molopo farms complex project

#POW Power Metal Resources – Molopo Farms Complex Project – Drill Target K1-6

16th August 2022 / Leave a comment

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project (“Molopo Farms” or the “Project”) targeting a large scale nickel-copper-platinum group element (“PGE”) discovery in southwestern Botswana.

KEY HIGHLIGHTS:

§ Two ground-based electromagnetic (“EM”) geophysics surveys now complete, covering areas hosting 2020/2021 diamond drillholes KKME 1-14 (“K1-14”) and KKME 1-6 (“K1-6”).

§ Preliminary survey results have highlighted a large shallow dipping magnetic conductor at drillhole K1-6.

§ Plotting of drillhole K1-6 shows that the drillhole penetrated the edge of the newly identified magnetic conductor at a similar stratigraphic level to nickel-sulphide mineralisation averaging 7.0m @ 0.443% Ni from 445m, including 0.6m @ 1.69% Ni, 0.55g/t Pt & 0.14g/t Au from 446.7m downhole.¹ This is within a broader mineralised interval from 294.7m (when pentlandite was first logged – assay result of 6606ppm Ni from 294.7 – 295.28m) to the end of the hole at 597.8m (minor sulphides logged – assay result 2852ppm Ni from 597.0 – 597.8m).

§ Planned 2022 diamond drill programme start date now being brought forward. The upcoming programme will now focus on testing the central and stronger part of this magnetic conductor. At present the plan is to drill 6 drillholes for approximately 2600m during this upcoming programme.

A map highlighting a location plan map of the Project (Fig.1) as well as a zoomed out (Fig. 2) and zoomed in (Fig. 3) cross-section of the MLEM results over target area K1-6 can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-rns/

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

“Today’s exploration news is, in my view, potentially one of the more significant the Company has released in its 3-year history as Power Metal.

We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of the magnetic conductor was mineralised, with widespread nickel sulphides demonstrated from assay testing and follow up petrological analysis.

As a result of the findings, multiple drillholes planned for the 2022 programme will target the centre of the magnetic conductor where we believe there is the potential for a more strongly mineralised system where the conductive response is considerably stronger and larger.

The EM survey over K1-6 captured 800m of magnetic conductor length where it remains open at depth. The magnetic conductor is also shallow dipping and expands in magnitude and size at depth based on the preliminary processed survey images we hold at present.

As a result we believe we have a compelling reason to accelerate drilling at Molopo Farms and are working in order to achieve that.

In the link above to our website you will see the survey images, with explanatory information, for review. The further information below explains the findings in more detail and also gives additional information in regards to an additional strong magnetic conductor identified below target 1-14, which was not tested by the 2020/2021 drillhole in that area.

This is an exciting time for the Power Metal team and we are now pushing ahead at pace.”

GEOPHYSICAL SURVEY – OVERVIEW

§ Spectral Geophysics have completed the 2022 Phase I exploration programme which included two moving loop electromagnetic (“MLEM”) geophysics surveys over targets 1-6 and 1-14. The MLEM survey results will assist the company in further refining drill collar locations prior to the planned 2022 diamond drilling campaign.

§ Preliminary MLEM survey results over the I-6 target suggest that the 2021 drillhole (K1-6) targeting this zone clipped this sizeable shallow-dipping (south) magnetic conductor. The magnetic conductor appears to be increasing in magnitude with depth where it remains completely untested by drilling.

§ Preliminary MLEM results over the 1-14 target suggest the presence of a strong magnetic conductor located directly south of the 2021 drillhole (K1-14) that targeted this zone. While there are conductive Transvaal carbonaceous mudstones in the area of the survey, the centre of this anomaly is strongly coincident with a magnetic high caused by the ultramafic rocks in the area – suggesting that the magnetic conductor detected by this survey may be located within the ultramafic intrusive rocks.

§ A Botswana based drilling contractor has been selected for the upcoming planned diamond drilling programme at Molopo Farms and a site visit with the drilling company’s foreman and Power’s in-country geological consultant is planned for later this week.

FURTHER INFORMATION

Spectral Geophysics has now completed MLEM surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. Preliminary results have been made available to the Company, with finals results expected within the coming weeks.

The rationale for these surveys was as follows:

Target 1-6 : Previous 2020/2021 drill programme results returned nickel (sulphide) values of up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au, within a composite intersection of 7.0m @ 0.44% Ni from 445 to 452.0m in K-1-6, hosted by layered ultramafic rocks of the Molopo Farms Complex .^1,2

The preliminary results from the recently completed MLEM survey have allowed for significantly enhanced resolution of the original EM anomaly that was targeted by drilling in 2021.

Specifically, the results now indicate that drillhole K1-6 intersected the edge of the large shallow-dipping magnetic conductor in the area, which also appears to be increasing in size and magnitude with depth where it remains completed untested by drilling.

The 2022 drilling programme will test this intriguing target.

Target 1-14 : Defined by a broad strong EM anomaly which was targeted by a single drillhole during the 2020/2021 drill programme.² The drillhole (1-14) intersected carbonaceous mudstones at depth which, although highly conductive, were determined to be flat lying and therefore did not explain the magnetic conductor which was indicative of a shallower, steeply dipping body. ³

The preliminary results from the 2022 MLEM survey over this target have identified a magnetic conductor that is coincident with a magnetic high associated with ultramafic rocks in the area.

The results therefore suggest that the magnetic conductor may be located within the ultramafic intrusive rocks in the area, making it a highly viable drill target for the 2022 drilling campaign.

PROJECT BACKGROUND AND OWNERSHIP

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key. On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo increasing to 87.71% (the “Transaction”). The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

References:

1 Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )

Diamond Drill Hole KKME 1-6 Assay Data – reported 24 September 2021 – with 7.0m composite

Drill Hole ID	From (m)	To (m)	Interval (m)	Ni (ppm)	Au (g/t)	Pt (g/t)
1-6	445.0	446.0	1.0	2663	<0.05	<0.05
1-6	446.0	446.7	0.7	3012	<0.05	<0.05
1-6	446.7	447.3	0.6	16961	0.14	0.55
1-6	447.3	448.0	0.7	6948	<0.05	0.11
1-6	448.0	449.0	1.0	3056	<0.05	0.06
1-6	449.0	450.0	1.0	3187	<0.05	<0.05
1-6	450.0	451.0	1.0	2504	<0.05	<0.05
1-6	451.0	452.0	1.0	2474	<0.05	<0.05
Weighted average Ni intersection			7.0	4,433

* All depths and intervals are as measured downhole.

2 Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

3 Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w )

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Power Metal Resources #POW – Quarterly Business Update

27th July 2022 / Leave a comment

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the quarterly business update for shareholders.

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

“First Class Metals, into which we sold our Schreiber-Hemlo interests is nearing its planned listing; we recently conditionally disposed of our stake in the Botswana Kanye JV to our partner Kavango Resources; and we have Golden Metal Resources (Nevada, USA focused) nearing completion of its IPO preparations, with First Development Resources’ planned listing process (Australia focused) well underway. We expect more crystallisation events to occur from our still extensive portfolio.

Crystallisation of value into strategic investments bolsters our balance sheet considerably and offers the potential for considerable capital gains, alongside providing a major pool of available working capital to the Company. However, what enthuses us even more is the future direction of the Company and the exploration potential offered from within our retained portfolio.

We would reinforce our commitment to growing a uranium focus in the Company, with the energy metal slated for a continuing resurgence as the world continues in its journey towards significantly increased reliance on nuclear power generation. Going forward, we will also focus our energy and resources on the more rapid advancement of certain retained exploration projects, including notably our two remaining Botswana interests in the Molopo Farms Complex and Tati Greenstone Belt projects.”

GUIDANCE FOR READERS

The tables below include the latest position of each project and our operational plans over the course of the next three months.

Projects are grouped into the following categories to provide additional clarity to investors on the project status and near term plans:

– Priority exploration projects

– Project disposals or IPO processes underway

– Projects with next steps to be determined pending receipt of further information

Below the project tables, additional information is provided covering new opportunities, business management, finance and compliance.

Readers are also encouraged to review Power Metal’s corporate website and presentation which are regularly updated and are available through the following links:

Website: www.powermetalresources.com

Corporate Presentation: https://www.powermetalresources.com/presentation/

PRIORITY EXPLORATION PROJECTS

Project

Latest Position & Forward Plans

Athabasca Uranium

Saskatchewan, Canada

(Uranium)

POW 100%

Power Metal currently holds 7 properties with 3 newly acquired properties to be transferred to it, as announced 26 July 2022 and which together cover 721km²surrounding the Athabasca Basin.

Detailed data compilation has been completed and external datarooms opened for third parties in respect of 7 properties. We have completed hyperspectral data analysis over 4 properties with the findings leading to the planned launch of ground exploration at those properties shortly.

In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.

Authier North

Quebec, Canada

(Lithium)

POW earn-in to 100%

The Company continues to monitor progress being made by Sayona Mining (ASX: SYA) who control the neighbouring Authier Lithium Project.

On 12 July 2022 Power Metal announced the decision to proceed into year 2 of the earn-in to a 100% interest in Authier North.

Ground exploration plans are being finalised with work expected to commence this quarter.

Molopo Farms Complex Project

Botswana

(Nickel – Copper – Platinum Group Element)

POW: Effective Economic Interest is currently 52.6% increasing to 87.71% subject to completion of the KKME shares acquisition & restructuring announced 18.5.22.

Power Metal secured a conditional agreement to acquire an additional 58.7% of shares in project partner Kalahari Key Mineral Exploration Pty Limited (“KKME”) as announced on 18 July 2022:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

This acquisition, conditional on regulatory approval, will see Power Metal holding 87.71% of KKME which will hold 100% of the Molopo Farms Complex Project (“Molopo Farms”).

The next step is diamond drilling to follow up on the discovery of nickel sulphides in the first drill campaign and seeking an economic and large-scale discovery.

Planning is underway now for this next drill programme which, subject to completion of the agreement to acquire an additional 58.7% of shares in KKME, we expect to commence in the autumn.

Simultaneously, we have prepared and opened a Molopo Farms dataroom providing all project information for interested third parties to review. All such engagements will be under non-disclosure arrangements at this time.

Tati Project

Botswana

(Gold – Nickel)

POW: 100%

The Company announced the results from a maiden drill programme at the Tati Project on 4 April 2022 and this may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-programme-results/15396365

Drilling confirmed 3 metres of 5.17g/t gold from 9 metres downhole, representing shallow gold mineralisation. Analysis led to additional gold prospective ground being covered by a new prospecting licence (“PL”) application, which was granted in April 2022 as announced to the market:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-new-licence-granted/15422038

Recently the Company’s technical team visited the new PL to conduct site inspections and mapping, confirming extensive historical gold workings at the Cherished Hope gold mine as well as large fines dumps which may be capable of near-term revenue generation through toll processing of gold:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploration-update/15543783

As a result of the findings from the site visit undertaken, we have expedited plans including further volumentric analysis and gold sampling of fines dumps and a reverse circulation (“RC”) drill programme is expected to commence in September/October of this year.

PROJECT DISPOSALS OR IPO PROCESSES UNDERWAY

Note: other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.

Project

Latest Position

Kanye Resources

Conditional Disposal to Kavango Resources

On 8 July 2022 Power Metal announced the conditional disposal of its Kanye Resources interest to its joint-venture partner Kavango Resources plc (LON:KAV)(“Kavango”).

The disposal is subject to the publication of a prospectus by Kavango including provision for the transaction.

Full terms and disposal consideration payable to Power Metal may be viewed in the announcement linked below:

https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resources-interests/15532470

First Class Metals PLC (FCM)

Schreiber-Hemlo, Ontario, Canada

(Gold – Base Metals)

POW c.36%

Power Metal currently has an interest of 36.3% in FCM following the FCM pre-IPO financing which raised £486,000 in 2021. FCM is seeking a listing on the London capital markets which is expected to occur shortly.

First Class Metals has 100% ownership of 7 claim blocks covering over 180km² in the Hemlo – Schreiber greenstone belt of Ontario, Canada.

The North Hemlo flagship property covers over 90km² and sits just north of Barrick Gold Corp’s Hemlo gold mine. The North Hemlo property has abundant showings of gold/copper/zinc/nickel.

In the east of the North Hemlo property sits the Pickle Lake joint venture with Palladium One (TSX:PDM) which is the subject of a current drill programme focussing on nickel/copper targets.

Golden Metal Resources PLC (GMR)

Nevada, USA

Gold – Base Metals

POW 83.13%

Power Metal provided a Golden Metal Resources (“Golden Metal”) company update on 19 July 2022 which may be viewed below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15547371

Following the pre-IPO financing which raised £750,000 in late 2021 preparation for the planned listing of Golden Metal is near to completion and this will lead into the IPO financing, and subject to regulatory approvals, a planned listing on the London capital markets expected to occur this quarter.

Golden Metal is active from an exploration perspective with an induced polarisation (“IP”) survey underway over the Pilot Mountain project and a high-resolution soil geochemical survey active across the Garfield project.

First Development Resources Ltd (FDR)

Western Australia

(Gold – Copper – Rare Earth Elements – Uranium – Lithium)

POW: 62.12%

FDR has undertaken multiple exploration and corporate work streams in recent months.

A detailed company update will be released to the market shortly providing an update which will cover:

– Final preparations for the Wallal project diamond drill programme

– Exploration findings from the Braeside West, Ripon Hills and Selta projects

– Update with regard to the planned listing process now fully underway following the completion of a £1.125m pre-IPO financing as announced in June 2022.

New Ballarat Gold Corporation PLC (NBCG)

Victoria, Australia

(Gold)

POW: 49.9% 50.1% JV Partner Red Rock Resources PLC LON:RRR)

Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia. This comprises 14 granted exploration licences covering 1,832km² and 5 licence applications covering 493km².

A planned listing of NBGC has taken longer than anticipated but remains the focus of the company with a potential planned listing in the London or Australian capital markets later this year.

Much work has been undertaken recently to advance the licences held in NBGC including continuing exploration work by our in-country operational team. Also through the advancement of licence applications into granted status, which has now been achieved for 79% of the application footprint.

Recent licence grants include EL007330 located northeast of Ballarat and this newly granted licence covers the Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s (“Ajax”). Further information in our announcement of 24 May 2022:

https://www.londonstockexchange.com/news-article/POW/victorian-gold-fields-grant-of-key-licences/15465313

The addition of the Ajax gold mine above was further supplemented by a transaction to acquire EL5535 which covers the historical Berringa gold mine just west of Ballaratwhich has historical production of 293,250 ounces of gold from 1898-1952, at an average grade of 8.3g/t (“Berringa”). Further information in our announcement of 6 July 2022:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927

The mined sections of the Ajax and Berringa trends are thought by RRAL to be among the top half dozen historic underground gold mines of Victoria and contain significant exploration targets. Both mine areas are within 30km of existing and not fully utilised treatment plants.

Work is currently being undertaken to better understand historical mining activities, residual gold resource potential and drill targets at both Ajax and Berringa, with a view to diamond drilling later this year.

This work is being undertaken alongside various work streams in respect of the planned listing.

PROJECTS WITH NEXT STEPS TO BE DETERMINED

Project

Latest Position & Key Forward Events

Alamo Gold Project

Arizona, USA

(Gold)

POW: Earn-in to 75%

Various technical reports have now been received and reviewed following work undertaken at the Alamo gold project in Arizona.

The findings are inconclusive to date and require additional work to be undertaken to further the technical understanding of the project’s potential.

We are working with our partners in Arizona to review the technical work required and the costs attaching. We are also looking at the earn-in which may need to be restructured given the findings thus far.

Gawler Project

South Australia

(Gold, Copper)

POW: 100%

The Gawler Project comprises two licence applications (submitted October 2021 and covering 1,994km²) details of which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456

Recently Power Metal Resources Australia Pty Limited, Power Metal’s wholly owned operating company, was advised that the Department of Energy and Mining (“DEM”) proposed granting of one licence application ELA2021/00163 (999km²) for a period of 6 years. The initial expenditure commitment for the licence is AUD$100,000 in total over 2 years, and Power Metal has paid AUD$23,055.10 in respect of first year rent and administration fees to the DEM. The Company now awaits final regulatory sign-off and release of granted licence documentation.

Internal technical review by the Power Metal team has been undertaken and an initial exploration programme is being finalised in preparation for the launch of ground exploration following receipt of the granted licence documentation.

Power Metal awaits progress with regard to the granting of ELA2021/00162 (995km²) and will similarly launch planned ground exploration subject to the granting of the licence.

Haneti Project

Tanzania

(Polymetallic)

POW: 35% (65% JV Partner Katoro Gold plc LON:KAT)

Drill results were announced for the Haneti Project in May 2022. Drilling identified the targeted nickel, but not in economically significant intersections. The technical results from the programme are expected to lead to further target development at Haneti for ongoing exploration.

In addition data from the programme is now being made available to third parties previously interested in the Haneti project, to augment information previously supplied up to Q1 2020.

Power Metal is keen to progress the Haneti project through further targeted exploration and/or corporate activity.

Silver Peak Project

British Columbia, Canada

(Silver)

POW: 30%

Liaison with our Canadian partner to finalise commercial initiatives for the project continue. An important next step is a planned site visit which is scheduled for early August 2022, which is expected to assist expediting matters.

NEW OPPORTUNITIES

Project

Latest Position

Power Metal Resources plc

The near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles and project value generative disposals.

The primary acquisition focus for the foreseeable future is uranium projects, however the Company does not rule out other acquisitions of exceptional opportunities.

Power Capital Investments Limited

Global Resource Project Incubator

(Multi-Commodity)

POW: 100%

Power Capital Investments (“Power Capital”) continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities.

This is occurring against a backdrop of intensive activity across the Power Metal business and will for now remain a modest source of activity as we seek to advance our major business interests.

MANAGEMENT – FINANCIAL – COMPLIANCE

Project

Latest Position

Board

The Board currently comprises:

Scott Richardson Brown – Interim Non-executive Chairman

Paul Johnson – Chief Executive Officer

Ed Shaw – Non-executive Director

Power Metal has been engaging with a number of potential board candidates for Power Metal and associated companies.

We have successfully secured full boards for Golden Metal and First Development Resources in advance of their planned listings.

For Power Metal we are undertaking due diligence on new candidates and hope to be in a position to announce new appointments in the near term.

Management and Team

Power Metal has built a strong operational team which along with the board now comprises ten team members based out of our UK office.

We work extensively overseas and have developed equally strong operational partnerships in countries around the world, forming an efficient and cost effective hub-and-spoke operational model.

Power Metal is actively seeking to bring new team members in to support the growth in business and we continue to invite talented individuals from all backgrounds who feel they can contribute to our work to reach out and contact us through the following link:

https://www.powermetalresources.com/join-us/

Financial Position

Working Capital

Working capital comprises cash and listed investments (“Working Capital”).

As at 26/07/22 Working Capital amounted to £1.88m. This is available for payment of corporate costs and exploration expenditure across business operations.

Pre-IPO Vehicles

Power Metal has holdings in three current vehicles undertaking a planned IPO which, valued at the historical pre-IPO valuation level, amount to a total value of £6.92m as per the table below:

POW Holding at Pre-IPO Valuation	£
First Class Metals	1,028,766
Golden Metal Resources	3,325,000
First Development Resources	2,562,500
Total	6,916,266

In addition, Power Metal is seeking with JV partners (Red Rock Resources PLC) to undertake a listing of NBGC, the pre-IPO valuation of which is not confirmed at the current time.

The listing of further project packages may be undertaken which will be incorporated into the above list in due course.

Project Investments & Intercompany Loans

As at 30/06/2022 Power Metal’s remaining assets comprising project investments and intercompany loans, amounting to £5.08m.

Future Financing Sources

The Company has multiple sources of additional financing, not all of which may be necessary or occur in the foreseeable future:

– As an AIM listed vehicle traditional equity financing can be undertaken to raise additional sums where considered necessary.

– Through the exercise of financing and transactional warrants or the exercise of director, team member or adviser options. A full breakdown of all warrants and options outstanding is available on the Company’s website through the following link:

https://www.powermetalresources.com/warrants-options-outstanding/

– In addition to the above, the Company will benefit from the planned listings of the pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value.

– It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests.

Audit and Compliance

Power Metal with the support of One Advisory, completed its interim results for the half year ended 31 March 2022, which in line with best practice were reviewed for comment by the Company’s auditors PKF. The interim results were published on 27 June 2022.

The Company’s year end is 30 September 2022 and it is expected that the audited financial accounts for the full year will be published in February 2023.

Power Metal is now well advanced with preparation of a new environmental, social and governance (“ESG”) initiative which will include:

– Appointment of an ESG Officer for Power Metal and all associated companies.

– Design, implementation of new and wide ranging ESG policies across the Company and embedded at local project or investment level for all Company activities.

Training of all staff members to develop Company-wide core ESG understanding, with in-depth training where required to maintain optimal ESG capability at all levels.

A separate ESG dedicated announcement will be published by the Company in due course.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

NOTES TO EDITORS

Power Metal Resources plc – Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within planned IPO vehicles where Power Metal has a material interest the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

Project	Location	Current POW %	Work Completed or Underway	Results Awaited

Athabasca Uranium	Canada	100%	Hyperspectral data analysis conducted across all 7 properties. Updating to 7 data rooms for third party review.	Finalise review of data from 3 properties. Prepare for summer exploration programme across 4 properties.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%^#	Comprehensive data review complete and establishment of data room for third party review.	Finalise next exploration steps and action plan.
Tati Project	Botswana	100%	Site visit with mapping of gold workings and mine dumps.	Exploration planning underway including further mapping, sampling and launch of an RC drill programme.
Victoria Goldfields	Australia	49.9%	Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.	Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences.

^#subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

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

24th September 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the results from further assays received from hole KKME 1-6, the second of three holes drilled at the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project located (“MFC” or the “Project”) in southwest Botswana.

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

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

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

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

HIGHLIGHTS:

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

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

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

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

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

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

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

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

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

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

* All depths and intervals are as measured downhole.

COMPETENT PERSON STATEMENT

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

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

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

21st July 2021 / Leave a comment

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

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

Christian Schaffalitzky, Chairman of Kalahari Key, commented:

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

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

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

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

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

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

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

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

PROJECT BACKGROUND:

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

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

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

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

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

DRILL RESULTS:

KKME 1-6

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

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

Significant nickel intersections ¹ include:

· 4.8m @ 0.2% Ni from 292.7m

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

· 16.7m @ 0.16% Ni from 501.8m

· 10.9m @ 0.13% Ni from 518.2m

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

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

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

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

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

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

KKME 1-14

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

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

Significant nickel intersections ¹ include:

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

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

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

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

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

NEXT EXPLORATION STEPS:

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

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

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

Assaying Technique and Results

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

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

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

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

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

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

Further Details

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

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

References:

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

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

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

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

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

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

COMPETENT PERSON STATEMENT

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

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries

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

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

Power Metal Resources #POW – Tati Project Botswana – Due Diligence finds significant arsenic, nickel and gold-in-soil anomalies identified from historical data review.

23rd June 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the ongoing due diligence work at the gold-nickel properties (the “Tati Project” or the “Project”) in the Tati Greenstone Belt, Botswana where Power Metal has an option (the “Option”) to acquire a 100% interest in the Project.

BACKGROUND

Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:

https://www.londonstockexchange.com/news-article/POW/option-agreement-botswana-gold-nickel-properties/14966683

Should Power Metal exercise the Option it will acquire a 100% interest in two prospecting licences (“PLs”) PL127/2019 and PL126/2019 prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.

The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).

CHIEF EXECUTIVE OFFICER COMMENT

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

“Power Metal has three current project interests in Botswana (Molopo Farms Complex, Kalahari Copper Belt South Ghanzi Project and the Ditau Camp Project) with active exploration underway at present and where we have already announced significant positive developments including to date:

– The confirmation of significant nickel sulphide intersections at the Molopo Farms Complex project targeting large scale nickel sulphide/PGE discoveries and where Power Metal has a total current effective economic interest of 50.8%.

– The identification of 7 large anomalies from airborne electromagnetic (“AEM”) surveys at the South Ghanzi Project in the Kalahari Copper Belt targeting large scale copper-silver discoveries and where Power Metal has a 50% interest. To date two primary targets, Morula and Acacia, will be the focus of initial planned drilling where intensive soil sampling revealed high copper and zinc in soils confirming the AEM targets.

The announcement today in respect of our potential fourth project interest in Botswana, the Tati Project, is another significant development with our historical review identifying substantial arsenic, nickel and gold anomalies extending over multi-kilometre lengths within the two licence areas.

These findings compel us to move quickly with ground exploration work to validate and confirm the data which, if successful, could mean the Tati Project holds considerable potential for large scale gold and nickel discoveries.

Further updates from our work programmes will follow as ground operations continue.”

DUE DILIGENCE FINDINGS TO DATE AND PROPOSED WORK PROGRAMMES

Multi-Kilometre Scale Anomalies Identified

· A historical data compilation, completed on the recently acquired prospecting licences, has led to the identification of multi-kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019.

· The historic data collected and interpreted is of widely spaced soil sampling surveys which were undertaken by previous operators.

Prospecting Licence 127/2019

This licence is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.

The licence covers a total area of 89km² and is prospective for orogenic gold and intrusive magmatic nickel mineralisation. The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane nickel-copper-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence.

Notably, a >2.5km nickel-in-soil anomaly, with values up to 360ppm nickel, has been highlighted near the north-western border of the licence where the interpreted extension of the gabbroic intrusions is believed to outcrop below thin Kalahari cover.

Additionally, the historic data shows a northeast-southwest trending >5km long arsenic-in-soil anomaly on PL127/2019 as well as multiple kilometre-scale arsenic-in-soil anomalies which extend directly from the Signal Hill gold deposit located southeast of the licence.

Prospecting Licence PL126/2019

This licence is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).

The licence covers a total area of 35km² and is prospective for orogenic gold and magmatic nickel mineralisation.

The historic data analysis has uncovered a >2km long, northwest-southeast trending gold-in-soil anomaly, as well as a >1km long, nickel-in-soil anomaly which is coincident with a government mapped mafic intrusive unit.

Additionally, several mine dumps were identified in the north-western part of the licence which will be evaluated by the Company.

Next Steps – Due Diligence Ground Exploration

The Company will shortly commence a Phase I ground exploration programme as part of its due diligence which will include infill geochemical survey grids, as well as mapping and prospecting over these newly uncovered historic geochemical anomalies.

This Phase I exploration work will allow the Company to take a decision on Option exercise and should the Company exercise the Option, to develop a Phase II ground exploration programme which is expected to include drilling at the earliest opportunity.

TATI GREENSTONE BELT INFORMATION

The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.

A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.

The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.

The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations operated until 2016, including the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in 1995. Both deposits are located in the south-central portion of the TGB.

Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.

Whilst there is a long history of small scale gold mining on the TGB, the Company believes it to be under explored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths are likely to yield further gold and nickel discoveries.

GLOSSARY

Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.

Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.

Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.

Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.

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

Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.

Fault-bounded volcano-plutonic sequences – Groupings of intrusive and extrusive igneous rocks which are separated by large-scale regional fault structures.

M afic I ntrusive U nit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

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

26th May 2021 / Leave a comment

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

Statement by Paul Johnson, Chief Executive Officer:

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

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

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

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

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

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

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

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

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

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

Power Metal Interests at today’s date:

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

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

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

Operational Highlights

In the Half Year to 31 March 2021:

Australia

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

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

Botswana

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

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

Canada

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

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

The Democratic Republic of the Congo (The DRC)

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

Tanzania

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

USA

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

After 31 March 2021:

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

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

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

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

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

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

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

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

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

Financial Highlights for the Half Year Ended 31 March 2021:

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

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

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)		+44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat		+44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson		+44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson		+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale discovery of precious or base metals.

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

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

Power Metal Resources #POW – Botswana Molopo Farms Complex Commercial Update – Kalahari Key Restructuring Progressing Well and Intention to Seek Listing

6th May 2021 / Leave a comment

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a commercial update in respect of Kalahari Key Mineral Exploration Pty Ltd and the Molopo Farms Complex Project.

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

“We are delighted to see the MFC Project structuring discussions progressing so efficiently and we continue to work with our partners to implement this as quickly as possible.

The decision to create a new UK plc to hold the remaining 60% interest in the MFC Project is an important step. We believe the planned UK listing will enable fuller recognition of the MFC Project’s value, particularly given the notable exploration success already achieved and the level of interest being shown in the Project. We also welcome Richard’s appointment as Newco CEO and note that as expected he is already pursuing matters with some determination.

For Power Metal we are pleased to support the listing of the new vehicle, which will enable our holding in Kalahari Key to have demonstrable value, further building our working capital with additional listed equity.

In the interim we continue to push on with technical work at the MFC project and further updates are anticipated in the near term.”

Background

As announced on 22 April 2021 Power Metal has earned-in to a 40% direct interest in the MFC Project, which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana. The balancing 60% direct interest is held by Kalahari Key.

It is the intention of Power Metal to retain ownership of its 40% direct MFC Project interest at this time.

Restructuring Process

To reflect the new ownership structure a number of steps are planned as follows:

1. Kalahari Key will remain a single project holding company and continue to manage the MFC project, and a new local board will be established including at least one director from Power Metal.

2. The share capital of Kalahari Key will be restructured to reflect a new ownership structure for the MFC Project with 60% of Kalahari Key shares held by existing Kalahari Key shareholders and 40% of shares held by Power Metal.

3. The above 60% Kalahari Key shareholding will be held through a newly formed UK plc (“Newco”) in which existing Kalahari Key shareholders (including Power Metal) will have the same percentage ownership interest as currently held in Kalahari Key.

Proposed Listing of Newco

The intention is for Newco to list on a recognised stock exchange on the London capital markets during 2021 and for it to become a proactive resource exploration vehicle. Newco operations will principally include advancement of the MFC Project and the acquisition of additional opportunities, with a focus on Botswana.

Newco Management

A new Chief Executive Officer, Richard Nolan, has been appointed to manage Newco operations and the proposed listing process. Richard has over 20 years’ international experience in banking and management including equity research, mergers & acquisitions and private equity. He has held board level positions with several natural resource focused companies both private and publicly listed.

Additional Newco board appointments will be announced in due course.

Financing of Newco

Following settlement of any outstanding costs within Kalahari Key, the proceeds from a recent rights issue (raising circa US$259,000 and in which Power Metal took up its rights), when settled by participants, will be applied to initially fund Newco. Thereafter it is expected that Newco will seek additional funding through further private funding rounds or through an IPO on a recognised stock exchange.

Power Metal Interest in the MFC Project

Currently, before the restructuring above, Power Metal holds 18% of Kalahari Key and therefore with its 40% direct project interest has an overall effective economic interest in the MFC Project of 50.8%.

Following the restructuring and upon settlement of the Kalahari Key rights issue in which Power Metal has participated the Company will hold 21.7% of Newco, meaning its overall effective economic interest in the MFC Project will increase to 53.02%.

Latest Exploration Information

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

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious 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 Completes Botswana Molopo Farms Complex US$500,000 Earn-in to 40% Direct Project Interest

22nd April 2021 / Leave a comment

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

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

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

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

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

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

Earn-in Background Information

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

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

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

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

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

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

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

Latest Exploration Information

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

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

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Significant Nickel Intersections Confirmed by Molopo Farms Project Drill Sample Assay Results

8th April 2021 / Leave a comment

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

BACKGROUND:

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

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

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

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

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

CHIEF EXECUTIVE OFFICER UPDATE:

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

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

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

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

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

HIGHLIGHTS:

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

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

o 4.8m @ 0.2% Ni from 292.7m

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

§ 1.6m @ 0.72% Ni from 309.6m

o 16.7m @ 0.16% Ni from 501.8m

o 10.9m @ 0.13% Ni from 518.2m

o 3.4m @ 0.28% Ni from 594.4m

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

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

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

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

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

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

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

Assay Testing

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

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

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

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

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

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

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

Third Drill Hole Progress

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

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

References:

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

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

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

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

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

THE DRILL PROGRAMME

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

COMPETENT PERSON STATEMENT

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

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

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

30th March 2021 / Leave a comment

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

CHIEF EXECUTIVE OFFICER UPDATE

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

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

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

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

HIGHLIGHTS:

Mineralogical Testing

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

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

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

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

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

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

Glossary:

Awaruite Ni₃Fe a nickel-iron alloy

Breithauptite NiSb a nickel-antimony alloy

Heazlewoodite Ni₃S₂a secondary nickel sulphide mineral

Maucherite Ni₁₁As₈a nickel arsenide

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

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

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

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

Shandite Ni₃Pb₂S₂ in inclusions a secondary nickel sulphide mineral

Assay Testing

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

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

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

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

Third Drill Hole Progress

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

Downhole Geophysics

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

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

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

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

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

THE DRILL PROGRAMME

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

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

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

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

SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500

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

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

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