Power Metal Resources #POW – Tati Project – Large Scale Gold Anomaly Confirmed

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the confirmation of a large scale gold-in-soil anomaly at the Tati project located in the Tati Greenstone Belt near Francistown, Botswana (the “Project”).

The gold anomaly was confirmed following receipt of laboratory assay testing results of soil and rock samples collected during the Company’s Phase I exploration programme at the Project, further information in respect of which is provided below.

HIGHLIGHTS:

· The second batch of samples, including 49 rock and 380 soil samples, were collected and sent for laboratory fire assay testing for gold in Perth, Australia.

· Results have confirmed a large scale gold-in-soil anomaly with coincident high-grade rock assay results up to 26.5g/t gold.

· Soil sample assay results returned up to 1,614 parts per billion (“ppb”) gold (“Au”), including 10 soil samples that returned >75ppb gold, representing an extremely high-tenor result.

· Overall, the results encountered confirm a large scale gold-in-soil anomaly further providing support for the company’s accelerated exploration on the Project.

· Phase II exploration, which was launched on August 26 2021, continues at pace and is focused on delineation of targets for drill testing, which is expected to commence by the end of September 2021.

Figure 1, which highlights the soil and rock results analysed by fire assay for gold from the Phase I programme can be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/sikukwe-zone-soil-rock-results/

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

“The Tati Project in Botswana continues to deliver, with the multiple large scale nickel and arsenic-in-soil anomalies announced on 19 August 2021, and now followed up with the confirmation of a large scale gold-in-soil anomaly confirmed at the Sikukwe Zone from gold fire assay testing.

The new results, including up to 26.5g/t gold in rock samples, are very encouraging and the team are increasingly thrilled with the findings to date and the exploration potential offered by the Tati Project.

Since Power Metal exercised its option to acquire the Tati Project in July, we have conducted extensive accelerated exploration on the ground and that work continues today, as we vector in on targets for drill testing expected to commence later this month.

Our thanks go to the ground operational teams and those with whom we are working in Botswana for moving the Project to the cusp of potentially high-impact drilling in just two months from option exercise, which is quite a remarkable achievement.”

PROJECT BACKGROUND

Power Metal exercised an option to acquire a 100% interest in the Project on 28 July 2021, through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Ltd. Details of the option exercise can be found below.

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-option-exercised/15075700

PHASE I EXPLORATION – RESULTS

A total of 1,107 soil samples and 49 rock samples were collected across five select areas as part of the Phase I programme at the Project which was orginally announced by the Company on 28 June 2021:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploration-commences/15036117

The first batch of results were analysed utilising a portable field X-ray Fluorescence (“XRF”) spectrometer, and from this work multiple large scale nickel and arsenic soil anomalies were announced by the Company on 19 August 2021:

https://www.londonstockexchange.com/news-article/POW/tati-project-large-scale-anomalies-confirmed/15104018

The second batch of results presented herein represent the 380 soil samples from Grid 1 (or the “Sikukwe Zone”), and 49 rock samples which were analysed by fire assay for gold at Intertek Group plc’s laboratory located in Perth, Australia.

· The Sikukwe Zone geochemical results highlight a roughly 2100m long northwest-southeast trending high-tenor gold-in-soil anomaly which ranges in width from 1400m to 800m along its extent. The anomaly remains open in all directions. Of the 380 samples collected from the Sikukwe Zone, 10 returned greater than 75ppb Au. Of particular interest is an individual soil sample which returned 1614ppb Au (1.6g/t). Historic widely spaced soil sampling over the Sikukwe Zone returned a maximum result of 34ppb Au; the results presented herein returned 14 samples (34.8ppb – 1614ppb Au) which were above the previous highest result of 34ppb Au.

· The Sikukwe Zone is mostly overlain  by Kalahari sand cover, which made prospecting and rock sampling difficult. One area with limited rock exposure located near the southern portion of the gold-in-soil anomaly was prospected and rock sampled as part of the Phase I programme. Very encouraging results were obtained from the newly discovered Goldsource Zone, where two samples returned high-grade gold including 23.6g/t Au, and 26.5g/t Au. All rock samples were taken from an exposed variable quartz-stockwork veined outcrop over a 35m strike-length.

· Due to extensive Kalahari sand cover, soil sampling within the Tati Greenstone Belt has proven to be an extremely valuable exploration tool historically, as it has led to the discovery of several gold mines within the district. Further analysis of the Sikukwe Zone soil and rock sample results were undertaken by the Company.  It was determined that the highest soil result obtained proximal to the newly discovered Goldsource Zone was 78.2ppb Au. As the intensity of gold anomalism generally coorelates with underlying bedrock gold mineralisation, Power Metal is extremely encouraged by the several other areas within the Sikukwe Zone which returned significantly higher Au-in-soil results (including 1614ppb, 265ppb, 235ppb, 164ppb, 131ppb, 120ppb, and 110ppb Au), that are associated with no known rock exposures.

· Prior to Power Metal acquiring PL126/2019, the Sikukwe Zone was subject to minimal historic exploration, despite its proximity to several nearby gold mines within the Tati Greenstone belt, including Map Nora and Golden Eagle, which are located less than 5km away. The Company is extremely pleased with the Phase I results obtained and presented herein. The Sikukwe Zone is proving to be a extremely exciting target for the discovery of greenstone hosted gold mineralisation for the Company. As a result, a Phase III programme that will include at least  1000m of reverse circulation (“RC”) drilling is being planned at pace. The planned drill programme represents the first ever known drilling campaign undertaken within the Sikukwe Zone.  

PHASE II EXPLORATION

The phase II geophysics programme is underway and progressing at pace. The results of this programme as well as an update on planned drilling activities across the Tati Project will be released to the market within the coming weeks.

Further information in respect of the Phase II programme is available in the Company’s announcement dated 26 August 2021:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploration-update/15112960

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: