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Golden Metal Resources #GMET – Pilot Mountain: Significant Exploration Targets
Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, gold, copper and silver within Nevada, USA, is pleased to announce a significant outcome from the interpretation of results from the high-resolution induced polarisation (“IP”) geophysics survey completed over its 100% owned flagship Pilot Mountain Project (“Pilot Mountain” or the “Project”) located within the prolific Walker Lake Mineral Belt in Nevada, USA.
Highlights:
– Detailed analysis of the IP geophysics results have highlighted the presence of three significant undrilled exploration targets (1- Desert Scheelite Parallel West Zone; 2- Porphyry Depths Zone; and 3- Desert Scheelite East Extension Zone; collectively the “Targets”) which are highly prospective for further tungsten (“W”)-copper(“Cu”)-silver(“Ag”)-zinc(“Zn”) mineralisation.
– The Company considers that Pilot Mountain hosts the largest known undeveloped tungsten resource in the USA (with the US currently without any domestic primary tungsten production), and these newly identified targets indicate the potential for a significantly greater in-ground resource than currently known marking a significant uplift in Project potential.
– Any increase in potential mineralisation will further bolster the inherent value of the Project and its attractiveness as a target for non-dilutive grant funding for Project exploration and development, which the Company is actively working on at present.
Oliver Friesen, CEO of Golden Metal, commented:
“While it was the criticality and in-situ value of the W-Cu-Ag-Zn mineral resource that originally attracted us to Pilot Mountain, our due diligence highlighted considerable untapped exploration upside which is what ultimately led us to acquire 100% of the Project back in November 2021.
“Review of all historical data available highlighted several conceptual exploration targets, all of which lay under thin sand cover. As a result, we set out to complete IP geophysics over these targets and the results now received and presented herein have exceeded our expectations with three significant high-priority untested zones now successfully identified on our flagship Project.
“The scale of the opportunity presented to us as 100% owners of this advanced tungsten Project is large, and with these three new exploration targets now identified the opportunity has grown significantly.”
Detailed Overview:
1) Desert Scheelite Parallel West Zone (Figure 1)
o Mineralisation at Desert Scheelite (“DS”; Total Resource 10.7Mt @ 0.26% WO3, see Table 1) is hosted within a very well-defined resistivity low (conductivity high) geophysical feature that is mapped for approx. 500m in a generally east-west direction (see dark blue feature on Figure 1).
o The 2023 IP geophysical results have led to the discovery of the Desert Scheelite Parallel West Zone (“DSPW Zone”) which is defined by a resistivity low (conductivity high) with nearly identical geophysical characteristics to DS. The DSPW Zone is located approx. 200m to the north/north-west of DS and have never been drill tested. The 2023 IP results show that the DSPW Zone is larger than the DS Zone, and if drilling successfully proves that the DSPW Zone contains skarn-style W-Cu-Ag-Zn mineralisation, it would represent a highly significant discovery at Pilot Mountain.
2) Porphyry Depths Zone (Figure 2)
o The Good Hope (“GH”) and Desert Scheelite (“DS”) Zones are located approximately 1,400m apart. The area in between these two zones is blanketed by a thin layer of post-mineral sedimentary and basaltic cover which historically precluded effective exploration between these two zones (despite both zones displaying very similar skarn-type alteration and mineralisation).
o The 2023 IP geophysical results have successfully highlighted a significant geophysical feature which appears to broadly connect the DS and GH zones at depth. This feature is defined by a resistivity and chargeability high and as a result it is postulated that it is related to a porphyry intrusion at depth. Skarn-type systems are ultimately spatially related to porphyry mineral deposits at depth, and this newly identified geophysical zone may represent the ultimate source of W-Cu-Ag-Zn mineralisation found across the entire Pilot Mountain Project. As a result, the discovery of the Porphyry Depths Zone (“PDZ”)may represent a significant development at Pilot Mountain.
3) Desert Scheelite East Extension Zone (Figure 3)
o One of the furthest east historical drillholes completed at Desert Scheelite returned some of the strongest copper and tungsten mineralisation ever found at Pilot Mountain which includes 17.5m @ 1.8% Cu (incl. sub-interval of 13.9m @ 0.89% W03). Because of this, the previous operator in 2013 completed a two dimensional IP survey across and to the east of Desert Scheelite. The goal of this survey was to profile the eastern extension of mineralisation from the main Desert Scheelite Zone.
o Re-interpretation of these 2013 results by Golden Metal have clearly shown that the mineralisation at Desert Scheelite (Total Resource 10.7Mt @ 0.26% WO3) is strongly coincident with a resistivity low (conductivity high) signature which corroborates with the 2023 IP results (see DSPW Zone writeup). Review of the historical results highlight that the DS resistivity low signature extends for an additional circa 500m towards the southeast (dipping under cover) where it remains untested by drilling. This similarly represents a very high-priority exploration target for Golden Metal going forward.
Further Project Information
Overview
The Pilot Mountain tungsten-copper-silver-zinc Project is located approximately 200km southeast of Reno, in Nevada. Nevada ranked first in overall mining investment attractiveness in the Fraser Institute 2022 annual survey 1. The Project is located entirely on United States Bureau of Land Management (“BLM”) land – allowing for efficient and cost-effective permitting.
The 3,656-acre Project is centred around four existing mineral deposits including Garnet, Good Hope, Gunmetal and Desert Scheelite all which possess significant skarn-style W-Cu-Ag-Zn mineralisation.
The Desert Scheelite and Garnet deposits host a combined Mineral Resource Estimate (MRE) of 12.53Mt at 0.27% tungsten trioxide (“WO3“) with significant Cu-Ag-Zn credits (see Table 1). This in-ground resource is believed to be the largest and most advanced undeveloped tungsten resource located in the USA.
Table 1: Pilot Mountain Project Updated Mineral Resource Estimate, dated 13 December 2018 2
|
Resource |
Tungsten Tri-Oxide |
Silver |
Copper |
Zinc |
||||||
|
Mt |
Grade (%) |
Contained metal (t) |
Grade (g/t) |
Cont. metal (t) |
Grade (%) |
Cont. metal (t) |
Grade (%) |
Cont. metal (t) |
||
|
Desert Scheelite |
Ind. |
9.01 |
0.26 |
23,400 |
20.73 |
187 |
0.15 |
13,200 |
0.41 |
37,100 |
|
Inf. |
1.69 |
0.25 |
4,300 |
12.24 |
21 |
0.16 |
2,800 |
0.19 |
3,200 |
|
|
|
Total |
10.7 |
0.26 |
27,700 |
19.38 |
207 |
0.15 |
16,000 |
0.38 |
40,300 |
|
Garnet |
Ind. |
0 |
0 |
0 |
||||||
|
Inf. |
1.83 |
0.36 |
6,590 |
|||||||
|
|
Total |
1.83 |
0.36 |
6,590 |
||||||
|
Summary |
Ind. |
9.01 |
0.26 |
23,400 |
||||||
|
|
Inf. |
3.53 |
0.31 |
10,890 |
||||||
|
Total |
|
12.53 |
0.27 |
34,290 |
||||||
Notes: All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
· Cut-off grade 0.15% WO₃
· Garnet deposit resource reported 22 May 2017. Thor Mining stated it is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.
· The estimates are considered by SRK Exploration Services Limited to be non-compliant with the JORC Code (2012) reporting standard due to insufficient disclosure of the technical and economic support for the cut-off assumptions applied and are therefore viewed as historical.
Development Potential
There is currently no known domestic United States primary tungsten production, and tungsten is classified as a strategic mineral by the United States Geological Survey (USGS) 3. Set against this backdrop, the Pilot Mountain Project is key strategic and defense metal deposit located on American soil.
Potential production viability was reinforced with a scoping study 4 commissioned by Thor Mining plc and completed in 2018 on the Project which indicated the potential for an initial 12-year operational life based on processing ore from an open pit at Desert Scheelite supplemented by potential production from Garnet.
Furthermore, previous independent metallurgical testwork on 694kg of mineralised rock from Pilot Mountain 5 highlighted strong metallurgical results including the successful production of two saleable concentrates (scheelite, and copper/silver) from a coarse grind treated by floatation or by flotation and wet high-intensity magnetic separators (“WHIMS”).
Shallow mineral resources at the Desert Scheelite and Garnet deposits may be amenable to shallow open-cut mining methods (as modelled in the 2018 scoping study) which would allow for rapid low-cost start-up costs.
Exploration Upside
The previous operator, Thor Mining plc, conducted a study which looked into exploration potential at Pilot Mountain. Thor Mining’s exploration targets were broken into Tier 1 and Tier 2 targets for which a total Exploration Target of 11.0 – 23.0Mt with an expected average grade of 0.3-0.5% WO3 was published 6 (see Table 2).
Table 2: Pilot Mountain Exploration Targets (stated by Thor Mining plc) 6
|
Target Type |
Size (Mt) |
Grade (WO3 %) |
Description |
|
Tier 1 Targets |
7-5 – 13.5 |
0.3 – 0.5 |
Based on historical drill intersections |
|
Tier 2 Targets |
3.5 – 9.1 |
0.3 – 0.5 |
Based on favourable geology and proximity to known mineralisation |
|
Total Exploration Target* |
11.0 – 23.0 |
0.3 – 0.5 |
Combined Tier 1 & 2 |
*Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determine of a Mineral Resource.
Considering the current Mineral Resource tonnage equates to 12.53Mt 2, should the exploration targets postulated be converted to Resources they could deliver a significant increase to the potential Pilot Mountain project value. The IP geophysics results presented today have further corroborated and supported the likelihood of proving up some of the Tier 1 and Tier 2 targets published historically.
Media
High-resolution versions of the below three figures can be found at the link below:
https://www.goldenmetalresources.com/pmgeophysical-survey/
Figure 1 – Desert Scheelite Parallel West (DSPW) Zone Resistivity Map. Eastern resistivity low (conductivity high) or dark blue feature is strongly coincident to W-Cu-Ag-Zn mineralisation found at the Desert Scheelite Zone which hosts the majority of the in-ground resource at Pilot Mountain (10.7Mt at 0.26% WO3). The sub-parallel, larger, dark blue zone (resistivity low/conductivity high) represents the undrilled DSPW Zone.
Figure 2 – Resistivity and Chargeability Cross-Sections across Porphyry Depths (PD) Zone. PD Zone is characterised by a slightly concave up resistivity and chargeability high which broadly connects the Good Hope (GH) and Desert Scheelite (DS) zones at depth.
Figure 3 – Desert Scheelite (East Extension) Target Zone. White lines represent resistivity low (conductivity high) that extends from known mineralisation at Desert Scheelite towards the east under cover where it has never been drill tested.
Property Ownership
Golden Metal holds a 100% interest in the Pilot Mountain Project through its wholly-owned Nevada-based operating companies BFM Resources Inc and Pilot Metals Inc.
Reference Notes:
1: Fraser Institute Annual Survey of Mining Companies, 2022, published 4 May 2023
(https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022 )
2: Thor Mining PLC, regulatory news announcement, ‘Increased Mineral Resource Estimate – Pilot Mountain Nevada USA’, dated 13 December 2018
( https://wcsecure.weblink.com.au/LSE_news/2018/12/13/Thormining_14158543.pdf )
2: News announcement: ‘The United States Geological Survey has released a new list of 50 mineral commodities critical to the U.S. economy and national security after an extensive multi-agency assessment’, 22 February 2022
( https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals )
4: Thor Mining PLC, regulatory news announcement, ‘Twelve Year Open Pit Life for Desert Scheelite
Pilot Mountain Scoping Study’, dated 7 September 2018
( https://wcsecure.weblink.com.au/LSE_news/2018/09/07/Thormining_14049369.pdf )
5: Unpublished metallurgical testwork report by Guangzhou Research Institute of Nonferrous Metals commissioned by Black Fire Minerals Ltd: ‘The Development of Separation Technology from the Pilot, Mountain Tungsten Project, Nevada, USA: Process Mineralogy Mineral processing Preliminary Testing’, dated 31 August 2013.
6: Thor Mining PLC, regulatory news announcement, ‘Development Plan Pilot Mountain Tungsten Project – Nevada USA’, dated 1 December 2014
( https://wcsecure.weblink.com.au/LSE_news/2014/12/01/Thormining_13057433.pdf )
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 Golden Metal Resources plc to provide technical support.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company’s or any third party’s ability to execute and implement future plans, and the occurrence of unexpected events.
Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
For further information visit www.goldenmetalresources.com or contact the following:
|
Golden Metal Resources plc Oliver Friesen (CEO) |
Tel: +44 (0) 20 7583 8304 |
|
Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O’Driscoll |
Tel: +44 20 7213 0880 |
|
First Equity Limited Broker Jonathan Brown/Jason Robertson |
Tel: +44 20 7374 2212 |
The Projects:
Pilot Mountain Project
The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.
Golconda Summit Project
Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain – Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.
Garfield Project
The Garfield project is an early exploration stage copper, gold and silver property consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah.
Stonewall Project
The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.
Golden Metal Resources #GMET – Appointment of Strategic United States Government Advisor
Golden Metal Resources plc (LON:GMET), a mineral exploration company focused on tungsten, gold, copper and silver within Nevada, USA, announces the appointment of Mrs. Chang Oh Turkmani as a Strategic United States Government Advisor to the Company with immediate effect.
As Strategic United States Government Advisor to the Company, Mrs. Turkmani will be responsible for helping the company advance its critical minerals strategy within Nevada and the broader United States.
Golden Metal will be providing an update to the market in regards to its United States awards strategy shortly which will include further details on the awards process, timelines, and specific awards that the Company intends to pursue, with a particular focus on seeking US government supported funding for the Pilot Mountain Project.
Biography:
Mrs. Turkmani is a respected, multilingual businesswoman with extensive experience in the import and export of industrial commodities, as well as the mining, manufacturing, construction, energy trading, shipping, environmental remediation, renewable energy, and investment advisory industries. She leverages her expertise in investing in critical minerals ranging from lithium, cobalt, nickel, tungsten, and rare earths, government procurement, structuring major infrastructure projects, and strategic planning to help oversee corporate execution.
Mrs. Turkmani is Managing Director and Principal of The Mega Company, based in Washington, DC – a role she has held since 1990. The Mega Company is a private American development company and import and export business that principally deals with industrial raw materials and goods, including iron ore, metallurgical coal, rock phosphate and cement. She is Principal of American Construction Technologies, Mega Distribution and Key Logistics Centre, based in Bucharest, Romania, where she is responsible for the development, construction and management of one of the largest US developments in the highly specialized field of temperature-controlled warehouses and logistics. Mrs. Turkmani led the companies through significant organic growth and infrastructure development.
Other leadership roles include Managing Director at CDM Global, which is an environmental remediation and industrial waste management, environmental due diligence, permitting and impact assessment business, and Crest Energy, which is in the production of renewable energy and wholesale trading of electricity. Originally qualifying as a lawyer with Dow, Lohnes & Albertson, she moved to work for Patton, Boggs & Blow in Washington, DC.
She holds a Bachelor’s and a Master’s degree from Northwestern University and a Juris Doctorate from Georgetown University Law Center in Washington, DC where she has been Adjunct Professor of Law for more than 16 years teaching Pre-negotiation Strategies for Cross-Border Transactions. She is a qualified lawyer in the US, having specialised in International Trade, Cross-Border Negotiation, Due Diligence, and Dispute Resolution. She received a U.S. Presidential Appointment to be a Board member on the National Cancer Advisory Board, is a Board member of the American Romanian Business Council, and a Board Member and Finance Chair of Alianta – a U.S. non-profit organisation working to strengthen the cultural, economic and security ties between the United States and Romania. In addition to numerous accolades, she was knighted Dame by the Order of Knights Templar.
Oliver Friesen, CEO of Golden Metal, commented:
“Let me be the first to welcome Mrs. Turkmani to the Golden Metal team. She brings a wealth of experience and connections within Washington D.C. and the US Government which will be hugely valuable to Golden Metal as we rapidly push forward the defense and critical metals strategy of our flagship Pilot Mountain Project.
“Significant amounts of non-dilutive grant funding have recently been made available by various US government departments including the Department of Defense (DOD), Department of Commerce (DOC), Department of Energy (DOE) and Department of Minerals (DOM) among others. With Mrs. Turkmani now engaged as a Strategic United States Government Adviser to the Company, we look forward to rapidly advancing this strategy and communicating to the market the steps being taken in this regard.”
Further Details
Mrs. Turkmani will be paid a fee equivalent to £34,250 per annum and she is engaged for a 2 year period, with the possibility of extension. The total contract value over 2 years is therefore £68,500, to be satisfied through the issue to Ms. Turkmani of 805,882 new Golden Metal ordinary shares of 1.0p (“Ordinary Shares”) at an issue price of 8.5p per Ordinary Share (“Contract Shares”).
The issue price of the Contract Shares equates to Golden Metal’s share price on its admission to AIM on 10 May 2023.
Following issue of the Contract Shares, Mrs. Turkmani’s total interest in Golden Metal, including those acquired during the IPO financing by The Mega Company (which is beneficially owned by Mr Salah Turkmani, the husband of Mrs. Turkmani), will amount to 3,747,058 representing to 4.41% of the Company’s issued share capital.
Admission and Total Voting Rights
Application will be made for the 805,882 Contract Shares to be admitted to trading on AIM which is expected to occur on or around 9 June 2023 (“Admission”). The Contract Shares will rank pari passu in all respects with the existing Ordinary Shares currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 85,000,255 Ordinary Shares. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
For further information visit www.goldenmetalresources.com or contact the following:
|
Golden Metal Resources plc Oliver Friesen (CEO) |
Tel: +44 (0) 20 7583 8304 |
|
Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O’Driscoll |
Tel: +44 20 7213 0880 |
|
First Equity Limited Broker Jonathan Brown/Jason Robertson |
Tel: +44 20 7374 2212 |
The Projects:
Pilot Mountain Project
The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.
Golconda Summit Project
Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain – Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.
Garfield Project
The Garfield project is an early exploration stage copper, gold and silver property consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah.
Stonewall Project
The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.
Blencowe Resources #BRES – Half-year Report
The Company is pleased to announce its Interim Results for the six-month period to 31 March 2023.
Electronic copies of the report will be available at the Company’s website www.blencoweresourcesplc.com
For further information please contact:
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Blencowe Resources Sam Quinn
|
Tel: +44 (0) 1624 681 250 info@blencoweresourcesplc.com
|
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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Tavira Securities Limited Jonathan Evans |
Tel: +44 (0)203 192 1733 jonathan.evans@tavirasecurities.com
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First Equity Limited Jason Robertson |
Tel: +44 (0)20 7330 1883 |
Interim Management Report
The period to 31 March 2023 (and subsequent events to 30 April 2023) have seen the Company continue to develop its Orom-Cross graphite project.
A Definitive Feasibility Study (“DFS”) commenced and is underway on a number of fronts; this is expected to take around 12 months to complete but the timing is dependent on pre-qualification test work being completed as a means to ultimately deliver binding offtake contracts for the full quantum of graphite concentrate being considered for sale under the phase one operational model. Experienced Australian engineering firm CPC Engineering have agreed to manage and sign off on the DFS, and their experience and involvement will assist greatly in achieving a high quality study and result.
DFS work will concentrate on three key areas. Firstly, work in-country to complete all work necessary to build and operate the mine, including all remaining licenses and permits. The associated infrastructure required to drive the operation will be scrutinised and plans put in place to ensure that all necessary infrastructure will be ready and in place for mining at Orom-Cross. Local studies include management and personnel, mining, equipment, logistics and other key areas. The DFS will take these studies to a far greater extent than the PFS in 2022.
Secondly, pre-qualification testing is taking place in the United States and China to advance the status of Orom-Cross graphite to potential buyers. A bulk sample of 100 tonnes was mined from Orom-Cross in January and (via a special export permit) was approved for transport to China by sea, where it will be put through an existing graphite pilot testing facility. This will save Blencowe substantial time and money by not having to build its own pilot facility on-site to get pre-qualified. The resultant tonnes of 96% concentrate will be then processed to a series of 99.9% products, both expendable’s (large flakes) and SPG (spheronised, purified graphite) (smaller flakes). Assuming successful these samples will be given to end user OEMs to conduct their own testing in their own facilities, to ensure Orom-Cross end product meets their standards and expectations. Once this process is completed then Orom-Cross becomes ‘qualified’ and offtake contract discussions may be entered into.
A 150kg sample was sent to China by air as a preliminary raw material product for the same pilot facility to run tests on how to achieve the best results on the larger sample to follow, and the Company expects feedback on this shortly. This full qualification process is what sets graphite apart from most other metals and it also creates barriers to entry for new participants in the industry. Blencowe is confident that it has the right process/procedures in place to achieve the results it requires to pass this key hurdle. Without binding offtake agreements, it will be difficult to deliver a decision to mine and/or project funding, so this is a critical path item within the DFS. In the past this process has taken other graphite companies several years, Blencowe is hoping that the refinement of this process via its advisors will ensure we ultimately complete this pre-qualification much faster.
In parallel Blencowe is conducting further metallurgical test work in USA to provide evidence (bench-scale testing) that the 96% concentrate it will deliver at Orom-Cross will be suitable for upgrading to the 99.9% end products sought after by the market, and how this us best achieved. These results are expected soon and will be important in ascertaining the end value within the project portfolio.
Thirdly, Blencowe is working through a number of different potential funding options to secure the right partnerships for funding both the DFS and the project implementation. There are different alternatives at both topco and project level and it is important that the right relationships are built that can deliver this project ahead, both now (DFS stage) and in building the full project. Blencowe announced in April its successful passing through a key screening hurdle/test with the Development Finance Corporation (DFC) which is a tier one US Govt-owned financial institution which provides funding solutions for the private sector in areas the US Govt deems are critical. Graphite is considered critical and hence the interaction. This is seen as a valuable relationship for Orom-Cross and the Company is hoping to sign off on a substantial technical assistance grant with the DFC in the near term that will provide up to 50% of the DFS costs. Thereafter this relationship has the potential to offer further funding solutions for the full project finance required. The credibility that association with an institution of this stature brings to both our Company and our project cannot be easily measured; this would be a big result for Blencowe.
These and other DFS activities are the focus and will remain so for the Company ahead. Further capital will be introduced into the Company as and when required, with the continued support of our major shareholders, and once Blencowe delivers the DFC technical assistance grant it is believed that many other funding opportunities will emerge at all levels.
Elsewhere, the Company walked away from the previously announced nickel exploration earn-in deal with SIPA Resources as it was considered more advantageous to concentrate on delivering the Orom-Cross graphite project into production ahead.
Mike Ralston
Chief Executive Officer
Responsibility Statement of the Directors in respect of the Interim Report
The Directors are responsible for preparing the Interim Financial Statements in accordance with applicable law and regulations. In addition, the Directors have elected to prepare the Interim Financial Statements in accordance with International Financial Reporting Standards (“IFRSs”), as adopted by the United Kingdom (“UK”).
The Interim Financial Statements are required to give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group for that period.
In preparing these Interim Financial Statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· present information and make judgements that are reasonable, prudent and provides relevant, comparable and understandable information;
· provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particulars transactions, other events and conditions on the entity’s financial position and financial performance; and
· make an assessment of the Group’s ability to continue as a going concern.
The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Group’s transactions and disclose with reasonable accuracy at any time its financial position of the Group to enable them ensure that the financial statements comply with the requirements of the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and Interim Financial Statements. Legislation governing the preparation and dissemination of Interim Financial Statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
· the Interim Financial Statements, prepared in accordance with International Financial Reporting Standards as adopted by the UK, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the period;
· the Director’s report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties that they face; and
· the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the group’s performance, business model and strategy.
Consolidated Statement of Comprehensive Income for the six month period ended 31 March 2023
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 months ended 30 Sep 2022 |
||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
Notes |
GBP |
GBP |
GBP |
|
|
|
|
|
||
|
Exploration costs |
(16,642) |
(2,744) |
(4,853) |
|
|
Impairment -Akelikongo project |
– |
– |
(404,533) |
|
|
Administrative fees and other expenses |
5 |
(446,424) |
(331,617) |
(681,488) |
|
Adjustments to Liability to surface liability |
– |
– |
51,316 |
|
|
Operating loss |
|
(463,066) |
(334,361) |
(1,039,558) |
|
|
|
|
||
|
Finance costs |
(23,010) |
(21,975) |
(45,916) |
|
|
Loss before tax |
|
(486,076) |
(356,336) |
(1,085,474) |
|
|
|
|
||
|
Income tax |
– |
– |
– |
|
|
|
|
|
||
|
Loss after tax |
|
(486,076) |
(356,336) |
(1,085,474) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Exchange differences on translation of foreign operation |
|
7,807 |
(2,061) |
(4,205) |
|
Other comprehensive income, net of tax |
|
7,807 |
(2,061) |
(4,205) |
|
|
|
|
|
|
|
Total comprehensive loss |
|
(478,269) |
(358,397) |
(1,089,679) |
|
|
|
|
|
|
|
Basic and diluted loss per share (pence) |
9 |
(0.28) |
(0.27) |
(0.68) |
There was no other comprehensive income for the period ended on 31 March 2023.
Consolidated Statement of Financial Position as at 31 March 2023
|
|
As at 31 Mar 2023 |
As at 31 Mar 2022 |
As at 30 Sept 2022 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Notes |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
Non-Current Assets |
|
7,065,820 |
5,815,114 |
6,615,253 |
|
|
|
|
|
|
|
Current assets |
||||
|
Trade and other receivables |
6 |
135,901 |
248,413 |
85,847 |
|
Cash and cash equivalents |
130,740 |
968,693 |
346,994 |
|
|
Total current assets |
|
266,641 |
1,217,106 |
432,841 |
|
Total assets |
7,332,461 |
7,032,220 |
7,048,094 |
|
|
Current liabilities |
||||
|
Creditors: Amounts falling due within one year |
(429,843) |
(282,217) |
(326,375) |
|
|
Total current liabilities |
|
(429,843) |
(282,217) |
(326,375) |
|
Non-current liabilities |
||||
|
Surface liabilities |
(785,520) |
(924,359) |
(825,852) |
|
|
Total liabilities |
(1,215,363) |
(1,206,576) |
(1,152,227) |
|
|
Net assets |
|
6,117,098 |
5,825,644 |
5,897,867 |
|
Equity |
||||
|
Share capital |
1,931,316 |
1,101,316 |
1,181,316 |
|
|
Share premium |
7,428,329 |
6,841,596 |
7,480,829 |
|
|
Warrants reserves |
402,148 |
317,876 |
402,148 |
|
|
Translation reserve |
7,264 |
1,601 |
(543) |
|
|
Retained earnings |
(3,651,959) |
(2,436,745) |
(3,165,883) |
|
|
Total equity |
|
6,117,098 |
5,825,644 |
5,897,867 |
Consolidated Statement of Changes in Equity for the six month period ended 31 March 2023
|
|
Share capital |
Share premium |
Share option reserves |
Retained earnings |
Translation reserve |
Total equity |
|
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
|
|
Balance as at 30 Sep 2021 |
901,316 |
5,132,081 |
317,876 |
(2,080,409) |
3,662 |
4,274,526 |
|
Total comprehensive loss for 6 months |
|
|
|
|
|
|
|
Loss for the period |
– |
– |
– |
(356,336) |
– |
(356,336) |
|
Total comprehensive loss |
– |
– |
– |
(356,336) |
– |
(356,336) |
|
Contributions from equity holders |
||||||
|
New shares issued |
200,000 |
1,800,000 |
– |
– |
– |
2,000,000 |
|
Share issue costs |
– |
(90,485) |
– |
– |
– |
(90,485) |
|
Exchange differences on translation |
– |
– |
– |
– |
(2,061) |
(2,061) |
|
Total contributions from equity holders |
200,000 |
1,709,515 |
– |
– |
(2,061) |
1,907,454 |
|
Balance as at 31 Mar 2022 |
1,101,316 |
6,841,596 |
317,876 |
(2,436,745) |
1,601 |
5,825,644 |
|
Total comprehensive loss for 6 months |
|
|
|
|
|
|
|
Loss for the period |
– |
– |
– |
(729,138) |
– |
(729,138) |
|
Total comprehensive loss |
– |
– |
– |
(729,138) |
– |
(729,138) |
|
Contributions from equity holders |
|
|
|
|
|
|
|
New shares issued |
80,000 |
720,000 |
– |
– |
– |
800,000 |
|
Share issue costs |
– |
(80,767) |
– |
– |
– |
(80,767) |
|
Warrants reserve |
84,272 |
– |
– |
84,272 |
||
|
Exchange differences on translation of foreign operations |
– |
– |
– |
– |
(2,144) |
(2,144) |
|
Total contributions from equity holders |
80,000 |
639,233 |
84,272 |
(729,138) |
(2,144) |
801,361 |
|
|
|
|
|
|
|
|
|
Balance as at 30 Sep 2022 |
1,181,316 |
7,480,829 |
402,148 |
(3,165,883) |
(543) |
5,897,867 |
Consolidated Statement of Changes in Equity for the six month period ended 31 March 2023
|
Share capital |
Share premium |
Share option reserves |
Retained earnings |
Translation reserve |
Total equity |
|
|
|
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
|
Balance as at 30 Sep 2022 |
1,181,316 |
7,480,829 |
402,148 |
(3,165,883) |
(543) |
5,897,867 |
|
|
|
|
|
|
|
|
|
Total comprehensive loss for 6 months |
||||||
|
Loss for the period |
– |
– |
– |
(486,076) |
– |
(486,076) |
|
Total comprehensive loss |
– |
– |
– |
(486,076) |
– |
(486,076) |
|
Contributions from equity holders |
|
|
|
|
|
|
|
New shares issued |
750,000 |
– |
– |
– |
– |
750,000 |
|
Share issued costs |
– |
(52,500) |
– |
– |
– |
(52,500) |
|
Exchange differences on translation of foreign operations |
– |
– |
– |
– |
7,807 |
7,807 |
|
Total contributions from equity holders |
750,000 |
(52,500) |
– |
– |
7,807 |
705,307 |
|
Balance as at 31 Mar 2023 |
1,931,316 |
7,428,329 |
402,148 |
(3,651,959) |
7,264 |
6,117,098 |
Consolidated Statement of Cash Flows for the six month period ended 31 March 2023
|
As at 31 Mar 2023 |
As at 31 Mar 2022 |
As at 30 Sept 2022 |
||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
Notes |
GBP |
GBP |
GBP |
|
|
Operating activities |
|
|
|
|
|
Loss after tax |
(486,076) |
(356,336) |
(1,085,474) |
|
|
Depreciation |
104 |
– |
– |
|
|
Finance costs |
23,010 |
21,974 |
45,916 |
|
|
Adjustment to Surface Liability |
– |
– |
(51,316) |
|
|
Share issue/warrant cost |
– |
– |
84,272 |
|
|
Impairment – Akelikongo costs |
– |
– |
404,533 |
|
|
Unrealised currency translation |
261,566 |
(61,217) |
(208,371) |
|
|
Changes in working capital |
||||
|
Decrease/(increase) in trade and other receivables |
(50,054) |
(195,833) |
(33,267) |
|
|
Increase/(decrease) in trade and other payables |
(39,568) |
38,945 |
76,483 |
|
|
Net cash flows from operating activities |
(291,018) |
(552,467) |
(767,224) |
|
|
Cash flows from financing activities |
||||
|
Purchase of fixed assets |
(748) |
– |
– |
|
|
Investment in exploration assets |
(621,988) |
(481,643) |
(1,423,236) |
|
|
Net cash flows from investment activities |
(622,736) |
(481,643) |
(1,423,236) |
|
|
Financing activities |
|
|||
|
Shares issued |
750,000 |
2,000,000 |
– |
|
|
Shares issued (cost) |
(52,500) |
(90,486) |
2,444,166 |
|
|
Net cash flows from financing activities |
697,500 |
1,909,514 |
2,444,166 |
|
|
Increase in cash and short-term deposits |
(216,254) |
875,404 |
253,706 |
|
|
Cash and short-term deposits brought forward |
346,994 |
93,288 |
93,288 |
|
|
Cash and cash equivalents at end of period |
|
130,740 |
968,692 |
346,994 |
Notes to the Financial Statements for the six month period ended 31 March 2023
1. General
Blencowe Resources Plc (the “Company”) is a public limited company incorporated and registered in England and Wales on 18 September 2017 with registered company number 10966847 and its registered office situated in England and Wales at 167-169 Great Portland Street, Fifth Floor, London, England W1W 5PF.
The Group did not earn any trading income during the period under review but incurred expenditure in developing its principal assets.
The Consolidated Interim Financial Statements of the Company for the six month period ended 31 March 2023 comprise the financial statements of the Company and its subsidiaries (together referred to as the “Group”).
2. Accounting Policies
Basis of preparation
The Interim Financial Statements of the Group are unaudited condensed financial statements for the six month period ended 31 March 2023.
The accounting policies applied by the Group in these Interim Financial Statements, are the same as those applied by the Group in its consolidated financial statements and have been prepared on the basis of the accounting policies applied for the financial year to 30 September 2022 which have been prepared in accordance with IFRS as adopted by UK for. The Group Financial Statements have been prepared using the measurement bases specified by IFRS each type of asset, liability, income and expense.
The Group Financial Statements are presented in £, which is the Group’s functional currency. All amounts have been rounded to the nearest pound, unless otherwise stated.
Comparative figures
The comparative figures have been presented as the Group Financial Statements cover the 6 month period ended 31 March 2022 and the 12 month period ended 30 September 2022.
3. Critical accounting estimates and judgments
In preparing the Group’s Interim Financial Statements, the Directors have to make judgments on how to apply the Group’s accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments that have been made in arriving at the amounts recognised in the Group Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Blencowe Resources Plc for the year ended 30 September 2022. A copy of these financial statements is available on the Group website at https://blencoweresourcesplc.com/
5. Administrative fee and other expenses
|
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 Months ended 30 Sep 2022 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Directors’ remuneration |
70,023 |
70,046 |
173,413 |
|
Professional fees |
121,692 |
130,655 |
274,333 |
|
Salaries |
75,000 |
60,000 |
142,500 |
|
Listing fees |
18,218 |
19,783 |
26,910 |
|
Audit fees |
21,644 |
4,375 |
29,000 |
|
Share issue/warrant cost |
– |
– |
84,272 |
|
Administration fees |
23,500 |
23,500 |
47,000 |
|
Broker fees |
20,500 |
29,542 |
38,048 |
|
Travelling expenses |
7,959 |
– |
34,167 |
|
Miscellaneous fees |
87,888 |
(6,284) |
(168,155) |
|
Total |
446,424 |
331,617 |
681,488 |
The Group had two employees who are key management personnel and three Directors. The Directors and the key management personnel’s remuneration related solely to short term employee benefits.
6. Trade and other receivables
|
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 Months ended 30 Sep 2022 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Other receivables |
21,526 |
37,997 |
24,765 |
|
Prepayments |
114,375 |
210,416 |
61,082 |
|
Total |
135,901 |
248,413 |
85,847 |
7. Creditors: Amounts falling due within one year
|
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 Months ended 30 Sep 2022 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Payables |
118,980 |
268,067 |
140,018 |
|
Land Owners Liability |
143,036 |
– |
154,403 |
|
Accruals and provision |
167,827 |
14,150 |
31,954 |
|
Total |
429,843 |
282,217 |
326,375 |
8. Creditors: Amounts falling after one year
BRUL, the Company’s subsidiary entered into an agreement for surface rights over the land in the mineral area of the licence. The land owners granted BRUL a 49 year lease over an area. The liability to the land owners is to be paid in 8 instalments on at defined dates with the final payment due in 2035.
|
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 Months ended 30 Sep 2022 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Total payable at the beginning of the period |
978,255 |
887,560 |
887,560 |
|
Change in estimate |
– |
– |
(51,316) |
|
Interest charged during the period |
23,010 |
21,975 |
45,916 |
|
Exchange loss on valuation |
(72,709) |
14,824 |
96,095 |
|
Total payable as at period end |
928,556 |
924,359 |
978,255 |
|
|
|
|
|
|
Analysis between current and non-current liability |
|
|
|
|
Payable within 12 months |
143,036 |
– |
154,403 |
|
Payable after 12 months |
785,520 |
924,359 |
823,852 |
|
|
928,556 |
924,359 |
978,255 |
The value of the lease is measured at the present value of the contractual payments due to the lessor
over the lease term, with the discount rate of 5%.
9. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
|
6 months ended 31 Mar 2023 |
6 months ended 31 Mar 2022 |
12 Months ended 30 Sep 2022 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Earnings |
GBP |
GBP |
GBP |
|
Loss from continuing operations for the period attributable to the equity holders of the Group |
(478,269) |
(353,336) |
(1,085,474) |
|
Number of shares |
|||
|
Weighted average number of Ordinary Shares for the purpose of basic and diluted earnings per share |
|||
|
168,803,923 |
133,655,997 |
160,790,224 |
|
|
Basic and diluted loss per share (pence) |
(0.28) |
(0.27) |
(0.68) |
There are no potentially dilutive shares in issue.
10. Related party transactions
The are no related party transactions during the period except for the Directors’ remuneration, which have been disclosed in note 5.
Sam Quinn is a director and shareholder of the Company and a Director of Lionshead Consultants Limited. During the period, Lionshead Consultants Limited charged fees for consultancy fees of £18,000 (31 March 2022: £12,000 and 30 Sep 2022: £24,000).
11. Events after the reporting date
On 27 April 2023, the Company announced that it has managed to secure a strategic funding partner for the Orom-cross graphite project. The Development Finance Corporation engaged to fund 50% of the definitive feasibility study costs by way of a technical assistant grant. The DFC is the primary US Government finance institution set up to provide financially sound solutions for private sector initiatives pertaining to critical challenges facing the world.
On 18 May 2023 Blencowe Resources Plc announced that it had raised £635,000 at 5 pence per share through the issue of 12,700,000 new ordinary shares of 0.5p placing shares. The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants”) which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares.
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END
ECR Minerals playing the big game – Andrew Scott talks to Andrew Haythorpe and Adam Jones
In a new June 2023 ‘on the ground’ interview, Andrew Scott talks to Andrew Haythorpe and Adam Jones about the exploration programme. Adam covers his schedule, boots on the ground at Hurricane (5-7 days) meeting the previous owner, and he will then be at Lolworth for the rest of June taking rock chips and sampling where the tantalum & niobium and rare earths were discovered last year. Andrew Haythorpe talks about the bigger picture for Lolworth in the back yard of Charters Towers, Pajingo etc, looks at the 1980s results, how the area is so unexplored and why the results, size and scale of the area offers so much potential. Both believe that very little would be needed to put the Lolworth discoveries on the scale of Charters Towers, given the 10km ridgeline, the specific area of interest 3.5 x 4km (12-20sq km), but there is also an overlap in the SE of the tenement with the same geology, which is totally untested, which could be 3x the size of the current ridgeline. Adam and Andrew then discuss the planning for Hurricane, putting in access tracks to the breccia veins with bulldozers and an initial RC drilling plan. Andrew explains how the current private landowners have been unable to exploit the asset, and how ECR are the first company with significant resources to get on the ground there.
Moving to Creswick, Adam touches on the underwhelming initial results, but points to the fact there is a 10k trend that remains to be tested, and the reasons why ECR has to work smarter. Adam looks at the geology of nearby Ballarat compared to Creswick – similar structure, narrow vein, anticlines etc, with some 30 veins already identified along the 10k strike. In summary, Andrew highlights the work Adam and the team have done with soil geochemistry and sampling and how they are ‘ranking’ the prospects to get the biggest bang for the ECR buck. In summary, the ECR team are are here to find good grades. Lolworth has some ‘smoking’ mineralisation and Andrew believes at Hurricane will deliver at 20-40-60m below surface, in other words a classicAustralian open cut mining start up which gives ECR a chance to play the big game.
Power Metal Resources #POW – Amendment of Warrant Terms
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces that, further to the announcement of 9 May 2023, the Company has today agreed to amend the terms of the warrants issued pursuant to the placing (“Fundraising Warrants”).
Under the amended terms, the expiry date of the Fundraising Warrants has been extended from 9 May 2028 to 23 May 2028. Further, under the amended terms if the volume weighted average price (“VWAP”) of the Company’s ordinary shares on each of 5 consecutive trading days exceeds £0.03 or on any subsequent occasion the 5 day VWAP exceeds £0.03, the Company may at any time in the next 10 business days issue an announcement through a Regulatory News Service to the effect that it is exercising its rights and write to the warrantholders providing 20 business days’ notice requiring accelerated exercise of the Fundraising Warrants, with payment required within 20 business days of the acceleration announcement date. To the extent that Fundraising Warrants are not exercised, or payment of the subscription price is not received, within 20 business days of the acceleration announcement date, the Fundraising Warrants will lapse.
There are no further changes to the terms of the Fundraising Warrants or the placing.
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 |
|
||
|
Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
|
|
|
|
|||
|
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) 14 8341 3500 |
|
|
|
|
|||
|
First Equity Limited (Joint Broker) |
|
||
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
||
Power Metal Resources #POW – Tati Gold Project, Botswana – Exploration Update
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update from its 100% owned Tati Gold Project (“Tati” or the “Project”) located on the Tati Greenstone Belt (“TGB”) near Francistown, Botswana. The 2023 exploration programme including geophysics, trenching, soil sampling as well as reverse circulation (“RC”) and/or diamond drilling was launched on 26 January 2023 and the announcement providing further information may be viewed through the following link:
Highlights
– Ground geophysics and trenching have been completed with available results presented herein. A longer than usual rainy season led to the delay in the commencement of the planned infill soil geochemical sampling programme. However drier conditions have now persisted long enough for the Company to launch this next phase of work, which is expected to commence shortly.
– Detailed geological mapping of the recently completed trenches has confirmed the geological setting in the Cherished Hope Mine area which is highlighted by gold mineralisation which is concentrated within quartz reefs (massive veins, veinlets and silicified zones) hosted within predominantly diorite units.
– Analysis of ground magnetic geophysics results have highlighted the location of multiple post-mineralisation dolerite dykes which are known to persist throughout much of the TGB. Understanding the precise location of these dykes is paramount as exploration continues to progress at Tati.
– Following completion of the upcoming infill soil sampling programme – as well as the receipt of the soil assay results – next exploration steps, including planned reverse circulation and/or diamond drilling, will be finalised and communicated to the market.
Sean Wade, Chief Executive Officer of Power Metal Resources plc commented:
“I know shareholders have been keen to hear an update on Tati, and we are very pleased to be able to deliver that. We have made significant progress on this important project and we have further built our technical knowledge of the gold potential across the 8km gold-in-soil-anomaly. After the rainy season we now move into the next stage including the high-resolution infill soil sampling and, subject to review and interpretation of all results, exploration drilling. Economic processing of the tailings also remains a priority and we are actively exploring our options in that regard.
This work is being conducted in parallel with extensive other corporate and exploration activities across the Power Metal group and we anticipate regular news flow in the weeks and months ahead. Activity levels across the Company are able to accelerate, with the recently announced £2.7m financing providing considerable working capital to pursue our ambitious corporate growth objectives.”
FURTHER INFORMATION
Figure 1 – Tati Project Overview Plan Map:
Figure 2 – Tati Project Zoomed Trenching Plan Map:
EXPLORATION PROGRAMME OVERVIEW
|
Exploration Work |
Latest Update |
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TRENCHING – COMPLETE A total of 431 metres of mechanised trenching has been successfully completed. Trenching was focussed along both the northwest and southeast strike-length extensions of the known outcropping gold mineralised quartz reef structures at Cherished Hope Mine. A total of 8 trenches were completed of which 3 targeted the northwestern strike-length extension and 5 targeted the southeastern strike-length extension. Trench samples, comprising 1m long composites taken along the side of the trench, were then sampled for gold (30g Fire Assay) at the ALS Laboratory in Johannesburg, South Africa. Detailed geological and structural mapping of the trenches was also completed.
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Further breakdown of trenching results are found in ‘Notable Trenching Results Section’. Northwest Extension (Trench 3, 4, 7): Overburden was determined to be between 0-1.5 meters in thickness and composed predominantly of a brown clay-rich unit overlaying a poorly sorted quartz pebble unit. The bedrock is dominated by a quartz rich diorite. Only one post-mineralisation dolerite dyke was identified within the northwestern trenches. Multiple silicified and quartz rich zones were successfully identified in the northwestern trenches. Several of these quartz-rich intervals returned elevated gold results including: seven 1m intervals in Trench 3 which returned >0.2g/t Au (up to 1.9g/t Au). Southeastern Extension (Trench 1, 2, 5, 6, 8): Overburden was determined to be between 0-3 meters in thickness and composed predominantly of a brown clay-rich unit overlaying a poorly sorted quartz pebble unit. The bedrock is dominated by a quartz rich diorite. Four post-mineralisation dolerite dykes were identified which crosscut the diorites at various locales. Multiple silicified and quartz rich zones were successfully identified including in Trench 8 where they were determined to be the most abundant (furthest southwest trench). Several of these quartz-rich intervals returned elevated gold results including: Two 1m intervals in Trench 1 returning >0.2g/t Au and two 1m intervals in Trench 5 returning >0.2g/t Au. In general, the southeastern strike-length extension of Cherished Hope is highly affected by the presence of post-mineralisation dolerite dykes. Ground magnetic geophysics results highlight that beyond the southeastern extent of the furthest southwest trench (8), there appears to be no further dolerite dykes present for some considerable distance. Notably, the quartz rubble horizon was sampled in Trench 1 which returned much stronger gold results than in any of the trench bedrock samples (17 2m samples were sent for analysis with 7 returning >0.2g/t Au as well as 3 returning >1g/t Au (up to 2.32g/t Au)). |
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GEOPHYSICS – COMPLETE A ground magnetometer geophysical survey was completed over the northwestern and southeastern strike length extensions of the Cherished Hope Mine.
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Post-mineralisation dolerite dyke swarms are found throughout much of the TGB. As a result, within many of the historical and currently operating gold mines in the TGB, mapping the precise location of these dykes (magnetic highs) is important as they often can cross-cut gold mineralisation. The 2023 ground magnetic results have successfully mapped the location and orientation of approximately six of these dolerite dykes within the survey area, including four which are proximal and/or within the Cherished Hope (“CH”) Mine area. The successful mapping of these dykes will allow for more precise and accurate drill hole siting should drilling be undertaken going forward within CH and the surrounding areas. |
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SOIL GEOCHEMISTRY – STARTING SHORTLY The planned high-resolution infill soil geochemical sampling programme is focussed on approximately 2km of strike-length along the approximately 8km long broad Au-in-soil anomaly identified at Tati. Soil samples will be collected along a grid which will be focussed to the northwest and southeast of the 2022 RC drilling area.
The high-resolution in-fill grids will focus on areas where at least two historical anomalies were identified within widely spaced soil sampling lines (on average 400m spaced lines and up to 700m line spacing). These two-point anomalies returned an impressive 2.15g/t Au and 0.84g/t Au. To date these anomalies have never been further investigated to determine the provenance of this gold mineralisation.
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Historical soil sampling completed over the majority of the Tati Project was undertaken by previous operators along generally 400m spaced lines at 40m sample spacing. This programme intends to infill the line spacing to between 100-200m by 40m so that the definition and location of already proven Au-in-soil anomalies is vastly improved. This work will then allow Power Metal to follow up with more focussed next exploration steps which could include further trenching and drilling of these new areas. By completing this work, a much larger percentage of the 8km long Au-in-soil anomaly can move to next exploration steps therefore increasing the overall attractiveness of the Project as well as the overall size of the mineralised footprint.
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REVERSE CIRCULATION (“RC”) DRILLING(1) The RC drilling will be driven by the results of prior work streams including the soil sampling. Further updates in regard to this will be announced in due course.
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RC drilling may be undertaken to test for the along strike and down dip extension of gold mineralisation intersected by trenching of the soil anomalies. In the Cherished Hope Mine area the goal is to demonstrate continuity in the major quartz reef structure width and gold grade as well as testing the currently open down-dip extension potential at depth. |
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DIAMOND CORE DRILLING(2) Diamond core drilling specifics will be dependent on results from prior work streams including soil sampling, trenching and RC drilling. Further updates in regard to this will be announced in due course.
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Diamond core drilling may be completed in order to drill test select portions of the Cherished Hope quartz reef structures. Diamond drilling provides full core rock samples, and therefore valuable information about structure, geology, and the nature of gold mineralisation. The information extracted from diamond drilling would allow the Company to gain a better understanding of the mineralised quartz reefs and surrounding wall rocks. |
Notable Trenching Results
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Trench ID |
Trench Length (m) |
From (m)* |
To (m)* |
Interval (m)* |
Grade (g/t) |
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Trench 1 |
31 |
23 |
25 |
2 |
0.32 |
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Trench 1 (rubble) |
32 |
0 |
2 |
2 |
0.33 |
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6 |
12 |
6 |
1.35 |
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18 |
20 |
2 |
0.45 |
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22 |
26 |
4 |
0.85 |
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Trench 3 |
52 |
31 |
32 |
1 |
0.43 |
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37 |
38 |
1 |
0.25 |
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44 |
49 |
5 |
0.74 |
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Trench 5 |
54 |
6 |
8 |
2 |
0.38 |
*Refers to lengthwise along trench (as opposed to depth).
KEY:
(1) RC drilling involves a “hammer” piston which repeatedly strikes the target rock. Simultaneously, a powerful drill-bit at the end made of tungsten rotates at high speed. This creates small chips of rock known as drill cuttings that are sucked up with a vacuum and transported to a cyclone at the surface through dedicated tubes. The drilling chips derived from each depth interval are collected in separate sample bags, and a representative sub-sample of each interval is submitted to the assay lab where the geochemical constituents and gold grade is analysed. In turn, the drill chips provide a representation of the rock types the hole encountered throughout its length, this data allows a geological log to be established.
(2) Diamond core drilling involves rotating a hollow drill bit embedded with diamonds into the ground to a certain depth before extracting the solid, intact core recovered for analysis.
QUALIFIED 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 Qualified 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:
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Power Metal Resources plc |
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Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
#POW Power Metal Resources PLC – Former Director Exercise of Warrants
Power Metal Resources PLC
(“Power Metal” or the “Company”)
Former Director Exercise of Warrants
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exercise of warrants.
Warrant Exercise
The Company has received a notice to exercise warrants from former director Paul Johnson over 6,250,000 new ordinary shares of 0.1 pence each in the Company (“Warrant Shares”) at an exercise price of 0.7p per Warrant Share and raising an additional £43,750 for the Company.
As a result of this exercise Paul Johnson and Michelle Johnson will hold 82,250,000 Power Metal shares equating to 3.98% of issued share capital.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 6,250,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 26 May 2023 (“Admission”). The Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 2,064,671,913 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
#POW Power Metal Resources PLC – Investee Update – #GMET Golden Metal Resources PLC
Power Metal Resources PLC (“Power Metal” or the “Company”) Investee Update – Golden Metal Resources PLC
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the announcement today by Golden Metal Resources PLC (LON:GMET)(“Golden Metal”) confirming significant copper systems identified at Golden Metal’s Garfield Project in Nevada USA.
An extract of Highlights from the announcement is provided in italics below:
Highlights:
– Discovery of two significant copper (Cu) zones which are now named the “Power Line Zone” (or “Power Line”) and “High-Grade Zone” (or “High-Grade”; collectively the “Zones”) which returned individual Cu-in-soil results of up to 851ppm and 950ppm Cu.
– Importantly, the newly discovered Zones are coincident with historical rock sampling results which returned up to 2.6% Cu at Power Line and 5.53% Cu at High-Grade, highlighting the significance of these newly defined copper mineralised systems at Garfield.
This announcement may be viewed through the following link:
Power Metal Holding in Golden Metal
Golden Metal completed a listing on the AIM market of the London Stock Exchange on 10 May 2023.
Power Metal holds 52,248,756 ordinary shares in Golden Metal (“Golden Metal Shares”)representing a 62.06% interest in the ordinary share capital of Golden Metal which, based on the closing market mid-price of Golden Metal on 19 May 2023, was valued at £4,049,279.
The total shareholding above is subject to a 12-month lock-in agreement prohibiting the sale of Golden Metal Shares until 10 May 2024, with a follow on further 12-month orderly market arrangement thereafter until 10 May 2025.
In addition to the shareholdings above, Power Metal holds 1,749,378 warrants to subscribe for a further 1,749,378 Golden Metal Shares at an exercise price of 10.75p per share and an expiry date of 10 May 2024. Power Metal also holds 1,749,378 warrants to subscribe for a further 1,749,378 Golden Metal Shares at an exercise price of 17.5p per share and an expiry date of 10 May 2025.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Sean Wade (Chief Executive Officer) |
+44 (0) 20 3778 1396 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
ECR Minerals #ECR – CEO Andrew Haythorpe discusses exploration progress at Queensland & Victoria
ECR CEO Andrew Haythorpe discusses the latest exploration progress at Victoria and the transition to Queensland. Andrew discusses the potential he sees at Lolworth, with 30 different gold occurrences plus niobium and tantalum already at such an early phase. He then looks at the Hurricane project, and how the gold in veins at surface are consistently 1-5m thick (one was 60m thick), which leads to a consistent 1-5 g/t at surface, and the most recent project acquisition, the Blue Mountain project where there is a lot of alluvial gold. Andrew then covers how low cost work programmes including geophysics and geochemistry, RC drilling keep the costs down and will identify the biggest and best anomalies. On funding, there are plans for further asset sales, and he confirms ECR are fully funded for all QLD and Victoria exploration this year. In summary, Andrew believes the chances of pinning down a major find in Queensland is much better. ECR has the right people and right geology, plus there could be some major players keen on partnering in Queensland.