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Power Metal Resources #POW – Acquisition of 8 new Prospecting Licences at the KCB increases the ground holding of local operating company Kanye Resources to 4,257km2
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a significant expansion of exploration ground, targeting district scale copper-silver discoveries, in the Kalahari Copper Belt (“KCB”), Botswana.
The acquisition of eight prospecting licences (“PLs”) increases the strategic ground held by the South Ghanzi Project (“South Ghanzi” or the “Project”) by 229% to 4,257km2, making one of the largest licence footprints in the KCB.
The acquisition was completed by the Project’s local operating company Kanye Resources Pty Ltd (“Kanye”), in which Power Metal and joint venture (“JV”) partner Kavango Resources plc (LON:KAV) (“Kavango”) each have a 50% interest.
A map showing all the PLs held by Kanye can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/kalahari-copper-belt-licence-map/
The acquisition was originally announced to the market on 29 March 2021 and was subject to due diligence and licence transfer which has now been completed successfully. The original announcement may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/kalahari-copper-belt-business-update/14916399
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“With the exploration success Power Metal and Kavango have achieved to date at the South Ghanzi Project, this substantial expansion of our land position within the KCB is a major development for our Company.
Without question the KCB joint venture with Kavango is currently one of Power Metal’s highest priorities and we have got to this point in short order through the exceptional work undertaken by the Kavango operational team.
The progress achieved in the KCB demonstrates the value we can generate for our shareholders when we focus our financial and managerial resources on projects that deliver high-impact exploration results efficiently and effectively.
We eagerly look forward to the planned drill programme at South Ghanzi, as well as inaugural and ongoing exploration results at our newly expanded land package within the KCB.”
ACQUIRED LICENCE HIGHLIGHTS:
Kanye has completed two separate acquisitions to purchase 100% of the eight PLs. All the PLs have now been transferred to Kanye by the Ministry of Mines and new Prospecting Licence documentation has been issued. These include:
– Four PLs in proximity to the town of Ghanzi in the central zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for US$200,000 (the “South Ghanzi Extension Licences”).
– Four PLs near the town of Mamuno on the Namibian border for US$230,000, from Vinmarsh Interprises (Pty) Ltd (the “Mamuno Licences”).
Cash acquisition costs have been funded equally by Power Metal and Kavango from existing cash resources and Kanye now controls 4,257km2 of PLs in the KCB. The cost to Power Metal amounts to US$215,000 (c.£153k) funded from existing cash resources.
The South Ghanzi Extension Licences (481km2)
· The original South Ghanzi Project included two licences (PL036/2020 and PL037/2020) covering an area of 1,294km2 south of the town of Ghanzi in the KCB.
· The South Ghanzi Extension PLs include four licences, two of which are adjacent to the South Ghanzi Project, which cover prospective structures identified from their recently completed Airborne Electromagnetic (“AEM”) survey.
· A further two licences include one licence comprising an area previously relinquished by MOD Resources Ltd (MOD Resources Ltd was acquired by Sandfire Resources NL (ASX:SFR) in October 2019), containing a soil-sampling anomaly, and one licence in an area west of PL036/2020 which is considered to be prospective for copper-silver mineralisation.
· Exploration at South Ghanzi is considerably advanced, with seven major copper/silver targets identified to date and locations for the planned upcoming drill programme currently being finalised.
The Mamuno Licences (2,482km2)
· The Mamuno Licences are four contiguous PLs on the western boundary of the KCB that cover a large anticlinal (possibly dome) system; that is plunging towards the west.
· The anticlinal structures at Mamuno are similar to that recently identified at the South Ghanzi Project (within PL 036/2020) and appear to be significantly larger.
· Within the licence area, the Ngwako Pan and D’kar Formation contact zone is variably exposed for over 100km (covering a possible reduction-oxidation (“redox”) boundary). The Kalahari sand cover over this exposed contact zone is relatively thin.
· The area is well accessed by the Trans-Kalahari Highway, which links the cities of Gaborone and Johannesburg with Windhoek and Walvis Bay in Namibia. Mamuno is a border town located near the Botswana and Namibia border.
KCB Environmental Management Plan (“EMP”)
Kavango has received final feedback from the Ministry of Mines and final processing of the KCB EMP is underway. Receipt of EMP approval is a key step required before exploration drilling can take place on PL areas.
The proposed EMP covers both the South Ghanzi, South Ghanzi Extension and Mamuno Licences.
Immediate expansion of exploration in the KCB
In-depth desktop analysis is underway on the recently acquired licences.
Kavango will deploy four field teams to the KCB to begin extensive soil sampling and plans are being finalised to further increase number of teams on the ground.
This work is in addition to the planned drill programme at the South Ghanzi Project targeting copper-silver discoveries. Further information with regard to drill targets and the programme itself will be provided to the market in due course.
JOINT VENTURE STRUCTURE
The KCB PLs (South Ghanzi, South Ghanzi Extension and the Mamuno Licences) are held in the name of Kanye Resources (Pty) Ltd, a private Botswana company in which Power Metal and Kavango each have a 50% interest through Kanye Resources plc, a UK holding company.
Exploration costs are equally shared. Kavango is the operator. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration 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.
Kavango Resources #KAV – KCB: South Ghanzi – 18km long open target at Morula
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce further encouraging soil sampling results from PL 036/2020 (“South Ghanzi Project”) in the Kalahari Copper Belt (“KCB”).
150km of soil sampling lines have now been completed over the Acacia and Morula targets on the South Ghanzi Project. Morula is now estimated to be at least 18km long (up from 12km previously announced) and between 800m and 2.4km in width. The anomaly remains open along strike in both directions.
In addition to this, a third sub-parallel geochemical anomaly has been identified immediately to the south of Morula. This target (designated name “Happy”) appears to be at least 5km long and 700m wide.
Promising, in-soil copper readings have been recorded on all three targets (Acacia, Morula and Happy).
The South Ghanzi Project is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Highlights
Ø Extension of infill soil sampling
– Additional infill soil sampling lines extended from 5.5km to 11km
– Longer lines led to the identification of the Happy Target.
– Total of 150km of soil sampling lines now complete over Acacia, Morula and Happy
– 2,105 soil samples taken
– 1,199 samples returned copper in soil readings >30ppm
– 1,050 samples returned zinc in soil readings >29ppm (zinc is a “pathfinder” element for sedimentary hosted Copper-Silver deposits)
Ø 11 additional sample lines over Morula have confirmed:
– The target is at least 18km in length
– Width varies from 800m to 2.4km
– Open along strike in both directions
– 63 highly anomalous copper readings >45ppm, with 5 results >62ppm
– Zinc in soils correlates closely with copper readings, including 95 highly anomalous zinc readings of >71ppm Zinc including 9 results >91ppm
– The clearly defined mineralised system appears to follow a large regional fault/shear zone
Ø New copper/zinc in soils anomaly identified as the Happy Target:
– 5km long and 700m wide
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.
Ø Next steps
– Induced Polarization (IP) and Audio-frequency Magnetotellurics (AMT) surveys planned to define drill targets
– Further soil sampling on Acacia, Morula, Happy and other targets in the South Ghanzi Project
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“Morula is big. The maps we will publish on our website of the soil sampling result paint a compelling visual picture, but we remain grounded at this stage.
As exciting as the development of Morula is, we will only ever be able to prove if there is an economic resource there by drilling. We expect the Environmental Management Plan to be awarded in the very near future. At that point we can finalise plans for mobilising a rig to the South Ghanzi Project.
I would like to thank our team in the Kalahari Copper Belt for their dedication, their creativity and their ambition. The decision to double the length of the soil sampling lines appears to have paid off, with the identification of the Happy Target.
With the additional funds we recently raised, Kavango can now plan confidently for much more extensive exploration in the field, including accelerated drilling as soon as we are able.”
Background to Targets Morula and Acacia
Ø The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020
– Situated within a fold “nose”, which is plunging southwest
– Lies just above the D’Kar – Ngwako Pan contact zone.
– Made up of at least 4 individual pods, which emit strong EM readings.
– Soil geochemistry directly over the anomaly demonstrates highly elevated levels of copper (>42ppm) and zinc (>75ppm).
– Considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
Ø The Morula Target is estimated to be between 800m and 2.4km wide with at least 18km of strike on a south-westerly trend along the central backbone of PL 036.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– This was followed by four 4km long infill soil sample lines (1km apart with 100m sample intervals) to close the gap
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 18km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
Ø The Happy Target is estimated to be between 700m and 2.4km wide with 5km of strike sub-parallel to Morula.
– Discovered by extending soil sampling lines south of the Morula Target
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.
The POW/KAV Joint Venture
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.comand on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The technical information contained in this announcement has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles is a beneficial shareholder of Kavango Resources plc.
Power Metal Resources #POW – Latest KCB Soil Sampling Extends Morula Target Geochemical Anomaly to Over 18km
Power Metal Resources PLC (LON:POW) a AIM listed metals exploration and development company is pleased to announce results from further geochemical soil sampling and geological mapping on the Morula Target in Prospecting Licence (“PL”) 036/2020 at the South Ghanzi Project (“South Ghanzi” or the “Project”) located in the Kalahari Copper Belt (“KCB”), Botswana.
South Ghanzi is held under a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
A total of 150km of soil sampling lines have now been completed over South Ghanzi’s Acacia and Morula targets. The Morula Target geochemical anomaly is now over 18km long (up from 12km previously announced on 21 June 2021) and varies between 800m and 2.4km in width. The geochemical anomaly remains open along strike in both directions towards the northeast and southwest.
In addition to this, a third sub-parallel geochemical anomaly has been identified immediately to the south of the Morula Target. This target (designated name “Happy”) is approximately 5km long and approximately 700m wide.
A map displaying South Ghanzi copper geochemical results is available to view on the Company’s website through the following link:
https://www.powermetalresources.com/south-ghanzi-copper-map/
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“The current 18km length of the Morula Target is dramatic, particularly as the target remains open in both directions. Alongside this the discovery of a further geochemical anomaly named “Happy”, is another surprising and positive development at South Ghanzi.
What is also encouraging is that we are seeing strong coincidence between the copper-zinc geochemical anomalism with previously defined airborne electromagnetic (“AEM”) conductors.
Work continues on the Project and a key focus will be ground geophysics which will help us define drill targets which we plan to drill test subject to approval of the Environmental Management Plan.
Kavango’s in-country operations team have done a fantastic job executing on the various exploration plans and South Ghanzi has quickly become a key focus for Power Metal Resources.
Whilst the drill programme is the critical step to determine the tenor of mineralisation below the surface at South Ghanzi, the strength of exploration data that has been acquired thus far demonstrates that the Project holds major discovery potential for sedimentary hosted copper-silver mineralisation.”
PROGRAMME HIGHLIGHTS:
· Extension of infill soil sampling
– Additional infill soil sampling lines extended from 5.5km to 11km.
– Longer lines led to the identification of the Happy Target.
– Total of 150km of soil sampling lines now complete over the Acacia, Morula and Happy targets.
– A total of 2,105 soil samples have now been taken over all targets.
– 1,199 samples returned Cu-in-soil readings >30ppm Copper (“Cu”).
– 1,050 samples returned Zinc (“Zn”) in-soil readings >29ppm Zn (zinc is deemed to be a “pathfinder” element for sedimentary hosted Copper-Silver deposits).
· Eleven additional sample lines over the Morula Target have confirmed:
– The geochemical anomaly is greater than 18km in length.
– Varies between 800m to 2.4km in width along its extent.
– Open along strike in both directions towards northeast and southwest.
– 63 highly anomalous copper readings of >45ppm Cu, with 5 results >62ppm Cu.
– Zn-in-soil results correlate closely with copper readings including 95 highly anomalous zinc readings of >71ppm Zn, including 9 results >91ppm Zn.
– The clearly defined geochemical base metal anomaly appears to follow a large northeast-southwest regional fault/shear zone.
· New copper/zinc in soils anomaly identified as the Happy Target:
– Approximately 5km long and 700m wide.
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm Cu, and 28 samples assaying between 71ppm to 86ppm Zn.
· Next steps
– Geophysics: Induced Polarization (IP) and Audio-frequency Magnetotellurics (AMT) surveys planned to define drill targets.
– Further soil sampling on Acacia, Morula, Happy and other targets in the South Ghanzi Project.
BACKGROUND TO THE MORULA, ACACIA and HAPPY TARGETS
· The Acacia Target is defined by a 4km x 4km conductor on the northern boundary of PL 036/2020
– Located within a fold “nose”, which is plunging southwest .
– Lies just above the D’Kar – Ngwako Pan formation geological contact zone.
– Made up of at least 4 individual pods, which emit strong electro-magnetic (EM) geophysics readings.
– Soil geochemistry directly over the AEM anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm).
– Along with the newly defined Morula Target, Acacia is one of the highest priority drill targets at South Ghanzi.
· The Morula Target is estimated to be between 800m and 2.4km wide with at least 18km of strike length on a south-westerly trend along the PL 036/2020 licence boundary.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined slightly offset AEM geophysics linear conductor.
– Geological mapping, AEM conductivity results as well as the latest soil sampling data suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were initially 7km apart.
– Follow up soil sampling included four 4km long infill soil sample lines (1km apart with 100m sample intervals).
– All soil sample lines returned readings with significant copper and zinc anomalisms confirming the continuity of the geochemical anomaly over a strike length of 18km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow at an estimated depth of roughly 200m.
· The Happy Target is estimated to be between 700m and 2.4km wide and 5km along strike which is sub-parallel to the Morula Target.
– Discovered by extending soil sampling lines south of the Morula Target.
– All soil sample lines returned readings with significant concentrations of copper and zinc anomalism.
THE POWER METAL/KAVANGO JOINT VENTURE
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc, an England and Wales public company.
Exploration costs are equally shared. Kavango is the operator of the Project.
Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd which is wholly owned by Kanye Resources plc.
There are plans to list Kanye Resources plc on a recognised stock exchange.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Strategic Partner Update – Botswana
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to note the announcement by Kavango Resources (LON:KAV) (“Kavanago”) released today announcing a £1.94m placing and an expansion of their drill programme at their wholly owned Kalahari Suture Zone project which may be viewed through the following link:
Power Metal and Kavango each have a 50% interest in Kanye Resources plc, a UK registered strategic joint venture company which wholly owns Kanye Resources (Pty) Ltd (“Kanye Botswana”) a Botswana private company.
Kanye Botswana is the proposed holding company for the South Ghanzi – Kalahari Copper Belt and Ditau Camp Projects. An application has been made by Kavango to transfer the prospecting licences for both projects into Kanye Botswana.
There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Power Metal currently holds 9,500,000 Kavango ordinary shares and 4,750,000 warrants to acquire Kavango shares at an exercise price of 2.5p per Kavango share at any time prior to 28 April 2023.
Power Metal’s holding in Kavango at the market mid-price as at 1pm today (6.1p) is valued at £750,500 (value of shares and margin above exercise price on the 2.5p warrants).
Recognising our original cost of entry £38,000 (April 2020) and the £47,500 cost of exercising the previously held 1.0p warrants (exercised April 2021), Power Metal is showing a paper gain of £665,000 on its Kavango investment.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“As a strategic partner we have been enthused by the operational progress made and announced to market by Kavango. The £1.94m financing announced by Kavango today, on robust terms, is a further positive step forward and provides the working capital needed to support their ambitious exploration plans.
Power Metal is working with Kavango on the Kanye Resources strategic joint venture where drilling is planned on both the South Ghanzi – Kalahari Copper Belt (Copper, Silver focused) project and the Ditau Camp (Rare Earths focused) project. The announcement by Kavango today demonstrates their desire to accelerate drilling across all projects including the joint venture projects.
Power Metal continues to hold its full position in Kavango, and we have significant paper gain compared to the original £38,000 invested in April 2020. This demonstrates the value of holding both project and equity interests and we are optimistic of continuing growth in the value of our investment.”
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries
The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Business Operational Update
Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to provide a business operational update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“In the tables below you will see the Power Metal project portfolio, the key value drivers in our business and, the latest position regarding each project interest. The Company portfolio is focused on Africa, Australia and North America; all considered to be great exploration, development and mining destinations.
Whilst each project has individual qualities, many are targeting the discovery of large metal deposits with follow-on district scale potential. The key drivers for our project acquisitions have been positioning and timing, taking strategic footholds before regional popularity strikes.
As we have seen recently with our interests in the Kalahari Copper Belt Botswana, the Victoria Goldfields Australia and the Hemlo-Schreiber Greenstone Belt Canada, early positioning places the Power Metal business in an incredibly strong position.
We have in the last year undertaken extensive exploration with some notable results including significant nickel sulphide intersections from drilling at Molopo Farms Complex Botswana and bonanza grade silver (up to 14,937 g/t silver) from channel sampling at Silver Peak Canada.
We have extensive exploration planned in 2021 including drilling across much of our portfolio. It is worth noting that many of our projects now sit on the cusp of potential discoveries. An exciting time for any junior resources company.
Alongside exploration our corporate work continues at pace focused on the spin-out and IPO activities for certain project interests.
In summation we are, in my view, bursting at the seams with discovery potential and crystallisable value and the balance of 2021 is the proving ground for this opinion.”
Note: in addition to the material presented below, investors are guided to the Power Metal corporate presentation which is available on the Company’s website through the following link:
https://www.powermetalresources.com/presentation/
KEY VALUE DRIVERS
Table 1 below briefly summarises the key value drivers across the Company’s portfolio. Further detailed project information including supporting information behind the value drivers is provided in Tables 2, 3 and 4 later in the announcement.
Table 1 – Key Value Drivers by Project
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Project |
Key Value Drivers |
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AFRICA |
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Molopo Farms Complex (Nickel – Copper – PGE) |
– Update following completion of technical work and review of initial drill programme data including testwork being carried out on holes K1-6, K1-14 and K1-11a sulphide mineralisation zones – Next steps exploration to understand the potential scale of the mineralisation identified |
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South Ghanzi (Copper – Silver) |
– Planned exploration drilling at South Ghanzi targeting copper-silver discoveries subject to approval of the Environmental Management Plan – Updates regarding IPO of holding JV company Kanye Resources plc |
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Ditau Camp (Rare Earths) |
– Release of exploration findings – Subject to exploration results, drilling of carbonatite and rare earth deposit targets |
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Tati Project (Gold – Nickel) |
– Results from due diligence exploration programme including infill geochemical surveys targeting newly identified significant gold and nickel anomalies |
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Kisinka (Copper – Cobalt) |
– Exploration drilling at Kisinka targeting a copper-cobalt discovery |
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Haneti Project (Polymetallic) |
– Exploration drilling at Haneti targeting a nickel sulphide discovery |
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AUSTRALIA |
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Paterson Province (Gold – Copper) |
– Release of exploration findings including technical comparisons of Wallal targets with regional discoveries including the Winu and Havieron deposits – Updates regarding IPO of UK holding company |
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Victoria Goldfields (Gold) |
– Exploration programme initial results – Updates regarding IPO of core interests |
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NORTH AMERICA |
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Hemlo-Schreiber (Gold – Nickel) |
– Exploration updates |
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Silver Peak (Silver) |
– Completion of Silver Peak drill programme (commenced Q4 2020 but halted due to poor weather) – Updates regarding IPO of Silver Peak on a recognised stock exchange |
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Golconda Summit (Gold) |
– Launch of ground exploration targeting near surface high grade gold mineralisation to validate historic work following receipt of permits |
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Garfield/Stonewall (Gold – Copper – Silver) |
– Launch of exploration programmes |
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Alamo (Gold) |
– Launch of next stage exploration following receipt of permits |
PROJECT OPERATIONAL UPDATE
Tables 2, 3 and 4 below summarise the latest status of each project within the Company’s portfolio.
Table 2 – African Projects – Latest Position
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Project |
Latest Position |
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Molopo Farms Complex Project Botswana (Nickel – Platinum Group Elements (PGEs)) POW: Effective Economic Interest 50.8% |
Power Metal participated in the Molopo Farms Complex (MFC) Project as it provided exposure to a new nickel sulphide – Platinum Group Elements (“PGE”) project in south-west Botswana. The layered ultramafic-mafic intrusion constituting the Molopo Farms Complex holds the potential for a significant nickel discovery, and the ground held within the project licences is interpreted as the feeder zone. Exploration diamond drilling commenced in Q4 2020 and to date the Company has announced significant nickel sulphide intersections from the second hole drilled, K1-6 . To encounter intervals with the highest nickel grades found to date in the MFC so early in the initial 3 hole drill programme was an outstanding result reflecting the significant investment in preparatory research and exploration prior to drilling. Much ongoing technical work is being undertaken and further results will follow from testwork being carried out on holes K1-6, K1-14 and K1-11a with market updates expected in the near term. Following completion of the first drilling phase technical work the next stage of exploration is to build an understanding of the potential scale of the mineralisation identified and work towards defining a Mineral Resource. This next stage is perhaps the most exciting phase of the project exploration. It is now confirmed that the nickel sulphides sought are present, so now we must seek to delineate an economic deposit through further drilling, which is likely to be preceded by a soil geochemistry programme focussed on the area between K1-14 and K1-6. Clearly if successful, the value of this project may well be transformational for all parties with an ownership interest, including Power Metal. Power Metal holds its 50.8% effective economic interest through a direct 40% project stake and through an 18% interest in the orginal project holding company Kalahari Key Mineral Exploration (Pty) Limited, a private Botswana Company (“Kalahari Key”). As announced 6 May 2021 Kalahari Key is to be restructured to reflect the 40% Power Metal project interest and the Company is actively engaged on commercial work streams in respect of this restructuring. |
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South Ghanzi Project Botswana (Copper – Silver) POW: 50% |
The South Ghanzi Project covering a footprint of some 1,294 km2 provides Power Metal with exposure to potential copper – silver discoveries within the prolific Kalahari Copper Belt (“KCB”) alongside joint venture (“JV”) partner Kavango Resources plc (LON:KAV). Power Metal’s CEO Paul Johnson was CEO of Metal Tiger Plc in 2016 when they and ASX listed JV partner MOD Resources made the T3 Deposit discovery nearby in the KCB. The South Ghanzi Project is following a similar exploration methodology to the T3 discovery. Exploration work at South Ghanzi includes airborne electromagnetic (“AEM”) surveys that have identified eight anomalies representing targets for further ground based exploration. Follow up soil sampling work has so far has been focused on two targets, Acacia and Morula, with both targets showing significant zinc and copper in soils which closely follow the structures identified through the AEM work. Both targets present significant scale soil anomaly targets, Acacia measuring 4 km by 4 km and Morula about 2 km wide by 12 km long (open at both ends). They will both be subject to exploration drilling following approval of the project Environmental Management Plan (“EMP”). In addition on 29 March 2021 Power Metal and JV partners announced two conditional agreements to acquire a 100% interest in eight prospecting licences to significantly expand the KCB land footprint and work continues to finalise these transactions.
The South Ghanzi Project interest is held through JV vehicle Kanye Resources Pty Limited in Botswana, which is held outright by Kanye Resources plc, a UK public company. Currently the licences in respect of South Ghanzi are being transferred into Kanye Resources Pty Limited.
The JV partners are working on an initial public offering (“IPO”) of Kanye Resources plc in the UK capital markets.
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Ditau Camp Project Botswana (Rare Earths) POW: 50% |
The Ditau Camp Project (“Ditau”) is a rare earths exploration project with licences covering a footprint of 1,386 km2 and held in JV with Kavango Resources plc, as with the South Ghanzi Project. Ditau provides Power Metal with exposure to a potentially large scale rare earths opportunity in a secure operating jurisdiction just at the time that secure and stable sources of rare earths are in demand globally. Exploration work continues at Ditau with soil sampling and ground magnetic surveys investigating ten potential carbonatite targets. Further market updates covering the results of exploration findings are expected in the near term.
Following completion of the current work programmes the JV partners expect to undertake shallow drilling to test for the presence of carbonatites and potential rare earth elements. The Ditau interest is held through the same JV holding company structure as the South Ghanzi Project above. |
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Tati Project Botswana (Gold – Nickel) POW: Option to Aquire 100% |
Power Metal announced on 6 May 2021 a 60 business day option (the “Tati Option”) to acquire a 100% interest in two gold-nickel focused exploration properties in the Tati Greenstone Belt area of eastern Botswana, subject to due diligence (the “Tati Project”). The properties comprise two prospecting licences covering 124 km2. A historical data compilation on the properties, completed as part of the due diligence process, has led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on both properties.
As a result, immediate ground based exploration is being undertaken to include infill geochemical survey grids, as well as mapping and prospecting over these newly delineated geochemical anomalies.
Further market updates will be provided in respect of this due diligence exploration programme in the near term.
Should Power Metal exercise the Tati Option, it will hold the interest in the Tati Project through the newly formed, 100% owned Botswana private subsidiary, Power Metal Resources Botswana Pty Limited. Upon the Tati Option exercise the plan would be to undertake exploration drilling at the project.
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Kisinka Project The DRC (Copper – Cobalt) POW: 70% |
Exploration work undertaken since 2019 has delineated a 6.8 km copper-cobalt soil anomaly through the heart of the single licence representing the Kisinka Project. It was previously planned to follow-up the recently completed ground magnetics survey with in an induced polarisation geophysics survey, however following a review of the data sets it is considered that progressing work straight to drill testing is warranted. This drill programme is being planned at present and a further update will be provided in due course. The Kisinka Project has secured a 25 year Permis d’Exploitation (or Production Licence) which will significantly enhance the value and flexibility of the project should drilling lead to a discovery. |
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Haneti Project Tanzania (Polymetallic) POW: 35% |
A Rotary Air Blast (“RAB”) 1,965m drill programme was successfully completed at the Haneti Project in early 2021 and the results announced on 7 April 2021. The project is held with JV partner Katoro Gold Plc (LON:KAT). The next step at the Haneti Project is deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation.
Power Metal is eager to undertake this diamond drill programme and is working with its JV partner to secure commencement of this at the earliest opportunity.
Further work is ongoing with regard to other opportunities at Haneti, which as a polymetallic opportunity also has prospectivity for gold, lithium and rare earths.
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Table 3 – Australian Projects Latest Position
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Project |
Latest Position |
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Paterson Province Western Australia (Gold – Copper) POW: 75%
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First Development Resources Pty Limited (“FDR Australia”) is a private Australian company with 100% ownership (or the right to acquire 100% ownership) in five exploration licence interests (1 granted licence Ripon Hills and 4 licence applications namely Wallal, Wallal West 1, Wallal West 2 and Braeside West) in the Paterson Province, East Pilbara, Western Australia. Power Metal announced the conditional acquisition of FDR Australia on 28 April 2021 and is working with its Australian partners to finalise matters precedent on the acquisition including the grant of the Wallal licence application. Good progress is being made with all matters including finalisation of Heritage Agreements locally which are necessary prior to formal grant. FDR Australia will be acquired outright by a newly formed private UK company First Development Resources Limited (“FDR UK”) in which Power Metal will have a 75% interest. Following completion of the acquisition above, the intention is to IPO FDR UK in the London capital markets and we are taking preparatory steps to enable that proposed listing. Alongside the corporate work underway the Power Metal team have also been undertaking a detailed review of exploration data to date, planning principally for drilling of key gold-copper targets. The Paterson Province is well known for two recent and significant gold-copper discoveries, namely the Winu discovery by Rio Tinto and the Havieron discovery by Greatland Gold plc (LON:GGP). A desktop review has identified numerous geological analogues between the Wallal Project (comprising three licence applications) held by FDR Australia and both the Winu and Havieron discoveries. Notably, the magnetic properties of the Havieron discovery were evaluated in comparison to the Wallal Eastern magnetic anomaly which was identified during the recent desktop analysis. The magnetic amplitude and size of this anomaly was determined to be comparable (Havieron; diameter – 1 km, amplitude – 80nT, Wallal; diameter – 1.5 km, amplitude – 100nT). Additionally, the geological position of the Winu discovery was determined to be similar to that of Wallal, which includes a position along the western margin of a major shelf (Winu – Anketell Platform, Wallal – Wallal Platform). The Company is reviewing findings in conjunction with its partners in Australia and expects to release a market update in this regard in the near term. |
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Victoria Goldfields Victoria, Australia (Gold) POW: 49.9% |
This opportunity is held in JV with Red Rock Resources plc (LON:RRR) and represents one of the largest land footprints at the heart of the high profile Victoria Goldfields in Australia. The footprint totals some 2,334 km2 comprising an original sixteen licence applications from which, to date, seven licences covering 848 km2 have now been granted. Having licences granted enables ground exploration work to be launched and we now have an active programme of exploration underway including soil sampling and mapping across the granted licence areas. Historical data demonstrates the presence of gold mineralisation across all the licence areas, with evidence of historical mine workings across the properties. Programme planning which is being led by the exploration team, all of whom are residents of Victoria, is utilising the extensive regional and historical exploration datasets and mining records available, combined with local knowledge and land holder relationships. The holding company for the JV is Red Rock Australasia Pty Limited (“RRAL”) and RRAL is working on the IPO process for certain core interests of RRAL on the Canadian capital markets. This listing recognises the attractiveness of the Victoria Goldfields area amongst Canadian investors and institutions, with numerous listed companies on the Canadian Securities Exchange (“CSE”) and Toronto Stock Exchange (“TSX”) having achieved success on the markets with business models focused on exploration in the Victoria Goldfields. To facilitiate this listing process RRAL have previously completed a National Instrument 43-101 technical report on eight of the licence areas (four now granted licences and four licence applications) and this report will form a key part of the listing documentation. RRAL is working with advisors to complete the work streams necessary for the listing and will be providing further market updates in the near term in connection with this workflow. Based on the valuation of listed peers who have a focus on the Victoria Goldfields, Power Metal believe the Victoria Goldfields JV to hold considerable value for the Company and our partners Red Rock Resources plc. Note: in addition to the Victoria Goldfields interests described above RRAL has also submitted three licence applications in the Pilbara/Paterson region of Western Australia. Two applications (260 km2) are competing and therefore subject to ballot and one has RRAL as sole applicant (70 km2). The strategic plans for the three Western Australia licences are under review at present however it is likely that RRAL will seek to house these licences under a new vehicle in due course to allow the core interests of RRAL to move into the Canadian IPO process with focus on the Victoria Goldfields. |
Table 4 – North American Projects Latest Position
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Project |
Latest Position |
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Hemlo-Schreiber Project Ontario, Canada (Gold – Nickel) POW: 100% |
In Q1 2021 Power Metal moved quickly to secure a 100% interest in seven properties in the heart of the Hemlo-Schreiber Greenstone Belt in Ontario, Canada. All properties are held by Power Metal Resources Canada Inc. (“Power Metal Canada”) a newly formed wholly owned subsidiary of Power Metal. The seven properties have been allocated into five projects including Hemlo North, McKeller, Coco-East, Enable and Magical. Hemlo North is a package of three properties (Dotted East, Roger Lake and Olga Lake). London listed Panther Metals (LON:PALM) are planning to drill gold targets just to the west of Hemlo North and just to the East, Palladium One Mining (TSX:PDM) has recently announced excellent data from drilling, including significant nickel sulphide intersections. The accelerated building of the Hemlo-Schreiber Project has been validated by the level of interest shown in the area in 2021 with a number of companies securing ground in the area. The Hemlo-Schreiber Project has attracted interest already with third party approaches with regard to certain of the projects in the Hemlo – Schreiber portfolio held by Power Metal Canada. This further demonstrates the building interest in the region. Alongside any corporate discussions Power Metal Canada are planning to implement first stage exploration programmes for the five projects in the summer/early autumn period of 2021 and a further market update will be provided on this when appropriate. |
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Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
In September 2020 Power Metal exercised an option allowing it to earn-in to a 30% holding in the Silver Peak Project. The Company considered Silver Peak, incorporating a former high grade working silver mine, would be a valuable addition to the Power Metal portfolio. Exploration findings ratified that decision with assay results of up to 14,937 g/t silver from channel sampling from historically mined veins and up to 5,270 g/t silver from drill samples. On 15 March 2021 the Company announced it was to accelerate the earn-in and has now made all related payments and holds a 30% interest in the project. Power Metal and partners are working towards the planned IPO of the Silver Peak Project on a recognised stock exchange and work is underway in this regard. The Company is also working with our partners to complete the drill programme commenced in Q4 2020 but paused due to weather conditions in the project area. Further corporate and exploration updates are expected in respect of Silver Peak in the near future. |
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Golconda Summit Project Nevada, USA (Gold) POW: Earn-in to 100% |
On 1 June 2021 Power Metal announced the signing of an Assignment and Assumption agreement where the Company acquired an option enabling it to earn-in to a 100% interest in the Golconda Summit gold property (“Golconda”) in Nevada, USA. Golconda is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200 Moz.
Previous exploration work on the Golconda property encountered significant gold mineralisation including trench assay results of 7.6m @ 24.0g/t gold and 15.2m @ 8.6g/t gold, as well as shallow drilling results of 10.7m @ 3.9g/t gold. Reflecting all the above, the low cost of entry and modest ongoing costs Power Metal considered the acquisition of the Golconda interest was an important transaction for the Company, providing exposure to a highly prolific gold producing region in Nevada. Subject to the receipt of appropriate permits, ground exploration will commence shortly with a principle focus on the validation of the historic exploration findings and demonstration of high grade, near surface gold mineralisation. The Golconda property agreement is held by Golden Metal Resources Limited (“Golden Metal UK”), a UK private company and 100% owned subsidiary of Power Metal which will be the ultimate holding company for all Power Metal Nevada interests. |
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Garfield/Stonewall Projects Nevada, USA (Gold – Copper – Silver) POW: 100% |
The Company announced on 17 June 2021 the acquisition of a 100% interest in the Garfield and Stonewall Projects in Nevada USA. These are prospective for gold, copper and silver. The projects were acquired by Golden Metal Resources llc (“Golden Metal Nevada”) a newly formed 100% owned subsidiary of Golden Metal UK. Golden Metal Nevada will be the local operating company of Golden Metal UK. The Garfield and Stonewall Projects are located in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).
Taken with the Golconda Summit gold project above, Power Metal through its Golden Metal subsidiaries now has a trio of projects within its Nevada focused business model.
Exploration work is planned for the projects following completion of the work planned at Golconda. This includes soil chemical sampling, trenching and drilling.
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Alamo Project Arizona, USA (Gold) POW: Earn-in to 75% |
Power Metal signed an agreement in July 2020 to earn-in to a maximum 75% interest in the Alamo Project in Nevada USA where the project was considered prospective for gold following the discovery of native gold nuggests near surface in multiple locations across the property. Reflecting additional information acquired through the ground exploration work undertaken over the last year, additional claims have been added to increase the property size and to ensure coverage of prospective areas. A further planned exploration programme has been developed and will commence subject to the receipt of relevant permits. This programme is expected to include trenching on one area of the Alamo Project, with associated sampling, assaying and mapping and the drilling of a number of short percussion holes to test for gold and silver mineralisation. For this work to be completed a Notice Level Plan of Operations permit is required prior to commencement.
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ADDITIONAL OPPORTUNITIES
Power Metal has access to an extensive pipeline of new opportunities.
However, given the strength, depth and diversity of the Company’s existing portfolio Power Metal will only acquire further interests if there is a significant strategic reason to do so. That strategic reason could be the inherent substantial value of a new project or where an acquisition would fit well with other currently held interests, particularly if that would add value to a corporate spin-out package.
In this regard and at present, Power Metal is currently in discussions with third parties in respect of a lithium exploration project in Canada and potential new gold exploration opportunities in and around Nevada USA. Unless and until any formal transaction is agreed and announced there can be no certainty that any additional interests will be acquired.
Alongside the main Company acquisitions, it is noted that Power Metal has set up Power Capital Investments Limited (“Power Capital”) a new 100% owned resource project incubator subsidiary (announced 4 May 2021). This was formed to provide a means to continue engagement with smaller but potentially valuable resource opportunities.
A maximum investment level of £100,000 per opportunity has been set and a minimum 50% Power Capital holding interest in any opportunitiy following Power Capital’s investment.
A further update specifically in respect of Power Capital’s operations will be provided in due course.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Kavango Resources #KAV – KCB: South Ghanzi – Morula target update
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce results from further soil sampling and geological mapping on the Morula Target in PL 036/2020 (South Ghanzi Project) in the Kalahari Copper Belt (“KCB”).
Following the announcement on 14 May 2021, Kavango has completed and analysed samples from 16km of infill soil-sampling at Morula, which confirms that the conductor/anomaly extends along strike for at least 12km.
The South Ghanzi Project is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Morula is now our highest priority exploration target at South Ghanzi.
Highlights
Ø Previously, seven kilometre-scale conductors were defined by Airborne Electromagnetic (“AEM”) surveys at South Ghanzi
– Morula & Acacia identified as the highest priority targets in the short-term
– Drilling planned as soon as the South Ghanzi Environmental Management Plan (“EMP”) is approved
Ø Infill soil sampling of Morula
– Four sample lines, each 4km long, 1km apart, sampled every 100m (using the high sensitivity deflation zone sampling method developed by Kavango).
– Anomalous levels of copper (35ppm to 68ppm) and zinc (59pmm to 111ppm) correlate closely with results from original seven soil-sampling lines
– Clearly defined mineralised zone of 12km, on a south-westerly trend, parallel to two steep anticlinal structures
– Open along strike in both directions
Ø Assessment of optimal drill locations now underway at Morula and Acacia
– Targets appear to be close to surface.
– Minimal Kalahari sand cover
– Estimated intercept depths of 120m to 200m
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“Following identification of the Acacia and Morula conductor/soil anomalies we’ve focussed our exploration efforts on the Morula Target over recent weeks.
These initial results are highly encouraging. They emphasise the potential and scale of this 12km long mineralised zone. Morula is rapidly developing into one of the most exciting drill targets in our entire portfolio.
We plan to start drilling here as soon as we can, after we have received approval of our EMP.”
Background to Targets Morula and Acacia
Ø The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020
– Situated within a fold “nose”, which is plunging southwest
– Lies just above the D’Kar – Ngwako Pan contact zone.
– Made up of at least four individual pods, which emit strong EM readings.
– Soil geochemistry directly over the anomaly demonstrates highly elevated levels of copper (>42ppm) and zinc (>75ppm).
– Considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
Ø The Morula Target is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– Now, four new 4km long infill soil sample lines (1km apart with 100m sample intervals) have been completed to close the gap.
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 12km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
The POW/KAV Joint Venture
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.comand on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The technical information contained in this announcement has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles is a beneficial shareholder of Kavango Resources plc.
NOTES TO EDITORS
KAVANGO’S INTERESTS IN THE KALAHARI COPPER BELT
Kavango’s exploration licenses in the KCB include:
The South Ghanzi Project
Ø 50 % working interests in prospecting licenses PL036/2020 and PL037/2020, to be held in a Joint Venture with Power Metal Resources (LSE:POW) (announced 21 September), which cover 1,294km 2 .
The LVR Project
Ø Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd (“LVR”), which cover 1,091km 2 .
THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING
The South Ghanzi Project and LVR Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges. Fold hinges pointing upwards are known as anticlines, while the downward pointing hinges are called anticlines.
Several large copper/silver ore deposits have been discovered on the KCB in association with anticlines in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and many are amenable to open pit mining operations.
Accumulations of metals can be traced along the strike of geochemical reduction-oxidation (“redox”) boundaries (sometimes for many kilometres), since they often contain iron and have a higher magnetic signature than the surrounding rock.
SOUTH GHANZI EXPLORATION STRATEGY
The South Ghanzi PLs lie within the Central Structural Corridor of the Kalahari Copper Belt immediately south of the town of Ghanzi.
Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive. AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.
Kavango’s strategy in the KCB is to identify conductive targets and then to complete follow up investigation, using other proven exploration methods including geological mapping and testing of soil geochemistry through extensive sampling. The correlation of positive zinc and copper soil geochemistry readings to positive AEM results is a highly encouraging exploration vector.
Given Kavango’s understanding of the regional lithology and stratigraphy of the KCB, the Company is optimistic about the progress it has made in South Ghanzi over recent months.
Specifically, the identification of a number of smaller anticlines associated with conductors suggests there are seven large, promising drill targets at South Ghanzi.
Power Metal Resources #POW – KCB Kanye Resources Exploration Update – Morula target soil sampling confirms conductor/anomaly extends along strike for at least 12km
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce results from further geochemical soil sampling and geological mapping on the Morula Target in Prospecting Licence (“PL”) 036/2020 at the South Ghanzi Project (“South Ghanzi” or the “Project”) in the Kalahari Copper Belt (“KCB”), Botswana.
The South Ghanzi Project is held in a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
· Following the announcement on 14 May 2021, Kavango has completed and analysed samples from 16km of infill soil-sampling at Morula, which confirms the conductor/anomaly identified by airborne electromagnetic geophysics conducted previously and extends along strike for at least 12km.
· Morula is now the highest priority exploration target at South Ghanzi.
· Exploration test drilling planned later this summer on award of Environmental Management Plan. Further details on the drill programme to be provided in due course.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“Today’s news includes significant and positive Project developments.
At Morula we have confirmed a soil geochemistry anomaly of at least 12km strike length, presenting a considerable scale target, which also remains open at both ends.
Power Metal and Kavango are seeking large scale copper-silver discoveries and without question the progress to date is even better than expected.
Once again, I am reminded of the substantial opportunity the Kalahari Copper Belt offers for major base metal discoveries. In 2016, whilst CEO of Metal Tiger plc, we followed a similar exploration methodology which led to the discovery of the T3 Deposit, a discovery which was to be transformational for that company and its shareholders.
The exploration datasets from South Ghanzi have delineated very strong drill targets and I am very much looking forward to the commencement of a programme of drill testing at the Project.”
HIGHLIGHTS:
· Previously, seven, kilometre-scale conductors defined by airborne electromagnetic (“AEM”) geophysics surveys at South Ghanzi:
– Morula & Acacia identified as the highest priority targets in the short-term.
– Drilling planned as soon as the South Ghanzi Environmental Management Plan (“EMP”) is awarded.
· Infill soil geochemical sampling of Morula:
– 4 sample lines, each 4km long, 1km apart, sampled every 100m.
– Concentrated levels of copper (35ppm to 68ppm) and zinc (59pmm to 111ppm) in soil correlate closely with results from original seven soil-sampling lines.
– Soil geochemistry clearly defined a 12km long anomalous zone, on a south-westerly trend, parallel to the perceived geological strike and to two steep anticlinal structures.
– Soil geochemical anomaly remains open along strike in both directions.
· Assessment of optimal drill locations now underway at Morula and Acacia with further information to follow in due course with regard to the proposed drill programme:
– Targets appear to be close to surface.
– Minimal Kalahari sand cover expected.
– Estimated mineralised intercept depths of 120m to 200m.
BACKGROUND TO THE MORULA AND ACACIA TARGETS
· The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020:
– Lies within an interpreted fold “nose”, which is plunging southwest
– Lies just above the expected D’Kar – Ngwako Pan contact zone.
– Soil geochemistry directly over the anomaly at Acacia Target demonstrates significantly anomalous levels of copper (>42ppm) and zinc (>75ppm).
– Acacia was considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
· The Morula Target is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036/2020:
– Discovered by extending soil sampling lines south of the Acacia Target but also supported by a weaker AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– Now, four new 4km long infill soil sample lines (1km apart with 100m sample intervals) have been completed to close the gap.
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 12km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
THE POWER METAL/KAVANGO JOINT VENTURE
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc, an England and Wales public company.
Exploration costs are equally shared. Kavango is the operator of the Project.
Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd which is wholly owned by Kanye Resources plc.
There are plans to IPO Kanye Resources plc on a recognised stock exchange.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Kavango Resources #KAV – Kanye Resources Exploration Update – Extensive anomalies identified, including seven AEM conductive targets at Kalahari Copper Belt
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the identification of seven conductive targets in the Company’s South Ghanzi copper exploration project (“South Ghanzi”) in the Kalahari Copper Belt (“KCB”).
The seven targets were defined by the Airborne Electromagnetic (“AEM”) surveys flown over South Ghanzi in February. Follow up ground-based exploration of the geophysical anomalies has delivered very encouraging results, with close correlation between copper-zinc in soils geochemistry, regional geological mapping and the AEM data.
These findings align closely with previous fieldwork conducted by Kavango and the established regional exploration model for the discovery of major copper/silver deposits within the KCB.
South Ghanzi is held in a Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Highlights
Ø Seven conductive, kilometre-scale anomalies defined by AEM surveys, recently flown by SkyTEM Ltd
– Each anomaly represents a potential drill target
– Initial data interpretation suggests a range of target depths of 40m to 400m for exploration drilling
– Kavango will follow up with additional soil sampling, trenching and geological mapping ahead of a drilling program planned for later in 2021.
Ø Three of the conductors are associated with anticlines/fold structures. These are the highest priority targets for further exploration.
Ø Target 36A (“Acacia”) is a 4km x 4km conductor on the northern boundary of PL 036-2020
– Lies within a fold “nose”, which is plunging southwest
– Made up of at least 4 individual pods of high conductivity
– Soil geochemistry directly over the anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm)
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB.
Ø Target 36G (“Morula”) is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036
– AEM data and the soil geochemistry suggest this target represents the sheared and thrust faulted southern limb of the “Acacia” fold
– The soil geochemistry anomaly along the Morula target extends for over 12km demonstrates and is open at both ends
– Seven 4km long soil sample lines (500m spaced with 100m spaced samples) completed, with four intersecting the southwest and three intersecting the northeast of Morula. The two groups of soil sample lines were 7km apart
– All soil sample lines returned readings with significant concentrations of copper (38ppm to 62ppm) and zinc (59ppm to 111ppm) across the 12km soil anomaly
– Seven infill soil sample lines planned at 1km spacing, to test the extent of potential mineralisation across the Morula conductor/anomaly.
Ø Target B (“Baobab”) is a 2km x 3km closed conductor, about 1km south west of the Morula fold and 4km south east of Ghanzi town within PL 036/2020
– The Target sits across the “nose” of a second, “opposing” fold on the same stratigraphic horizon as Acacia.
– Baobab is in a very encouraging geological setting. Soil geochemistry Survey underway.
Ø Target E (“Elephant”) lies in the southeast corner of PL 037/2020. It is a broad, 2.5km wide intense conductor with a strike of at least 6km and open at both ends
– Unlike most of the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface
– A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
Ø 3D AEM model interpretation of South Ghanzi is in progress and will include re-logging of water borehole chips and historic drillholes.
Ø An Environmental Management Plan (“EMP”) application is progressing
– Upon award of the EMP, the Company plans to initiate exploration drilling across a number of these targets.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The Airborne EM program has demonstrated that the two Ghanzi South PLs have significant potential for the discovery of copper/silver mineralisation. The generally shallow depth of the conductors is a major asset.
We are confident we are looking at numerous mineralised systems. The copper and zinc readings taken from Kalahari cover are promising, but we will only be able to gauge economic viability after drilling and assay testing.
In the meantime, the acquisition of a new portable XRF analyser will speed up the soil geochemistry surveys. Trenching through shallow Kalahari cover is also possible in some areas and will assist in the geological mapping. The aim is to have a more complete understanding of the geology before a drilling program is undertaken later in the year.
The results to date from the South Ghanzi Project have been very promising. We are particularly encouraged by the elevated copper and zinc readings, which correlate closely with sizeable sections of the shallow depth AEM conductors.
With the Environmental Management Plan application progressing well, the next few months in South Ghanzi will be key.”
South Ghanzi exploration
The South Ghanzi PLs lie within the Central Structural Corridor of the Kalahari Copper Belt immediately south of the town of Ghanzi.
Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive. AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.
Kavango’s strategy in the KCB is to identify conductive targets and then to complete follow up investigation, using other proven exploration methods including geological mapping and testing of soil geochemistry through extensive sampling. The correlation of positive zinc and copper soil geochemistry readings to positive AEM results is a highly encouraging exploration vector.
Given Kavango’s understanding of the regional lithology and stratigraphy of the KCB, the Company is optimistic about the progress it has made in South Ghanzi over recent months.
Specifically, the identification of a number of smaller anticlines associated with conductors suggests there are multiple promising drill targets at South Ghanzi.
AEM survey results
SkyTEM Ltd, a Danish geophysical contractor, conducted the AEM surveys over South Ghanzi in February 2021.
A total of 1,271 line kms were flown over the 2 PLs, which comprise a total area of 1,294km2. The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart and an approximately North-South orientation.
The survey blocks were selected by Kavango’s geophysical team, based upon analysis of magnetic data, soil geochemistry, remote mapping of geological structures and field mapping of the stratigraphy and structural geology.
The AEM surveys defined seven distinct conductor anomalies on both PLs. These are mostly related to fold hinge structures and confined to the interface between the Ngwako Pan and D’Kar Formations. Significantly, the conductors are usually coincident with copper and zinc soil anomalies detected using portable XRF equipment.
– Copper is a less mobile element in soil, so the identification of such elevated readings is promising
– As a more mobile element, zinc is a known “pathfinder element” in the search for major copper/silver deposits. Zinc has been successfully used as an exploration vector for other discoveries in the KCB.
The most significant conductor (Acacia) lies just south of the northern boundary of PL036/2018 about 9km SW of Ghanzi town. The conductor is approximately 4km x 4km in area and is made up of at least 4 individual pods. The conductive material appears to exist almost from surface to a depth of no more than 200m. The conductor lies almost entirely within the fold “nose”, which is plunging to the SW and within the D’Kar Formation just above its contact with the Ngwako Pan Formation.
Kavango has completed extensive soil sampling over Acacia, having taken samples over 16km of lines. Results demonstrate extensive copper and zinc anomalies over the conductive target. The majority of the anomalous readings were >42ppm copper and >75ppm zinc.
An associated conductor (Morula) lies just to the south of Acacia and is also supported by a strong copper in soils anomaly. The conductor is at least 2km wide and over 12km along strike (open at each end).
This conductor probably represents the southern limb of the same fold, but appears to be sheared along a thrust fault. This sheared limb has been cut by a number of NNE trending structures (faults). Such faults are known to be associated with mineralisation elsewhere on the KCB. The Company might elect to conduct further AEM surveys to close off the anomaly and establish its true extent.
The third priority conductor (Baobab) is 2km x 3km in area and is contained within the “nose” of a second major fold on the same stratigraphic horizon as the Acacia target. The size and geological setting for this conductor is encouraging. Kavango will prioritise soil sampling of this area in the coming weeks.
The fourth priority conductor (Elephant) lies in the southeast corner of the South Ghanzi Project and is also supported by a strong copper in soils anomaly. The conductor is at least 2.5km x 5km in area and remains open along strike.
Unlike the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface. A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
The Company might elect to conduct further AEM survey work to close off the conductor and establish its true extent.
Environmental Management Plan
Kavango initiated the EMP application in February. The award of an EMP is a prerequisite for exploration drilling in Botswana.
The Department of Environmental Affairs (“DEA”) has accepted the project brief for the EMP. A consultant, working on behalf of Kavango, will now engage and consult with local farmers, before submitting a report to the DEA to progress the application.
The POW/KAV Joint Venture
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The technical information contained in this announcement has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles is a beneficial shareholder of Kavango Resources plc.
Power Metal Resources #POW – Kanye Resources Exploration Update – Extensive anomalies identified, including seven AEM conductive targets at Kalahari Copper Belt
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an exploration update in respect of the South Ghanzi Project which is part of the Kanye Resources Botswana focussed corporate vehicle Strategic Joint Venture (“SJV”) with Kavango Resources plc (LON:KAV) who are the operator of the SJV, see announcement of 29 March 2021.
The South Ghanzi Project is focussed on exploration for copper-silver deposits on the Kalahari Copper Belt (“KCB”), Botswana.
Further to the completion of over 1,200 line-km of airborne electromagnetic (“AEM”) geophysics survey flown by SkyTEM Surveys ApS (“SkyTEM”) over South Ghanzi (announced 17 March 2021), the results of AEM data processing and interpretation have delineated seven conductive anomalies constituting high priority targets for further work.
Follow up ground-based investigation of AEM conductive anomalies has delivered encouraging results. Where existing soil sampling results coincide with an AEM anomaly (Target A1 named “Acacia”) there is a close positive correlation between elevated copper (“Cu”) and zinc (“Zn”) results in soil geochemistry, a conductive anomaly and regional geological mapping.
The soil geochemical survey lines will now be extended to provide further coverage and resolution over A1, and additional soil surveys will be placed over the remaining conductive anomalies.
The additional soil data in conjunction with geological logging of existing water borehole rock chips, the AEM results, and further geological modelling will help fine-tune the placement of drill holes in a planned programme to test emerging high priority targets for copper mineralisation later in 2021 as outlined below.
These findings align closely with previous fieldwork conducted and the established regional exploration model for the discovery of major copper/silver deposits within the KCB.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We are extremely pleased with the exploration progress made by our joint venture partner Kavango at the South Ghanzi copper-silver project, centrally located within the burgeoning Kalahari Copper Belt. The exploration work completed over the last 12 months at South Ghanzi has been carried out in a systematic and disciplined manner which has paid off with the discovery of at least seven highly compelling exploration and drill targets.
Power is particularly encouraged by the 4km x 4km Acacia target, as it possesses not only a high conductivity signature detected by the AEM survey, but also almost perfectly coincident Zn- and Cu-in-soil anomalies, which are key signatures typical of nearby copper-silver discoveries within the Belt.
The exploration story at South Ghanzi continues to progress at pace and we eagerly await the next phase of results and drill testing of several of these high-priority targets.”
Technical Summary
Ø Seven conductive, kilometre-scale anomalies defined by the processed SkyTEM AEM survey data:
– Each conductive anomaly represents an area of focus for follow-up geochemical sampling and drill testing.
– Initial data interpretation suggests a range of target depths of 40m to 400m for exploration drilling.
– Follow-up work includes additional soil sampling and geological modelling ahead of a drilling programme planned for later in 2021.
Ø Three of the AEM conductors are associated with interpreted anticlines/fold structures. These are the highest priority targets for further exploration.
Ø Target A1 (“Acacia”) is a 4km x 4km conductor on the northern boundary of the PL 036/2020 licence area:
– Located within an interpreted fold “nose”, which is plunging southwest.
– Soil geochemistry directly over the anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm) relative to background.
– Zinc is believed to be a key pathfinder element for the discovery of copper/silver deposits within the KCB.
Ø Target G (“Morula”) is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of licence PL 036/2020:
– AEM data and the soil geochemistry suggest this target possibly represents the mineralised southern limb of the “Morula” fold.
– Subject to further infill soil survey lines and verification, the soil geochemistry anomaly along the Morula target holds the potential to extend over 12km based on the geophysical data and existing results from seven 4km long soil sample lines (at 500m line-spacing and 100m sample points). Four survey lines currently intersect the southwest of Morula with three intersecting the northeast. The two groups of soil sample lines are currently 7km apart.
– All soil sample lines returned readings with significant concentrations of copper (38ppm to 62ppm) and zinc (59ppm to 111ppm) where they cross the 12km long Morula target.
– Seven infill soil sample lines are planned at 1km spacing, to test the extent of elevated copper and zinc across Morula.
Ø Target B (“Baobab”) is a 2km x 3km closed conductor, about 1km south west of the Morula fold and 4km south east of Ghanzi town within PL 036/2020:
– The Target sits across the “nose” of a second major “opposing” fold, interpreted to be on the same stratigraphic horizon as Acacia.
– Baobab is in a very encouraging geological setting and a soil geochemical survey is planned in the near term.
Ø Target E (“Elephant”) lies in the southeast corner of PL 037/2020. It is a broad, 2.5km wide conductor with a strike of at least 6km and open at both ends:
– Unlike most of the other targets, the main body of the Elephant anomaly is interpreted to be between 400 and 600m below surface.
– A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
– Soil geochemistry demonstrates elevated levels of copper and zinc across this anomaly.
Ø 3D modelling of the SkyTEM AEM data is planned to include re-logging of water borehole rock chips and historical drillholes.
Ø An Environmental Management Plan (“EMP”) application is progressing. Upon award of the EMP, Kanye plans to initiate exploration drilling on the South Ghanzi Project.
Exploration Rationale
The South Ghanzi licences (PL 036/2020 and PL 037/2020) cover an area of 1,294 km² and lie within the Central Structural Corridor of the KCB immediately south of the town of Ghanzi.
Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive and AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.
Kanye’s strategy in the KCB is to follow-up conductive AEM targets with proven exploration methods including soil geochemical sampling, geological/structural mapping, and three-dimensional data inversion modelling. The correlation of positive zinc and copper soil geochemistry in conducive structural settings with positive AEM results is a successful exploration vector for drill targeting.
The current understanding of the regional lithology and stratigraphy of the KCB has helped with the identification of a number of smaller anticlines associated with the AEM conductors which, subject to further verification and soil sampling, could form the basis for multiple potential drill targets across the South Ghanzi Project.
AEM Survey Results
SkyTEM Ltd, a Danish geophysical contractor, conducted a total of 1,271 line-kms of AEM survey over the South Ghanzi licences (PL 036/2020 and PL0 37/2020) in February 2021. The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart with an approximately North-South orientation.
The survey blocks were based upon analysis of magnetic data, soil geochemistry, remote mapping of geological structures and field mapping of the stratigraphy and structural geology.
The AEM surveys defined seven distinct conductor anomalies across both licences. These appear to be mostly related to fold hinge structures and are interpreted to be confined to the interface between the Ngwako Pan and D’Kar Formations. The coincidence of AEM conductors with copper and zinc soil anomalies is an important exploration vector.
– Copper is a less mobile element in soil, so the identification of elevated Cu readings over background levels through Kalahari Cover is promising.
– As a more mobile element, zinc is believed to be a key “pathfinder element” in the search for major copper/silver deposits. Zinc has been successfully used as an exploration vector for other discoveries in the KCB.
The most significant AEM conductor (Acacia) lies just south of the northern boundary of PL036/2018 about 9km SW of Ghanzi town. The conductor is approximately 4km x 4km in area and is made up of at least 4 individual pods. The conductive material appears to exist almost from surface to an interpreted depth of no more than 200m. The conductor lies almost entirely within a fold “nose”, which is plunging to the SW and within the D’Kar Formation just above its contact with the Ngwako Pan Formation.
To date 16 line-km of soil sampling has been completed over Acacia. Results demonstrate extensive copper and zinc anomalies over the conductive target with average results over 42ppm copper and over 75ppm zinc.
The Morula target lies just to the south of Acacia and is also supported by a strong copper in soils anomaly. The conductor is at least 2km wide and over 12km along strike (currently open at each end).
This target probably represents the southern limb of the same fold but appears to be sheared along a thrust fault. This sheared limb has been cut by a number of NNE trending structures (faults). Such faults are known to be associated with mineralisation elsewhere on the KCB.
The third priority conductor (Baobab) is 2km x 3km in area and is contained within the “nose” of a second major fold interpreted on the same stratigraphic horizon as the Acacia target. The size and geological setting for this conductor is encouraging. Kavango will prioritise soil sampling of this area in the coming weeks.
The fourth priority conductor (Elephant) lies in the southeast corner of the South Ghanzi Project and is also supported by a strong copper in soils anomaly. The conductor is at least 2.5km x 5km in area and remains open along strike.
Unlike the other targets, the main body of the Elephant anomaly is interpreted to be between 400 and 600m below surface. A number of faults intersect the main body, giving rise to several close surface conductors which could be sampled with shallow drilling. The close surface conductors are the higher priority exploration targets.
Environmental Management Plan Update
The EMP application process was initiated in February. The award of an EMP is a prerequisite for exploration drilling in Botswana. The Department of Environmental Affairs (“DEA”) has accepted the project brief for the EMP. A consultant, working on behalf of Kavango, will now engage and consult with local farmers before submitting a report to the DEA to progress the application.
FURTHER INFORMATION
Strategic Joint Venture – Group Structure and Interests
The SJV currently has a 100% interest in the two Ghanzi South prospecting licences (“PLs”) prospective for copper/silver mineralisation on the KCB (1,294km2) and the two ‘Ditau Project’ PLs south of the town of Kang in central Botswana (1,386km2). The Ditau Project is prospective for minerals associated with carbonatite intrusions including rare earth elements. All four PLs are currently being transferred into the name of Kanye Resources Botswana (Pty) Ltd from Kavango Minerals (Pty) Ltd.
Kanye Resources Botswana (Pty) Ltd, incorporated in Botswana, is a 100% subsidiary of UK registered Kanye Resources plc and is the SJV initiative between Kavango (50%) and Power Metal (50%). As announced 17 March 2021, a listing of Kanye Resources plc on the London Stock Exchange is planned for later in the year.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.