Tag Archives: Nick O’Reilly

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:

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 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 Ni₃S₂ a secondary nickel sulphide mineral

Maucherite Ni₁₁As₈                             a nickel arsenide

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

Pentlandite (Fe,Ni)₉S₈                         a 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:

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

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

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

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

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

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

Highlights:

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

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

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

THE DRILL PROGRAMME

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

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

DRILL HOLE KKME 1-14

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

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

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

DRILL HOLE KKME 1-6

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

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

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

FURTHER INFORMATION TECHNICAL FOLLOW UP WORK

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

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

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

COMPETENT PERSON STATEMENT

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

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

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

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.