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Power Metal Resources #POW – Diamond Drilling Commences at the i10 Target – Seeking Rare-Earth Element Carbonatite Intrusives
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolioannounces that diamond drilling has now commenced at the i10 Target (“i10” or the “Target”) located within the Ditau Camp Project (“Ditau”), southwestern Botswana.
The i10 Target is marked by a discrete, circular, geophysical anomaly that is 2.2km in diameter and under an estimated 120m of sand cover. Kanye’s primary objective is to retrieve diamond core to establish whether the Target’s geophysical anomaly is caused by a carbonatite intrusive. Carbonatites are the world’s primary source of rare-earth elements (“REEs”) and other strategic/industrial metals including copper.
The Ditau Camp Project is held by Botswana based Kanye Resources Pty Limited (“Kanye”), which is a 50/50 joint-venture partnership with Kavango Resources plc (LSE:KAV) (“Kavango”) – who are the operators.
Highlights
– Drill motivation
– The i10 Target is highlighted by a discrete circular magnetic anomaly, measuring 2.2km in diameter
– The Target is interpreted to lie at a shallow depth, below an estimated 120m of Kalahari sand cover – based on Audio-Magnetotelluric (“AMT”) data obtained over i10.
– Kanye has successfully completed aeromagnetic and AMT inversions over the Target.
– The Target has been independently verified to conform to an idealised model for carbonatite intrusives, based on its aeromagnetic signature.
– Idealised Ore Deposit Model
– I10 is a carbonatite pipe intrusive target
– Based on the magnetic signature, the Target has concentric “ring-like” lithological zonation, which could relate to rare-earth element mineralised horizons
– Target lies near the margin of the Kaapvaal Craton, a tectonic context common to other carbonatites globally
– Drill operations
– Camp secured, road access and drill pads completed
– Water borehole successfully drilled and solar powered water pump installed
– First of two planned drillholes at i10, hole DITDD003, commenced drilling on 15 April 2022, which is targeting the core of the magnetic high and has a target depth of 400m
– Drilling is being conducted by Mindea Exploration & Drilling Services (Pty) (“Mindea”)
– The plan is to drill up to six ~400m deep diamond drillholes at Ditau, including 2 drillholes at three separate magnetic anomlies, including i10.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“I have talked previously about the confidence we hold in the geological prospectivity across our projects in Botswana. That confidence means within an 18 month period, with Molopo, Tati and now Ditau, we have launched three drill programmes.
The Molopo drill programme successfully confirmed the presence of nickel, Tati confirmed the presence of gold and now we seek confirmation of rare earth elements at Ditau.
To say we are excited about the prospects for our interests in Botswana is an understatement. Let’s see what this drill programme delivers.”
Background Targeting
The Ditau Camp Project is centred around 12 unique geophysical anomalies (targets i1 through i12), which Kanye believes could be caused by possible carbonatites and/or intrusive complexes that may host rare-earth element mineralisation.
Targets i1 – i12 are seperated into two main target types:
1) Discrete kilometre-scale carbonatite pipe targets, and
2) Larger, multi-kilometre scale intrusive complex targets that may also be host to carbonatites and/or mafic intrusive bodies prospective for base-metal mineralisation.
The 12 Ditau geophysical targets are not known to have been drill tested for either REEs or base-metal mineralisation historically. Kanye originally identified these targets, which range in size from 1km to 20km in diameter, using interpretation of airborne magnetic data. To date, Kanye has used combined airborne- and ground-magnetic, and AMT surveys in the exploration at Ditau.
Target i10
Kanye believes the i10 Target anomaly could be caused by a discrete, 2.2km wide carbonatite pipe. The Target is interpreted as a simple, single phase carbonatite pipe with a possible outer ring indicated by a weak magnetic low ringing the main magnetic high feature.
A 3D inversion of the aeromagnetic data with an AMT section overlay of the I10 Target can be found at Kavango’s website at the link below:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Based on analysis of the AMT data over i10, the Kalahari sand cover is estimated to be roughly 120m thick. The magnetic inversion results confirm that the primary target zone lies just underneath this sand cover.
To confirm the current geophysical interpretation of the i10 Target, Kanye is currently planning to drill two diamond drillholes into i10. The first drillhole, which is currently underway, will target the core of the magnetic high, while the second hole is designed to test the edge of the geophysical anomaly.
Target i10 Idealised Ore Deposit Model
In the analysis of geophysical data over i10, Kavango has used the rare-earth element bearing Kangankunde carbonatite pipe (“Kangankunde”) located in Malawi as a model.
Kangankunde is one of the largest carbonatites within the Chilwa Alkaline Province (“Chilwa”) at ~1.5km in diameter. Chilwa is a roughly 300km in diameter, and is comprised of Late Jurassic-Early Cretaceous alkaline rocks with clusters of carbonatite pipes – including Kangankunde.
At the surface, Kangankunde forms a low hill, which rises approximately 200m above the surrounding plains, with lower slopes composed of fenitised and locally fractured (brecciated) rocks with the upper slopes predominantly of carbonatite intrusive rocks.
Although the i10 target is buried under roughly 120m of Kalahari sand cover, Kanye’s geological team believe that the geophysical signatures are comparable to that of Kangankunde. The highlight the various similarities, a geological map of Kangankunde can be found on Kavango’s website at the link below:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Carbonatites can exhibit significant lithological and structural variation, both between and within individual pipes. As such, to maximise the chances of exploration success in exploring for carbonatite hosted REE deposits, it is common practice to drill multiple boreholes along a fence pattern into a single target. The geological map of Kangankunde illustrates its concentric geological complexity and therefore the necessity for drilling multiple drillholes within i10 to elucidate the geology and locate potential indicators of REE or base-metal mineralisation.
Ongoing Drilling Operations
The drill camp has been constructed. All supporting equipment and key personnel are currently located on site.
Kanye has successfully drilled a 180m deep water borehole, which should yield enough water to support ongoing drilling operations. A solar powered pump has been installed and is currently operational.
Road access between the drill camp, drill collar locations and water sources is also complete.
Drilling operations successfully commenced on Friday 15 April 2022. In total, Kanye expects to drill up to 6 diamond drillholes as part of the current campaign (totalling ~2,400m). Each hole has an anticipated target depth of 400m, and Kanye aims to test 3 of the 12 geophysical targets as part of the ongoing drilling campaign.
Kanye and its contractors have designed the current Ditau drill campaign to be flexible and guided by ongoing visual results. Kanye will release field and laboratory results on the current planned 6-hole drill campaign once all data has been received, processed and verified.
Contingent on results from the ongoing drilling campaign, Kanye has identified a further 17 drill collar locations for future drill testing across all 12 geophysical targets/structures at Ditau.
Regional Geological Setting
Carbonatite intrusives often occur in swarms or clusters, oriented along favourable and clearly defined deep continental scale geological and structural trends. The 12 geophysical structures at Ditau occur within a southwest-northeast oriented corridor, part of the same corridor that host the Mabuasehube and Kokong kimberlites. Desktop analysis of regional geological and geophysical data by Kanye’s geologists suggest that this trend is sub-parallel to other corridors that host other kimberlite groups in Botswana and northwest Angola. In the latter, these trends are known to host both kimberlite and carbonatite intrusives, meaning that the presence of one is a strong indicator for the other.
In addition to the known presence of kimberlites within the geological corridor where Ditau is located, and further enhancing the prospectivity for Carbonitites on the Project, there is a small known cluster of carbonatite intrusives including KW2, Definite, KS12 and KS36 (the “Falconbridge Carbonatites”) which are located near to the Project. The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970s and early 1980s, to the immediate north of and 30km along strike to the northeast of the Ditau Project.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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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 |
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NOTES TO EDITORS
Power Metal Resources plc – Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
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Project |
Location |
POW % |
Work Completed or Underway |
Results Awaited |
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Alamo Gold Project |
USA |
Earn-in to 75% |
Excavation of multiple test pits and mapping & sampling. |
Field and assay results from on-site work programme. |
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Athabasca Uranium |
Canada |
100% |
Data compilation across uranium properties |
Interpretation results from all Properties complete. Next steps upcoming. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Soil & rock sampling completed |
Technical Review of exploration results & define next exploration steps. |
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Ditau Project |
Botswana |
50% |
Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements. |
Field updates and receipt & review of laboratory assay results. |
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Kalahari Copper Belt |
Botswana |
50% |
Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas |
Field programme findings and defined drill targets for near term drilling. |
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Molopo Farms |
Botswana |
53% |
Review of recent exploration findings. |
Determine next exploration steps and action plan. |
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Haneti Project |
Tanzania |
35% |
Diamond drill programme completed |
Receipt & review of laboratory assay results. |
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Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme underway
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Field updates and receipt & review of laboratory assay results. |
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Paterson Projects |
Australia |
83.33% |
Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.
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Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling. |
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Selta Project |
Australia |
83.33% |
Field reconnaissance work now underway, including mapping and sampling. |
Field updates. |
Power Metal Resources #POW – Strategic Partner Update – Botswana
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to note the announcement by Kavango Resources (LON:KAV) (“Kavanago”) released today announcing a £1.94m placing and an expansion of their drill programme at their wholly owned Kalahari Suture Zone project which may be viewed through the following link:
Power Metal and Kavango each have a 50% interest in Kanye Resources plc, a UK registered strategic joint venture company which wholly owns Kanye Resources (Pty) Ltd (“Kanye Botswana”) a Botswana private company.
Kanye Botswana is the proposed holding company for the South Ghanzi – Kalahari Copper Belt and Ditau Camp Projects. An application has been made by Kavango to transfer the prospecting licences for both projects into Kanye Botswana.
There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Power Metal currently holds 9,500,000 Kavango ordinary shares and 4,750,000 warrants to acquire Kavango shares at an exercise price of 2.5p per Kavango share at any time prior to 28 April 2023.
Power Metal’s holding in Kavango at the market mid-price as at 1pm today (6.1p) is valued at £750,500 (value of shares and margin above exercise price on the 2.5p warrants).
Recognising our original cost of entry £38,000 (April 2020) and the £47,500 cost of exercising the previously held 1.0p warrants (exercised April 2021), Power Metal is showing a paper gain of £665,000 on its Kavango investment.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“As a strategic partner we have been enthused by the operational progress made and announced to market by Kavango. The £1.94m financing announced by Kavango today, on robust terms, is a further positive step forward and provides the working capital needed to support their ambitious exploration plans.
Power Metal is working with Kavango on the Kanye Resources strategic joint venture where drilling is planned on both the South Ghanzi – Kalahari Copper Belt (Copper, Silver focused) project and the Ditau Camp (Rare Earths focused) project. The announcement by Kavango today demonstrates their desire to accelerate drilling across all projects including the joint venture projects.
Power Metal continues to hold its full position in Kavango, and we have significant paper gain compared to the original £38,000 invested in April 2020. This demonstrates the value of holding both project and equity interests and we are optimistic of continuing growth in the value of our investment.”
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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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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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 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Kavango Resources #KAV – Ditau Project update – drill targets identified
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an update on the Company’s Ditau Project (“Ditau”), searching for Rare Earth Elements (“REEs”).
Ditau is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Highlights
Ø Geophysical and geochemical surveys completed on 12 targets areas
Ø 7 specific drill targets identified
– Each target includes a possible carbonatite intrusive body lying within range of reverse circulation (“RC”) drilling
– All targets within 300m depth
– 3 of the 7 targets classified as “high priority”
Ø Target I1 is a large, intense magnetic dipole
– Spans 17km by 8km
– Shallow depth to source of less than 100m
– Kavango believes I1 sits just under the Kalahari sands
– Lies at an intersection of two major regional fault zones
– Anomalous niobium values identified. Niobium is used in various superconducting materials and industrial alloys
Ø Target I4
– Spans 7.5km by 5km
– Shallow depth to source of less than 100m
Ø Target I10
– Spans 2.5km by 2.8km
– High AMT resistivity, coincidental with a gravity high
Ø Data processing and interpretation in progress for final drill readiness
Ø Environmental Management Plan in place
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“While our primary focus has been on developing our interests in the KSZ and KCB, we have been much encouraged by the number of drillable intrusive targets identified at Ditau. Most of these appear to be post Karoo in age and lying at a shallow depth beneath Kalahari sand cover.
It is particularly encouraging to have identified seven drill-ready targets, with three of those being classified as high priority. Carbonatite hosted deposits of Rare Earth Elements (REEs) hold significant strategic and commercial value. Kavango’s targets are relatively shallow, which should make it straightforward to determine this project’s potential
We look forward to revisiting Ditau later this year, once we’ve completed our other high-impact drill campaigns.”
Exploration at Ditau
Kavango has identified 12 ring structures within the two prospecting licences making up the Ditau Project.
Falconbridge Explorations Ltd identified a similar large ring structure (KW2), located 23km to the north of Ditau, in the 1970s. On drilling KW2, anomalous values of niobium were detected in carbonatite rock (REEs were not assayed for at the time). Niobium is used in various superconducting materials and industrial alloys.
KW2 is thought to be part of a “cluster” of post-Karoo, carbonatites in the Kang area, of which Ditau is a part.
There is increasing evidence that at least some of the ring structures at Ditau contain carbonatite. An integrated exploration programme of surveys is being undertaken over the 12 ring structures (targets).
Each target is undergoing the following assessments/surveys:
SOIL GEOCHEMISTRY: 3 lines of soil geochemical sampling with specific attention to values of Niobium and REEs
CSAMT & AMT SURVEYING: To “map” the lithological contacts to determine conductivity and resistivity. The CSAMT survey was carried out using Geometrics’ Stratagem EH4 unit, which measures ground electromagnetic signals and calculates ground resistivity down to depths of 1km.
Most targets were surveyed using the low-frequency version of the Stratagem without a transmitter (AMT), which sees down to 1.6km. Readings were taken at 50m station intervals along a profile.
GROUND MAGNETIC SURVEYING: The Earth is like a giant magnet due to ferromagnesian minerals in its core. Locally, various rocks have different magnetic properties due to variable magnetic mineral content. Carbonatites usually produce magnetic “high” anomalies compared to their host rocks.
The G856AX proton precession magnetometer was used in the ground magnetic surveys. One G-856AX was used as a “base station” magnetometer taking readings at 30-second intervals and the other as a hand-carried instrument with a simple, push button operation. Readings were taken at 12.5m intervals along profiles.
GRAVITY SURVEYING: Carbonatites usually have higher density than their host rocks.
Gravimeters are generally used to measure relative gravity, of which there is a wide variety. The most modern gravimeters are Autograv, which include significant improvements compared to the old spring based systems.
An Autograv CG-3 gravimeter was used in the survey on Target I10. Readings were taken every 50m with a local base station visited 3 times a day. The Autograv obtains a reading by continuously averaging a series of one-second samples.
DATA INTERPRETATION: The Company’s approach to this involves “layering” survey data sets on geological and structural maps, to produce drill targets.
Results
Ø Interpretation of the results from the first 7 ring structure drill targets has identified 3 priority targets which demonstrate good potential to host to carbonatite (I1, I4 and I10).
– I1 is a large, intense magnetic dipole that spans 17km by 8km and has a shallow depth to source of less than 100m. I1 lies at an intersection of two major regional fault zones.
– I4 spans 7.5km by 5km and has a shallow depth to source of less than 100m.
– I10 spans 2.5km by 2.8km and exhibits high AMT resistivity, coincidental with a gravity high.
Ø These targets appear to sub-outcrop just below the Kalahari sand cover (c.70m), within easy reach of RC drilling within 300m of service.
Ø Anomalous niobium values have been detected on one of these targets (Target I1).
Plans for further Work
Ø Further surveys will be completed on the remaining 3 ring structure targets.
Ø It is proposed to drill the 3 top priority targets before the end of the year. The Environmental Management Plan is in place.
Ø Samples from the drilling will be assayed for whole rock geochemistry and REEs.
The POW/KAV Joint Venture
The Ditau PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The technical information contained in this announcement has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles is a beneficial shareholder of Kavango Resources plc.
NOTES TO EDITORS
THE DITAU PROJECT
The Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 12 “ring structures”.
The “ring structures” have the potential to host carbonatite rocks.
Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. Other elements/minerals associated with carbonatites include Niobium, Phosphates, Monazite, Strontium, Magnetite and even Copper.
Power Metal Resources #POW – Ditau Project Botswana – Drill Targets Identified
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to announce an update on the Ditau Project which is exploring for Rare Earth Elements (“REEs” or “Rare Earths”) in Botswana.
Ditau is held in a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“It is extremely positive to be able to confirm high priority drill targets at Ditau in Botswana, particularly as the strategic objective is the discovery of Rare Earth Elements at a time when the world is seeking secure and safe supply sources.
If successful, and we are able to identify carbonatite hosted deposits of Rare Earths through the planned upcoming drill programme, we believe that Ditau will become an extremely valuable project.
As JV project operator Kavango is powering ahead with the various exploration work streams and we are extremely excited with these developments at Ditau which also coincide with highly significant developments at the JV South Ghanzi Project in the Kalahari Copper Belt, which is targeting large scale copper – silver discoveries.”
HIGHLIGHTS:
· Geophysical and geochemical surveys completed on 7 of the 12 target areas consisting geophysical ring structures – named I1 to I12 (below), with data processing and interpretation carried out by Kavango’s technical team.
· 3 specific targets prioritised for drilling
– Each target includes a possible carbonatite intrusive body lying within an interpreted 300m depth from surface.
– Targets will be tested using the cost effective reverse circulation (“RC”) drilling method in the first instance.
· Target I1 is a large, intense magnetic dipole geophysics anomaly
– Spans 17km by 8km
– Shallow target depth, which is interpreted to be less than 100m
– Kavango believes I1 sits under just 70m of Kalahari sand cover
– Lies at the interpreted intersection of two major regional fault zones
– Anomalous niobium values identified in soil sample results.
· Target I4
– Spans 7.5km by 5km
– Shallow depth to source interpreted as less than 100m
· Target I10
– Spans 2.5km by 2.8km
– Geophysics shows high AMT resistivity, coincidental with a gravity high
· Data processing and interpretation in progress for final drill hole orientation
· Geophysical and geochemical surveys to continue on the remaining 5 target areas
· Environmental Management Plan for drilling in place
EXPLORATION AT DITAU
Kavango has identified 12 geophysical ring structures within the two prospecting licences (PL169/2012 and PL010/2019) that constitute the Ditau Project.
Falconbridge Explorations Ltd identified a large ring structure (KW2), located 23km to the north of Ditau. On drilling KW2, anomalous values of niobium were detected in carbonatite rock (REEs were not assayed for at the time). Niobium is used in various superconducting materials and industrial alloys.
KW2 is thought to be part of a “cluster” of post-Karoo (less than 200 million year old) carbonatites in the Kang area, an area in which Ditau is also situated.
There is increasing evidence that at least some of the ring structures at Ditau could contain carbonatite. An integrated exploration programme of surveys is being undertaken over the 12 ring structures (targets).
Each target is undergoing the following assessments/surveys:
SOIL GEOCHEMISTRY: 3 lines of soil geochemical sampling with specific attention to values of Niobium and REEs.
CSAMT & AMT SURVEYING: To “map” the lithological contacts to determine conductivity and resistivity. The Controlled Source Audio-frequency Magneto-tellurics (“CSAMT”) surveys were carried out using Geometrics’ Stratagem EH4 unit, which measures ground electromagnetic signals and calculates ground resistivity down to depths of 1km.
Most targets were surveyed using the low-frequency version of the Stratagem without a transmitter (Audio-frequency Magneto-tellurics or “AMT”), which has a depth capability of up to 1.6km. Readings were taken at 50m station intervals along a profile.
GROUND MAGNETIC SURVEYING: Carbonatites usually produce magnetic “high” anomalies compared to their host rocks.
The G856AX proton precession magnetometer was used in the ground magnetic surveys. Readings were taken at 12.5m intervals along profiles.
GRAVITY SURVEYING: Carbonatites usually have higher density than their host rocks.
An Autograv CG-3 gravimeter was used in the survey on Target I10. Readings were taken every 50m with a local base station visited 3 times a day. The Autograv obtains a reading by continuously averaging a series of one-second samples.
DATA INTERPRETATION: The Company’s approach to this involves “layering” survey data sets on geological and structural maps, to produce drill targets.
EXPLORATION RESULTS
· Interpretation of the results from the first 7 ring structure drill targets has identified 3 priority targets which demonstrate good potential to host carbonatite (I1, I4 and I10 target metrics set out in highlights above).
· These targets appear to sub-outcrop just below the Kalahari sand cover (c.70m), within easy reach of RC drilling.
· Anomalous niobium values in soil samples have been detected on one of these targets (Target I1).
PLANS FOR FURTHER WORK
· Further surveys will be completed on the remaining 5 ring structure targets.
· It is proposed to drill the 3 top priority targets before the end of the year. The Environmental Management Plan to conduct drilling is in place to allow this to occur.
· Samples from the drilling will be assayed for whole rock geochemistry and REEs.
THE POWER METAL / KAVANGO JOINT VENTURE STRUCTURE
The Ditau PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
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:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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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 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Business Operational Update
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to provide a business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“In the tables below you will see the Power Metal project portfolio, the key value drivers in our business and, the latest position regarding each project interest. The Company portfolio is focused on Africa, Australia and North America; all considered to be great exploration, development and mining destinations.
Whilst each project has individual qualities, many are targeting the discovery of large metal deposits with follow-on district scale potential. The key drivers for our project acquisitions have been positioning and timing, taking strategic footholds before regional popularity strikes.
As we have seen recently with our interests in the Kalahari Copper Belt Botswana, the Victoria Goldfields Australia and the Hemlo-Schreiber Greenstone Belt Canada, early positioning places the Power Metal business in an incredibly strong position.
We have in the last year undertaken extensive exploration with some notable results including significant nickel sulphide intersections from drilling at Molopo Farms Complex Botswana and bonanza grade silver (up to 14,937 g/t silver) from channel sampling at Silver Peak Canada.
We have extensive exploration planned in 2021 including drilling across much of our portfolio. It is worth noting that many of our projects now sit on the cusp of potential discoveries. An exciting time for any junior resources company.
Alongside exploration our corporate work continues at pace focused on the spin-out and IPO activities for certain project interests.
In summation we are, in my view, bursting at the seams with discovery potential and crystallisable value and the balance of 2021 is the proving ground for this opinion.”
Note: in addition to the material presented below, investors are guided to the Power Metal corporate presentation which is available on the Company’s website through the following link:
https://www.powermetalresources.com/presentation/
KEY VALUE DRIVERS
Table 1 below briefly summarises the key value drivers across the Company’s portfolio. Further detailed project information including supporting information behind the value drivers is provided in Tables 2, 3 and 4 later in the announcement.
Table 1 – Key Value Drivers by Project
|
Project |
Key Value Drivers |
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AFRICA |
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Molopo Farms Complex (Nickel – Copper – PGE) |
– Update following completion of technical work and review of initial drill programme data including testwork being carried out on holes K1-6, K1-14 and K1-11a sulphide mineralisation zones – Next steps exploration to understand the potential scale of the mineralisation identified |
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South Ghanzi (Copper – Silver) |
– Planned exploration drilling at South Ghanzi targeting copper-silver discoveries subject to approval of the Environmental Management Plan – Updates regarding IPO of holding JV company Kanye Resources plc |
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Ditau Camp (Rare Earths) |
– Release of exploration findings – Subject to exploration results, drilling of carbonatite and rare earth deposit targets |
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Tati Project (Gold – Nickel) |
– Results from due diligence exploration programme including infill geochemical surveys targeting newly identified significant gold and nickel anomalies |
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Kisinka (Copper – Cobalt) |
– Exploration drilling at Kisinka targeting a copper-cobalt discovery |
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Haneti Project (Polymetallic) |
– Exploration drilling at Haneti targeting a nickel sulphide discovery |
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AUSTRALIA |
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Paterson Province (Gold – Copper) |
– Release of exploration findings including technical comparisons of Wallal targets with regional discoveries including the Winu and Havieron deposits – Updates regarding IPO of UK holding company |
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Victoria Goldfields (Gold) |
– Exploration programme initial results – Updates regarding IPO of core interests |
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NORTH AMERICA |
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Hemlo-Schreiber (Gold – Nickel) |
– Exploration updates |
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Silver Peak (Silver) |
– Completion of Silver Peak drill programme (commenced Q4 2020 but halted due to poor weather) – Updates regarding IPO of Silver Peak on a recognised stock exchange |
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Golconda Summit (Gold) |
– Launch of ground exploration targeting near surface high grade gold mineralisation to validate historic work following receipt of permits |
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Garfield/Stonewall (Gold – Copper – Silver) |
– Launch of exploration programmes |
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Alamo (Gold) |
– Launch of next stage exploration following receipt of permits |
PROJECT OPERATIONAL UPDATE
Tables 2, 3 and 4 below summarise the latest status of each project within the Company’s portfolio.
Table 2 – African Projects – Latest Position
|
Project |
Latest Position |
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Molopo Farms Complex Project Botswana (Nickel – Platinum Group Elements (PGEs)) POW: Effective Economic Interest 50.8% |
Power Metal participated in the Molopo Farms Complex (MFC) Project as it provided exposure to a new nickel sulphide – Platinum Group Elements (“PGE”) project in south-west Botswana. The layered ultramafic-mafic intrusion constituting the Molopo Farms Complex holds the potential for a significant nickel discovery, and the ground held within the project licences is interpreted as the feeder zone. Exploration diamond drilling commenced in Q4 2020 and to date the Company has announced significant nickel sulphide intersections from the second hole drilled, K1-6 . To encounter intervals with the highest nickel grades found to date in the MFC so early in the initial 3 hole drill programme was an outstanding result reflecting the significant investment in preparatory research and exploration prior to drilling. Much ongoing technical work is being undertaken and further results will follow from testwork being carried out on holes K1-6, K1-14 and K1-11a with market updates expected in the near term. Following completion of the first drilling phase technical work the next stage of exploration is to build an understanding of the potential scale of the mineralisation identified and work towards defining a Mineral Resource. This next stage is perhaps the most exciting phase of the project exploration. It is now confirmed that the nickel sulphides sought are present, so now we must seek to delineate an economic deposit through further drilling, which is likely to be preceded by a soil geochemistry programme focussed on the area between K1-14 and K1-6. Clearly if successful, the value of this project may well be transformational for all parties with an ownership interest, including Power Metal. Power Metal holds its 50.8% effective economic interest through a direct 40% project stake and through an 18% interest in the orginal project holding company Kalahari Key Mineral Exploration (Pty) Limited, a private Botswana Company (“Kalahari Key”). As announced 6 May 2021 Kalahari Key is to be restructured to reflect the 40% Power Metal project interest and the Company is actively engaged on commercial work streams in respect of this restructuring. |
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South Ghanzi Project Botswana (Copper – Silver) POW: 50% |
The South Ghanzi Project covering a footprint of some 1,294 km2 provides Power Metal with exposure to potential copper – silver discoveries within the prolific Kalahari Copper Belt (“KCB”) alongside joint venture (“JV”) partner Kavango Resources plc (LON:KAV). Power Metal’s CEO Paul Johnson was CEO of Metal Tiger Plc in 2016 when they and ASX listed JV partner MOD Resources made the T3 Deposit discovery nearby in the KCB. The South Ghanzi Project is following a similar exploration methodology to the T3 discovery. Exploration work at South Ghanzi includes airborne electromagnetic (“AEM”) surveys that have identified eight anomalies representing targets for further ground based exploration. Follow up soil sampling work has so far has been focused on two targets, Acacia and Morula, with both targets showing significant zinc and copper in soils which closely follow the structures identified through the AEM work. Both targets present significant scale soil anomaly targets, Acacia measuring 4 km by 4 km and Morula about 2 km wide by 12 km long (open at both ends). They will both be subject to exploration drilling following approval of the project Environmental Management Plan (“EMP”). In addition on 29 March 2021 Power Metal and JV partners announced two conditional agreements to acquire a 100% interest in eight prospecting licences to significantly expand the KCB land footprint and work continues to finalise these transactions.
The South Ghanzi Project interest is held through JV vehicle Kanye Resources Pty Limited in Botswana, which is held outright by Kanye Resources plc, a UK public company. Currently the licences in respect of South Ghanzi are being transferred into Kanye Resources Pty Limited.
The JV partners are working on an initial public offering (“IPO”) of Kanye Resources plc in the UK capital markets.
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Ditau Camp Project Botswana (Rare Earths) POW: 50% |
The Ditau Camp Project (“Ditau”) is a rare earths exploration project with licences covering a footprint of 1,386 km2 and held in JV with Kavango Resources plc, as with the South Ghanzi Project. Ditau provides Power Metal with exposure to a potentially large scale rare earths opportunity in a secure operating jurisdiction just at the time that secure and stable sources of rare earths are in demand globally. Exploration work continues at Ditau with soil sampling and ground magnetic surveys investigating ten potential carbonatite targets. Further market updates covering the results of exploration findings are expected in the near term.
Following completion of the current work programmes the JV partners expect to undertake shallow drilling to test for the presence of carbonatites and potential rare earth elements. The Ditau interest is held through the same JV holding company structure as the South Ghanzi Project above. |
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Tati Project Botswana (Gold – Nickel) POW: Option to Aquire 100% |
Power Metal announced on 6 May 2021 a 60 business day option (the “Tati Option”) to acquire a 100% interest in two gold-nickel focused exploration properties in the Tati Greenstone Belt area of eastern Botswana, subject to due diligence (the “Tati Project”). The properties comprise two prospecting licences covering 124 km2. A historical data compilation on the properties, completed as part of the due diligence process, has led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on both properties.
As a result, immediate ground based exploration is being undertaken to include infill geochemical survey grids, as well as mapping and prospecting over these newly delineated geochemical anomalies.
Further market updates will be provided in respect of this due diligence exploration programme in the near term.
Should Power Metal exercise the Tati Option, it will hold the interest in the Tati Project through the newly formed, 100% owned Botswana private subsidiary, Power Metal Resources Botswana Pty Limited. Upon the Tati Option exercise the plan would be to undertake exploration drilling at the project.
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Kisinka Project The DRC (Copper – Cobalt) POW: 70% |
Exploration work undertaken since 2019 has delineated a 6.8 km copper-cobalt soil anomaly through the heart of the single licence representing the Kisinka Project. It was previously planned to follow-up the recently completed ground magnetics survey with in an induced polarisation geophysics survey, however following a review of the data sets it is considered that progressing work straight to drill testing is warranted. This drill programme is being planned at present and a further update will be provided in due course. The Kisinka Project has secured a 25 year Permis d’Exploitation (or Production Licence) which will significantly enhance the value and flexibility of the project should drilling lead to a discovery. |
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Haneti Project Tanzania (Polymetallic) POW: 35% |
A Rotary Air Blast (“RAB”) 1,965m drill programme was successfully completed at the Haneti Project in early 2021 and the results announced on 7 April 2021. The project is held with JV partner Katoro Gold Plc (LON:KAT). The next step at the Haneti Project is deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation.
Power Metal is eager to undertake this diamond drill programme and is working with its JV partner to secure commencement of this at the earliest opportunity.
Further work is ongoing with regard to other opportunities at Haneti, which as a polymetallic opportunity also has prospectivity for gold, lithium and rare earths.
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Table 3 – Australian Projects Latest Position
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Project |
Latest Position |
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Paterson Province Western Australia (Gold – Copper) POW: 75%
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First Development Resources Pty Limited (“FDR Australia”) is a private Australian company with 100% ownership (or the right to acquire 100% ownership) in five exploration licence interests (1 granted licence Ripon Hills and 4 licence applications namely Wallal, Wallal West 1, Wallal West 2 and Braeside West) in the Paterson Province, East Pilbara, Western Australia. Power Metal announced the conditional acquisition of FDR Australia on 28 April 2021 and is working with its Australian partners to finalise matters precedent on the acquisition including the grant of the Wallal licence application. Good progress is being made with all matters including finalisation of Heritage Agreements locally which are necessary prior to formal grant. FDR Australia will be acquired outright by a newly formed private UK company First Development Resources Limited (“FDR UK”) in which Power Metal will have a 75% interest. Following completion of the acquisition above, the intention is to IPO FDR UK in the London capital markets and we are taking preparatory steps to enable that proposed listing. Alongside the corporate work underway the Power Metal team have also been undertaking a detailed review of exploration data to date, planning principally for drilling of key gold-copper targets. The Paterson Province is well known for two recent and significant gold-copper discoveries, namely the Winu discovery by Rio Tinto and the Havieron discovery by Greatland Gold plc (LON:GGP). A desktop review has identified numerous geological analogues between the Wallal Project (comprising three licence applications) held by FDR Australia and both the Winu and Havieron discoveries. Notably, the magnetic properties of the Havieron discovery were evaluated in comparison to the Wallal Eastern magnetic anomaly which was identified during the recent desktop analysis. The magnetic amplitude and size of this anomaly was determined to be comparable (Havieron; diameter – 1 km, amplitude – 80nT, Wallal; diameter – 1.5 km, amplitude – 100nT). Additionally, the geological position of the Winu discovery was determined to be similar to that of Wallal, which includes a position along the western margin of a major shelf (Winu – Anketell Platform, Wallal – Wallal Platform). The Company is reviewing findings in conjunction with its partners in Australia and expects to release a market update in this regard in the near term. |
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Victoria Goldfields Victoria, Australia (Gold) POW: 49.9% |
This opportunity is held in JV with Red Rock Resources plc (LON:RRR) and represents one of the largest land footprints at the heart of the high profile Victoria Goldfields in Australia. The footprint totals some 2,334 km2 comprising an original sixteen licence applications from which, to date, seven licences covering 848 km2 have now been granted. Having licences granted enables ground exploration work to be launched and we now have an active programme of exploration underway including soil sampling and mapping across the granted licence areas. Historical data demonstrates the presence of gold mineralisation across all the licence areas, with evidence of historical mine workings across the properties. Programme planning which is being led by the exploration team, all of whom are residents of Victoria, is utilising the extensive regional and historical exploration datasets and mining records available, combined with local knowledge and land holder relationships. The holding company for the JV is Red Rock Australasia Pty Limited (“RRAL”) and RRAL is working on the IPO process for certain core interests of RRAL on the Canadian capital markets. This listing recognises the attractiveness of the Victoria Goldfields area amongst Canadian investors and institutions, with numerous listed companies on the Canadian Securities Exchange (“CSE”) and Toronto Stock Exchange (“TSX”) having achieved success on the markets with business models focused on exploration in the Victoria Goldfields. To facilitiate this listing process RRAL have previously completed a National Instrument 43-101 technical report on eight of the licence areas (four now granted licences and four licence applications) and this report will form a key part of the listing documentation. RRAL is working with advisors to complete the work streams necessary for the listing and will be providing further market updates in the near term in connection with this workflow. Based on the valuation of listed peers who have a focus on the Victoria Goldfields, Power Metal believe the Victoria Goldfields JV to hold considerable value for the Company and our partners Red Rock Resources plc. Note: in addition to the Victoria Goldfields interests described above RRAL has also submitted three licence applications in the Pilbara/Paterson region of Western Australia. Two applications (260 km2) are competing and therefore subject to ballot and one has RRAL as sole applicant (70 km2). The strategic plans for the three Western Australia licences are under review at present however it is likely that RRAL will seek to house these licences under a new vehicle in due course to allow the core interests of RRAL to move into the Canadian IPO process with focus on the Victoria Goldfields. |
Table 4 – North American Projects Latest Position
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Project |
Latest Position |
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Hemlo-Schreiber Project Ontario, Canada (Gold – Nickel) POW: 100% |
In Q1 2021 Power Metal moved quickly to secure a 100% interest in seven properties in the heart of the Hemlo-Schreiber Greenstone Belt in Ontario, Canada. All properties are held by Power Metal Resources Canada Inc. (“Power Metal Canada”) a newly formed wholly owned subsidiary of Power Metal. The seven properties have been allocated into five projects including Hemlo North, McKeller, Coco-East, Enable and Magical. Hemlo North is a package of three properties (Dotted East, Roger Lake and Olga Lake). London listed Panther Metals (LON:PALM) are planning to drill gold targets just to the west of Hemlo North and just to the East, Palladium One Mining (TSX:PDM) has recently announced excellent data from drilling, including significant nickel sulphide intersections. The accelerated building of the Hemlo-Schreiber Project has been validated by the level of interest shown in the area in 2021 with a number of companies securing ground in the area. The Hemlo-Schreiber Project has attracted interest already with third party approaches with regard to certain of the projects in the Hemlo – Schreiber portfolio held by Power Metal Canada. This further demonstrates the building interest in the region. Alongside any corporate discussions Power Metal Canada are planning to implement first stage exploration programmes for the five projects in the summer/early autumn period of 2021 and a further market update will be provided on this when appropriate. |
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Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
In September 2020 Power Metal exercised an option allowing it to earn-in to a 30% holding in the Silver Peak Project. The Company considered Silver Peak, incorporating a former high grade working silver mine, would be a valuable addition to the Power Metal portfolio. Exploration findings ratified that decision with assay results of up to 14,937 g/t silver from channel sampling from historically mined veins and up to 5,270 g/t silver from drill samples. On 15 March 2021 the Company announced it was to accelerate the earn-in and has now made all related payments and holds a 30% interest in the project. Power Metal and partners are working towards the planned IPO of the Silver Peak Project on a recognised stock exchange and work is underway in this regard. The Company is also working with our partners to complete the drill programme commenced in Q4 2020 but paused due to weather conditions in the project area. Further corporate and exploration updates are expected in respect of Silver Peak in the near future. |
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Golconda Summit Project Nevada, USA (Gold) POW: Earn-in to 100% |
On 1 June 2021 Power Metal announced the signing of an Assignment and Assumption agreement where the Company acquired an option enabling it to earn-in to a 100% interest in the Golconda Summit gold property (“Golconda”) in Nevada, USA. Golconda is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200 Moz.
Previous exploration work on the Golconda property encountered significant gold mineralisation including trench assay results of 7.6m @ 24.0g/t gold and 15.2m @ 8.6g/t gold, as well as shallow drilling results of 10.7m @ 3.9g/t gold. Reflecting all the above, the low cost of entry and modest ongoing costs Power Metal considered the acquisition of the Golconda interest was an important transaction for the Company, providing exposure to a highly prolific gold producing region in Nevada. Subject to the receipt of appropriate permits, ground exploration will commence shortly with a principle focus on the validation of the historic exploration findings and demonstration of high grade, near surface gold mineralisation. The Golconda property agreement is held by Golden Metal Resources Limited (“Golden Metal UK”), a UK private company and 100% owned subsidiary of Power Metal which will be the ultimate holding company for all Power Metal Nevada interests. |
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Garfield/Stonewall Projects Nevada, USA (Gold – Copper – Silver) POW: 100% |
The Company announced on 17 June 2021 the acquisition of a 100% interest in the Garfield and Stonewall Projects in Nevada USA. These are prospective for gold, copper and silver. The projects were acquired by Golden Metal Resources llc (“Golden Metal Nevada”) a newly formed 100% owned subsidiary of Golden Metal UK. Golden Metal Nevada will be the local operating company of Golden Metal UK. The Garfield and Stonewall Projects are located in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).
Taken with the Golconda Summit gold project above, Power Metal through its Golden Metal subsidiaries now has a trio of projects within its Nevada focused business model.
Exploration work is planned for the projects following completion of the work planned at Golconda. This includes soil chemical sampling, trenching and drilling.
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Alamo Project Arizona, USA (Gold) POW: Earn-in to 75% |
Power Metal signed an agreement in July 2020 to earn-in to a maximum 75% interest in the Alamo Project in Nevada USA where the project was considered prospective for gold following the discovery of native gold nuggests near surface in multiple locations across the property. Reflecting additional information acquired through the ground exploration work undertaken over the last year, additional claims have been added to increase the property size and to ensure coverage of prospective areas. A further planned exploration programme has been developed and will commence subject to the receipt of relevant permits. This programme is expected to include trenching on one area of the Alamo Project, with associated sampling, assaying and mapping and the drilling of a number of short percussion holes to test for gold and silver mineralisation. For this work to be completed a Notice Level Plan of Operations permit is required prior to commencement.
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ADDITIONAL OPPORTUNITIES
Power Metal has access to an extensive pipeline of new opportunities.
However, given the strength, depth and diversity of the Company’s existing portfolio Power Metal will only acquire further interests if there is a significant strategic reason to do so. That strategic reason could be the inherent substantial value of a new project or where an acquisition would fit well with other currently held interests, particularly if that would add value to a corporate spin-out package.
In this regard and at present, Power Metal is currently in discussions with third parties in respect of a lithium exploration project in Canada and potential new gold exploration opportunities in and around Nevada USA. Unless and until any formal transaction is agreed and announced there can be no certainty that any additional interests will be acquired.
Alongside the main Company acquisitions, it is noted that Power Metal has set up Power Capital Investments Limited (“Power Capital”) a new 100% owned resource project incubator subsidiary (announced 4 May 2021). This was formed to provide a means to continue engagement with smaller but potentially valuable resource opportunities.
A maximum investment level of £100,000 per opportunity has been set and a minimum 50% Power Capital holding interest in any opportunitiy following Power Capital’s investment.
A further update specifically in respect of Power Capital’s operations will be provided in due course.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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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 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Tati Project Botswana – Due Diligence finds significant arsenic, nickel and gold-in-soil anomalies identified from historical data review.
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the ongoing due diligence work at the gold-nickel properties (the “Tati Project” or the “Project”) in the Tati Greenstone Belt, Botswana where Power Metal has an option (the “Option”) to acquire a 100% interest in the Project.
BACKGROUND
Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:
Should Power Metal exercise the Option it will acquire a 100% interest in two prospecting licences (“PLs”) PL127/2019 and PL126/2019 prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.
The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).
CHIEF EXECUTIVE OFFICER COMMENT
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“Power Metal has three current project interests in Botswana (Molopo Farms Complex, Kalahari Copper Belt South Ghanzi Project and the Ditau Camp Project) with active exploration underway at present and where we have already announced significant positive developments including to date:
– The confirmation of significant nickel sulphide intersections at the Molopo Farms Complex project targeting large scale nickel sulphide/PGE discoveries and where Power Metal has a total current effective economic interest of 50.8%.
– The identification of 7 large anomalies from airborne electromagnetic (“AEM”) surveys at the South Ghanzi Project in the Kalahari Copper Belt targeting large scale copper-silver discoveries and where Power Metal has a 50% interest. To date two primary targets, Morula and Acacia, will be the focus of initial planned drilling where intensive soil sampling revealed high copper and zinc in soils confirming the AEM targets.
The announcement today in respect of our potential fourth project interest in Botswana, the Tati Project, is another significant development with our historical review identifying substantial arsenic, nickel and gold anomalies extending over multi-kilometre lengths within the two licence areas.
These findings compel us to move quickly with ground exploration work to validate and confirm the data which, if successful, could mean the Tati Project holds considerable potential for large scale gold and nickel discoveries.
Further updates from our work programmes will follow as ground operations continue.”
DUE DILIGENCE FINDINGS TO DATE AND PROPOSED WORK PROGRAMMES
Multi-Kilometre Scale Anomalies Identified
· A historical data compilation, completed on the recently acquired prospecting licences, has led to the identification of multi-kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019.
· The historic data collected and interpreted is of widely spaced soil sampling surveys which were undertaken by previous operators.
Prospecting Licence 127/2019
This licence is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.
The licence covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation. The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane nickel-copper-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence.
Notably, a >2.5km nickel-in-soil anomaly, with values up to 360ppm nickel, has been highlighted near the north-western border of the licence where the interpreted extension of the gabbroic intrusions is believed to outcrop below thin Kalahari cover.
Additionally, the historic data shows a northeast-southwest trending >5km long arsenic-in-soil anomaly on PL127/2019 as well as multiple kilometre-scale arsenic-in-soil anomalies which extend directly from the Signal Hill gold deposit located southeast of the licence.
Prospecting Licence PL126/2019
This licence is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).
The licence covers a total area of 35km2 and is prospective for orogenic gold and magmatic nickel mineralisation.
The historic data analysis has uncovered a >2km long, northwest-southeast trending gold-in-soil anomaly, as well as a >1km long, nickel-in-soil anomaly which is coincident with a government mapped mafic intrusive unit.
Additionally, several mine dumps were identified in the north-western part of the licence which will be evaluated by the Company.
Next Steps – Due Diligence Ground Exploration
The Company will shortly commence a Phase I ground exploration programme as part of its due diligence which will include infill geochemical survey grids, as well as mapping and prospecting over these newly uncovered historic geochemical anomalies.
This Phase I exploration work will allow the Company to take a decision on Option exercise and should the Company exercise the Option, to develop a Phase II ground exploration programme which is expected to include drilling at the earliest opportunity.
TATI GREENSTONE BELT INFORMATION
The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.
A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.
The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations operated until 2016, including the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in 1995. Both deposits are located in the south-central portion of the TGB.
Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.
Whilst there is a long history of small scale gold mining on the TGB, the Company believes it to be under explored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths are likely to yield further gold and nickel discoveries.
GLOSSARY
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.
Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.
Fault-bounded volcano-plutonic sequences – Groupings of intrusive and extrusive igneous rocks which are separated by large-scale regional fault structures.
M afic I ntrusive U nit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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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 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.