Haneti Polymetallic project

Power Metal Resources #POW – Haneti Project – Drill Programme Commencement

11th January 2022 / Leave a comment

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces that mobilisation has successfully commenced for the Company’s inaugural diamond drilling programme on the Haneti Project (“Haneti” or the “Project”) located in central Tanzania.

The Haneti Project is currently held under a Joint Venture (“JV”) with Katoro Gold Plc (LON:KAT “Katoro”) who hold a 65% interest, with the remaining 35% interest held by Power Metal.

A map highlighting the planned locations for the 2022 diamond drilling programme can be found at the following link:

https://www.powermetalresources.com/haneti-project-drill-programme/

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

“The Haneti Project, targeting magmatic sulphide hosted nickel, copper and platinum group metals, represents a unique district-scale opportunity for Power Metal and our JV partner Katoro .

The preparatory work leading up to this campaign has been extensive, though ultimately, it is deep diamond drilling that is now needed in order to broaden our understanding of the geological environments and to unlock the potential for a commercial discovery.

With some considerable enthusiasm we launch the programme and very much look forward to updates from the field, and ultimately the results of the assay testing of drill core samples which will be collected during the 2022 campaign.“

HIGHLIGHTS:

– Mobilisation by the drilling contractor has commenced with the drilling rig expected to be on site around 17 January 2022, and drilling expected to commence on or around 20 January 2022.

– The planned 1,000m drill programme consists of three deep diamond core targeting magmatic nickel (Ni) copper (Cu) platinum group element (PGE) sulphide mineralisation. The work will constitute the first diamond drilling conducted out by the JV within the Haneti Project area.

– In advance of the drilling programme the Haneti Project licences have successfully been renewed for an additional 7 years.

– The planned drillholes are designed to provide a full intersection through the various ultramafic sequences in order to produce fresh rock samples for detailed geochemical and petrographic analysis.

– Two diamond core holes are planned at the Mwaka Target for a combined total of approximately 505m. The holes have current planned depths of 264m and 241m and are designed to test two discrete high-priority conductors which were identified during the 2012 electromagnetic (“EM”) geophysics survey.

– A single 495m deep diamond core drill hole is planned at the Mihanza Target. The Mihanza target was subject to a shallow Rotary Air Blast (“RAB”) drill programme that was completed in early 2021; the programme confirmed the presence of near-surface Ni-Cu-PGE sulphide mineralisation. The Mihanza Target is centred around coincident magnetic high geophysical and nickel geochemical anomalies. Detailed modelling and inversion analysis of the airborne magnetic data completed in 2014 identified a large plug shaped magnetic anomaly (following work undertaken by consultants to former project owner Kibo Mining plc this was interpreted to represent an ultramafic body) which lies at roughly 300m below surface. This plug shaped body has never been drill tested, and the drill hole planned at Mihanza is specifically designed to intersect the anomaly at depth.

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

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) 1483 413 500

First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

NOTES TO EDITORS

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:

Project	Location	POW %	Work Completed or Underway	Results Awaited

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.
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Laboratory assay results of samples collected
Ditau Project	Botswana	50%	Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals	Field programme findings and defined drill targets for near term drilling.
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
Molopo Farms	Botswana	53%¹	Kavango Option to acquire an interest in local project holding company. Option fee payable through defined work programme	Results from various work activities underway as part of the Kavango Option
Tati Gold/Nickel	Botswana	100%	Reverse circulation drill programme completed	Laboratory assay results awaited
Victoria Goldfields	Australia	49.9%	Ongoing exploration across 848km² of granted exploration licences	Results from field programme including drill programme underway
Wallal Gold/Copper Project	Australia	83.33%²	Passive seismic and 2D seismic processing work programme completed	Results awaited

¹ should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project

² assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company’s announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors

Power Metal Resources #POW – Katoro Gold Update – Haneti Nickel PGM Project

6th August 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, draws investors’ attention to the announcement issued today by Katoro Gold plc (LON: KAT)(“Katoro Gold”)(“Katoro”).

The Katoro announcement may be viewed through the following link:

https://polaris.brighterir.com/public/katoro_gold/news/rns/story/rg784zr

An extract from the Katoro announcement, relating to the Haneti Project and planned drilling is provided below

“Further to our announcement of 7 April 2021 in which a planned diamond drilling project was announced with the objective to intersect the TDEM and magnetic geophysics anomalies, i.e. the primary sulphide mineralisation and fresh unaltered rock samples for mineralogical analysis, the Company can now confirm that planning for the campaign has been completed. The planning process involved amongst others the careful consideration of exploration results to date to ensure accurate hole positioning and required extensive technical consultation.

The drill programme and associated budget for Haneti will now be submitted for approval and subsequent implementation.”

POWER METAL – HOLDING IN KATORO

Power Metal Resources currently holds 10,000,000 Katoro shares and 10,000,000 warrants in Katoro Gold exercisable at 1.25p (2,500,000 warrants expiring on 15 March 2022 and 7,500,000 warrants expiring on 15 May 2022).

POW also has a direct 35% interest in the Haneti project in Tanzania.

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

“The Haneti PGM Project offers Katoro Gold and Power Metal shareholders exposure to a district scale exploration opportunity.

As shareholders will note the project is moving forward into the next phase of drilling and Power Metal is looking forward to getting this underway.

Haneti is one of a number of drill programmes planned within our African portfolio including projects in Botswana, the DRC and Tanzania. We are targeting major metal discoveries across each project drill programme.”

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 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 principle focus on opportunities offering district scale potential across a global portfolio 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.

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 Resources #POW – Business Operational Update

30th June 2021 / Leave a comment

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

AFRICA

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

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

Ditau Camp

(Rare Earths)

– Release of exploration findings

– Subject to exploration results, drilling of carbonatite and rare earth deposit targets

Tati Project

(Gold – Nickel)

– Results from due diligence exploration programme including infill geochemical surveys targeting newly identified significant gold and nickel anomalies

Kisinka

(Copper – Cobalt)

– Exploration drilling at Kisinka targeting a copper-cobalt discovery

Haneti Project

(Polymetallic)

– Exploration drilling at Haneti targeting a nickel sulphide discovery

AUSTRALIA

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

Victoria Goldfields

(Gold)

– Exploration programme initial results

– Updates regarding IPO of core interests

NORTH AMERICA

Hemlo-Schreiber

(Gold – Nickel)

– Exploration updates

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

Golconda Summit

(Gold)

– Launch of ground exploration targeting near surface high grade gold mineralisation to validate historic work following receipt of permits

Garfield/Stonewall

(Gold – Copper – Silver)

– Launch of exploration programmes

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

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.

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.

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.

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.

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.

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.

Table 3 – Australian Projects Latest Position

Project

Latest Position

Paterson Province

Western Australia

(Gold – Copper)

POW: 75%

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.

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

Project

Latest Position

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.

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.

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.

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.

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.

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:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	+44 (0) 7766 465 617

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) 1483 413 500

First Equity Limited (Joint Broker)
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 – Interim Results for 6 months ended 31 March 2021

26th May 2021 / Leave a comment

Power Metal Resources plc the AIM listed metals exploration and development company is pleased to announce its unaudited interim results for the six months ended 31 March 2021.

Statement by Paul Johnson, Chief Executive Officer:

“In the six months ended 31 March 2021 we have pushed the Power Metal business to explore extensively across its project portfolio with, in our view, some excellent and very fortunate findings. We are seeking large scale metal discoveries with the emphasis on plural as we believe our portfolio is capable of delivering a number of discoveries.

Junior resource exploration is a high-risk endeavour, so investors in Power Metal rightly expect the potential for outsized returns that come with discoveries and to achieve them requires proactivity and investment in exploration.

Since October 2020 we have invested in exploration work in every single project we hold an interest in including three separate drill programmes across interests in Botswana, Canada and Tanzania. There are more planned drill campaigns in the coming months.

Notable exploration successes announced to date include the identification of extensive anomalies from the Kalahari Copper Belt, Botswana (held in JV with Kavango Resources plc), significant nickel drill intersections from Molopo Farms Complex Project, Botswana, and bonanza grade silver from the Silver Peak Project, Canada. These are by no means the only successes and as noted above we have been very fortunate with early exploration success across our portfolio.

Notwithstanding the exploration progress being made, and our search for large scale metal discoveries, we are also running a commercial enterprise that has to balance the books and generate working capital to fund its operations.

We recognise the value of the London capital markets providing access to additional finance and that is one of the principal reasons junior resource companies list. That said we are also looking to build our working capital organically through targeted growth in our investment portfolio and the spin-out of certain projects into their own listed vehicles.

Financial strength for a junior exploration company is important and as at 21 May 2021 Power Metal had working capital of circa £2.57 million, representing cash and listed company investments. This robust working capital figure was notwithstanding the material expenditure on exploration and corporate development in the half year ended 31 March 2021.

We seek size and scale in our business through metal discoveries in district scale exploration and innovative corporate activity. To do this we have recognised the need to build our operational team and now have an in-house Exploration Manager, Investor Relations Manager and Corporate Spin-Out Management. The expanded team is intensively engaged on delivering growth in our business through our project portfolio.

I would like to thank the board and Power Metal team for their determined dedication to our business objectives. The support we receive from our advisor network continues to be first rate and needs to be as Power Metal is a proactive company.

As always, and never to be left unsaid, I thank our shareholders for their support and commitment to the Power Metal business and its ambitions. It is easy to be ordinary, yet we have no such desire, and with the support of our shareholders we aim to make Power Metal a stand-out performer demonstrating how an ambitious, determined junior resource company can deliver.”

Power Metal Interests at today’s date:

Country	POW %	Project	Resources Targeted
Australia	49.9%	Victoria Goldfields	Gold
Australia	75%⁽¹⁾	Paterson Province	Copper – Gold
Botswana	50.8%⁽²⁾	Molopo Farms Complex	Nickel – Copper – Platinum Group Metals (PGMs)
Botswana	50%	Kalahari Copper Belt	Copper – Silver
Botswana	50%	Ditau Camp	Rare Earth Elements
Canada	30%	Silver Peak	Silver
Canada	100%	Schreiber-Hemlo Projects	Gold – Nickel
The DRC	70%	Kisinka	Copper – Cobalt
Tanzania	35%	Haneti	Nickel – Copper – PGMs – Gold – Lithium
USA	Earn-in up to 75%	Alamo Gold	Gold

⁽¹⁾Conditional agreement to acquire First Development Resources (Pty) Ltd.

⁽²⁾ 50.8% reflects effective economic interest including 40% direct project interest and 10.8% indirect interest through shareholding in project holding company Kalahari Key Mineral Exploration Pty Ltd

Operational Highlights

In the Half Year to 31 March 2021:

Australia

· Further development of the Australian Gold Joint Venture focused on the Victoria Goldfields including notably the grant of the first three exploration licences announced in February 2021, a further two licences in March 2021 and the commencement of ground exploration across the granted licence ground.

· Option Agreement announced in January 2021 to acquire First Development Resources Pty Limited with interests in two copper-gold properties in the Paterson Province Eastern Pilbara, Western Australia. (Note this Agreement was subsequently superseded in April 2021 as outlined below).

Botswana

· Drilling commenced in October 2020 at the Molopo Farms Complex Project in Botswana with a 2,500m diamond drill programme targeting nickel sulphide and platinum group metal (“PGM”). By half year end 3 holes were complete with results sent for assay testing. Mineralogical studies confirmed the presence of nickel sulphides in drill core.

· Exploration work undertaken across the Botswana Joint Venture with Kavango Resources plc (LON:KAV) at the South Ghanzi (Kalahari Copper Belt), targeting copper-silver and the Ditau Project, targeting rare earth elements.

Canada

· A 500m diamond drill programme was launched in October 2020 at the Silver Peak Project in British Colombia, Canada, but access challenges and weather conditions led to a change in plans with a man-portable drill rig being used instead to undertake a shortened drill programme. Results announced December 2020 showed high grade silver and demonstrated mineralised vein continuity, with the full drilling programme planned to recommence in 2021.

· Acquisition of 7 exploration properties in the Schreiber-Hemlo region of Ontario.

The Democratic Republic of the Congo (The DRC)

· High grade copper and cobalt values announced November 2020 from assay testing on the 2020 pitting, mapping and sampling undertaken at the Kisinka Project in the DRC, which led to the commencement of ground geophysics in December 2020 to delineate targets for drilling.

Tanzania

· A rotary air blast drill programme commenced in December 2020 at the Haneti Nickel Project, held in joint venture with Katoro Gold plc (LON:KAT), to provide information leading into a subsequent planned diamond drill programme targeting nickel sulphide and Platinum Group Metals.

USA

· Exploration fieldwork undertaken at the Alamo Gold Project in Arizona USA, as announced in December 2020.

After 31 March 2021:

· The Rotary Air Blast drilling programme results from the Haneti Nickel PGM Project were announced in April 2021 and confirmed the move to deep diamond drilling;

· Assay results released in April 2021 from hole K1-6 at the Molopo Farms Complex Project in Botswana, confirming significant nickel intersections and later that month the Company confirmed the completion of its earn-in to a 40% direct project interest;

· Extensive exploration work continued at the Australian Gold Joint Venture in the Victoria Goldfields granted licences and a further update covering this was provided in April 2021, together with confirmation of a further two licence grants later that month;

· A conditional acquisition of First Development Resources Pty Limited was announced in April 2021, with a revised acquisition structure and now including 5 licence interests in the Paterson Province, East Pilbara, Western Australia;

· The Company announced the creation of a new resource project incubator subsidiary in May 2021, Power Capital Investments Limited;

· In May 2021, the Company announced the Kisinka Project in the DRC saw prominent magnetic highs identified from ground geophysics, and an intention to drill at Kisinka following completion of preparatory exploration work. In addition, confirmation was received that the project had been awarded a 25-year Production Licence;

· An Option agreement was announced in May 2021 allowing for the acquisition of a 100% interest in two exploration licences in the Tati Greenstone Belt, Botswana, targeting gold and nickel;

· In May 2021 positive findings were announced from the South Ghanzi Project in the Kalahari Copper Belt, Botswana, with extensive anomalies identified including 7 airborne electromagnetic targets for follow up geochemical sampling and drill testing; and

· As at 21 May 2021, Power Metal’s working capital comprising cash and listed investments amounted to circa £2.57 million, providing a robust underlying financial position for ongoing operations.

Financial Highlights for the Half Year Ended 31 March 2021:

· Loss for the period, attributable to owners of the parent of £0.59 million (2020: £0.24 million), resulting in a loss per share of 0.07 pence (2020: 0.05 pence);

· Warrant exercises during the period raised £2,692,474 for the Company; and

· Net assets of £4.6 million at the period end (30 September 2020: £2.4 million).

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 POW https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)		+44 (0) 7766 465 617
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) 1483 413 500
First Equity Limited (Joint Broker)
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 discovery of precious or base metals.

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 – Haneti Nickel PGM JV with Katoro Gold #KAT, Decision to Proceed with Diamond Drilling Programme

7th April 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding the maiden rotary air blast (“RAB”) drill programme targeting the discovery of nickel and platinum group metals (“PGM”) at the Haneti Nickel PGM Project in Tanzania.

Power Metal holds a 35% ownership interest in Haneti with 65% held by Katoro Gold plc (LON:KAT).

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

“We are delighted to report that following receipt of the results from the recently completed RAB drill programme a decision has been made to advance the Haneti Nickel PGM Project to deep diamond drilling.

The extra geological information provided by the recent shallow drilling results and the discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill, have confirmed that we should proceed to deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation at Haneti.

With the diamond drilling programme design and drilling contractor appointment currently underway we look forward to providing further updates shortly.”

HIGHLIGHTS:

A maiden diamond drilling programme is now planned to test for nickel and PGM sulphide mineralisation at depth following the successful completion of the shallow RAB drilling programme at Mihanza Hill and Mwaka Hill and the identification of intensely weathered nickel-copper-magnetite veins at a new outcrop at Mihanza Hill.
Following the completion of the 50 hole (1,965m) shallow RAB drilling programme at Mihanza Hill and Mwaka Hill, announced 26 January 2021, the assay results have now been received from SGS Laboratories and a decision has been made to progress to a diamond core drilling programme in order to test for nickel sulphide mineralisation at depth.
The objective of the RAB drilling programme was to delimit the extent of ultramafic intrusive geology below nickel enriched laterite and regolith cover, on two approximately 1km long transects orientated across time-domain electromagnetic (“TDEM”) geophysics anomalies previously identified at Mihanza Hill and Mwaka Hill (the “Targets”).
The deeply weathered nature of the rocks intersected by the shallow RAB drilling meant that no fresh un-altered rock or primary nickel sulphide mineralisation was delineated though the programme has successfully allowed the determination of gneiss-ultramafic serpentinite hangingwall/footwall contacts helping to further constrain the diamond drilling target area.
Importantly, concurrent surface mapping has identified small scale nickel-copper-magnetite gossanous veins at a new outcrop at Mihanza Hill. The geological team consider this discovery substantiates the potential for primary nickel rich sulphide mineralisation within the underlying ultramafic body, underpinning the requirement to progress to a deeper drilling programme.
Diamond drilling is now planned to a depth of at least 400m in order to intersect the TDEM and magnetic geophysics anomalies, to test for primary sulphide mineralisation and to obtain fresh unaltered rock samples for mineralogical analysis. Further details on the planned diamond drill programme and the starting date will be provided shortly.

HANETI PROJECT – NICKEL SULPHIDE AND PGM TARGETS – FURTHER INFORMATION

PROJECT OVERVIEW

The Haneti Nickel Project covers a substantial area of interest in central Tanzania approximately 88km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, PGMs and gold.

One of the key exploration objectives for the JV partners at Haneti is to delineate the potential for economic nickel mineralisation on the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km through the centre of the tenement holding. The HIUC mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite and is being targeted for a Chonolith-Type Nickel exploration model.

RAB DRILL PROGRAMME

The RAB drilling programme focussed on the Mihanza Hill and Mwaka Hill targets which were selected based on the recommendations of the 2012 airborne electromagnetic (“AEM”) geophysics survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings. Drilling was focused on Mihanzi Hill and Mwaka Hill for this campaign, as they were considered to be the priority targets at this stage. Mihanza Hill forms a discrete, coherent and robust Ni-Cu-Cr (PGE) soil anomaly.

The 1,965m RAB drilling programme consisted of 50 holes drilled on linear fences across the Targets. The programme successfully increased the geological understanding at the two localities such that the orientation and the meterage of the planned follow-up diamond drill programme can now be optimised to confirm the scale of any nickel sulphide mineralisation.

The RAB programme was conducted by an experienced Tanzanian drilling company in line with international best practice and in accordance with health and safety and COVID-19 precautions.

HISTORIC NICKEL EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a nickel‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green stained veins rich in nickel‐silicates and containing several percent nickel.

In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt.

Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.

Additionally, an AEM geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic rock geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019 a number of soil samples, collected during the 2013 exploration programme, were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic sub-crop (as announced by Katoro on 30 January 2019.)

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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 – Business Operational Update

1st March 2021 / Leave a comment

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:

“The team at Power Metal are intent on building a great company for our shareholders. Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.

We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our “balance sheet” through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.

As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.

We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.

We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength. Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities.”

The table below outlines the latest status of each project in the current Power Metal active portfolio. For further project information readers should review the latest Power Metal presentation which may be accessed on the Company’s website through the following link:

https://www.powermetalresources.com/p/193/presentations

PROJECT

LATEST POSITION

AUSTRALIA

Australian Gold JV

Gold

(POW 49.9%)

Initial Public Offer (“IPO”) process has formally commenced with the appointment of legal counsel in Canada. The intention is to list certain core assets of Red Rock Australasia (Pty) Ltd (the JV holding company) by IPO in the Canadian capital markets. Shareholders should note that there can be no certainty that the proposed IPO of certain core assets of Red Rock Australasia (Pty) Ltd will be successful, further updates will be made to shareholders as appropriate.

Following the grant of first three licenses, as announced on 2^ndFebruary 2021, a further seven applications are at an advanced stage of processing.

Application made for a new exploration license covering 227 sq km (EL 45/5859) in Western Australia, which will be subject to a ballot between RRAL and Rumble Resources Ltd (ASX:RTR).

BOTSWANA

Kanye Resources

Copper, Silver, Rare Earths

(POW 50%)

Kanye Resources Plc now formed in the UK, and Kanye Resources Pty Ltd in Botswana. This is the holding company company structure for a planned listing of Kanye Resources on a recognised stock exchange.

Kanye Resources includes the Ditau Project and the Ghanzi South (Kalahari Copper Belt) Project, and the exploration status of each project is outlined below.

Ditau Project

An exploration camp has been established and the field team has continued taking soil samples and conducting ground magnetic surveys. A new senior geologist has been recruited to oversee operations.

Data is currently being analysed on the I10 target. Results from this are expected to guide future exploration of the remaining 9 potential carbonatite targets.

Ghanzi South (Kalahari Copper Belt) Project

Intensified soil sampling, airborne electromagnetic survey and magnetic geophysics survey, all underway.

Sampling and surveys focused on key target areas and seeking delineation of key drill targets.

Environmental Management Plan being finalised, which following approval will allow drilling to be undertaken.

BOTSWANA

Molopo Farms Complex

Nickel, Copper, PGMs

(POW with Economic Interest up to 50.96%)

Following completion of two drill holes, drill core has been cut and inspected.

Drill core samples sent to South African accredited laboratory and assay results awaited. Samples also sent to Witswatersrand University for mineralogical and thin section analysis and results awaited.

Third drill hole to be commenced shortly and ongoing technical review underway.

CANADA

Hemlo/Schreiber

Gold, Base Metals

(POW 100%)

Acquisition of seven projects now complete and comprising exploration Claim packages strategically located across the Hemlo/Schreiber greenstone belt.

Preliminary exploration work planned includes remote sensing data interpretation and ground based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

CANADA

Silver Peak

Silver

(POW Earn-in to 30%)

Recommencement of exploration work including completion of the planned drill programme following the snow thaw in Spring 2021 targeting high-grade silver and to establish vein continuity.

Currently working with our partners to review corporate options including a potential listing of the Silver Peak project on a recognised stock exchange.

THE DRC

Kisinka Project

Copper, Cobalt

(POW 70%)

Ground magnetics completed and induced polarisation to begin over 6.8 kilometre copper-cobalt anomaly nearing completion. Following the completion of fieldwork, and interpretation of findings, likely next step will be exploration drilling of key targets.

Application to secure a 25 year Permis d’Exploitation (production licence) is progressing well and in the final stages of processing.

TANZANIA

Haneti Project

Nickel, PGMs, Copper, Gold, Lithium

(POW 35%)

Following completion of 1,965 metres of Rotary Air Blast drilling, 776 three metre composite samples have been delivered to SGS Tanzania, an accredited assay laboratory in Tanzania.

Samples being analysed using multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum, and palladium.

Assay results expected shortly and the findings will guide next stage exploration.

USA

Alamo Gold Project

Gold

(POW Earn-in up to 75%)

Ground exploration programme (as announced 11 December 2020) now completed and detailed operational report received by Power Metal.

Full technical review underway to determine next exploration and commercial steps.

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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 – Audited Results for the Year Ended 30 September 2020

23rd February 2021 / Leave a comment

Power Metal Resources plc (LON:POW), the AIM listed mineral resources exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2020 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. (“RRIC”), and Power Metal Resources SA, (“PMR”), (together the “Group”).

Highlights from the year under review:

Operational

A strategic Australian gold joint venture was formed with Red Rock Resources plc (LON:RRR), with Power Metal Resources holding 49.9%. By year end the joint venture holding company, Red Rock Resources Australasia (Pty) Limited (“RRAL”) had lodged 12 licence applications covering some 2,188 km² in the Victoria goldfields region. Various technical work was completed in the year including project reports for 11 of the licence applications and a National Instrument 43-101 report for 8 of the licence applications as a group. A new office was secured in Ballarat town and an exploration manager appointed to the joint venture company;
Following completion of ground geophysics in 2019 and the delineation of key drill targets, Power Metal Resources elected on 31 December 2019 to earn in to a 40% project holding at the Molopo Farms Complex Project, Botswana by expending US$500,000 on exploration, notably key target drilling in 2020. A maiden drill programme commenced in October 2020;
A new strategic joint venture was formed between Power Metal Resources and Kavango Resources Plc (LON:KAV) in respect of the Kalahari Copper Belt and Ditau Camp Projects in Botswana, with each party having a 50% interest;
Review work was undertaken in respect of the exploration and commercialisation options in respect of the Cobalt Blue nickel/cobalt project in Cameroon. No formal conclusions as to the way forward were reached in the financial year, with deliberations continuing post year end and leading to a decision to impair the value of the of the Cameroon project in full (£970,000);
A new earn in agreement was formed over the Silver Peak Project, including a former working silver mine, in British Columbia, Canada. Due diligence programme sampling demonstrated bonanza grade silver from channel sampling;
A pitting, sampling and mapping work programme was undertaken successfully at the Kisinka Project in The Democratic Republic of the Congo. X-ray fluorescence testing of the samples confirmed the presence of copper, with samples dispatched to South Africa for analysis and results received post year end. The results announced in November 2020 demonstrated high grade copper and cobalt values;
Power Metal Resources increased its interest in the Haneti Nickel Project by 10% to 35% in the financial year and worked with joint venture partner AIM Listed Katoro Gold plc (LON:KAT) to plan for commencement of maiden drilling for nickel sulphide and Platinum Group Metals (“PGMs”) at the Project;
An agreement was signed in respect of the Alamo Gold Project in Arizona USA which saw Power Metal Resources acquire an option to earn in to a maximum 75% interest in the project. An initial reconnaissance survey conducted following the acquisition identified additional prospective areas which were pegged and added to existing claims, increasing the project footprint;
A further strengthening of the Board saw Edmund Shaw, an experienced City finance professional, join the Board as Non-executive Director in February 2020;
At the year-end 30 September 2020 the Company held a private and listed shares/warrants portfolio worth circa £1,481,000, including a £415,000 fair value uplift in the valuation of the portfolio of listed investments in other junior natural resource companies held by the Company over the course of the year;
· At the year end the Company held cash in GBP, USD, AUD and CAD of £913,000 in GBP equivalent.

Financial

Loss for the year to 30 September 2020 of £1.4 million (2019: £1.6 million);
Pre non-controlling interest total equity of £3.6 million at the year-end (2019: £1.8 million); and
Raised £1.7 million (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors, and an additional £266,000 of cash received by the Company during the year from exercises of Power Metal share warrants.

Post-year end

Expansion of exploration and activity across the Company’s project portfolio including:

Drilling programme commencement at the Molopo Farms Complex Project in Botswana (announced 15 October 2020), the Silver Peak Project in Canada (announced 10 November 2020) and the Haneti Nickel Project in Tanzania (announced 30 December 2020);
Next stage exploration programmes commenced at the Kalahari Copper Belt and Ditau Projects in Botswana, the Alamo Gold Project in Arizona, USA and the Kisinka Project in The Democratic Republic of the Congo (“DRC”);
Continuation of corporate activities since the year end with participation in a rights issue for Kalahari Key Mineral Exploration (Pty) Limited and expansion of the Australian Gold Joint Venture with an application to increase the JV footprint by a further 148 km² surrounding the Ballarat mine area; and
Option agreement signed in January 2021 providing 60 business-days for due diligence which if successful would lead to the acquisition of First Development Resources Pty Limited, a private Australian company with copper-gold exploration interests in Paterson Province, Australia.
Agreement signed by Power Metal Resources in January 2021 to acquire a package of gold exploration properties in Ontario Canada, followed by an option agreement providing 30 days for due diligence which if successful would lead to the acquisition of four additional exploration projects also in Ontario, Canada. In February 2021, the Company announced it had exercised the Option to acquire the McKellar Property by transferring total consideration of CAD$100,000 in cash and shares;
In February 2021 RRAL received confirmation that three licence applications had been granted enabling the commencement of ground exploration in the Victoria Goldfields, Australia;
In February 2021, the Company announced, subject to shareholder approval, a capital reduction to take place in order for distributions to be made to shareholders; and
Warrant exercises since the year end have raised a further £2,638,470 for the Company.

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

“The audited results for the year ended 30 September 2020 demonstrate the pace of business development at Power Metal.

In the previous financial year the Company emerged from the refinancing in February 2019 with a new sense of energy and a promise to deliver an exciting investment proposition in resource exploration and development. As at today’s date Power Metal is a global exploration company with precious and base metal projects across three continents.

Much of the development achieved in the Company was undertaken in the year ended 30 September 2020 and since then we have seen the launch of proactive exploration and corporate activities across multiple projects including district scale opportunities.

Power Metal is well funded with a strong working capital position and an objective to continue to build our “balance sheet” working capital to move the Company toward financial self sustainability.

We believe that 2021 and the coming years presents a great opportunity for junior resource opportunities and where possible we intend to take full advantage.”

Notice of Annual General Meeting and Distribution of Accounts to Shareholders

The Company’s Annual General Meeting will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA. The Company’s Annual Report and Accounts for the year ended 30 September 2020 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com in due course.

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.

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	+44 (0) 20 7583 8304
SP Angel Corporate (Nominated Adviser and Broker)
Ewan Leggat	+44 (0) 20 3470 0470
SI Capital Ltd (Broker)
Nick Emerson	+44 (0) 1483 413 500
First Equity (Joint Broker)
David Cockbill/Jason Robertson		+44 (0) 20 7330 1883

Power Metal Resources #POW – Haneti Nickel PGM Project – maiden drill programme complete

26th January 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding the maiden drill programme targeting the discovery of nickel and platinum group metals (“PGM”) at the Haneti Nickel PGM Project in Tanzania.

Power Metal holds a 35% ownership interest in Haneti with 65% held by Katoro Gold plc (LON:KAT).

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

“The successful completion of the maiden drill programme at Haneti is another positive step forward and with samples now dispatched to the laboratory, we eagerly await the assay results.

I am grateful to the operating team who worked hard over the traditional Christmas season to implement this programme successfully, particularly given the challenging weather conditions towards the latter half of the programme.”

HIGHLIGHTS:

Maiden drill programme now complete with 1,965 metres of Rotary Air Blast (“RAB”) drilling completed over 50 holes at Mihanza Hill and Mwaka Hill with 1,965 samples collected.
776 three metre composite samples prepared from the RAB drill programme with a Quality Assurance/Quality Control sample inserted every 10 samples.
All RAB samples have now been sent to SGS Tanzania (“SGS”), an accredited assay laboratory, all samples will be analysed by their multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum and palladium.
In addition, 4 rock samples collected from mapping have been sent to SGS for assay.
Images from Haneti may be viewed on a Gallery section of the Company’s website through the following link: https://www.powermetalresources.com/p/230/haneti-project-gallery

HANETI PROJECT – NICKEL SULPHIDE AND PGM TARGETS – FURTHER INFORMATION

PROJECT OVERVIEW

The Haneti Nickel Project covers an area of approximately 5,000 km² in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, PGMs and gold.

One of the key exploration objectives for the JV partners at Haneti is to delineate the potential for economic nickel mineralisation on the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km through the centre of the tenement holding. The HIUC mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite and is being targeted for a Chonolith-Type Nickel exploration model.

RAB DRILL PROGRAMME

The RAB drilling programme focussed on the Mihanza Hill and Mwaka Hill targets which were selected based on the recommendations of the 2012 airborne electromagnetic (“AEM”) geophysics survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings. Drilling was focused on Mihanzi Hill and Mwaka Hill for this campaign, as they were considered to be the priority targets at this stage.

The 1,965m RAB drilling programme consisted of 50 holes drilled on linear fences across the targets. The programme is seeking to verify the existence of near surface nickel sulphide mineralisation at each target whilst increasing the geological understanding such that the orientation and the meterage of a planned follow-up diamond drill programme can be optimised to confirm the scale of any nickel sulphide mineralisation.

The drilling was conducted by an experienced Tanzanian company in line with international best practice and in accordance with health and safety and COVID-19 precautions.

HISTORIC NICKEL EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a nickel‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green stained veins rich in nickel‐silicates and containing several percent nickel.

In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt.

Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.

Additionally, an AEM geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic rock geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019 a number of soil samples collected during the 2013 exploration programme were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic sub-crop (as announced by Katoro on 30 January 2019.)

Reference:

* ICP-OES: inductively coupled plasma optical emission spectrometry

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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 – Business Financial Review and Warrant Update

13th January 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a business financial review and warrant update for shareholders.

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

“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.

Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.

Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position. This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.

In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants. Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.

Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020. Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”

BUSINESS AND FINANCIAL REVIEW

Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.

The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.

The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.

The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.

The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.

Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.

Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:

PROJECT	EXPLORATION FOCUS	POW INTEREST	OPERATIONAL POSITION	PROJECT FINANCIAL INFORMATION(Cash Costs)
AUSTRALIA Victoria Goldfields JV with Red Rock Resources plc (LON:RRR)	Gold	49.9%	13 licence applications covering a footprint of 2,336 km^2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives.	Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences.
BOTSWANA Ditau Camp Project SJV with Kavango Resources plc (LON:KAV)	Rare Earths	50%	2 licences (1,386km²) with Rare earths potential established from recent exploration work. First stage orientation work complete and follow up work announced 4.1.21.	Power Metal has made advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule. Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential listing of the SJV in 2021.
BOTSWANA Kalahari Copper Belt Project (SJV with Kavango Resources plc (LON:KAV)	Copper Silver	50%	2 licences (1,294km² ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20.
BOTSWANA Molopo Farms Complex Project	Nickel Copper PGMs	Up to 50.96%	3 licences (1,780km²) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway. Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21.	Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal. To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21.
CAMEROON Cobalt Blue Project	Cobalt Nickel	100%	4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit. Review of exploration and commercialisation options reaching an advanced stage.	Further update to follow regarding the Company’s plans and financial commitment.
CANADA Silver Peak Project	Silver	Earn -in to 30%	Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins. Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20. Planned recommencement of drilling in Spring 2021.	As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021. To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021.
THE DEMOCRATIC REPUBLIC OF THE CONGO Kisinka Project	Copper Cobalt	70%	Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified. Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life.	Advance payments made to cover geophysical programme costs. Further costs of circa US$30,000 are expected in the period to 31.3.21.
TANZANIA Haneti Project JV with Katoro Gold plc (LON:KAT)	Nickel Copper Platinum Group Metals (‘PGM’) Gold etc	35%	Large polymetallic land package of c.5,000 km² including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets. Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20).	Power Metals has already made advance payments towards maiden drill programme costs. Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21.
USA Alamo Gold Project	Gold	Earn-in up to 75%	Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly.	Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21. In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment.

WARRANT UPDATE

On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000 warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”).

The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.

The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.

For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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 – Haneti Nickel PGM Project drilling progressing well, nearly 50% of planned 2,000 metres completed

12th January 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding the maiden drill programme targeting the discovery of nickel and platinum group metals at the Haneti Nickel PGM Project in Tanzania.

Power Metal holds a 35% ownership interest in Haneti with 65% held by Katoro Gold plc (LON:KAT)(“Katoro”).

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

“The Haneti drill programme is progressing well with approaching 50% of the planned 2,000 metres of Rotary Air Blast drilling now complete.

Parallel field mapping and ground geophysics has also proceeded well as we seek to build data on the anomalies to drill with follow up diamond drill holes.

This drilling on the Haneti Project is a highly exciting venture for both Power Metal and Katoro and we look forward to reporting the technical results from this programme over the coming weeks and months.”

HIGHLIGHTS:

Maiden drill programme involves 2,000 metres of Rotary Air Blast (“RAB”) drilling at Haneti with a planned 50 holes of circa 40 metres depth.
The RAB drill holes are being drilled on profiles across the three target areas in order to provide enhanced information of the subsurface shape and orientation of the ultramafic rock bodies being targeted and allowing for the optimisation of a planned follow-on diamond drill programme.
By end of drilling on 6 January 2021 a total of 22 holes and 863 metres had been drilled at the Mwaka Hill target, with the plan to move to the Mihanza Hill target week commencing 11 January 2021.
First two batches of samples from the RAB drilling at Mwaka Hill have been prepared and the first sample batch will be dispatched to SGS Tanzania, an accredited laboratory, for assay testing as soon as the accompanying Quality Assurance /Quality Control standards are received on site (expected this week).
Drilling commenced on 29^th December and has continued daily, with the exception of New Year’s Day, for an average daily drilling rate of 96 metres / day. The delay in commencing the drilling and logistical challenges presented by the current rainy season have not impacted the overall programme with drilled metres now in line with the planned schedule.
The potential impact on the planned programme of the COVID-19 pandemic and of the January – March rainy season is being monitored carefully on site with no issues encountered at this time. However, there may be some rain related access challenges to be overcome as the drill rig is moved over to the Mihanza Hill target area.
Concurrently to the drilling programme, geological fieldwork is continuing with:
- Geological mapping of surrounding ultramafic target areas; and detailed mapping at Mwaka Hill and Mihanza Hill.
- Geophysics: three ground magnetic survey lines and one radiometric survey line completed over the Mwaka Hill drill fence profile with the same work due to be started at Mihanza Hill.
- Fieldwork results will supplement the existing geophysics data, helping to optimise the planned RAB drill hole placement, and in conjunction with the results from the RAB drilling programme, will assist in targeting for the currently planned follow-up diamond drilling programme.
Power Metal’s pro-rata costs contribution in respect of the programme is approximately US$110,000 (circa £81,100) and of this 50% has been paid in advance and 50% remains to be paid later. The cost of Power Metal’s contribution is fully covered from existing cash resources.
Images from Haneti may be viewed on a Gallery section of the Company’s website through the following link: https://www.powermetalresources.com/p/230/haneti-project-gallery

HANETI PROJECT – NICKEL SULPHIDE AND PGM TARGETS – FURTHER INFORMATION

PROJECT OVERVIEW

The Haneti Nickel Project covers an area of approximately 5,000 km² in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, PGMs and gold.

One of the key exploration objectives for the JV partners at Haneti is to delineate the potential for economic nickel mineralisation on the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km through the centre of the tenement holding. The HIUC mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite and is being targeted for a Chonolith-Type Nickel exploration model.

RAB DRILL PROGRAMME

An initial three target areas have been selected for RAB drilling; Mihanza Hill; Mwaka Hill; and Igari Hill. These targets are based on the recommendations of the 2012 airborne electromagnetic (“AEM”) geophysics survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings.

The planned 2,000m RAB drilling programme will consist of approximately 50 holes drilled on linear fences across the targets. The programme will seek to verify the existence of near surface nickel sulphide mineralisation at each target whilst increasing the geological understanding such that the orientation and the meterage of a planned follow-up diamond drill programme can be optimised to confirm the scale of any nickel sulphide mineralisation.

The drilling will be conducted by an experienced Tanzanian company in line with international best practice and in accordance with health and safety and COVID-19 precautions.

HISTORIC NICKEL EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a nickel‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green stained veins rich in nickel‐silicates and containing several percent nickel.

In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt.

Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.

Additionally, an AEM geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic rock geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019 a number of soil samples, collected during the 2013 exploration programme, were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic sub-crop (as announced by Katoro on 30 January 2019.)

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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

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) 1483 413 500

First Equity Limited (Joint Broker)
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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. 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.

Tag Archives: Haneti Polymetallic project

Power Metal Resources #POW – Haneti Project – Drill Programme Commencement

Power Metal Resources #POW – Katoro Gold Update – Haneti Nickel PGM Project

Power Metal Resources #POW – Business Operational Update

Power Metal Resources #POW – Interim Results for 6 months ended 31 March 2021

Power Metal Resources #POW – Haneti Nickel PGM JV with Katoro Gold #KAT, Decision to Proceed with Diamond Drilling Programme

Power Metal Resources #POW – Business Operational Update

Power Metal Resources #POW – Audited Results for the Year Ended 30 September 2020

Power Metal Resources #POW – Haneti Nickel PGM Project – maiden drill programme complete

Power Metal Resources #POW – Business Financial Review and Warrant Update

Power Metal Resources #POW – Haneti Nickel PGM Project drilling progressing well, nearly 50% of planned 2,000 metres completed

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