Last checked at 1 Mar 2021 07:00
1 March 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Business Operational Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
"The team at Power Metal are intent on building a great company for our shareholders. Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.
We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our "balance sheet" through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.
As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.
We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.
We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength. Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities."
The table below outlines the latest status of each project in the current Power Metal active portfolio. For further project information readers should review the latest Power Metal presentation which may be accessed on the Company's website through the following link:
https://www.powermetalresources.com/p/193/presentations
PROJECT | LATEST POSITION |
AUSTRALIA Australian Gold JV Gold (POW 49.9%) | Initial Public Offer ("IPO") process has formally commenced with the appointment of legal counsel in Canada. The intention is to list certain core assets of Red Rock Australasia (Pty) Ltd (the JV holding company) by IPO in the Canadian capital markets. Shareholders should note that there can be no certainty that the proposed IPO of certain core assets of Red Rock Australasia (Pty) Ltd will be successful, further updates will be made to shareholders as appropriate. Following the grant of first three licenses, as announced on 2nd February 2021, a further seven applications are at an advanced stage of processing. Application made for a new exploration license covering 227 sq km (EL 45/5859) in Western Australia, which will be subject to a ballot between RRAL and Rumble Resources Ltd (ASX:RTR). |
BOTSWANA Kanye Resources Copper, Silver, Rare Earths (POW 50%) | Kanye Resources Plc now formed in the UK, and Kanye Resources Pty Ltd in Botswana. This is the holding company company structure for a planned listing of Kanye Resources on a recognised stock exchange. Kanye Resources includes the Ditau Project and the Ghanzi South (Kalahari Copper Belt) Project, and the exploration status of each project is outlined below. Ditau Project An exploration camp has been established and the field team has continued taking soil samples and conducting ground magnetic surveys. A new senior geologist has been recruited to oversee operations. Data is currently being analysed on the I10 target. Results from this are expected to guide future exploration of the remaining 9 potential carbonatite targets. Ghanzi South (Kalahari Copper Belt) Project Intensified soil sampling, airborne electromagnetic survey and magnetic geophysics survey, all underway. Sampling and surveys focused on key target areas and seeking delineation of key drill targets. Environmental Management Plan being finalised, which following approval will allow drilling to be undertaken. |
BOTSWANA Molopo Farms Complex Nickel, Copper, PGMs (POW with Economic Interest up to 50.96%) | Following completion of two drill holes, drill core has been cut and inspected. Drill core samples sent to South African accredited laboratory and assay results awaited. Samples also sent to Witswatersrand University for mineralogical and thin section analysis and results awaited. Third drill hole to be commenced shortly and ongoing technical review underway. |
CANADA Hemlo/Schreiber Gold, Base Metals (POW 100%) | Acquisition of seven projects now complete and comprising exploration Claim packages strategically located across the Hemlo/Schreiber greenstone belt. Preliminary exploration work planned includes remote sensing data interpretation and ground based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing. |
CANADA Silver Peak Silver (POW Earn-in to 30%) | Recommencement of exploration work including completion of the planned drill programme following the snow thaw in Spring 2021 targeting high-grade silver and to establish vein continuity. Currently working with our partners to review corporate options including a potential listing of the Silver Peak project on a recognised stock exchange. |
THE DRC Kisinka Project Copper, Cobalt (POW 70%)
| Ground magnetics completed and induced polarisation to begin over 6.8 kilometre copper-cobalt anomaly nearing completion. Following the completion of fieldwork, and interpretation of findings, likely next step will be exploration drilling of key targets. Application to secure a 25 year Permis d'Exploitation (production licence) is progressing well and in the final stages of processing. |
TANZANIA Haneti Project Nickel, PGMs, Copper, Gold, Lithium (POW 35%) | Following completion of 1,965 metres of Rotary Air Blast drilling, 776 three metre composite samples have been delivered to SGS Tanzania, an accredited assay laboratory in Tanzania. Samples being analysed using multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum, and palladium.
Assay results expected shortly and the findings will guide next stage exploration.
|
USA Alamo Gold Project Gold (POW Earn-in up to 75%) | Ground exploration programme (as announced 11 December 2020) now completed and detailed operational report received by Power Metal. Full technical review underway to determine next exploration and commercial steps. |
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 and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals 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.