#POW Power Metal Resources – Molopo Farms- Drill Programme & Geophysics Update

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.

On 16 August 2022 the Company announced an update highlighting the identification of a large electromagnetic (“EM”) conductor, the edge of which, had been intersected by previous diamond core drillhole KKME 1-6 (“K1-6”), at similar stratigraphic levels to a broad nickel sulphide mineralised interval. As announced, drill testing this conductor is to be the focus of the upcoming expedited diamond drill programme. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-drill-target-k1-6/15586161

HIGHLIGHTS

§ Preparations for the first Power Metal managed and operated diamond drill programme at Molopo Farms are advancing at pace and the commencement date for drilling is expected to be announced shortly.

§ The drilling will target the core of the new conductor, immediately south of K1-6, with multiple drillholes planned of varying positions in order to maximise the discovery potential of the programme.

§ Precision drill hole targeting work at K1-6 is also underway, given the size of the conductor the first two holes are expected to be located approximately 500m and 1,000m to the south of original hole K1-6.

§ The programme is being designed to ensure expeditious core analysis to include: geologists on site to conduct continuous core inspection and logging, identification of visible sulphides, selection of core samples for assay testing and the arrangement where appropriate of expedited laboratory assays to minimise turnaround time.

§ Two additional high-priority targets located southwest of K1-6 have been selected for moving loop electro-magnetic (“MLEM”) surveys, to provide further targets for planned diamond drilling.

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

“It is encouraging to see the interest in Molopo Farms shown by shareholders and investors.  We share the excitement this Project brings, and the K1-6 conductor is considered by our technical team to be a very compelling drill target.

We are seeking commencement of drilling as soon as possible and making expedited final preparations for this.  There will be further announcements to follow in this regard.

Expanding the geophysics programme to cover two new targets demonstrates the size and scale of the Molopo Farms opportunity.

As this work progresses, in parallel, we continue to engage with third parties that have expressed an interest in Molopo Farms and the high-impact exploration work we are undertaking. 

The level of interest in the Project is notable, demonstrating we believe not only the Project’s geological potential, but also its geographic location, Botswana, which is a secure, supportive and positive operating environment for resource exploration and development.”

FURTHER INFORMATION

Drill Programme Planning

§ Following detailed review of the geophysical data and in consultation with Power Metal’s in-country technical team, the Company is planning to drill multiple holes targeting the southerly dipping conductor at K1-6, the core of which has never been drilled. The conductor is highlighted in Figure 2 and 3 in the link below:

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

§ The first two drill holes are planned to be located approximately 500m and 1,000m south of previous diamond drillhole K1-6.  The drill holes will be drilled towards the north at a ~70 degree angle in order to best intersect the southerly dipping conductor.

§ Spectral Geophysics are undertaking inversions of the MLEM data collected to date as well as high-resolution ground-magnetic surveys over drillholes K1-6 and KKME 1-14 (“K1-14”), to enable further refinement of the target areas prior to selecting final drillhole parameters (precise collar location, dip and azimuth).

§ The Company is finalising all preparations for the upcoming programme, including drill contract finalisation and the engagement of drill rig geologists, field technicians, core cutting personnel and general labourers. The senior project geologist from MSA Consulting Inc. engaged to help manage the Project in-country on behalf of Power, and who has extensive working knowledge of the Project, will be responsible for day-to-day oversight while drilling is ongoing.

Expansion of Geophysics over Additional Targets

§ The Company has also engaged Spectral Geophysics to undertake additional MLEM surveys over two additional targets K1-3 and K2-3, located approximately 30km and 60km southwest of target K1-6 and within prospecting licence (“PL”) 310/2016.

§ The additional targets are considered by the Power Metal technical team to hold significant potential prospectivity for nickel, copper and platinum group element mineralisation and the MLEM surveys will assist in the development of additional drill targets in those locations.

§ A location plan map of the Project highlighting the location of all geophysical target areas can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-airborne-em-target-map/

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 Mineral Exploration (Pty) Ltd (“KKME”).  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms 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.

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: