Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces the March 2022 quarterly business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“We built our portfolio for a time when metal prices would rise, when metal supply shortages would become exposed, and when participants in the metals space would see the strategic value of a well-constructed portfolio of active mineral projects.
Power Metal has benefited from a 3-year long opportunity to build this portfolio, through challenging market conditions. With entrepreneurial hard work, our team has positioned the business with the right combination of commodity, geographical and geological diversification.
Although we face many global challenges, we find ourselves today in an environment where governments, financial institutions, large corporations and major metal producers openly recognise the importance of secure strategic metal supply. These various organisations know that the large-scale discoveries of tomorrow rely upon the gregarious and bold explorers of today.
Below you will see our highlights for the quarter to March 2022. Here we present details of Power Metal’s four operational drill programmes, four spin-out/disposal activities, an advancement of strategic uranium interests and our other various district scale mineral opportunities.
We did not build our portfolio to stay wedded to underperforming or sub-optimal projects and in the last three years the Company has taken action to cease expenditure in the Ivory Coast, Cameroon and DRC, in the latter case, on hold pending ongoing operational conditions being met. If we don’t see real value or an adequate commercial pathway for any project we will act as we always have; decisively.
I trust this quarterly report, and future reports that follow, will help investors track our operational progress and expectations. We have slimmed down the content in this report to focus on the latest project status and planned next steps for each.”
QUARTER HIGHLIGHTS:
African Exploration
– Launch and completion of deep diamond drill programme at the Haneti Nickel Project located in Tanzania, targeting nickel, copper, cobalt and platinum group element (“PGM”) mineralisation.
– Launch of diamond drill programme at the Ditau Camp Project located in Botswana, targeting multiple prospective carbonatite structures with potential for rare-earth element (“REE”) and base-metal mineralisation.
– Results from Reverse Circulation (“RC”) drilling programme at the Tati Project, Botswana, confirming prospective geological formations and near surface gold mineralisation, with additional licence application lodged to cover newly identified gold-in-soil anomalies.
Australian Exploration
– First Development Resources team conducted ground exploration and field reconnaissance completed at the Selta Project located in the Northern Territory, Australia, which highlighted multiple target areas with polymetallic potential including uranium, REE’s and lithium.
– Field reconnaissance completed at the Wallal Project located in the Paterson Province of Western Australia, Australia, confirming ideal operational conditions and access for planned deep diamond drilling programme.
– At our Victoria Goldfields joint venture continuation of diamond drilling, originally commenced in late 2021, at the O’Loughlins and Mt. Bute targets located in the State of Victoria, Australia.
Canadian Exploration
– Canada: Technical review of data in respect of the Company’s Athabasca Basin uranium interests confirms extensive uranium prospectivity across 5 of the 7 uranium properties so far, with additional ground staked to cover newly identified prospective areas.
Corporate
– Spin-out vehicles continue to make progress with First Class Metals plc and Golden Metal Resources plc targeting listings on the London capital markets in the current quarter, and First Development Resources Ltd and New Ballarat Gold Corporation plc targeting listings in the London and/or Australian markets in early Q3 2022.
– Operational working capital comprising cash and listed investments at 28/02/2022 amounted to £2.48M and unaudited total assets at 28/02/2022 of £10.93M.
– New environmental, social and governance initiative launched (the “ESG Initiative”) which will include an appointed ESG Officer for Power Metal and select associated companies. The Initiative will also involve the embedding of wide ranging ESG policies across the Company and training of all staff members.
– Capital Reduction exercise progressed with shareholder approval secured at General Meeting in March 2022. Subject to High Court approval enables the Company to consider shareholder distributions with effect from mid-2022.