(Alliance News) - Power Metal Resources PLC and Two Shields Investments PLC on Wednesday reported that a survey found at least six targets at the Molopo Farms project in Botswana have the potential to be "massive nickel sulphides".
Exploration and development firm Power Metal has an 18% stake in Kalahari Key Mineral Exploration Pty Ltd, which operates the project. It has decided to fund USD500,000 worth of exploration expenditure to boost its stake to 40%.
Investment company Two Shields also has an 18% interest in Kalahari, and in addition, a 4.1% stake in Power Metal.
An electromagnetic survey found eight "compelling" drill targets at Molopo.
Power Metal added that at least six "highly conductive bodies have the potential to be massive nickel sulphides due to the spatial location, particular geological setting and associated geophysical response".
An environmental management plan conducted by Kalahari's consultants ahead of prospective drilling at Molopo has also been completed. The findings were "favourable", Power Metal said.
The completed environmental management plan has now been sent to the Botswana government.
Power Metal added that after taking up the 40% earn-in option, its chief executive officer, Paul Johnson, has joined the board of Kalahari.
Power Metal shares were 3.1% lower at 0.32 pence each in London on Wednesday morning. Two Shields was 2.4% lower at 0.10p.
By Eric Cunha; ericcunha@alliancenews.com
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Power Metal (POW)