saw c.412km2 of ground staked, allocated into 7 project packages.

 

Financial

 

· Loss for the year to 30 September 2021 of £622k (2020: £1.4 million);

· Pre non-controlling interest total equity of £6.3 million   at the year-end (2020: £2.7 million); and

· Raised £3.6 million in cash during the year from the exercise of Power Metal share warrants, including by directors.

Post-year end

 

In November 2021, Power Metal raised over £1,050,000 gross proceeds through a placing of 60,000,000 new ordinary shares of 0.1 pence each, at an issue price of 1.75 pence per share. In conjunction with the placing, each new ordinary shareholder receives an attaching warrant, to subscribe for a further new ordinary share of 0.1 pence each, at an exercise price of 3.5 pence each, expiring after two years.

 

Following the end of this reporting period, to the date of signing, the Company has received funds of £593,481 in relation to warrant and option exercises, issuing a total of 74,192,876 new ordinary shares.

 

Drilling programme commencement at Tati project in Botswana was announced October 2021 with completion by the calendar year end and results dispatched to Intertek in Australia for assay testing.

 

New copper anomalies identified at the Garfield project in Nevada USA, with additional claims staked to cover the ground footprint over the identified anomalies, as announced in October 2021.

 

In October 2021, it was announced that the final licence application was granted at the Wallal project, leading to the Company signing a revised agreement to acquire 100% of First Development Resources Australia Pty, via its subsidiary First Development Resources Ltd. The transaction consideration was funded through the issue of 13,333,333 Power Metal new ordinary shares at an issue price of 2.75 pence each and 13,333,333 warrants over Power Metal shares at an exercise price of 4.5 pence per ordinary share. Additional consideration of 10,000,000 Power Metal shares at an issue price of 3.2 pence and 10,000,000 warrants over Power Metal shares with an exercise price of 5.0 pence per ordinary share will be settled by Power Metal for all other Australia licences with interests held by First Development Resources Pty Ltd, owned by third parties to be transferred to First Development Resources Pty Ltd.

 

Approval of the Environmental Management Plan was secured in October 2021 for the Kalahari Copper Belt and Ditau Camp projects licence areas held in the Kanye Resources joint venture with Kavango Resources plc clearing the last key administrative step prior to drilling key targets at the project areas.

 

In October 2021, Power Metal Resources Australia Pty Ltd, a subsidiary of the Company, submitted two licence applications in South Australia covering 1,994km2 targeting Olympic Dam style mineralisation.

 

On 29 October 2021, the Group concluded the 100% share capital purchase of First Development Resources Pty Ltd (‘FDR Australia’) for total consideration of £749,743, consisting of £36,200 cash (AUD$66,000), 13,333,333 new ordinary shares in the Company at a share price of 2.75 pence, 10,000,000 new ordinary shares at a share price of 3.2 pence, and warrants with a total fair value of £26,876. FDR Australia holds exploration interests in the Paterson region of Western Australia and work in 2021 identified three magnetic bullseye targets hosted within the Wallal Project. The acquisition meets the definition of a business combination and will be accounted for using the acquisition accounting method in accordance with the Group’s accounting policies. 

 

Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows:  

Fair value

£’000’s

Prospecting and exploration rights

749

Cash and cash equivalents

1

Total fair value

750

Consideration

750

Goodwill

 

There were no associated transaction costs.

The Company announced in November 2021 the signing of a 3 month option agreement by Kavango Resources plc to acquire 51.15% of Kalahari Key Minerals Exploration Pty Ltd. The acquisition will include the 5,313 shares in Kalahari Key currently owned by Power Metal. The acquisition does not affect the 40% project interest which the Company has earnt-in to. Following the transaction, Kalahari Key is due to restructure, with the 40% project interest held by Power Metal to transfer to interest in the company.

 

In November 2021, the Company announced it had signed an agreement for the 100% acquisition of the Selta project, located in the Northern Territory, Australia. The acquisition will be made by the Company’s wholly-owned subsidiary, First Development Resources Ltd (“FDR”). Consideration includes AUD $25,000 cash and £100,000 payable through the issue of 1,499,250 shares in First Development Resources Ltd at an issue price of 6.67 pence per share. Additional consideration in the form of FDR shares will be due as each of the three licence applications are granted. Should all FDR shares be issued Power Metals interest will dilute down to 83.33%. FDR is to seek a listing on the London capital markets.

 

The Company announced in November 2021 it had exercised the option to acquire a 100% interest in the Pilot Mountain Project from fellow AIM listed Thor Mining plc, via its wholly-owed subsidiary, Golden Metal Resources Ltd. Power Metal paid consideration of US$1,650,000 through the issue of 48,118,920 new ordinary shares at an issue price of 2.5 pence per share (£1,202,973), together with a US$115,000 cash payment and issue of Power Metal warrants to Thor Mining plc.

 

In November 2021 the Company announced drill assay results from its 30% owned Silver Peak Project in British Columbia Canada demonstrating bonanza grade silver in 10 of 19 holes drilled, and in December 2021, overlimit assays for copper, lead and antimony further increasing silver equivalent grades by an average of 18.8%.

 

In November 2021 a detailed exploration update covering the Nevada projects held through wholly Power Metal owned Golden Metal Resources Limited was followed by a pre-IPO financing for Golden Metal raising £750,000 for was announced in December 2021 at a pre-money valuation of £3.25million. Golden Metal is seeking a listing on the London capital markets. Following completion of the financing Power Metal’s holding in Golden Metal will dilute down to 83.13%.

 

In November 2021 the Company received notification of the grant of one exploration licence in the Victora Goldfields of Australia.

 

In December 2021 the Company’s 49.9% holding in the Victoria Goldfields joint venture was hived up to New Ballarat Gold Corporation PLC where Power Metal holds the same 49.9% interest. Diamond drilling commenced in the joint venture properties located in the state of Victoria in December 2021.

 

Sampling assay results of initial uranium exploration at 3 properties in the Athabasca basin, Saskatchewan, Canada were announced, demonstrating up to 38,600ppm (3.86%) uranium highlighting the prospectivity of the uranium properties examined.

 

January 2022 saw the launch of inaugural diamond drilling at the 35% Power Metal owned Haneti Project in Tanzania, with a 3 hole 1,000 drill programme, targeting nickel sulphide-copper-platinum group metal mineralisation.

 

Also in January 2022 a ground reconnaissance programme was commenced in the Paterson Region, Western Australia to review and access locations for a planned deep drill programme in 2022 seeking gold-copper mineralisation at magnetic bullseye targets at the Wallal Project.

 

Following a rotary air blast drill programme completed in 2021 an inaugural diamond drilling programme was launched in January 2022 at the Haneti Project in Tanzania, targeting nickel, copper, cobalt and platinum group elements. The programme was completed in February 2022 with core logging and sampling currently being prepared for analysis and laboratory assay testing.

 

January 2022 saw the successful transfer of Tati Project prospecting licences into Power Metal’s wholly owned local operating company in Botswana triggering share and warrant payments to the vendors

 

January also saw the renewal of key prospecting licences at the Molopo Farms Complex project in Botswana.

 

The initial results from a uranium project data compilation at the Athabasca Basin project interests in Saskatchewan, Canada, demonstrating considerable prospectivity and to be used as the basis for planned 2022 exploration programmes.

 

In January 2022, Power Metal completed the acquisition of the Pilot Mountain project into a newly created Australian holding company and announced early clearance of a US$500,000 tail benefit potentially due to vendor Thor Mining plc.

 

Diamond drilling commenced in January 2022 at the Haneti Project in Tanzania completing in February 2022, with samples being prepared for assay testing at SGS Tanzania.

 

In February 2022 the Company received notification of the grant of three exploration licences at the Selta Project in the Northern Territory, Australia.

 

Notice of Annual General Meeting and Distribution of Accounts to Shareholders

 

The Company’s Annual General Meeting (“AGM”) will take place at 10.00am on 30 March 2022 at Suite 24, Temple Chambers, 3-7 Temple Avenue, London, EC4Y ODT.  The Company’s Annual Report and Accounts for the year ended 30 September 2021 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com in due course.

 

Introduction

 

Power Metal Resources is an energetic hub of activity we believe to be uncommon to the junior resource space, and certainly to an extent it has not previously experienced as a public company.

 

The refinancing and restructuring undertaken in February 2019 kickstarted  a pathway of aggressive repositioning and confident growth, which was the only way to restore the market’s confidence after the Company’s failings of the past.

 

We commenced this financial year with six African project interests, augmented by precious metal interests in North America and Australia. We ended the year with a global business with considerable portfolio interests across North America, Africa and Australia.

 

We have a model of proactive project search, selection and acquisition, followed by  immediate exploration to increase value. Thereafter projects enter our in-house exploration portfolio or our corporate channel where we seek disposals or spin-outs to generate significant value to build our asset base and financial strength.

 

Our model is highly flexible, provides long-term sustainable balance sheet growth and is driven by clear objectives, notably to do all in our power to generate high returns for shareholders, working fairly with all business partners and protecting and offering opportunity to the communities in which we operate.

 

Operations Review

Projects

 

Africa

 

Botswana

 

Power Metal currently has six projects in Africa with a main focus on Botswana, recognising the extremely positive operating environment for diligent and respectful resource exploration companies in country, and the tremendous resource endowment offering junior exploration companies the opportunity for district-scale metal discoveries.

 

Our joint operation with Kavango Resources plc has been structured under a single vehicle, Kanye Resources Pty Ltd (“Kanye Resources”), a Botswana private company in which we hold a 50% interest and into which all prospecting licences have been transferred. The previously announced plan is for our interest to hive up into Kanye Resources PLC, a UK vehicle which would be used as the host for a listing in the London capital markets. That plan remains in place, albeit we have a high level of ground exploration underway, and our focus during the recent financial year has been on further value enhancement across the portolfio via these various ground exploration programmes. As the hive up has not yet taken place, the joint arrangement has been reclassified as a joint operation in the financial statements.

 

Ground exploration has delivered positive results with numerous prospective drill targets identified across the South Ghanzi project in the Kalahari Copper Belt (“KCB”) targeting copper-silver and at the Ditau Camp project targeting rare-earth elements and base metal mineralisation.

 

We have successfully added to the South Ghanzi project in Botswana, with the addition of eight more prospecting licences in the financial year, including the South Ghanzi extension and Mamuno licences at a cost of US$430,000 split 50/50 with our partners, Kavango Resources plc. 

 

At the year end Kanye Resources held 4,257km2 of prospective KCB ground over ten licences and 1,386km2 of ground over two licences representing the Ditau Camp Project. This is an immense land holding, with ongoing ground exploration proving up multiple drill targets and plans for extensive drilling as soon as detailed preparatory work has been completed. 

 

The financial year also saw the acquisition of the Tati Project in Botswana, comprising two prospecting licences located near Francistown which are prospective for gold and nickel. The Company exercised its option to earn 100% over the project in July 2021 and paid a cash option fee of £50,000 which may be offset against future drilling costs incurred by the project vendors’ wholly-owned drilling services company. Up to 5,833,332 shares to be issued at 3.0p comprises most of the consideration with an additional 5,833,332 warrants over new Power Metal ordinary shares (50% at 5p and 50% at 7.5p).

 

Thorough due diligence and post-option exercise exploration programmes led to the identification of multiple kilometre-scale gold, arsenic and nickel anomalies which were subject to follow up exploration and notably a post-year end reverse circulation drilling campaign.

 

Finally in Botswana, the Company made significant progress at the Molopo Farms Complex project (“MFC Project”) located in Botswana, where the Company funded US$500,000 of exploration and in April 2021 completed its earn-in to acquire a 40% interest in the MFC Project. The funding covered the drilling of 3 deep diamond drillholes into 3 geophysical targets, with the second hole successfully intersecting nickel sulphides and platinum group metals as announced in April 2021. 

 

Follow-on technical analysis continued during the year with positive findings released to the market leading to an option being signed post-year end with Kavango Resources plc, for Kavango to take an interest in the MFC Project by acquiring the majority of Kalahari Key Mineral Exploration Pty Ltd., which holds the remaining 60% MFC Project interest after the completion of Power Metal’s earn-in.

 

The Democratic Republic of the Congo (the DRC)

 

The Company has a 70% interest in the Kisinka Project in the DRC where previous exploration saw the identification of a 6.8km copper-cobalt anomaly. In November 2020 assay results from a pitting and mapping exploration programme demonstrated high copper and cobalt values.

 

In May 2021, the Kisinka Project was awarded a 25 year production licence adding further value to the project and the next step including plans for exploration were developed. Ultimately it was determined that exploration drilling was the best follow-on step, and the company continued to work post-year end to implement this in an acceptable manner.

 

Regrettably operational progress has been difficult to secure in an acceptable manner in country, across a number of areas that we are seeking to resolve. The next step in our planned exploration would be drilling, a costly affair requiring us to have operational confidence through a well planned and cost effective drill programme. Also, it is important to have the bedrock of strong commercial relationships in country to underpin the project now, and particularly in the event of forward exploration success.  We have not had adequate progress of late, or sufficient confidence to invest further at this stage, and given this underlying uncertainty have taken the current decision to impair our investment in full at this time (£841,000 including 156,000 investment and £685,000 intercompany loan balance).  This is an accounting transaction only which has no impact on Power Metal’s cash position and we will continue to work in-country to secure the progress we need to push this project forward.

 

It is also noted that Power Metal deploys a continuous review of project specific capital allocation, focusing its resources on those projects that offer the best potential value upside and security of tenure, whereby value generated will be protected, notably following major value events including commercial discoveries.

 

Tanzania

 

The Company holds a 35% stake in the Haneti Project in Tanzania with partner and fellow AIM listed Katoro Gold plc (LON:KAT) holding the remaining 65%.

 

During the year a rotary air blast drill programme was undertaken at the Haneti Project, seeking to help delineate drill targets for follow-on diamond drilling. The positive outcome of this programme was announced in April 2021, which included the confirmation of targets and the discovery of new gossanous nickel-copper veining at the Mihanza Hill target. Deep diamond drilling was confirmed as the next step and this commenced post-year end in January 2022.

 

Australia

 

First Development Resources

 

During the year the company increased its exposure to Australian exploration opportunities with an option secured in January 2021 to acquire a 100% interest in First Development Resources Pty Limited (“FDR Australia”), a company which held two exploration licence interests in the Paterson region of Western Australia. 

 

Various amendments were made to the original option agreement during the course of the year and post-year end the Company acquired FDR Australia outright through its wholly owned UK company First Development Resources Limited (“FDR UK”). At the time of acquisition, FDR Australia had interests in five exploration licences located in the Paterson region and during the year and post-year end all FDR Australia licence interests achieved granted status enabling the launch of inaugural ground exploration. Furthermore, heritage agreements with the native title holders were prepared as a precusor step required in advance of a planned diamond drilling campaign targeted in 2022.

 

The intention is to list FDR UK on the London capital markets and during the year and post-year end work was undertaken in order to advance the company towards its planned Q2 2022 listing.

 

Exploration was undertaken during the year which led to the identification of three magnetic bullseye targets at the Wallal Project as announced in July and September 2021. The Company believe that the anomalies bear geophysical similarities to the Havieron deposit discovered by fellow AIM listed Greatland Gold plc (LON:GGP) and also located within the Paterson region.

 

New Ballarat Gold Corporation

 

At the start of the year Power Metal held a 49.9% interest in Red Rock Australasia Pty Ltd (“RRAL”), a joint venture vehicle with exploration licence interests in the Victoria Goldfields, Australia. The remaining 50.1% was held by fellow AIM listed Red Rock Resources plc (LON:RRR). 

 

In September 2020 RRAL held 2,188km2 of ground across twelve licence applications where the application status meant material ground exploration could not be undertaken. During the course of the year, a number of licence applications were granted and ground exploration was launched.

 

By the year end, seven licence applications had been granted covering 848km2 and 1,458km2 over nine licence applications were awaiting grant.

 

The original plan for RRAL was to secure a listing in Canada, however in August 2021 the joint venture partners confirmed the focus for the listing was changed to the London capital markets. Reflecting this, and post-year end, the partners’ interest in RRAL was hived up to a new company New Ballarat Gold Corporation PLC, with Power Metal holding a 49.9% interest as before.

 

Exploration work during the year and post-year end delineated multiple drill targets which led to the commencement of diamond drilling in December 2021 for Buninyong, EL007271, and Pitfield EL007301.

 

North America

 

Silver Peak

 

Just prior to the start of the financial year, in September 2020, Power Metal exercised an option to earn-in to a 30% interest in the Silver Peak project, in British Columbia, Canada. 

 

To secure this option, Power Metal made a payment of £129,683 to the vendors comprising CAD$30,000 (£17,183) cash and £112,500 through the issue of 9,000,000 new Ordinary Shares (the “Option Exercise Shares”) at a price of 1.25p per Option Exercise Share.   In addition, the vendors were granted 9,000,000 warrants to subscribe for new Ordinary Shares in the Company at a price of 1.75p with a three-year life to expiry.

 

The earn-in was competed in the financial year, as announced in March 2021.  In the original agreement, Power Metal was to pay CAD$250,000 against exploration expenditure at the Silver Peak Project. Previously Power Metal had paid CAD$141,048 and the remaining CAD$108,952 (£62,313) was paid to clear the outstanding balance.

 

In addition Power Metal made a final earn-in payment of CAD$200,000 (£114,349), satisfied by the issue of 5,139,281 new Ordinary Shares to the vendors of the Project. The number of shares to be issued was based on an agreed seven-day volume weighted average price of Power Metal shares of 2.225p.

 

In addition, the vendors received 2,569,641 warrants to subscribe for new Ordinary Shares exercisable at a price of 2.89p representing a 30% premium to the issue price of the final payment shares. The final payment warrants have a three year life to expiry from the date of announcement.

During the year, two drill programmes were undertaken at the Silver Peak project, the first in November 2020 which was curtailed due to poor weather conditions. Notwithstanding the challenges, the programme s uccessfully delineated very high-grade silver including 5,270 g/t silver (169.5 troy oz/t). A further drill programme was undertaken in summer 2021 and completed in August 2021.  Results from this programme and from subsequent overlimit assays were announced after the year end and demonstrated extensive bonanza grade silver.

 

Authier North

 

In July 2021 the Company announced an agreement to earn-in to the Authier North and Duval East lithium exploration properties in Quebec, Canada.

On signing of the agreement, Power Metal, on behalf of Power Metal Canada, made initial earn-in payments to the vendors including a cash payment of CAD$15,000 (c.£8,777) and a share based payment of CAD$50,000 (c.£29,257) through the issue of 1,063,891 new Ordinary Shares of 0.1p each in Power Metal at a price of 2.75p per share, (“Initial Earn-in Shares”). During the first year Power Metal must expend CAD$25,000 (c.£14,628) on exploration costs on the properties.

In year 2 Power Metal will make a cash payment of CAD$25,000 to the vendors and a further share based payment of CAD$50,000 with the number of new Ordinary Shares based on the ten consecutive trading day volume weighted average Power Metal share price prior to the delivery of written confirmation to the Vendors that Power Metal Canada wishes to proceed to year 2 of the Option. During the second year Power Metal must expend CAD$50,000 on exploration costs on the Properties.

In year 3 Power Metal will make a cash payment of CAD$25,000 to the Vendors and a further share based payment of CAD$75,000 with the number of new Ordinary Shares based on the ten consecutive trading day volume weighted average Power Metal share price prior to the delivery of written confirmation to the Vendors that Power Metal Canada wishes to proceed to year 3 payments. During the third year Power Metal must expend CAD$100,000 on exploration costs on the Properties.

Should all payments be made above, the total cost to Power Metal, on behalf of Power Metal Canada, would be £242,832 over a maximum 3 year period, and following that expenditure Power Metal Canada will hold a 100% interest in the Property. Power Metal Canada can elect to accelerate all expenditures should it wish, at any time, to allow earlier completion of the earn-in.

There is an existing 1% net smelter royalty (“NSR”) over the Properties that will remain in place. In addition, on completion of the earn-in Power Metal will grant to the Vendors a further 1.25% NSR (the “Vendor NSR”) and 0.5% of the Vendor NSR may be bought back by Power Metal Canada at any time for a cash payment of CAD$500,000. In total, prior to any buyback, the total NSRs amount to 2.25% over the Property.

A soil sampling and mapping exploration programme was announced in September 2021, with the results released after the year end.

 

Athabasca Basin

 

In September 2021 the Company announced the staking of four 100% owned uranium exploration properties covering a combined 10,869-hectares (109km2) giving Power Canada a strong foothold in the prolific Athabasca Basin. The properties include the Clearwater Uranium Property (“Clearwater”), Tait Hill Uranium Property (“Tait Hill”), Thibaut Lake Uranium Property (“Thibaut Lake”), and the Soaring Bay Uranium Property (“Soaring Bay”).

Building on this initial acquisition, later in September 2021, the Company announced an increase of ground to 241km2 achieved through the staking of additional ground immediately surrounding the Company’s Clearwater, Tait Hill, and Soaring Bay uranium properties, as well as the acquisition of three additional uranium properties including the Cook Lake, E-12, and Reitenbach properties (together the “Properties”).

 

The cost of acquisition of the Properties was the staking cost only amounting to CAD$14,458 by the financial year end. The uranium properties are held by Power Canada through its 100% owned holding company 102134984 Saskatchewan Ltd.

 

Ground staking to build the footprint continued after the year end, and an initial sampling and mapping programme was undertaken at three of the properties also after the year end.

 

Hemlo-Schreiber / First Class Metals

 

In January 2021 the Company acquired the Hemlo North project, an early stage exploration opportunity prospective for both gold and base metal mineralisation, situated over an underexplored part of the very prospective Hemlo-Schreiber Greenstone Belt. Hemlo North consisted of 122 Single Cell Mining Claims (“Claims”) being vended as three contiguous claim packages; Roger Lake (50 Claims); Olga Lake (42 Claims); and Dotted East (30 Claims), over a total area of 25.82km2.

 

The cost of acquisition of the Hemlo North project was CAD$120,000 (c.£69,130) of which CAD$60,000 (c.£34,565) was paid in cash and CAD$60,000 through the issue to the vendors of 1,152,233 new Ordinary Shares of 0.1p each in the Company at an issue price of 3.0 pence per share.

 

Later in January 2021 the Company signed option agreements to acquire 4 further precious and base metal exploration  properties in the Hemlo-Schreiber region. The four option properties were located within 100km west or southwest of the Company’s Hemlo North project and included:

 

–  McKellar, consisting of 58 Mining Claims (12.3km2) prospective for both volcanogenic massive sulphide (“VMS”) copper-lead-zinc mineralisation and orogenic gold deposits.

–  Enable, consisting of 41 Single Cell Mining Claims (circa 8.7km2) and underlain by gold prospective, greenstone belt.

–  Magical, consisting of 14 Single Cell Mining Claims (circa 3km2) where regional geophysics data show a possible target related to the intersection of a granitoid intrusion with a regional-scale magnetic geophysics lineation. 

–  Coco East, consisting of 30 Single Cell Mining Claims (circa 6.4km2) considered prospective for both mesothermal lode gold and VMS deposits.

For the acquisition of a 100% interest in the each of the option properties the following cash and equity consideration was payable:

Property Name

Cash

(CAD$)

POW Shares

(CAD$)

Note: POW Shares

Total Consideration

(CAD$)

McKellar

50,000

50,000

960,000

100,000

Enable

30,000

30,000

576,000

60,000

Magical

20,000

20,000

384,000

40,000

Coco East

30,000

30,000

576,000

60,000

Total (if all properties acquired)

130,000

130,000

2,496,000

260,000

The POW shares payable as consideration were new Ordinary Shares of 0.1p each in the Company at an issue price of 3.0 pence per share.

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

The option over all four properties were exercised by the end of February 2021.

In September 2021, the Company announced the sale of all 5 projects to First Class Metals Limited (“First Class”). First Class is a UK private company with an existing portfolio of interests in the Schreiber-Hemlo region held through its Canadian operating subsidiary First Class Metals Inc., and is currently seeking a listing on a recognised stock exchange in London.

The total consideration was £1 million payable through the issue of 333,334 new Ordinary Shares of £1 each in First Class Metals Ltd (“First Class Shares”) at a price of £3 per share.

New Opportunities

 

Power Metal Resources

 

Power Metal Resources had a pipeline of new opportunities under review during the year, some of which led to new transactions as detailed above.

 

The Company maintains strict criteria for project selection and only proceeds with projects that complement existing business interests and planned strategy and where transactions can be undertaken on reasonable commercial terms.

 

Power Capital Investments Ltd

 

In May 2021 the Company announced it had established a new 100% owned subsidiary ‘incubator’ business: Power Capital Investments Ltd (“Power Capital”). Power Capital will initially be fully funded by Power Metal.

 

Power Capital will actively identify small, entrepreneurial business ventures with significant growth potential in the junior resource space and provide support with regard to business management, project development and corporate development to enable them to scale rapidly and realise their potential. Power Capital may also provide financial support.

Power Capital will look to develop these high-potential early stage ventures, to the point of sale, public listing, or incorporation into the Company’s portfolio, dependent on a set of key performance indicators to be established.

As a major shareholder in each selected business, Power Capital, and thereby Power Metal, has the opportunity for significant capital appreciation from each successful venture together with a self-created pipeline of new resource projects for operational development by Power Metal.

Corporate Social Responsibility (“CSR”)

 

The Company maintains a focus on CSR through internal policies and our approach to external operational activities.

 

The priority given to this aspect of our work is shown in the fact that at RRAL we recruited a community relations officer as the second employee engaged, in order to start community engagement even in advance of any license grant.

 

The Company will continue to prudently invest in the regions in which we have business activities, in support of the communities where we operate. As an early stage Company, Power Metal Resources is keen to employ workers from the areas in which we operate, and to operate in a safe, responsible, and reasonable manner. 

 

As certain projects mature, we would expect our community engagement to become more extensive in line with the level of operational activities.

 

Financial Review

The Group recorded an audited loss after tax for the year to 30 September 2021 of £ 622k  (2020: loss of £1.4 million). The loss per share from continuing activities was  0.05p  (2020: 0.25p).

 

The Group’s exploration activities during the financial year under review were funded through the issue of shares to raise cash. In aggregate, new Ordinary Shares were issued during the financial year, raising a total of approximately £ 3.6 million from  the exercise of warrants, including by directors.

 

We ended the financial year with a cash balance of £ 1.27 million  (2020: £0.91 million), which was enhanced post-financial year end by the November 2021 placing, raising £1.05 million gross proceeds through a placing of 60,000,000 new Ordinary Shares of 0.1 pence each, at an issue price of 1.75 pence per share, and the exercise of warrants and options bringing an additional £593k into the Company post-year end.

 

Cash balances held at the year end are supplemented by listed company shares and warrants (cash equivalents), which represent a further pool of accessible cash available on the sale of shares in listed companies.

 

Targets for 2022

 

Our operational targets for the remainder of 2022 are:

 

· To advance our in-house exploration projects seeking to deploy capital primarily on exploration drill programmes, targeting large scale metal discoveries;

· To advance our spin out model, working to secure independent listings of multiple vehicles, enabling the exploration packages that are spun out to thrive with independent management, financing, strategy and operational drive whilst building Power Metal’s underlying asset value;

· To secure further disposals of project portfolio interests to augment working capital, which alongside the creation of spin out value will move the Company toward financial self-sustainability;

· To invest in, and focus on, Environmental, Social and Governance policies to protect and advance the locations, people and opportunity of the jurisdictions in which we work; and

· To focus on value creation from our existing portfolio of interests first and foremost, and to seek to replenish that portfolio with new, vibrant and meaningful opportunities.

 

Board Changes

 

Andrew Bell stepped down from the Board as Executive Chairman on 30 September 2021, whilst continuing to work with the Company in an advisory capacity for at least 12 months.

 

Outlook

 

The Directors believe Power Metal is now positioned better than at any time in its history, with 14 project packages across 3 continents, within 6 countries, and targeting 10 important metals. We have within our portfolio opportunities targeting precious, base and strategic metals. The Directors believe this provides our shareholders with a dynamic and broad spectrum of exposure to upside potential, driven by wider junior resource sector sentiment, the forward supply/demand balance in the metals market and notably, from the potential success of our exploration and corporate programmes. 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

 

 

 

Note

2021

£’000

2020

£’000

Revenue

37

9

Gross profit

37

9

Operating expenses

4

(847)

(835)

Impairment

5

(156)

(970)

Fair value gains through profit or loss

445

415

Loss from operating activities 

(521)

(1,390)

Share of post-tax losses of equity accounted joint ventures

(102)

(33)

Loss before tax

(623)

(1,414)

Taxation

Loss for the year from continuing operations

(623)

(1,414)

Other comprehensive income

 

Items that will or may be reclassified to profit or loss;

Exchange translation

 

 

 

1

 

 

 

(2)

Total other comprehensive income/(expense)

1

(2)

Total comprehensive expense for the year

(622)

(1,416)

Loss for the period attributable to:

Owners of the parent

(592)

(1,381)

Non-controlling interests

(31)

(33)

(623)

(1,414)

Total comprehensive loss attributable to:

Owners of the parent

(591)

(1,349)

Non-controlling interests

(31)

(67)

(622)

(1,416)

Earnings per share from continuing operations attributable to the ordinary equity holder of the parent:

Basic and diluted loss per share (pence)

8

(0.05)

(0.25)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2021

 

30 September 2021

 

30 September 2020

Note

£’000

£’000

Assets

Intangible assets

5

800

156

Investments in associates and joint ventures

166

284

Financial assets at fair value through profit or loss

3,527

1,208

Property, plant and equipment

2

Non-current assets

4,495

1,648

Financial assets at fair value through profit or loss

179

Assets classified as held for sale

153

Trade and other receivables

6

175

110

Cash and cash equivalents

1,281

913

Current assets

1,788

1,023

Total assets

6,283

2,671

Equity

Share capital

7

7,705

7,286

Share premium

18,437

14,910

Shares to be issued

22

Capital redemption reserve

5

5

Share based payment reserve

1,541

1,286

Exchange reserve

72

71

Accumulated losses

(21,488)

(20,911)

Total

6,272

2,669

Non-controlling interests

(306)

(275)

Total equity

5,966

2,394

Liabilities

Trade and other payables

9

317

161

Deferred consideration

116

Current liabilities

317

277

Total liabilities

317

277

Total equity and liabilities

6,283

2,671

 

 

The financial statements of Power Metal Resources plc, company number 07800337, were approved by the board of Directors and authorised for issue on 2 March 2022.

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Share capital

Share premium

Shares to be issued

Capital Redemption Reserve

Share based payment Reserve

Exchange reserve

Retained deficit

Total

Total Equity

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 October 2019

6,843

13,228

5

1,195

39

(19,530)

1,780

(208)

1,572

Loss for the period

(1,381)

(1,381)

(33)

(1,414)

Other comprehensive income/(expense)

32

32

(34)

(2)

Total comprehensive income / (expense) for the period

32

(1,381)

(1,349)

(67)

(1,416)

Issue of ordinary shares

443

1,768

22

2,233

2,233

Costs of share issues

(86)

(86)

(86)

Share-based payments

91

91

91

Total transactions with owners

443

1,682

22

91

2,238

2,238

Balance at 30 September 2020

7,286

14,910

22

5

1,286

71

(20,911)

2,669

(275)

2,394

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

Share capital

Share premium

Shares to be issued

Capital Redemption Reserve

Share based payment Reserve

Exchange reserve

Retained deficit

Total

Total Equity

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 October 2020

7,286

14,910

22

5

1,286

71

(20,911)

2,669

(275)

2,394

Loss for the period

(592)

(592)

(31)

(623)

Other comprehensive income

1

1

1

Total comprehensive income / (expense) for the period

1

(592)

(591)

(31)

(622)

Adjustment for previous year

(19)

19

Issue of ordinary shares

438

3,546

(22)

3,962

3,962

Costs of share issues

(38)

(38)

(38)

Share-based payments

270

270

270

Warrant exercises

(15)

15

Total transactions with owners

419

3,527

(22)

255

4,194

4,194

Balance at 30 September 2021

7,705

18,437

5

1,541

72

(21,488)

6,272

(306)

5,966

 

CONSOLIDATED STATEMENT OF CASH FLOWS

AS AT 30 SEPTEMBER 2021

 

 

 

 

2021

£’000

 

 

 

2020

£’000

Cash flows used in operating activities

Loss for the year

(623)

(1,414)

Adjustments for:

Fair value adjustments

(445)

(415)

Share of post-tax losses of equity accounted joint ventures

102

33

Impairment

156

970

Expenses settled in shares

267

Share-based payment expense

270

91

Foreign exchange differences

1

(2)

(539)

(470)

Changes in working capital:

(Increase) in trade and other receivables

(181)

(78)

Increase in trade and other payables

156

95

Net cash used in operating activities

(564)

(453)

Cash flows from investing activities

Purchase of intangibles

(528)

Purchase of financial assets at fair value through profit or loss

(2,184)

(504)

Investment in joint ventures

(256)

(201)

Proceeds from investment disposals

261

20

Purchase of property, plant and equipment

(2)

Net cash outflows from investing activities

(2,709)

(685)

Cash flows from financing activities

Proceeds from issue of share capital

3,679

1,965

Issue costs

(38)

(85)

Net cash inflows from financing activities

3,641

1,880

Increase in cash and cash equivalents

368

742

Cash and cash equivalents at beginning of year

913

171

Cash and cash equivalents at 30 September

1,281

913

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

1.  Reporting entity

 

Power Metal Resources plc is a public company limited by shares which is incorporated and domiciled in England and Wales. The address of the Company’s registered office is 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT. The consolidated financial statements of the Company as at and for the year ended 30 September 2021 include the Company and its subsidiaries. The Group is primarily involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada and the US.

 

2.  Going concern

 

The financial statements are prepared on a going concern basis. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant available information about the current and future position of the Group, including current level of resources, additional funding raised during the year and post-year-end, and the required level of spending on exploration and drilling activities. As part of their assessment, the Directors have also taken into account the ability to raise new funding whist maintaining an acceptable level of cash flows for the Group to meet all commitments.

 

In the current business climate, the Directors acknowledge the COVID-19 pandemic and has implemented logistical and organisational changes to underpin the Group’s resilience to COVID-19, with the key focus being minimising the impact on critical work streams, ensuring business continuity and conserving cash flows. COVID-19 may impact the Group in varying ways leading to the Group reducing all non-essential expenditure, the potential impairment of assets held, the Group’s ability to finance exploration and drilling activities and meet commitments relating to its investments, including for transactions entered into after the financial reporting date. The inability to gauge the length of such disruption further adds to this uncertainty. For these reasons, the preservation of cash flows is a primary focus for the Directors.

 

The Directors have stress tested the Group’s cash projections, which involves preserving cash flows and adopting a policy of minimal cash spending for a period of at least 12 months from the date of approval of these financial statements. The Directors believe the measures they have put in place will result in sufficient working capital and cash flows to continue in operational existence, assuming that all exploration and drilling activities are managed carefully and curtailed if necessary. For the Group to carry out the desired levels of exploration and drilling activities, the Directors believe that it needs to secure further funding either from a strategic partner or subsequent equity raisings in the next financial year, which the Group has succeeded in completing over recent years. Taking these matters in consideration, the Directors continue to adopt the going concern basis of accounting in the preparation of the financial statements.

 

The financial statements do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.

3.   Intangible assets – prospecting and exploration rights

Rights acquired with subsidiaries are recognised at fair value at the date of acquisition. Other rights acquired and development expenditure are recognised at cost. 

 

Exploration and evaluation costs arising following the application for the legal right, are capitalised on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. When a project is deemed not feasible, related costs are expensed as incurred. Costs incurred include any costs pertaining to technical and administrative overheads. Administration costs that are not directly attributable to a specific exploration area are expensed as incurred, and subsequently capitalised if it is reasonably certain that a resource will be defined.

 

Capitalised development expenditure will be measured at cost less accumulated amortisation and impairment losses.

 

 

4.   Operating expenses

 

Operating expenses include:

2021

2020

£’000

£’000

Staff costs

686

296

Foreign exchange loss

14

1

Share based payment expense

249

46

Auditor’s remuneration – audit services

27

24

 

Auditor’s remuneration in respect of the Company amounted to £26,500 (2020: £23,500).

 

 

5.   Intangible assets

 

Group

 

 

Prospecting and exploration rights

£’000

Cost

As at 30 September 2019

7,793

Disposals

(6,667)

Balance at 30 September 2020

1,126

As at 30 September 2020

1,126

Reclassification from Investment in Joint Venture

273

Additions

527

Balance at 30 September 2021

1,926

Impairment

As at 30 September 2019

6,667

Charge

970

Disposals

(6,667)

Balance at 30 September 2020

970

 

As at 30 September 2020

970

Charge

156

Balance at 30 September 2021

1,126

Net book value

At 30 September 2020

156

At 30 September 2021

800

 

The opening balance of intangible assets was initially recognised on the acquisition of the Kisinka Copper-Cobalt project held by the Company’s subsidiary, Power Metal Resources SA. During the year, the Directors took the decision to impair the Kisinka Project, and acquired interests in several other projects, see below: 

 

 

2021

£’000

2020

£’000

Intangible assets

Kisinka Copper-Cobalt Project

156

Athabasca Uranium Project

3

Tati Gold-Nickel Project

186

Garfield & Stonewall Projects

83

Ditau Camp/South Ghanzi Projects

528

Total

800

156

 

The Directors regularly assess the carrying value of the Group’s assets, including its prospecting and exploitation rights, and write off any exploration expenditure that they believe to be unrecoverable.

 

Kisinka Copper-Cobalt Project

Following the discovery of a 6.8km copper anomaly at the Company’s 70% owned Kisinka Project near Lubumbashi in the DRC, Power Metal conducted a follow pitting, sampling, and mapping programme in early 2020. The programme was conducted successfully on the ground with in-country X-ray Fluorescence (XRF) of samples confirming the previously identified copper anomaly. Samples were prepared for assay testing in South Africa, the results from which confirmed high grade copper and cobalt.

 

The licence renewal at Kisinka Project was to be commenced in the year but the decision was taken instead to convert the licence to a Permis d’Exploitation (production licence) with a 25-year life. As part of the process 50% of the less prospective ground is to be surrendered, leaving the Company with 41 carrés miniers (each 84.95 ha). This licence was granted in May 2020.

 

Next stage exploration is drill testing of the 6.8km copper-cobalt geochemical anomaly identified previously, with preparations continuing for drilling including target refinement and sourcing of appropriate contractors.

 

A decision was taken to impair the value of the Kisinka Project in The Democratic Republic of the Congo in full (£155,584) to reflect uncertainty due to the lack of progress in country in 2021, and reflecting the increased importance of Power Metal investing operational resources and capital into its wider project portfolio where material progress is being made. Work will continue in-country to seek more definitive progress.

 

Athabasca Uranium Project

In September 2021, the Company acquired seven properties over a combined 24,097-hectares, giving the Group a strong foothold in the prolific Athabasca basin, in northern Saskatchewan, Canada, all of which are prospective for uranium mineralisation. The properties were acquired through 102134984 Saskatchewan Ltd, which is wholly owned by the Company’s wholly-owned subsidiary Power Metal Resources Canada Inc.

 

Work is being undertaken to assemble detailed project information and to determine next steps for the newly acquired properties.

 

Tati Gold-Nickel Project

The Company exercised its option to acquire a 100% interest in the Tati Gold-Nickel Project in July 2021, through its wholly owned operating subsidiary Power Metal Resources Botswana Pty Ltd.

 

The Project recently completed its Phase I and Phase II work programmes, which included high-resolution soil sampling (1,107 samples collected), mapping and prospecting (49 rock samples collected), as well as ground-based geophysics including high-resolution magnetic and radiometric surveys.

 

The results have highlighted five target areas across the two licences, which are defined by kilometre-scale geochemical anomalies that are coincident with various geological structures that were highlighted by the ground geophysical surveys.

 

Drilling commenced early in October 2021, targeting large scale gold and nickel discoveries and which will include roughly 1000m of reverse circulation (RC) drilling across the various target areas.

 

Garfield/Stonewall Projects

The two exploration properties in Nevada were acquired in June 2021, through the Company’s wholly owned operational subsidiary, Golden Metal Resources Ltd.

 

Initial exploration now launched includes the processing of various Aster and Worldview-3 hyperspectal satellite imagery datasets over the Garfield Property, which will allow for the remote mapping of various iron and hydrothermal alteration minerals. In October 2021, copper anomalies were identified at the Garfield property. Remote sensing studies including Advanced Spaceborne Thermal Emission and Reflection Radiometer and European Space Agency Sentinel-2 datasets highlighted considerable additional prospective ground (now staked).

 

The Company have commissioned a gold deposit geologist to undertake a comprehensive historic data analysis at the Stonewall property. Favourable structural zones for potential epithermal gold mineralisation were identified near the eastern and western end of exposed Stonewall vein, representing compelling high-priority exploration targets going forward.

 

Ditau Camp/South Ghanzi Projects

In September 2020, the Company acquired 50% of four prospecting licences in Botswana, from Kavango Resources Plc, with a view to creating a new joint venture based in Botswana. During the year, the licences were transferred into a new joint venture holding company, owned 50% by Kavango Resources Plc, and 50% by Power Metal. As the original contractual arrangement for joint control of the licences, rather than the holding company, remains in place, the investment has been reclassified as a joint operation during the year (£273,000 as above), and subsequently the initial investment has been removed from Investments in Joint Ventures to Intangible Assets with assets, liabilities, expenses and revenue for the period recognised on a line-by-line basis in Power Metal’s financial statements.

Approval of the Environmental Management Plan was secured in October 2021 for the Kalahari Copper Belt and Ditau Camp projects licence areas held in the Kanye Resources joint venture with Kavango Resources plc clearing the last key administrative step prior to drilling key targets at the project areas.

Numerous prospective drill targets were identified across the South Ghanzi project in the Kalahari Copper Belt targeting copper-silver, and at the Ditau Camp project targeting rare-earth elements and base metal mineralisations.

 

Eight more prospecting licences were added to the South Ghanzi Project during the year. At the year end Kanye Resources held 4,257km2 of prospective KCB ground over ten licences and 1,386km2 of ground over two licences representing the Ditau Camp Project

 

6.    Trade and other receivables

 

Group

2021

£’000

2020

£’000

104

10

19

65

Prepayments

52

35

175

110

 

Company

2021

£’000

2020

£’000

Receivables due from group undertakings

605

606

Accounts receivable 

104

10

Other receivables

19

65

Prepayments

52

35

780

716

 

 

7.   Share capital

Number of ordinary shares

2021

2020

Ordinary shares in issue at 1 October

818,316,542

372,838,101

Issued for cash

425,140,840

416,626,316

Issued in settlement for expenses

28,852,125

Issued in settlement for acquisitions

13,601,405

In issue at 30 September – fully paid (par value 0.1p)

1,257,058,787

818,316,542

 

 

 

 

Number of deferred

shares

2021

2020

Deferred shares in issue at 1 October

3,628,594,957

3,628,594,957

In issue at 30 September

3,628,594,957

3,628,594,957

 

Ordinary

share capital

2021

£’000

2020

£’000

Balance at beginning of year

7,286

6,843

Prior Year Adjustment

(19)

Share issues

438

443

Balance at 30 September

7,705

7,286

 

 

Share Premium

2021

£’000

2020

£’000

Balance at beginning of year

14,910

13,228

Prior year adjustment

19

Share issues

3,547

1,768

Expenses relating to share issues

(38)

(86)

Balance at 30 September

18,438

14,910

 

The prior year adjustment relates to a previous misallocation between share capital and share premium, relating to a share issue in the year ended 30 September 2017. £19,011 was incorrectly allocated to share capital, this has been rectified in the year ended 30 September 2021, the amount has not been corrected in the prior year as it is deemed immaterial.

 

All ordinary shares rank equally with regard to the Company’s residual assets.

 

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

Both classes of deferred shares (Deferred and Deferred A), do not entitle the holders thereof to receive notice of or attend and vote at any general meeting of the Company or to receive dividends or other distributions or to participate in any return on capital on a winding up unless the assets of the Company are in excess of £1,000,000,000,000. The Company retains the right to purchase the deferred shares from any shareholder for a consideration of one penny in aggregate for all that shareholder’s deferred shares. As such, the deferred shares effectively have no value.  Share certificates will not be issued in respect of the deferred shares.

 

Issue of ordinary shares

 

During the year, 425,140,840 shares were issued in relation to warrant exercises; 181,150,000 were exercised at 1.0 pence per share, 5,000,000 were exercised at 2.0 pence per share, 6,000,000 were exercised at 0.5 pence per share, 122,250,000 were exercised at 0.7 pence per share, and 110,740,840 were exercised at 0.75 pence per share.

 

In January 2021, the Company secured an exclusive 60-day option to acquire a 100% interest in First Development Resources Pty Ltd. The Company paid the vendors a total consideration of £30,000 for the option, through the issue of 1,000,000 new ordinary shares at a price of 3.0 pence per share.

 

In January 2021, the Company signed an agreement to acquire a 100% interest in four separate gold exploration properties located in Ontario, Canada. The Company paid the vendors a total consideration of US$60,000 for the option, through the issue of 1,152,233 new ordinary shares at a price of 3.0 pence per share.

 

In February 2021, the Company exercised its option to acquire a 100% interest in McKellar. The Company paid the Vendors a total consideration of US$50,000 for the Option, through the issue of 960,000 new ordinary shares at a price of 3.0 pence per share.

 

In February 2021, the Company exercised its option to acquire the Coco East Property. The Company paid the Vendors a total consideration of US$30,000 for the Option, through the issue of 576,000 new ordinary shares at a price of 3.0 pence per share.

 

In February 2021, the Company exercised its option to acquire both the Magical Property and the Enable Property. The Company paid the Vendors a total consideration of US$50,000 for the Option, through the issue of 960,000 new ordinary shares at a price of 3.0 pence per share.

 

In April 2021, Power Metal accelerated its earn-in to the Silver Peak project to hold 30%. The final earn-in payment of CAD$200,000 (£114,349) was made through the issue of 5,139,281 new ordinary shares at a price of 2.225 pence per share.

 

In June 2021, the Company signed an agreement to to acquire gold-copper projects in Nevada. The Company paid the vendors a total consideration of £61,875 for the option to be held by the Company’s subsidiary, Golden Metal Resources Ltd, through the issue of 2,250,000 new ordinary shares in the Company at a price of 2.75 pence per share.

 

In July 2021, the Company exercised its option to acquire a 100% interest in two gold-nickel exploration licences within the Tati Greenstone Belt. The Company paid an initial consideration of £25,000 payable through the issue to the Vendors of 833,333 new ordinary shares of 3.0 pence in the Company.

In September 2021, the Company’s subsidiary acquired an option to acquire 100% interest in the Pilot Mountain project. Consideration of £12,500 was paid through the issue of 500,000 new ordinary shares in the Company at an issue price of 2.5 pence per share.

 

8.  Earnings per share

 

Basic and diluted loss per share

 

The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of £591,938 (2020: £1,381,290), and a weighted average number of ordinary shares in issue of 1,079,317,932 (2020: 558,893,170).

 

 

9.  Trade and other payables

 

Group

2021

£’000

2020

£’000

Trade payables

250

24

Accrued expenses

67

137

317

161

Company

2021

£’000

2020

£’000

Trade payables

146

24

Accrued expenses

74

137

Payable to group undertakings

27

31

247

192

 

 

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

#POW Power Metal Resources – USGS Releases 2022 List of Critical Minerals

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio highlights the United States Geological Survey’s (“USGS”) 2022 List of Critical Minerals which was published on February 22, 2022. The full announcement can be found at the following link:


U.S. Geological Survey Releases 2022 List of Critical Minerals | U.S. Geological Survey (usgs.gov)

 

The Critical Minerals list is published every three years and is determined using modern scientific methods to evaluate mineral criticality. The new list that was recently published contains 50 non-fuel mineral or mineral material that that are considered essential to the economic or national security of the United States of America (“USA”) and which has a supply chain vulnerable to disruption. Additionally, critical minerals are characterized as serving an essential function in the manufacturing various critical products, the absence of which would have significant consequences for the economy or national security of the USA.

The notable changes from the 2018 list include the additional of nickel and zinc, as well as the removal of helium, potash, rhenium and strontium. Tungsten, lithium, cobalt, rare earth elements and platinum group metals all retained their inclusion in the 2022 Critical Minerals list.

Power Metal’s Exposure

–  Tungsten (W) was once again included on the USGS’s Critical Minerals list. The main uses can be viewed at the following link: Tungsten Statistics and Information | U.S. Geological Survey (usgs.gov). Power Metal, through its portfolio company Golden Metal Resources (“Golden Metal”) maintains significant exposure to the critical mineral through its 100% holding of the Pilot Mountain Project located in Nevada, USA. Pilot Mountain hosts a robust Mineral Resource Estimate (MRE) of 12.53Mt at 0.27% WO3 with significant silver, copper and zinc credits. Golden Metal is undertaking a planned listing on the London capital markets in 2022.

–  Power Metal also maintains significant global exploration exposure to several other metals on the Critical Minerals list including:

o  Lithium: Through its Authier North Property located in Quebec, Canada, as well as its Haneti Project located in Tanzania.

o  Rare Earth Elements (REEs): Through its Ditau Property located in Botswana, as well as its Selta Project located in the Northern Territory, Australia, held through its portfolio company, First Development Resources Limited.

o  Platinum Group Metals (PGMs): Through its Molopo Farms project located in Botswana.

o  Nickel: Through its Tati and Molopo Farms projects located in Botswana, as well as its Haneti Project located in Tanzania.

For further information and to view the new corporate presentation please visit the newly launched website at: https://www.goldenmetalresources.com

 

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

#TYM Tertiary Minerals – Drill Programme at Pyramid Silver-Gold Project to Commence

Tertiary Minerals plc (LON: TYM), the AIM traded mineral exploration and development company, whose strategic focus is on energy transition and precious metals, is pleased to announce that contractors have been appointed for the Company’s upcoming drill programme at the Pyramid Silver-Gold Project in Nevada.

Highlights

 

  • Drill pad construction and site access is complete and Envirotech Drilling LLC (“Envirotech”) of Winnemucca, Nevada has been appointed as contractor to undertake reverse circulation (“RC”) drilling;

 

  • Surface mineralisation has been shown to extend over a strike extent of at least 530 metres at the North Ruth target, with grades as high as 595 g/t silver (17.35 ounces/ton) and 0.66 g/t gold intersected in exploration trenches;

 

  • The objective of the drill programme is to establish the continuity of the silver and gold mineralisation at depth and will comprise six holes for an estimated 4,000 feet of RC drilling;

 

  • Envirotech will mobilise and begin drilling in the second week of March 2022.

 

 

Commenting today, Managing Director Patrick Cullen said:

“The progression of geological mapping, geochemical and trenching programmes completed to date at Pyramid have established an exciting silver and gold target at North Ruth. Demonstrating continuity and mineralisation at depth is the next step and will give guidance on the scale of the opportunity.

I am happy to be drilling according to our planned schedule and to have secured Envirotech, especially considering the high demand for drilling rigs in Nevada. Nevada is a top-rated mining jurisdiction globally, with high levels of activity across exploration and mining projects, and this is reflected by the demand for contractors locally.

I am also pleased to say that the geologist who has managed each step of the work undertaken to date will be overseeing this drilling. We look forward to providing updates going forward.”

Updated Presentation

The latest investor presentation is available on the Company website at www.tertiaryminerals.com and includes updated information as well as a 3D visualisation of the upcoming drill programme.

 

 

For more information please contact:

Tertiary Minerals plc:
Patrick Cullen, Managing Director +44 (0) 1625 838 679
SP Angel Corporate Finance LLP – Nominated Adviser and Broker
Richard Morrison +44 (0) 203 470 0470
Caroline Rowe
Peterhouse Capital Limited – Joint Broker
Lucy Williams + 44 (0) 207 469 0930
Duncan Vasey

#POW Power Metal Resources – Haneti Project – Diamond Drilling Complete

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from the Company’s inaugural diamond drilling programme on the nickel-copper-cobalt-platinum group element Haneti Project (“Haneti” or the “Project”) located in central Tanzania.

Highlights:

–    The Company confirms the drill programme has been completed successfully with a total of 900.04 metres completed across three drill holes as planned.

–    Core logging and sampling is underway, with samples being prepared for thin section petrographic analysis and laboratory assay testing (for nickel, copper, platinum, palladium, cobalt, chromium and gold) at SGS Tanzania.

–     Large intersections of serpentinite and gabbroic rocks were identified in MWDD01 and MWDD02 (Mwaka drill holes) with indications of peridotitic sequences, the latter subject to confirmation through the thin section petrographic analysis.

– MHDD01 (Mihanza drill hole) intersected massive serpentinite from surface and serpentinised meta-gabbroic rocks at depth. 

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

“This drill programme was safely executed and delivered on schedule and within budget. We are grateful to the operational team for a job well done.

Now that the physical drilling has been completed we move into the core logging, sampling and testing phase, and clearly there are various elements to this.

We are cautious with early interpretations until the core logging and testing is complete.  What we can say is that we have seen thick sections of ultramafic rocks and have postulated that the anticipated geological model has been demonstrated from the core recovered.

We are encouraged by the technical and geological success so far and look forward to providing further updates as and when they become available. 

Joint Venture Ownership Structure

The Haneti Project is currently held under a Joint Venture (“JV”) with Katoro Gold Plc (LON:KAT “Katoro”) who hold a 65% interest, with the remaining 35% interest held by Power Metal.

 

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.

Glossary:

· Serpentinite: a green coloured rock formed through the low-temperature metamorphism of ultramafic rocks from the earrth’s mantle. The metamorphic chemical reactions convert unhydrous ferromagnesian silicate minerals (pyroxene, olivine) into hydrous silicate minerals (serpentine).

· Gabbroic: rock within the range classified as Gabbro which is a coarse-grained, mafic intrusive igneous rock formed from the slow cooling of magnesium-rich and iron-rich magma. Gabbro is found at the mid-ocean ridges and as plutons associated with continental volcanism. Gabbro intrusives can be associated with chromium, nickel, cobalt, gold, silver, platinum and copper mineralisation.

· Peridotitic: related to Peridotite rock, a dense, coarse-grained ultramafic igneous rock consisting mostly of the silicate minerals olivine and pyroxene. Peridotites is often a constituent in the layered igneous complexes that can host platiunum group metals and nickel.

· Ultramafic: Ultramafic rocks are a group of igneous and meta-igneous rocks with a very low silica content (less than 45%), generally >18% MgO, high FeO, low potassium, and are composed of usually greater than 90% mafic minerals (dark colored, high magnesium and iron content). The Earth’s mantle is composed of ultramafic rocks. Intrusive ultramafic rocks are often found in large, layered ultramafic igneous intrusions where differentiated rock types often occur in layers and metals can be concentrated.

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 #POW – Historic Data Compilation over the Reitenbach Uranium Property Delivers Exciting Results

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update on its Reitenbach Uranium Property (“Reitenbach” or the “Property”), which is part of the larger uranium portfolio which includes seven 100% owned interests (Table 1) covering an area of 417.24 km2 (41,724 hectares), surrounding the Athabasca Basin in northern Saskatchewan, Canada.

A map highlighting some of the highlight results from the historic data compilation completed on the Reitenbach Uranium Property can be found at the following link:

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

Reitenbach Property Overview

–      The Reitenbach Property covers a total of 14,646-hectares (c. 146km2) located in northeastern Saskatchewan, Canada. Saskatchewan ranked third in the most recent 2020 Fraser Institute Investment Attractiveness Index rankings of global mining jurisdictions.1

–      The Property is centered around seven Saskatchewan Mineral Deposit Index (“SMDI”) uranium occurrences, and covers a highly anomlous lake-sediment sample of 130 parts per million (“ppm”) Uranium (“U”), the 11th highest (99.9th percentile) lake uranium assay in the Geological Survey of Saskatchewan lake sediment analysis database (“GSSSD”) of 13,195 individual lake sediment samples from the Precambrian Shield area of Saskatchewan. An additional licence was staked recently in order to better cover this highly prospective area (see linked Figure 1)2

–      Reitenbach is in close proximity, or has continguous claim borders with several publically listed uranium companies including Forum Energy Metals Corp., Cameco Corp., and Appia Energy Corp.

–      The Property is prospective for both porphyry-style (incl. thorium-molybdenum-rare-earth element) and metasedimentary-hosted uranium mineralisation.

–      The Company is reviewing multiple strategic outcomes for the Property, including the potential outright sale of the asset. Further updates in respect to the Property are expected in the coming weeks.

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

“Power Metal has seen considerable interest in the Company’s uranium properties surrounding the Athabasca basin, and we see significant value creation potential through the disposal of certain interests either through direct sale to third parties or the creation of new listings in the London markets.

We are therefore accelerating our property review work to assemble in-depth datarooms for each property.  The review of historical data and exploration results of the Tait Hill property were announced previously and Reitenbach Property is covered in today’s announcement.

Recognising the importance of uranium to our business, we have recruited an additional uranium focused team member who is working with us now to advance our uranium focused interests.

Further updates will follow as material developments occur.”

FURTHER TECHNICAL INFORMATION

Power Metal recently completed an in-depth historical data compilation across its entire uranium Portfolio surrounding the prolific Athabasca Basin, Saskatchewan, and now possesses a robust fully-digitised database covering all historic work programmes completed across the various Properties, including the Reitenbach Uranium Property.

A total of 10 historic reports were digitised from work programmes covering at least some part of the Property. These date back to 1969, with only one work programme (2007 airborne survey) completed since 1979. As a result, the Property has seen minimal recent exploration.

Reitenbach Compilation Highlights

–      Multiple historic operators noted that the Property has the potential to host either low-grade, large-tonnage porphyry-style uranium mineralistion, or higher-grade, lower-tonnage sediment-hosted mineralisation within unexposed metasedimentary rocks. Two reports highlighted the similarities between Reitenbach and the Rossing Uranium mine (“Rossing”) in Namibia, owned by the China National Uranium Corporation Limited, known as the world’s longest running open-pit uranium mine.3,4,5 The average grade mined from Rossing in 2020 was 335ppm U.3

–      The Reitenbach Property is noted as having less than 1% of exposed outcrop, making traditional ground-based exploration difficult. As a result, historic operators have relied heavily on airborne geophysics and boulder sampling, a technique typically used in northern Saskatchewan where mineralised boulders are mapped in order to vector towards a covered outcrop source of uranium mineralisation. Lake sediment results were originally used as a first pass method in order to determine areas with relative uranium enrichment to be targeted for further exploration.

–      Several high-priority radiometric anomalies were identified on Reitenbach from multiple historic airborne surveys. The majority have now been digitised and can be found on the map available through the link above.

–      Historic results highlighted a NE-SW trending boulder train located in the southern part of the Property, with results up to 5,720ppm U (incl. a result of 2,520ppm U). This area is coincident with both:

1)    the regionally important Needle Falls Shear Zone (“NFSZ”), it is noted that 200km to the SW along the NFSZ is the Duddridge Lake uranium deposit; and

2)    the 130ppm U GSSSD result, the 11th highest lake sample uranium result in the entire province. Further work is required in this area to determine the bedrock source of this uranium mineralisation.4 An additional licence was staked recently in order to better cover this highly prospective area (see linked Figure 1).

–      In the northern part of the Property, at least 8 historic boulder samples grading >250ppm U were digitised, including highlight results up to 2,320ppm and 2,883ppm U. Notably, a 1977 lake sediment sampling programme which oversaw the collection 3,042 total lake sediment samples covering an area of approximately 2,800km2 (including the Reitenbach Property area), returned two extremely anomalous results of 508ppm, and 452ppm U. Both of these results are located within Reitenbach, and they represent the highest two results from the entire survey.5

The Company’s interpretation work continues to uncover exciting findings within the historical dataset from our Athabasca uranium portfolio in Saskatchewan, Canada.

With the fully digitised historical dataset now held by Power Metal, we can continue to add value to the uranium portfolio through our interpretation work.  We anticipate additional updates to the market  highlighting our findings in the coming weeks.

Uranium Property Holding Structure

Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”), which acts as the holding company for certain Canadian project operations. Power Canada has a wholly-owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company’s Saskatchewan uranium portfolio.

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

 

Project

Licence ID

Area – Hectare

Clearwater Uranium Property

MC00015079

1,110

MC00015083

563

MC00015082

3,191

MC00015151

760

MC00015646

761

MC00015658

1,541

Tait Hill Uranium Property

MC00015078

1,576

MC00015081

968

MC00015153

1,530

MC00015152

1,886

MC00015647

725

MC00015648

1129

Thibaut Lake Uranium Property

MC00015077

2,206

MC00015659

2,195

Soaring Bay Uranium Property

MC00015080

1,255

MC00015155

3,375

Cook Lake Uranium Property

MC00015212

984

E-12 Uranium Property

MC00015213

1,323

Reitenbach Uranium Property

MC00015214

2,135

MC00015474

1,235

MC00015655

4,570

MC00015656

5,322

MC00015657

856

AC00017691

528

Total Land Holdings

41,724

*Bold text refers to ground acquired since the most recent acquisition and expansions announced by the Company on 10 November 2021

Reference Notes:

1:             https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2020.pdf

2:             https://geohub.saskatchewan.ca/datasets/gsc-lake-sedimentanalyses/explore?location=57.252950%2C-105.528550%2C6.69

3:             https://www.rossing.com/shareholding.html

4:             Robert J., Munday (Sasktchewan Department of Natural Resources): Ground Evaluation of Airborne Radiometric Anomalies in Crown Reserve 619, Northern Saskatchewan, During Summer 1975 (64L-0018)

5:             David A. Harrigan (Saskatchewan Mining Development Corporation): Final Report – 1977 Field Season Wollaston East Project – SMDC Permits 7-10, CBS 4907 NTS 64 L-1, 2, 7, 8 (64L-0012)

 

COMPETENT PERSON STATEMENT

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration 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.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Laboratory assay results of samples collected

Ditau Project

Botswana

50%

Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals

 

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

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%A

Kavango Option to acquire an interest in local project holding company.  Option fee payable through defined work programme

Results from various work activities underway as part of the Kavango Option

Tati Gold/Nickel

Botswana

100%

Reverse circulation drill programme completed

Laboratory assay results awaited

Haneti Project

Tanzania

35%

Diamond drill programme underway

Results from field programme including drill programme underway

Victoria Goldfields

Australia

49.9%

Ongoing exploration across +1500km2 of granted exploration licences

 

Results from field programme including drill programme underway

Wallal Gold/Copper Project

Australia

83.33%B

Passive seismic and 2D seismic processing work programme completed.

Ground reconnaissance work underway.

Results awaited

A should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project

B assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company’s announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors

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

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update on its uranium portfolio which includes seven 100% owned interests (the “Portfolio” or “Properties”) covering 411.96km2 surrounding the Athabasca Basin in northern Saskatchewan, Canada.

Further information in respect of the Properties, including a location map may be viewed in the website link below:

https://www.powermetalresources.com/project/athabasca-basin/

 

Portfolio Updates:

–    Power Metal has completed an in-depth historic data compilation across its entire uranium Portfolio surrounding the prolific Athabasca Basin, Saskatchewan, and now possesses a robust fully-digitised database covering all historic work programmes completed across the various Properties.

–    Power Metal recently retained a UK-based geological consultant with extensive Athabasca Basin experience to help push forward the Company’s various initiatives and projects within the exciting uranium space. The consultant previously completed a M.Sc. thesis from the University of Ottawa where they researched the geochemistry, alteration, and structural geology of one of the many world-class unconformity-related uranium deposits located within the Athabasca Basin.

–   Several extensive historical datasets were successfully procured, the data from which, combined with the results obtained from the recently completed Phase I work programme, will allow the Company to begin planning various 2022 exploration initiatives across the Portfolio.

–    Further maps and highlights from across the Portfolio will be released by the Company in the coming months. Select findings from the historic data compilation programme for the Tait Hill Property are however highlighted below, demonstrating the information gathered for one property.

–     Reflecting the interest shown from third parties in the Properties, a dataroom is being prepared to provide a focal point for those parties wishing to undertake due diligence review.

 

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

“Our move into uranium exploration has been planned for some time and commenced with the September 2021 staking surrounding the Athabasca Basin. The staking undertaken was highly selective, focusing on areas where historical recorded work had demonstrated uranium mineralisation or where other geological features suggested that ground would be prospective.

Although selective, the seven properties are clearly attracting some interest and we are looking at potential commercialisation options alongside planning for proactive 2022 exploration programmes.

To maximise any commercial outcome, and to optimise exploration we have gathered as much data as possible in respect of the Properties, and the information gleaned is, in our view, highly valuable.”

 

Tait Hill Property (“Tait Hill” or the “Property”) Data Compilation Highlights

–   All data from an high-resolution airborne magnetic, electromagnetic, and radiometric survey flown by Terraquest Ltd., on behalf of Canalaska Uranium Ltd., was obtained by Power Metal. The 2008 high-resolution survey included 4,290 total line-km flown at 150m line-spacing which covers the entire modern day Tait Hill Property.1

–      Detailed analysis was undertaken by Canalaska Uranium Ltd., for various radiometric products produced by the airborne survey including uranium (U), thorium (Th) and potassium (K). Specifically, isolated points in the dataset which have high U/Th ratios relative to background, are considered good candidates for uranium-rich surface showings and should be prioritised during future work programmes.1 A total of 11 unique points were identified by the survey within the Tait Hill Property.

–   The airborne survey (1st vertical derivative product) highlights multiple northwest-southeast trending magnetic high features which transect the Property. Mapping over the area determined that they correspond to uranium-rich granite and pegmatitic dykes with anomalous scintillometer readings ranging from 350 to 2,500 counts per second (“CPS”). Further investigation is warranted along these structures which are mapped for a combined 16km through the Property.2

–    Several zones of uranium-rich mineralisation were identified in the historic results from Tait Hill including rock samples up to 15,150ppm (1.52%), 7,653ppm, and 6,610ppm U, as well as uranium in soil samples up to 14,358ppm (1.44%), 7,049ppm, and 6,692ppm.2,3

–     The rock sample that returned 15,150ppm U was taken immediately west of Tait Lake, and was located along a northeast-southwest oriented uranium-rich boulder train which follows the general direction of ice movement in the region (southwest). It was recommended that additional work be completed on this boulder train as further work may lead to the possible source area for these uranium-rich boulders.2

–      A new high-priority zone was identified during the 2008 field campaign which was named the ‘NE Shearika Zone’. Here, several uranium-rich rock samples (including 7,654ppm, 6,611ppm, 3,633ppm, and 1,609ppm U) were collected along a sharp contact zone between a granitic intrusion (magnetic high) and the surrounding meta-sedimentary rocks (magnetic low). This contact zone is traced for over 3km within the Tait Hill Property.3

A map highlighting some of the results from the historic data compilation completed on the Tait Hill Property can be found at the following link:

Tait Hill Historic Data Compilation Map|Power Metal Resources plc (LON: POW)

 

Reference Notes:

1:             Operations Report for Canalaska Uranium Ltd., High Resolution Magnetic, XDS VLF-EM & Radiometric Airborne Survey Grease River Project Northern Saskatchewan: April 15, 2008

2:             Canalaska Uranium, Report on the 2007 Exploration Programme Grease River Project: July, 2008

3:             Canalaska Uranium, Report on the 2008 Exploration Programme Grease River Project: March, 2009

 

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

 

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