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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 21 September 2022 the Company announced an update regarding the commencement of drilling at priority target area T1-6, as well as the ongoing geophysics programme. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-botswana-drilling-underway/15638648

KEY HIGHLIGHTS

T2-3 Major Drill Target

– Data from ground-based electromagnetic (“EM”) as well as magnetic geophysical surveys covering target areas T1-14, T1-3 and T2-3 has now been compiled and analysed.

– Final results have highlighted a large, significant geophysical conductor at target area T2-3. This conductor remains open in all directions and is strongly coincident with a magnetic body identified here by the ground and airborne magnetic surveys. No drilling has ever been completed over this target area.

– The historical airborne magnetic results at T2-3 have been further analysed and the magnetic body coincident with this newly identified moving loop electromagnetic (“MLEM”) geophysical conductor is shown to extend for approximately 12km in an east-west direction.

– This conductor has been given a high-priority (A+) ranking by the Company, the same priority ranking granted to the conductor at T1-6 (where drilling is ongoing).

– A planned 600m diamond core drillhole, DDH2-3A, has been designed to intersect the T2-3 conductor at approximately 300-350m downhole depth. The Company is planning on drilling this hole following the completion of diamond drillholes DDH1-6B (drilling currently in progress) and DDH1-6C.

Additional Airborne Electromagnetic Conductors

– Power Metal in conjunction with its geophysical contractor, completed an in-depth review of all airborne electromatic (“AEM”) geophysics conductors identified by the previous operator. Five of these AEM conductors (1-2, 1-4, 1-5, 1-10 and 1-11) have been upgraded and are now designated as priority airborne conductors, where follow up work is being considered.   

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

“Drilling is successfully underway at the priority target area T1-6 where a very large geophysical conductor was identified from recently completed geophysical surveys, the initial results of which we announced on 16 August 2022. In that announcement I noted that the exploration findings were potentially among the most significant the Company had delivered.

Today’s news potentially has even greater significance with the confirmation of a major conductor at T2-3 which adds another high-priority target to the list for drill testing during the ongoing campaign. Significantly, airborne magnetic survey results over this new conductor suggest that it could be very sizeable.

Our focus is the continuation of drilling at T1-6 which is still in its early stages and where the diamond drill is progressing down to the target zone.

The findings from T1-6 in terms of potential mineralisation are keenly awaited and, given the results of the latest geophysical review, we will be looking to also drill T2-3 at the earliest opportunity.

Further to T1-6 and now T2-3, we have confirmed numerous additional targets for further investigation where there is the potential for multiple additional drill targets to be identified.”

GEOPHYSICAL SURVEY – OVERVIEW

– Spectral Geophysics have completed the 2022 Phase II exploration programme which included three MLEM and three magnetic geophysics surveys over targets T1-14 and T2-3 and T1-3. The MLEM and magnetic survey results will assist the company in refining further drill collar locations for the ongoing 2022 diamond drilling campaign.

– MLEM survey results over T2-3 have highlighted a large flat-lying, slightly concave (downward), strong conductor which remains open in all directions. The magnetic survey over this target also identified a large magnetic body that is spatially coincident with the  conductor, which is interpreted to be an indication that the conductor is associated with or found within mafic to ultramafic rocks of the Molopo Farms Complex.

– MLEM results over the T1-14 target have highlighted the presence of a strong conductor located south of the 2021 drillhole (KKME1-14) that targeted this zone. It is estimated that a circa 650m drillhole would be needed to test the top of this conductor. 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 interpreted to be 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. The Company is considering next steps at target area T1-14.

– Further geophysical data analysis and processing inversions are ongoing at T1-3, where a large AEM conductor was originally identified by the previous operators. The results of the completed MLEM and magnetic surveys over this target will be released following the completion of these further analyses.

– The Company also has completed an in-depth review of a previously completed AEM report covering the majority of the Molopo Farms Complex Project. Considering priority areas T1-6 and now T2-3 were originally identified by the airborne EM survey, it was decided that further investigation of the targets identified by this report was warranted. Significantly, five of the strong AEM conductors, including T1-2, T1-4, T1-5, T1-10 and T1-11 have been upgraded and are now classified as priority airborne targets by the Company. At T1-11, a 2020/2021 drillhole (KKME1-11) completed by the previous operator was determined to not have adequately targeted this conductor. Further work at these targets, which may include MLEM surveys, as well as the possibility of downhole EM at T1-11 is being contemplated and next steps will be outlined by the Company in due course.

FURTHER INFORMATION

Figure 1 – Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.

Figure 2 – Molopo Farms Complex Project T2-3 Plan Map: A plan map of the priority area T2-3, including the location of the MLEM survey, airborne magnetic results (first vertical derivative) and location of planned drillhole DDH2-3A.

Figure 3 – Priority Target Area T2-3 Cross-Section: A cross section showing the location of the planned drillhole DDH2-3A and the MLEM results (new conductor in blue).

The diagrams and image presented above may also be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/molopo-farms-complex-project-major-drill-target-t2-3/

Further photographs and videos from the drill programme are and will be available on the Company’s website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/

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.

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.

REFERENCES

1:            Power Metal PLC announcement, Botswana Molopo Farms Complex – Drilling Progress Update, 14 December 2020

                ( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w )

2:            Power Metal PLC announcement, Significant Nickel Intersections Confirmed by Drill Sample Assay Results, 8 April 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw )

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.finance

For further information please visit https://www.powermetalresources.com/ or contact: