#POW Power Metal Resources – Molopo Farms Complex Project – Drill Target K1-6

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project (“Molopo Farms” or the “Project”) targeting a large scale nickel-copper-platinum group element (“PGE”) discovery in southwestern Botswana.

KEY HIGHLIGHTS: 

§ Two ground-based electromagnetic (“EM”) geophysics surveys now complete, covering areas hosting 2020/2021 diamond drillholes KKME 1-14 (“K1-14”) and KKME 1-6 (“K1-6”).

§ Preliminary survey results have highlighted a large shallow dipping magnetic conductor at drillhole K1-6. 

§ Plotting of drillhole K1-6 shows that the drillhole penetrated the edge of the newly identified magnetic  conductor at a similar stratigraphic level to nickel-sulphide mineralisation averaging 7.0m @ 0.443% Ni from 445m, including 0.6m @ 1.69% Ni, 0.55g/t Pt & 0.14g/t Au from 446.7m downhole.¹ This is within a broader mineralised interval from 294.7m (when pentlandite was first logged – assay result of 6606ppm Ni from 294.7 – 295.28m) to the end of the hole at 597.8m (minor sulphides logged – assay result 2852ppm Ni from 597.0 – 597.8m).

§ Planned 2022 diamond drill programme start date now being brought forward. The upcoming programme will now focus on testing the central and stronger part of this magnetic conductor. At present the plan is to drill 6 drillholes for approximately 2600m during this upcoming programme.

A map highlighting a location plan map of the Project (Fig.1) as well as a zoomed out (Fig. 2) and zoomed in (Fig. 3) cross-section of the MLEM results over target area K1-6 can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-rns/

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

“Today’s exploration news is, in my view, potentially one of the more significant the Company has released in its 3-year history as Power Metal.

We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of the magnetic conductor was mineralised, with widespread nickel sulphides demonstrated from assay testing and follow up petrological analysis.

As a result of the findings, multiple drillholes planned for the 2022 programme will target the centre of the magnetic conductor where we believe there is the potential for a more strongly mineralised system where the conductive response is considerably stronger and larger.

The EM survey over K1-6 captured 800m of magnetic conductor length where it remains open at depth. The magnetic conductor is also shallow dipping and expands in magnitude and size at depth based on the preliminary processed survey images we hold at present.

As a result we believe we have a compelling reason to accelerate drilling at Molopo Farms and are working in order to achieve that.

In the link above to our website you will see the survey images, with explanatory information, for review. The further information below explains the findings in more detail and also gives additional information in regards to an additional strong magnetic conductor identified below target 1-14, which was not tested by the 2020/2021 drillhole in that area.

This is an exciting time for the Power Metal team and we are now pushing ahead at pace.”

GEOPHYSICAL SURVEY – OVERVIEW

§ Spectral Geophysics have completed the 2022 Phase I exploration programme which included two moving loop electromagnetic (“MLEM”) geophysics surveys over targets 1-6 and 1-14. The MLEM survey results will assist the company in further refining drill collar locations prior to the planned 2022 diamond drilling campaign.

§ Preliminary MLEM survey results over the I-6 target suggest that the 2021 drillhole (K1-6) targeting this zone clipped this sizeable shallow-dipping (south) magnetic conductor. The magnetic conductor appears to be increasing in magnitude with depth where it remains completely untested by drilling.  

§ Preliminary MLEM results over the 1-14 target suggest the presence of a strong magnetic conductor located directly south of the 2021 drillhole (K1-14) that targeted this zone. While there are conductive Transvaal carbonaceous mudstones in the area of the survey, the centre of this anomaly is strongly coincident with a magnetic high caused by the ultramafic rocks in the area – suggesting that the magnetic conductor detected by this survey may be located within the ultramafic intrusive rocks. 

§ A Botswana based drilling contractor has been selected for the upcoming planned diamond drilling programme at Molopo Farms and a site visit with the drilling company’s foreman and Power’s in-country geological consultant is planned for later this week. 

FURTHER INFORMATION

Spectral Geophysics has now completed MLEM surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. Preliminary results have been made available to the Company, with finals results expected within the coming weeks.

The rationale for these surveys was as follows:

Target 1-6 : Previous 2020/2021 drill programme results returned nickel (sulphide) values of up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au, within a composite intersection of 7.0m @ 0.44% Ni from 445 to 452.0m in K-1-6, hosted by layered ultramafic rocks of the Molopo Farms Complex .^1,2

The preliminary results from the recently completed MLEM survey have allowed for significantly enhanced resolution of the original EM anomaly that was targeted by drilling in 2021.

Specifically, the results now indicate that drillhole K1-6 intersected the edge of the large shallow-dipping magnetic conductor in the area, which also appears to be increasing in size and magnitude with depth where it remains completed untested by drilling.

The 2022 drilling programme will test this intriguing target.

Target 1-14 : Defined by a broad strong EM anomaly which was targeted by a single drillhole during the 2020/2021 drill programme.² The drillhole (1-14) intersected carbonaceous mudstones at depth which, although highly conductive, were determined to be flat lying and therefore did not explain the magnetic conductor which was indicative of a shallower, steeply dipping body. ³

The preliminary results from the 2022 MLEM survey over this target have identified a magnetic conductor that is coincident with a magnetic high associated with ultramafic rocks in the area.

The results therefore suggest that the magnetic conductor may be located within the ultramafic intrusive rocks in the area, making it a highly viable drill target for the 2022 drilling campaign. 

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key.  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo increasing to 87.71% (the “Transaction”).  The announcement may be viewed through the following link: 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701 

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration. 

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete. 

References:

1  Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw ) 

Diamond Drill Hole KKME 1-6 Assay Data – reported 24 September 2021 – with 7.0m composite

* All depths and intervals are as measured downhole. 

2  Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

3  Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w   )

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: