Kalahari Key mineral exploration

Power Metal Resources #POW – Botswana Molopo Farms Complex – Further Assays Highlight Additional Pyroxenite Band with Visible Sulphides Assayed Returning up to 1.7% Nickel

24th September 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 announces the results from further assays received from hole KKME 1-6, the second of three holes drilled at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project located (“MFC” or the “Project”) in southwest Botswana.

Power Metal currently has a 40% direct MFC interest as well as an 18 % shareholding in Kalahari Key, for a combined effective economic interest of 50.8%.

Based on visual inspections of core, four select intervals were originally sent for assay at Scientific Services Geological Laboratories (“SCISERV”) in Cape Town, South Africa which included the downhole intervals 292.7m – 297.5m, 308.5m – 313.2m, 501.8m – 529.1m, and 585.0m – 597.8m. A full list of results from this first batch of assays, which included up to 4.1m @ 0.49% Ni from 309m downhole, including 1.6m @ 0.72% nickel (Ni) from 309.6m downhole, can be viewed at the link below.

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-exploration-update/15068224

In addition, selected intervals from KKME 1-6 were examined by the University of Witwatersrand who recommended that additional samples should be submitted to SCISERV for assay, specifically the 7m wide downhole interval between 445m – 452m. The laboratory assay results for the 8 samples in this interval have now been received and the full results are set out in Table 1 below.

HIGHLIGHTS:

– Nickel enrichment was encountered throughout the entire 7m interval assayed as part of this batch, including a 0.6m sample which returned 1.696% Ni (16,961ppm), 0.55g/t platinum (Pt), and 0.14g/t gold (Au).

– The results presented herein represent the single highest nickel and platinum results, and the second highest gold result from the 2020 drilling programme to date.

– These results further demonstrate the potential the Molopo Farms Complex Project has of hosting significant nickel-platinum group element (“PGE”) enriched magmatic sulphide mineralisation.

– The fine grained nature of sulphide mineralisation indicates that several other intervals with KKME 1-6 have the potential to host appreciable nickel-sulphide mineralisation. As a result, additional samples will now be sent to the laboratory for assay testing.

– The identification of these additional mineralised pyroxenite horizons within KKME 1-6, is highly encouraging and will assist as we plan for the next phase of drilling on the Project.

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

“We continue to see data emerging from Molopo Farms which points to the potential for significant nickel-PGE rich magmatic sulphide mineralisation. More assay tests are in process and the results are keenly awaited.

We have been fortunate to identify the targeted mineralisation so early in the exploration campaign, notably nickel sulphides in the second hole of drilling. Now we continue to build on that with some enthusiasm.”

Table 1: Diamond Drill Hole KKME 1-6 Assay Data – New Data

Drill Hole ID	From (m)	To (m)	Interval (m)	Co (ppm)	Cu (ppm)	Ni (ppm)	Zn (ppm)	Au (g/t)	Pt (g/t)	Pd (g/t)
1-6	445.0	446.0	1.0	193	41	2663	35	<0.05	<0.05	<0.05
1-6	446.0	446.7	0.7	441	32	3012	37	<0.05	<0.05	<0.05
1-6	446.7	447.3	0.6	594	25	16961	37	0.14	0.55	0.15
1-6	447.3	448.0	0.7	678	<5	6948	37	<0.05	0.11	<0.05
1-6	448.0	449.0	1.0	414	<6	3056	41	<0.05	0.06	<0.05
1-6	449.0	450.0	1.0	223	<7	3187	46	<0.05	<0.05	<0.05
1-6	450.0	451.0	1.0	106	12	2504	34	<0.05	<0.05	<0.05
1-6	451.0	452.0	1.0	101	<5	2474	35	<0.05	<0.05	<0.05

* All depths and intervals are as measured downhole.

COMPETENT PERSON STATEMENT

The drilling and sampling programme has been overseen on site by Mr. Ian McGeorge MSc CGeol FGS a qualified person and chartered geologist working on behalf of the independent mining consultancy The MSA Group (“MSA”). Information in this announcement relating to the exploration drilling results is based on data reviewed by Mr McGeorge. Mr McGeorge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr McGeorge consents to the inclusion of the exploration results in the form and context in which they appear.

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 Resources #POW – Proof-of-Concept Exploration Holes Recently Completed Confirm the Presence of Primary Magmatic Sulphides at Molopo Farms Complex Project

21st July 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is prospective for magmatic intrusion-hosted massive and disseminated nickel-copper sulphide and platinum-group element (“PGE”) mineralisation in mining friendly Botswana.

Power Metal currently has a 40% direct MFC Project interest as well as an 18% shareholding in Kalahari Key, for a combined effective economic interest of 50.8%.

Christian Schaffalitzky, Chairman of Kalahari Key, commented:

“The MFC Project is transected by the Thabazimbi-Murchison lineament (“TML”), a major fault system which trends easterly and is believed by Kalahari Key to be the same structure which controlled the emplacement of magma within the highly prolific Bushveld Igneous Complex (“BIC”) located in South Africa. The BIC is one of the world’s major sources of nickel and platinum group metals (“PGMs”).

By extension, the TML is believed to be the feeder for the Molopo Farms Complex (“MCF”), and thus a target for a Voisey’s Bay style major nickel deposit. A feeder zone structure is interpreted to be close to hole K1-6 and extends north-eastwards to the edge of the licence area.

Recently completed proof-of-concept drilling by Kalahari Key, including three widely spaced diamond drillholes targeting large-scale conductive electromagnetic (“EM”) geophysics anomalies, has identified in hole K1-6 the highest nickel grades to date within the MFC. Significantly, thin section analysis of select drill intercepts has identified primary magmatic sulphide mineralisation including pentlandite and chalcopyrite.

With several targets to be followed up, the work plan is still being finalised and the priorities set.”

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

“The results to date from the Phase I drill programme at the MFC Project have successfully demonstrated the validity of the geological model developed by our operating partner Kalahari Key, which has led to the discovery of primary nickel-copper and PGE mineralisation.

Further technical review of the Phase I exploration results is ongoing, and we look forward to providing further information in this regard.

The aim of our venture at the MFC project is the discovery of a major nickel deposit, and we have clearly taken a number of important steps forward with recent exploration. Now we need to finalise the technical review of the work done thus far, and implement next stage exploration work including a Phase II drill programme.”

PROJECT BACKGROUND:

The MFC Project is a district scale exploration opportunity located in southwestern Botswana.

After extensive preparatory exploration work conducted over the previous five years by Kalahari Key, including airborne and ground-based Electro Magnetic (“EM”) surveys which identified a number of highly prospective kilometre-scale conductive targets, the Project was suitably advanced to commence proof-of-concept drilling late in 2020.

The Phase I diamond drilling commenced at the MFC Project in October 2020 with three holes completed. Due to the size of the Project and prospective conductors identified by the EM surveys, the drilling was conducted as proof-of-concept in order to determine if the conditions within the magmatic system were ideal for the formation of primary magmatic Ni-Cu sulphides, similar to those found within the Bushveld Igneous Complex located along strike to the east.

Significantly, examination of the three proof-of-concept drillholes has successfully identified a magmatic feeder zone which is prospective for the accumulation of Ni/PGE sulphides within the MFC project.

The assay results for core samples submitted from hole KKME 1-14 are outlined below. These results represent the second batch of assay results for the MCF Project and continue to build on the geological understanding of the MFC Projects magmatic feeder zones following the significant Ni-Cu intersections reported previously from drillhole KKME 1-6 (announced 8 April 2021).

DRILL RESULTS:

KKME 1-6

The assay results from angled diamond drill hole KKME 1-6 drilled to a total depth of 597.8 were previously reported on 8 April 2021 and are outlined in table 1 below.

Four select intervals from drillhole KKME 1-6 were analysed at the Scientific Services Geological Laboratories (“SCISERV”) laboratory in Cape Town, South Africa which include 292.7 – 297.5m, 308.5 – 313.2m, 501.8 – 529.1m, and 585.0 – 597.8m.

Significant nickel intersections ¹ include:

· 4.8m @ 0.2% Ni from 292.7m

· 4.1m @ 0.49% Ni from 309m, including 1.6m @ 0.72% Ni from 309.6m

· 16.7m @ 0.16% Ni from 501.8m

· 10.9m @ 0.13% Ni from 518.2m

· 3.4m @ 0.28% Ni from 594.4m to end of hole at 597.8m (mineralisation remains open at depth)

Individual samples were also sent to the University of Witwatersrand for thin section mineralogical analysis. The results of this analysis, set out below, successfully identified the presence of primary pentlandite, secondary nickel sulphide and chalcopyrite mineralisation within three drill core samples from KKME 1-6:

· IMK-05139 (0.44m pyroxenite sample from 310m down-hole depth) assayed at 6,999ppm Ni (0.70% Ni) from a primary magmatic, pentlandite-bearing, assemblage.

· IMK-05149 (0.58m pyroxenite sample from 295m down-hole depth) assayed at 6,606ppm Ni (0.66% Ni).

· IMK-05153 (0.54m pyroxenite sample from 297m down-hole depth) assayed at 2,244ppm Ni (0.22% Ni).

· Both IMK-05149 and IMK-05153 contained primary pentlandite within predominant secondary nickel sulphides, arsenides and alloys.

KKME 1-14

The assay results from angled diamond drill hole KKME 1-14 drilled to a total depth of 515.8m are outlined in table 2 below.

Four select intervals from drillhole KKME 1-14 were analysed at the SCISERV laboratory which include 180.0 – 188.8m, 192.2 – 201.2m, 207.9 – 208.5m and 475.4 – 483.22m.

Significant nickel intersections ¹ include:

· 6.0m @ 0.17% Ni from 180.0m in harzburgite rock immediately above a fault zone at 186m; and

· 1.0m @ 0.11% Ni from 194.0m in serpentinite with a partial breccia texture within an intra-fault zone totalling 9m @ 0.07%Ni between 192m and 201m downhole.

The drilling intersected the ultramafic rocks of the Molopo Farms Complex directly below 40m of Kalahari sand and duricrust cover and continued to a faulted contact with Transvaal Supergroup quartzite units to a downhole depth of 205.5m. The hole remained in Transvaal rocks through to its end at 515.8m downhole depth.

The anomalous nickel mineralisation identified at shallow depths within KKME 1-14 supports the findings from hole KKME 1-6 (located over 20km away) and further demonstrates there is potential for nickel enrichment in the magmatic intrusive system. Together with the encouraging results obtained from hole KKME 1-6, the combined drill hole findings provide important geological information which will help plan a Phase II drill programme which aims to vector towards significant quantities of magmatic nickel-copper mineralisation within this fertile magmatic system.

KKME 1-14 was drilled targeting a broad kilometre-scale EM anomaly which can be traced further to the east, which is the known orientation of magmatic layering within the MFC. This same EM anomaly extends towards the west and then swings southwest into the northeast-southwest trending sheer zone which is interpreted to represent a feeder zone on the Project. As a result, Kalahari Key is of the belief that this conductive target potentially represents a much larger Ni-Cu mineralised system than originally understood.

NEXT EXPLORATION STEPS:

Technical work is continuing including further core inspection of the third drill hole K1-11a and assay testing of samples from this hole together with assay testing of additional samples from K1-6 where further sulphides have been identified.

A further update will be provided in due course summarising all the technical work completed.

Notably, the technical work includes planning a Phase II drilling programme which is being designed to intersect the up-dip part of the mineralised pyroxenites identified in KKME 1-6, as well as where the east-west oriented EM anomaly intersects the magmatic feeder zone. Further information in respect of this work and associated exploration plans will be provided in due course.

Assaying Technique and Results

Scientific Services Geological Laboratories (“SCISERV”) located in Cape Town, South Africa, analysed half core samples for nickel, copper, gold and platinum with the results summarised in Table 1 and 2 below.

SCISERV employed a two acid (HNO₃ + HF) digest with analysis by inductively coupled plasma optical emission spectrometry (“ICP-OES”).

Table 1: Diamond Drill Hole KKME 1-6 Assay Data

Drill Hole ID	From (m)	To (m)	Downhole Interval (m)	Cu (ppm)	Ni (ppm)	Zn (ppm)	Au (g/t)	Pt (g/t)
1-6	292.68	293.40	0.72	<5	1417	50	<0.05	<0.05
1-6	293.40	294.18	0.78	<5	1213	57	<0.05	<0.05
1-6	294.18	294.70	0.52	6	1177	59	<0.05	<0.05
1-6	294.70	295.28	0.58	163	6606	95	0.05	0.19
1-6	295.28	295.96	0.68	60	1182	55	<0.05	<0.05
1-6	295.96	296.47	0.51	<5	1235	54	<0.05	<0.05
1-6	296.47	297.48	1.01	15	1621	57	<0.05	<0.05
1-6	296.94	297.48	0.54	<5	2244	69	<0.05	<0.05
1-6	308.49	309.04	0.55	17	1779	63	<0.05	0.11
1-6	309.04	309.61	0.57	159	3280	73	<0.05	0.08
1-6	309.61	310.05	0.44	664	6999	79	<0.05	0.15
1-6	310.05	310.67	0.62	530	7018	80	<0.05	0.15
1-6	310.67	311.22	0.55	448	7459	82	<0.05	0.15
1-6	311.22	311.58	0.36	343	4867	77	<0.05	0.13
1-6	311.58	312.00	0.42	185	4065	63	0.05	0.10
1-6	312.00	312.41	0.41	35	3714	63	<0.05	0.10
1-6	312.41	313.19	0.78	21	2558	54	<0.05	<0.05
1-6	501.80	502.98	1.18	<5	1212	57	<0.05	<0.05
1-6	502.98	503.55	0.57	<5	1076	63	<0.05	<0.05
1-6	503.55	504.50	0.95	<5	1237	58	<0.05	<0.05
1-6	504.50	505.40	0.90	<5	1501	53	<0.05	<0.05
1-6	505.40	506.23	0.83	<5	1088	58	<0.05	<0.05
1-6	506.23	507.15	0.92	<5	1140	62	<0.05	<0.05
1-6	507.15	508.00	0.85	<5	1411	63	<0.05	<0.05
1-6	508.00	509.00	1.00	7	1883	57	<0.05	<0.05
1-6	509.00	510.00	1.00	8	1974	51	<0.05	<0.05
1-6	510.00	511.00	1.00	6	1953	57	<0.05	0.06
1-6	511.00	512.00	1.00	8	1888	56	<0.05	<0.05
1-6	512.00	513.00	1.00	7	2081	57	<0.05	<0.05
1-6	513.00	514.00	1.00	9	1862	55	<0.05	<0.05
1-6	514.00	514.50	0.50	7	2131	65	<0.05	<0.05
1-6	514.50	516.00	1.50	8	1934	55	<0.05	<0.05
1-6	516.00	517.00	1.00	7	1269	42	<0.05	<0.05
1-6	517.00	518.52	1.52	<5	1414	53	<0.05	<0.05
1-6	518.15	518.52	0.37	<5	1489	50	0.208	<0.05
1-6	518.52	519.47	0.95	<5	1047	63	<0.05	<0.05
1-6	519.47	520.28	0.81	<5	1740	54	<0.05	<0.05
1-6	520.28	521.22	0.94	<5	1692	53	<0.05	<0.05
1-6	521.22	521.78	0.56	<5	1629	61	<0.05	<0.05
1-6	521.78	522.62	0.84	<5	1606	54	<0.05	<0.05
1-6	522.62	523.13	0.51	<5	1504	64	<0.05	<0.05
1-6	523.13	524.00	0.87	<5	1467	63	<0.05	<0.05
1-6	524.00	524.48	0.48	<5	1642	59	<0.05	<0.05
1-6	524.48	525.28	0.80	<5	1239	60	<0.05	<0.05
1-6	525.28	526.20	0.92	<5	924	63	<0.05	<0.05
1-6	526.20	527.46	1.26	<5	698	51	<0.05	<0.05
1-6	527.46	528.17	0.71	<5	911	58	<0.05	<0.05
1-6	528.17	529.05	0.88	<5	918	65	<0.05	<0.05
1-6	585.00	586.00	1.00	<5	2536	47	<0.05	<0.05
1-6	594.40	595.17	0.77	<5	2469	45	<0.05	<0.05
1-6	595.17	596.00	0.83	<5	2755	47	<0.05	<0.05
1-6	596.00	597.00	1.00	5	3038	52	<0.05	<0.05
1-6	597.00	597.80	0.80	6	2852	53	<0.05	<0.05

Table 2: Diamond Drill Hole KKME 1-14 Assay Data

Drill Hole ID	From (m)	To (m)	Downhole Interval (m)	Ni (ppm)	Cu (ppm)	Au (ppm)	Pt (ppm)	Notes
1-14	180.00	181.00	1.00	1,785	<5	<0.05	<0.05	Composite 6.0m @ 0.17% Ni from 180.0m in harzburgite rock immediately above a fault zone at 186m
1-14	181.00	182.00	1.00	1,821	<5	<0.05	<0.05
1-14	182.00	183.00	1.00	1,653	<5	<0.05	<0.05
1-14	183.00	184.00	1.00	1,914	<5	<0.05	<0.05
1-14	184.00	185.00	1.00	1,609	<5	<0.05	<0.05
1-14	185.00	186.00	1.00	1,569	<5	<0.05	<0.05
1-14	188.16	188.80	0.64	501	138	<0.05	<0.05	1.0m @ 0.11% Ni from 194.0m in serpentinite with a partial breccia texture within an intra-fault zone totalling 9m @ 0.07%Ni between 192m and 201m downhole.
1-14	192.20	193.00	0.80	708	9	<0.05	<0.05
1-14	193.00	194.00	1.00	779	9	<0.05	<0.05
1-14	194.00	195.00	1.00	1,135	16	<0.05	<0.05
1-14	195.00	196.00	1.00	812	14	<0.05	<0.05
1-14	196.00	197.00	1.00	899	17	0.06	<0.05
1-14	197.00	198.00	1.00	659	12	<0.05	<0.05
1-14	198.00	199.00	1.00	705	14	<0.05	<0.05
1-14	199.00	199.65	0.65	826	14	<0.05	<0.05
1-14	199.65	200.40	0.75	566	53	<0.05	<0.05
1-14	200.40	201.20	0.80	128	25	<0.05	<0.05
1-14	207.90	208.50	0.60	6	<5	0.05	<0.05
1-14	475.40	476.09	0.69	6	11	<0.05	<0.05
1-14	476.09	477.00	0.91	<5	<5	<0.05	<0.05
1-14	477.00	477.90	0.90	<5	<5	<0.05	<0.05
1-14	477.90	478.65	0.75	6	<5	<0.05	<0.05
1-14	478.65	479.57	0.92	15	9	<0.05	<0.05
1-14	479.57	480.17	0.60	61	106	<0.05	<0.05
1-14	480.17	481.00	0.83	60	56	<0.05	<0.05
1-14	481.00	481.48	0.48	19	5	<0.05	<0.05
1-14	481.48	482.40	0.92	71	48	<0.05	<0.05
1-14	482.40	483.22	0.82	103	71	<0.05	<0.05

Further Details

Hole KKME 1-14 was drilled at an azimuth of 345° with a dip of 60° to a final depth of 515.8m. The hole was designed to intercept a conductive body modelled from ground-based TDEM geophysical survey which was expected to lie at roughly 500m down-hole depth. The cause of this prospective conductor is still unknown.

Drill hole KKME 1-11a, the third and final hole of the proof-of-concept drill programme, is located in the Project’s Chipo (Gift) Northern Target Area, 1,250m west of 1-14.

References:

1: Significant Ni intersections derived from weighted averages of samples intervals above a nominal 0.13%Ni. Figures are rounded. 10,000ppm = 1%.

2: Assay results for diamond drill hole KKME 1-6 were announced 8 April 2021.

Feeder zone The plumbing system from which magma is supplied into the intrusive from the lower crust. These can often form as elongated dykes at the base of an ultramafic layered intrusion. Sulphide mineral accumulations can often form in the vicinity of the feeder zone.

Harzburgite Harzburgite is a type of peridotite ultramafic igneous rock, with no or very little monoclinic pyroxene and consisting only of olivine and orthorhombic pyroxene bronzite. Harzburgite typically forms by the extraction of partial melts from the more pyroxene-rich peridotite.

Serpentinite A metamorphic rock formed as a result of the low temperature anaerobic oxidation of ultramafic rock in the course of which density is reduced and volume increased by the addition of water, and nickel and other elements undergo remobilisation as a result of hydrothermal activity.

Ultramafic rock An igneous rock in which has a very low silica content and in which more than 90% of the rock is composed of magnesium and iron-rich minerals like pyroxenes, amphiboles, and olivine.

COMPETENT PERSON STATEMENT

The drilling and sampling programme has been overseen on site by Mr. Ian McGeorge MSc CGeol FGS a qualified person and chartered geologist working on behalf of the independent mining consultancy The MSA Group (“MSA”). Information in this announcement relating to the exploration drilling results is based on data reviewed by Mr McGeorge. Mr McGeorge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr McGeorge consents to the inclusion of the exploration results in the form and context in which they appear.

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 large scale metal discoveries

The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW Completes Botswana Molopo Farms Complex US$500,000 Earn-in to 40% Direct Project Interest

22nd April 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now completed the earn-in to a 40% direct project interest in the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project.

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

“In a journey that began with our original agreement with Kalahari Key in May 2019, the MFC Project has moved forward dramatically.

On 8 April 2021 we announced significant nickel intersections from diamond drill programme assays and we currently await receipt and interpretation of further assay results, mineralogical testing outcomes and an array of further data from additional geophysical interpretations.

We are seeking a World Class nickel discovery and the findings so far have been extremely positive. It is therefore with some excitement that we announce completion of our US$500,000 earn-in.

Work continues at pace locally in Botswana and in the testing of samples in South Africa. In this regard I look forward to providing further updates to the market.”

Earn-in Background Information

The MFC Project is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.

Pursuant to an agreement announced by the Company on 13 May 2019, Power Metal had the right to earn-in to a 40% direct project interest in the MFC Project by expending US$500,000 on exploration expenditure, notably drilling of key targets at the Project.

Cash payments against this earn-in commenced in October 2020 and the Company can now confirm that it has fully satisfied the US$500,000 expenditure commitment and written confirmation of this has been received from Kalahari Key.

As a result, Power Metal has secured a 40% direct interest in the MFC Project. In addition, the Company holds 18% of the issued share capital of Kalahari Key. Taken together the combined effective economic interest of Power Metal in the MFC Project is 50.8%.

(Note: previously Power Metal held an 18.26% equity interest in Kalahari Key. This percentage has been reduced to 18% following the exercise of 333 share options held by a Kalahari Key director at a total exercise cost of US$19,880. Power Metal has continued to hold 3,542 Kalahari Key shares throughout. There are 1,225 outstanding Kalahari Key options held by Kalahari Key current/former senior management team members representing potential further dilution of a maximum 4.76% and with a total exercise cost of US$73,500).

Appropriate steps are now being taken to restructure the ownership of the MFC Project and holding company Kalahari Key to reflect the above.

Power Metal also agreed to participate in a rights issue for Kalahari Key, the settlement of which is anticipated shortly and will increase Power Metal’s interest in Kalahari Key to 5,313 shares or 21.7% of issued share capital, as fully diluted by the rights issue. This will increase the Company’s effective economic interest in the MFC Project to 53.02%.

Latest Exploration Information

Latest exploration results from the MFC Project including assays from diamond drilling displaying significant nickel intersections were published on 8 April 2021 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-assay-results/14929973

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 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 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 – Significant Nickel Intersections Confirmed by Molopo Farms Project Drill Sample Assay Results

8th April 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.

BACKGROUND:

The MFC Project is a district scale exploration opportunity in south-west Botswana.

After extensive preparatory exploration work over a number of years the Project was suitably advanced to commence exploration drilling in 2020.

Diamond drilling commenced at the MFC Project in October 2020 and to date three holes have been completed. Examination of the drill core to date has demonstrated the geological model for the presence of a magmatic feeder zone prospective for the accumulation of Ni/PGE sulphides in the intrusive system.

More recently, core samples were sent to the Geology Department of the University of Witwatersrand in Johannesburg for thin section mineralogical analysis. This analysis confirmed the presence of nickel sulphides in the drill core adding more weight to the geological proposition.

Results have now been received from Scientific Services Geological Laboratories where drill core samples from hole KKME 1-6 were sent for assay testing.

CHIEF EXECUTIVE OFFICER UPDATE:

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

“We are delighted to report that significant nickel intersections have been confirmed by the first batch of assay results received for the diamond drilling at the MFC Project. Recognising these drill results come from early stage reconnaissance drilling it is extremely positive to identify nickel mineralisation as confirmed today.

As only select intervals of drill core were sent for laboratory assay all five of the significant drill intersections can be considered open until the intervening samples are analysed.

These results corroborate the earlier identification of Pentlandite, the primary nickel sulphide mineral, in the mineralogical samples previously submitted to Witwatersrand University.

The nickel mineralisation encountered in this drill hole includes sections at grades that have been found to be economic in similar geologies and given the scale of the inferred feeder zone being investigated there is a good prospect of further positive results as exploration continues.”

HIGHLIGHTS:

The first batch of assay results for nickel (Ni), copper (Cu) and zinc (Zn) have been received for the diamond drilling programme at the Molopo Farms Complex Project.

• Angled diamond drill hole KKME 1-6, downhole, significant Ni intersections ¹ include:

o 4.8m @ 0.2% Ni from 292.7m

o 4.1m @ 0.49% Ni from 309m, including

§ 1.6m @ 0.72% Ni from 309.6m

o 16.7m @ 0.16% Ni from 501.8m

o 10.9m @ 0.13% Ni from 518.2m

o 3.4m @ 0.28% Ni from 594.4m

• As drill core was selectively sent for sample analysis the reported mineralised intervals are considered to be open.

• Assay results confirm Ni grades for pentlandite-bearing mineralogical samples analysed by the University of Witwatersrand in Johannesburg (announced 30 March 2021):

o IMK-05139 (0.44m pyroxenite sample from 310m down-hole depth) assayed at 6,999ppm Ni (0.70% Ni) from a primary magmatic, pentlandite-bearing, assemblage.

o IMK-05149 (0.58m pyroxenite sample from 295m down-hole depth) assayed at 6,606ppm Ni (0.66% Ni).

o IMK-05153 (0.54m pyroxenite sample from 297m down-hole depth) assayed at 2,244ppm Ni (0.22% Ni).

o Both IMK-05149 and IMK-05153 contained primary pentlandite within predominant secondary nickel sulphides, arsenides and alloys.

• Further assay data for gold and PGE content for the reported intervals is currently awaited.

Assay Testing

Scientific Services Geological Laboratories (“SCISERV”) in Cape Town analysed half core samples for nickel, copper, zinc, gold and platinum with the results for Ni, Cu and Zn received in the current assay batch, with the Ni and Cu results summarised in Table 1 below.

SCISERV employed a two acid (HNO₃ + HF) digest with analysis by inductively coupled plasma optical emission spectrometry (“ICP-OES”).

A full assessment of hole KKME 1-6 will be made once all of the mineralogical and chemical analyses have been received.

Table 1: Diamond Drill Hole KKME 1-6 Ni & Cu Assay Data (Batch 1)

Drill Hole ID	From (m)	To (m)	Downhole Interval (m)	Ni (ppm)	Cu (ppm)	University of Witwatersrand Mineralogical Sample ID
KKME 1-6	292.68	293.40	0.72	1,417	<5
KKME 1-6	293.40	294.18	0.78	1,213	<5
KKME 1-6	294.18	294.70	0.52	1,177	6
KKME 1-6	294.70	295.28	0.58	6,606	163	IMK-05149
KKME 1-6	295.28	295.96	0.68	1,182	60
KKME 1-6	295.96	296.47	0.51	1,235	<5
KKME 1-6	296.47	297.48	1.01	1,621	15
KKME 1-6	296.94	297.48	0.54	2,244	<5	IMK-05153
KKME 1-6	308.49	309.04	0.55	1,779	17
KKME 1-6	309.04	309.61	0.57	3,280	159
KKME 1-6	309.61	310.05	0.44	6,999	664	IMK-05139
KKME 1-6	310.05	310.67	0.62	7,018	530
KKME 1-6	310.67	311.22	0.55	7,459	448
KKME 1-6	311.22	311.58	0.36	4,867	343
KKME 1-6	311.58	312.00	0.42	4,065	185
KKME 1-6	312.00	312.41	0.41	3,714	35
KKME 1-6	312.41	313.19	0.78	2,558	21
KKME 1-6	501.80	502.98	1.18	1,212	<5
KKME 1-6	502.98	503.55	0.57	1,076	<5
KKME 1-6	503.55	504.50	0.95	1,237	<5
KKME 1-6	504.50	505.40	0.90	1,501	<5
KKME 1-6	505.40	506.23	0.83	1,088	<5
KKME 1-6	506.23	507.15	0.92	1,140	<5
KKME 1-6	507.15	508.00	0.85	1,411	<5
KKME 1-6	508.00	509.00	1.00	1,883	7
KKME 1-6	509.00	510.00	1.00	1,974	8
KKME 1-6	510.00	511.00	1.00	1,953	6
KKME 1-6	511.00	512.00	1.00	1,888	8
KKME 1-6	512.00	513.00	1.00	2,081	7
KKME 1-6	513.00	514.00	1.00	1,862	9
KKME 1-6	514.00	514.50	0.50	2,131	7
KKME 1-6	514.50	516.00	1.50	1,934	8
KKME 1-6	516.00	517.00	1.00	1,269	7
KKME 1-6	517.00	518.52	1.52	1,414	<5
KKME 1-6	518.15	518.52	0.37	1,489	<5
KKME 1-6	518.52	519.47	0.95	1,047	<5
KKME 1-6	519.47	520.28	0.81	1,740	<5
KKME 1-6	520.28	521.22	0.94	1,692	<5
KKME 1-6	521.22	521.78	0.56	1,629	<5
KKME 1-6	521.78	522.62	0.84	1,606	<5
KKME 1-6	522.62	523.13	0.51	1,504	<5
KKME 1-6	523.13	524.00	0.87	1,467	<5
KKME 1-6	524.00	524.48	0.48	1,642	<5
KKME 1-6	524.48	525.28	0.80	1,239	<5
KKME 1-6	525.28	526.20	0.92	924	<5
KKME 1-6	526.20	527.46	1.26	698	<5
KKME 1-6	527.46	528.17	0.71	911	<5
KKME 1-6	528.17	529.05	0.88	918	<5
KKME 1-6	585.00	586.00	1.00	2,536	<5
KKME 1-6	594.40	595.17	0.77	2,469	<5
KKME 1-6	595.17	596.00	0.83	2,755	<5
KKME 1-6	596.00	597.00	1.00	3,038	5
KKME 1-6	597.00	597.80	0.80	2,852	6

Hole KKME 1-6, the second hole to be drilled at the MFC Project, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone. The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

Third Drill Hole Progress

The third drill hole at the MFC Project, KKME 1-11a (into Target 1-11a), has been completed to a downhole depth of 502.4m. The 60-degree inclined hole was drilled to intersect a conductive body, associated with a prominent magnetic response, modelled from geophysical survey data. KKME 1-11a is located in the Project’s Chipo (Gift) Northern Target Area, and 1,250m west of the programme’s first drill hole KKME 1-14 and still within the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

Preliminary examination of the uncut core indicates a fine-grained black ultramafic rock that is magnetic, and relatively unfractured. There are minor serpentine/talc veins. The core will now undergo detailed geological logging and selected sample intervals will be submitted for assay.

References:

1:	Significant Ni intersections derived from weighted averages of samples intervals above a nominal 0.13%Ni. Figures are rounded. 10,000ppm = 1%.
Feeder zone:	The plumbing system from which magma is supplied into the intrusive from the lower crust. These can often form as elongated dykes at the base of an ultramafic layered intrusion. Sulphide mineral accumulations can often form in the vicinity of the feeder zone.
PGE:	Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Pentlandite (Fe,Ni)₉S₈:	A primary nickel sulphide mineral
Pyroxenite:	Pyroxenite is an ultramafic plutonic igneous rock. In pyroxenite the dominant mafic mineral is a pyroxene. Pyroxenite may contain up to 40% olivine. Pyroxenite mostly forms by accumulation of pyroxene crystals in the mafic-ultramafic igneous intrusions. It forms variously shaped igneous bodies like sills, layers, dikes Pyroxenite may host economically important metals like chromium, nickel and platinum.
Serpentinisation:	A low temperature anaerobic oxidation process of ultramafic rocks in the course of which density is reduced and volume increased by the addition of water, in the course of which nickel and other elements undergo remobilisation as a result of hydrothermal activity
Ultramafic rock:	An igneous rock in which has a very low silica content and in which more than 90% of the rock is composed of magnesium and iron-rich minerals like pyroxenes, amphiboles, and olivine.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, including the diamond drilling of selected targets (the “Drill Programme”).

On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

To date Power Metal has funded US$498,500 of the US$500,000 earn-in requirement, with US$1,500 (c. £1,085) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company’s US dollar account.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m and is designed to intersect high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

COMPETENT PERSON STATEMENT

The drilling and sampling programme has been overseen on site by Mr. Ian McGeorge MSc CGeol FGS a qualified person and chartered geologist working on behalf of the independent mining consultancy The MSA Group (“MSA”). Information in this announcement relating to the exploration drilling results is based on data reviewed by Mr McGeorge. Mr McGeorge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr McGeorge consents to the inclusion of the exploration results in the form and context in which they appear.

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 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 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 – Botswana Molopo Farms Exploration Update – Nickel Sulphides Confirmed, Assay Progress, Downhole Geophysics Update and Third Drill Hole Update

30th March 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.

CHIEF EXECUTIVE OFFICER UPDATE

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

“The confirmation of nickel sulphides in the core from drill hole KKME 1-6 is a very positive outcome and adds yet more weight to the geological proposition being tested at the MFC Project.

The team at KKME are continuing to stay focused and assimilate technical information as it flows in. Further data is due in the form of laboratory assay results, continuing University mineralogical analysis of core samples and downhole geophysics data, all of which is expected shortly.

Undoubtedly we will have more to say soon and we look forward to sharing further findings in due course.”

HIGHLIGHTS:

Mineralogical Testing

Selected quarter core samples were sent to the Geology Department of the University of Witwatersrand in Johannesburg (the “University”) for thin section mineralogical analysis.

Nickel sulphides have been identified in three core samples containing visible sulphide grains taken from the drill hole KKME 1-6 (at Target 1-6). A total four thin sections, from the three core samples, were cut from areas with the most abundant sulphides and textural heterogeneity.

The sulphides were studied under optical light and using a Tescan Integrated Mineral Analyser (“TIMA”) scanning electron microscope in the Earth Lab of the University.

The preliminary study shows that the primary magmatic, pentlandite-bearing, assemblage is present only in sample IMK-05139 (taken from 310m down-hole depth). Two samples (IMK-05149 and IMK-05153) from down-hole depths of 295m and 297m respectively) contain relics of primary pentlandite within predominant secondary nickel sulphides, arsenides and alloys (Heazlewoodite, Shandite, Maucherite, Awaruite, and Breithauptite) that were likely formed under reduced conditions.

These associations are typical of serpentinised peridotite and could be related either to hydrogen by-production during serpentinisation or involvement of organic carbon into hydrothermal process. The PGE content of all sulphides was under a detection limit of the energy-dispersive analysis but this also needs to be confirmed with a more appropriate assessment.

While these results are encouraging, it is necessary to stress that they are very preliminary, and further work is in progress at the University.

Glossary:

Awaruite Ni₃Fe a nickel-iron alloy

Breithauptite NiSb a nickel-antimony alloy

Heazlewoodite Ni₃S₂a secondary nickel sulphide mineral

Maucherite Ni₁₁As₈a nickel arsenide

PGE platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)

Pentlandite (Fe,Ni)₉S₈a primary nickel sulphide mineral

Peridotite an ultramafic, magnesium-rich rock derived from rocks in the earth’s mantle and most often found where mid-ocean rifts or other breaks in the oceanic crust have allowed the penetration of magma to surface

Serpentinisation a low temperature anaerobic oxidation process of ultramafic rocks in the course of which density is reduced and volume increased by the addition of water, in the course of which nickel and other elements undergo remobilisation as a result of hydrothermal activity

Shandite Ni₃Pb₂S₂ in inclusions a secondary nickel sulphide mineral

Assay Testing

Samples from drill hole KKME 1-6 have now been delivered to the Scientific Services laboratory in Cape Town. The half core samples are to be analysed for nickel, copper, zinc, gold and platinum.

Delivery of the samples was impacted by a transit delay at Johannesburg which we understand arose due to Covid-19 related operational restrictions. We understand that assay testing has now commenced on the samples.

A full assessment of hole KKME 1-6 will be made once all of the mineralogical and chemical analyses have been received.

Samples for hole KKME 1-14 are still in transit to the laboratory.

Third Drill Hole Progress

The third drill hole (KKME 1-11a) was at 455m on the 27^th March and to date core has been examined to 450m. Here the rock is a fine grained black ultramafic, magnetic, and relatively unfractured. There are minor serpentine/talc veins.

Downhole Geophysics

KKME’s consultant has now completed downhole geophysics fieldwork in respect of hole KKME 1-6 and the full technical report is expected shortly.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, including the diamond drilling of selected targets (the “Drill Programme”).

On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

To date Power Metal has funded US$418,141 of the US$500,000 earn-in requirement, with US$81,859 (c. £59,426) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company’s US dollar account.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m and is designed to intersect high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

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 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 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 – Botswana Molopo Farms Complex Drilling Update – Third Diamond Drill Hole Commences

15th March 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of the third diamond drill hole (KKME 1-11a) at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

– The third drill hole (KKME 1-11a) of a planned 2,505 metre programme has commenced.

– Diamond drill hole KKME 1-11a is inclined at 60 degrees and has a planned down-hole target depth of 450m to the upper side of a conductive body modelled from geophysical survey data.

– The target appears to be above the Transvaal graphitic mudstone and closely associated with a prominent magnetic response. Depth to the top is of the target is approximately 200m vertical depth and the conductor appears to be flat lying.

– This third drill collar is located in the Project’s Chipo (Gift) Northern Target Area, and several km west of the programme’s first drill hole KKME 1-14 and still within the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

– The Chipo (Gift) Northern Target Area lies north-east of the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

– By the end of drilling on Friday 12th March the hole had reached 106.4m down-hole depth in ultramafic rocks situated immediately below the Kalahari sands.

CHIEF EXECUTIVE OFFICER UPDATE

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

“I am pleased to report the drilling of the third exploration hole, KKME 1-11a, has got off to a great start after the drillers recommenced work on Thursday after an agreed period of no-cost stand-by. We paused drilling between holes two and three to review the extensive technical information gathered and to determine the optimal target for the third hole on the basis of the technical review work undertaken.

This hole is designed to test a conductive geophysical body within the Chipo (Gift) Northern Target Area. Core samples from the previous two holes have been submitted for assay and compositional analysis and we await the results.

We look forward to sharing further findings in due course.”

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, including the diamond drilling of selected targets (the “Drill Programme”).

On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

To date Power Metal has funded US$408,141 of the US$500,000 earn-in requirement, with US$91,859 (£65,991) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company’s US dollar account.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m and is designed to intersect high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

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 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 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 – Botswana Molopo Farms Complex – Drilling Update

22nd February 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Identification of additional visible sulphides deeper in hole KKME 1-6 gives further encouraging signals to the prospect of discovering significant mineralisation within the Molopo Farms Complex.

So far we are encouraged by the indications from core logging, and await assay results and mineralogical studies to confirm the sulphide minerals present. To be absolutely clear we make no assumption as to which sulphide minerals are present and await the assay results, and those results will likely guide the next exploration steps.

The identification of up to 14 new targets for ground exploration in the feeder zone from the Aster Mapping also adds to the evidence of district scale prospectivity.

Substantial new data continues to be generated on a relatively untested environment, advancing a journey of discovery in a geological setting where there is the clear potential for large scale metal deposits.”

Highlights:

The second diamond drill hole at the MFC Project, KKME 1-6, has been continued from 547m to a final depth of 598 metres in ultramafic rocks. The extra hole depth will provide further core from the geophysical target depth and will assist in further geophysical interpretation.
Core from KKME 1-6 and from the first drill hole at KKME 1-14 has been transported to Lobatse where it is being cut by the Botswana Geoscience Institute. Selected half core samples will be sent to a South African assay laboratory for base and precious metal analysis, this week.
Logging KKME 1-6 cut core has identified disseminated sulphide mineralisation below 500m drill hole depth, notably in the section marked as a target by the geophysics. This is further to disseminated sulphide mineralisation identified around 308-313m drill hole depth from the initial KKME 1-6 core inspection (announced 11 January 2021).
An agreement has been signed with the University of Witwatersrand in Johannesburg and selected quarter core samples will be sent to the University’s Geology Department this week for mineralogical and thin section analysis.
A report received from Aster Funds Ltd (“Aster”) based in Toronto entitled ‘Satellite-Based Long Wave Infrared (LWIR), Short Wave Infrared (SWIR) and Synthetic Aperture Radar (SAR) Mapping, Molopo Farms Exploration Licences has identified about 14 new targets in the feeder zone, with priority targets recommended to be ranked for follow-up ground exploration.
Down-hole geophysics data is expected to be acquired in the next phase of the current programme, this should help identify any massive sulphide mineralisation proximal to the disseminated sulphides encountered at around 308-313m drill hole depth and below 500m drill hole depth, in angled hole KKME 1-6.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”). To date Power Metal have paid US$392,641 leaving a balance remaining of US$107,359 (approximately £76,801) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m. Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m. The hole was completed safely and securely and achieved near 100% core recovery.

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 supports the geological proposition that the geology at Molopo Farm is that of a feeder zone.

DRILL HOLE KKME 1-6

Hole KKME 1-6, the second hole, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION

Kalahari Key have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing Kalahari Key airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement Kalahari Key’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three Kalahari Key Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016).

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 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 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 – Botswana Molopo Farms Complex drilling programme update, visible sulphides noted during core-logging process

11th January 2021 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“The identification of visible sulphides during the geological core-logging process for hole KKME 1-6 is a potentially significant development, subject of course to assay testing of samples, opening up the potential for PGM mineralisation besides the base metals originally targeted.

We are now in the midst of an extensive technical review of the entire licence areas with a particular focus around the first two drill holes. This will further refine our present targets and generate new targets for the remainder of the drill programme.

It is worth noting that the Molopo Project drill programme is an immense exercise and already we have over 1,000 metres of core to examine and process. The size and scale of this exercise is matched only by the hard work and determination of the team in the field, for which I am particularly grateful.

I look forward to providing further updates as further material developments occur.”

Highlights:

Following the successful drilling of the first two diamond drill holes (KKME 1-14 and 1-6), to their initial target depth, as previously announced, an extensive technical review is currently underway at the Molopo Farms Complex project.
Initial geological core-logging by KKME’s consulting geologist has identified 4.4 metres of ultramafic rocks with finely disseminated sulphides in angled hole KKME 1-6 at approximately 270m vertical depth.
The setting of this sulphide intersection is consistent with KKME’s geological model and suggests prospectivity for platinum group metals as well as base metals. The core will now be split to allow more detailed examination of the mineralogy prior to dispatch for assay.
Assay testing of core samples from both drill holes including specifically the above intersection is to be undertaken at an accredited laboratory in South Africa.
The deepening of drill hole KKME 1-6 from 547 metres to circa 600-650 metres hole depth is set to commence in the week commencing 11 January 2021.
Downhole geophysics field work and interpretation for the two holes drilled to date is expected to be completed by the end of January.
Detailed data is also under review in respect of KKME’s engagement of Aster Funds Ltd and Bell Geospace Ltd to integrate innovative exploration survey and processing techniques with the existing KKME airborne, Natural Field Audio Magneto Telluric (“AMT”) ground and downhole geophysical datasets. This should accelerate and refine the exploration targeting process for future drill testing.
Following consideration of the extensive data collected from the technical review work, KKME will determine the optimal locations for the two remaining planned drill holes and specific mineralisation targets.
Reflecting the above technical review process and the additional work to be undertaken including diamond drilling, the formal earn-in period (taking Power metal to a 40% Project level interest) has been amended with the mutual agreement of Power Metal and KKME, to the period ending 30 April 2021. This will allow adequate time for the receipt and payment of invoices relating to the earn-in exploration activities.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”). To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m. Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m. The hole was completed safely and securely and achieved near 100% core recovery.

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 successfully confirmed the geological proposition that the geology at Molopo Farm is that of a feeder zone.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole with a current end of hole depth of 547.4m (to be deepened to circa 600-650m). The hole was originally designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION TECHNICAL FOLLOW UP WORK

KKME have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing KKME airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement KKME’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three KKME Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016).

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 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 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 – Botswana Molopo Farms Complex drilling programme update, conductive targets intersected at 2nd hole

22nd December 2020 / Leave a comment

Power Metal Resources plc (LON:POW) the AIM listed African focused metals exploration and development company is pleased to provide a further update on the recently completed second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Re-analysis has been undertaken of the airborne electromagnetic (“AEM”) conductivity depth sections on hole 1-6, and of the ground geophysics results interpreted by superconducting quantum interference device (“SQUID”), in the light of preliminary assessment of the drill core.

This re-analysis has resulted in the following main conclusions:

• The AEM indicates an arched shape geophysical conductive anomaly, possibly close to flat-lying and with a depth to anomaly top of over 200m.

• Drill hole 1-6 intersected this conductor and the source may be the sheared and serpentinised ultramafic rock encountered in the drill core, however there can be no certainty of this until full core analysis, including a review of mineralogy, has been undertaken.

• The AEM itself would not have penetrated a conductor below this observed conductor however the SQUID survey would have penetrated to any lower conductor but its signal will have been distorted by the shallower conductor, influencing the plate modelling results.

• Samples are to be assayed from a number of the 26 major cyclically layered ultramafic rock units intersected, including the units comprising the geophysical conductor zone.

• In addition, the hole is to be deepened to 600-650m as recommended by KKME’s geophysicist on both geological and geophysical grounds.

• Deepening of the hole will be undertaken when the drill team return from their Christmas break in January 2021.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“The confirmation from our consultants that we have intersected at least one conductive target in the over 500 metres of ultramafic rock through which we drilled in the second hole of our programme is most encouraging news.

Detailed logging and analysis of the core will continue, and further sections of interest may be identified in the 26 major units intersected. We are told that with ultramafic rock in this area it is difficult to see sulphides on the core surface, and easier on a cut surface, so there remains work to be done to determine metal content.

We now know that we should look deeper for a further significant target and that additional drilling work will start after the Christmas break. The drill has been left in place aligned with the hole.

We will provide further updates as material developments occur.”

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 31 January 2021, notably the diamond drilling of selected targets (the “Drill Programme”). To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m. Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme with a current end of hole depth of 547m (to be deepened as outlined above). The hole was originally designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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 metal exploration in North America and Australia together with base 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: Kalahari Key mineral exploration

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Power Metal Resources #POW – Proof-of-Concept Exploration Holes Recently Completed Confirm the Presence of Primary Magmatic Sulphides at Molopo Farms Complex Project

Power Metal Resources #POW Completes Botswana Molopo Farms Complex US$500,000 Earn-in to 40% Direct Project Interest

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Power Metal Resources #POW – Botswana Molopo Farms Exploration Update – Nickel Sulphides Confirmed, Assay Progress, Downhole Geophysics Update and Third Drill Hole Update

Power Metal Resources #POW – Botswana Molopo Farms Complex Drilling Update – Third Diamond Drill Hole Commences

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

Power Metal Resources #POW – Botswana Molopo Farms Complex – Drilling Update

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling programme update, visible sulphides noted during core-logging process

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling programme update, conductive targets intersected at 2nd hole

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