Power Metal Resources upbeat on progress at South Ghanzi

(Sharecast News) - Power Metal Resources updated the market on exploration at the South Ghanzi Project on Friday.
The AIM-traded firm said the project is part of the Botswana-focussed Kanye Resources corporate vehicle strategic joint venture with Kavango Resources, which is the venture's operator.

It said the South Ghanzi Project is focussed on exploration for copper-silver deposits on the Kalahari Copper Belt of Botswana.

After the completion of more than 1,200 line kilometres of airborne electromagnetic geophysics survey flown by SkyTEM Surveys over the project, the results of data processing and interpretation had delineated seven conductive anomalies constituting high priority targets for further work.

Follow-up ground-based investigation of the airborne electromagnetic conductive anomalies had delivered "encouraging" results, the board said.

Where existing soil sampling results coincided with an anomaly, there was a close positive correlation between elevated copper and zinc results in soil geochemistry, a conductive anomaly and regional geological mapping.

The company said soil geochemical survey lines would now be extended to provide further coverage and resolution over A1, and additional soil surveys would be placed over the remaining conductive anomalies.

It said the additional soil data in conjunction with geological logging of existing water borehole rock chips, the airborne electromagnetic results, and further geological modelling would help to "fine-tune" the placement of drill holes in a planned programme to test emerging high priority targets for copper mineralisation later in 2021.

The findings aligned closely with previous fieldwork conducted and the established regional exploration model for the discovery of major copper-silver deposits within the Kalahari Copper Belt.

"We are extremely pleased with the exploration progress made by our joint venture partner Kavango at the South Ghanzi copper-silver project, centrally located within the burgeoning Kalahari Copper Belt," said chief executive officer Paul Johnson.

"The exploration work completed over the last 12 months at South Ghanzi has been carried out in a systematic and disciplined manner which has paid off with the discovery of at least seven highly compelling exploration and drill targets."

Johnson said Power Metal was encouraged by the four kilometre by four kilometre Acacia target, as it possessed both a high conductivity signature detected by the airborne electromagnetic survey, as well as "almost perfectly coincident" zinc- and copper-in-soil anomalies, which he described as "key signatures" typical of nearby copper-silver discoveries within the belt.

"The exploration story at South Ghanzi continues to progress at pace and we eagerly await the next phase of results and drill testing of several of these high-priority targets."

At 1106 BST, shares in Power Metal Resources were up 2.13% at 2.4p.