Last checked at 15 Mar 2021 15:26
15 March 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Botswana Molopo Farms Complex - Drilling Update
Third Diamond Drill Hole Commences
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of the third diamond drill hole (KKME 1-11a) at the Kalahari Key Mineral Exploration Pty Ltd ("Kalahari Key" or "KKME") Molopo Farms Complex Project (the "Project" or "MFC Project"), which is targeting prospective massive nickel sulphide and platinum-group metal ("PGM") mineralisation in Botswana.
HIGHLIGHTS
- The third drill hole (KKME 1-11a) of a planned 2,505 metre programme has commenced.
- Diamond drill hole KKME 1-11a is inclined at 60 degrees and has a planned down-hole target depth of 450m to the upper side of a conductive body modelled from geophysical survey data.
- The target appears to be above the Transvaal graphitic mudstone and closely associated with a prominent magnetic response. Depth to the top is of the target is approximately 200m vertical depth and the conductor appears to be flat lying.
- This third drill collar is located in the Project's Chipo (Gift) Northern Target Area, and several km west of the programme's first drill hole KKME 1-14 and still within the shear zone interpreted as the Molopo Farms Complex Feeder Zone.
- The Chipo (Gift) Northern Target Area lies north-east of the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.
- By the end of drilling on Friday 12th March the hole had reached 106.4m down-hole depth in ultramafic rocks situated immediately below the Kalahari sands.
CHIEF EXECUTIVE OFFICER UPDATE
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
"I am pleased to report the drilling of the third exploration hole, KKME 1-11a, has got off to a great start after the drillers recommenced work on Thursday after an agreed period of no-cost stand-by. We paused drilling between holes two and three to review the extensive technical information gathered and to determine the optimal target for the third hole on the basis of the technical review work undertaken.
This hole is designed to test a conductive geophysical body within the Chipo (Gift) Northern Target Area. Core samples from the previous two holes have been submitted for assay and compositional analysis and we await the results.
We look forward to sharing further findings in due course."
OWNERSHIP STRUCTURE - MOLOPO FARMS COMPLEX PROJECT
Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in ("Earn-In") to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, including the diamond drilling of selected targets (the "Drill Programme").
On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.
To date Power Metal has funded US$408,141 of the US$500,000 earn-in requirement, with US$91,859 (£65,991) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company's US dollar account.
THE DRILL PROGRAMME
The Drill Programme is for an initial planned 2,505m and is designed to intersect high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic ("EM") and Natural Field Audio Magneto Telluric ("NF-AMT") geophysics surveys.
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 |
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Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson | +44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
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Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.