Tag Archives: Red Rock Australasia Pty Ltd

–  Update following completion of technical work and review of initial drill programme data including testwork being carried out on holes K1-6, K1-14 and K1-11a  sulphide mineralisation zones

–  Next steps exploration to understand the potential scale of the mineralisation identified

–  Planned exploration drilling at South Ghanzi targeting copper-silver discoveries subject to approval of the Environmental Management Plan

–  Updates regarding IPO of holding JV company Kanye Resources plc

–  Release of exploration findings

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

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

–  Exploration drilling at Kisinka targeting a copper-cobalt discovery

–  Exploration drilling at Haneti targeting a nickel sulphide discovery

–  Release of exploration findings including technical comparisons of Wallal targets with regional discoveries including the Winu and Havieron deposits

–  Updates regarding IPO of UK holding company

–  Exploration programme initial results

–  Updates regarding IPO of core interests

–  Exploration updates

–  Completion of Silver Peak drill programme (commenced Q4 2020 but halted due to poor weather)

–  Updates regarding IPO of Silver Peak on a recognised stock exchange

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

–  Launch of exploration programmes

–  Launch of next stage exploration following receipt of permits

Power Metal participated in the Molopo Farms Complex (MFC) Project as it provided exposure to a new nickel sulphide – Platinum Group Elements (“PGE”) project in south-west Botswana. The layered ultramafic-mafic intrusion constituting the Molopo Farms Complex holds the potential for a significant nickel discovery, and the ground held within the project licences is interpreted as the feeder zone.

Exploration diamond drilling commenced in Q4 2020 and to date the Company has announced significant nickel sulphide intersections from the second hole drilled,  K1-6 . To encounter intervals with the highest nickel grades found to date in the MFC so early in the initial 3 hole drill programme was an outstanding result reflecting the significant investment in preparatory research and exploration prior to drilling.

Much ongoing technical work is being undertaken and further results will follow from testwork being carried out on holes K1-6, K1-14 and K1-11a with market updates expected in the near term.

Following completion of the first drilling phase technical work the next stage of exploration is to build an understanding of the potential scale of the mineralisation identified and work towards defining a Mineral Resource. 

This next stage is perhaps the most exciting phase of the project exploration.  It is now confirmed that the nickel sulphides sought are present, so now we must seek to delineate an economic deposit through further drilling, which is likely to be preceded by a soil geochemistry programme focussed on the area between K1-14 and K1-6.  Clearly if successful, the value of this project may well be transformational for all parties with an ownership interest, including Power Metal.

Power Metal holds its 50.8% effective economic interest through a direct 40% project stake and through an 18% interest in the orginal project holding company Kalahari Key Mineral Exploration (Pty) Limited, a private Botswana Company (“Kalahari Key”).

As announced 6 May 2021 Kalahari Key is to be restructured to reflect the 40% Power Metal project interest and the Company  is actively engaged on commercial work streams in respect of this restructuring.

The South Ghanzi Project covering a footprint of some 1,294 km² provides Power Metal with exposure to potential copper – silver discoveries within the prolific Kalahari Copper Belt (“KCB”) alongside joint venture (“JV”) partner Kavango Resources plc (LON:KAV).

Power Metal’s CEO Paul Johnson was CEO of Metal Tiger Plc in 2016 when they and ASX listed JV partner MOD Resources made the T3 Deposit discovery nearby in the KCB. The South Ghanzi Project is following a similar exploration methodology to the T3 discovery.

Exploration work at South Ghanzi includes airborne electromagnetic (“AEM”) surveys that have identified eight anomalies representing targets for further ground based exploration. 

Follow up soil sampling work has so far has been focused on two targets, Acacia and Morula, with both targets showing significant zinc and copper in soils which closely follow the structures identified through the AEM work.

Both targets present significant scale soil anomaly targets, Acacia measuring 4 km by 4 km and Morula about 2 km wide by 12 km long (open at both ends).  They will both be subject to exploration drilling following approval of the project Environmental Management Plan (“EMP”).

In addition on 29 March 2021 Power Metal and JV partners announced two conditional agreements to acquire a 100% interest in eight prospecting licences to significantly expand the KCB land footprint and work continues to finalise these transactions.

The South Ghanzi Project interest is held through JV vehicle Kanye Resources Pty Limited in Botswana, which is held outright by Kanye Resources plc, a UK public company.   Currently the licences in respect of South Ghanzi are being transferred into Kanye Resources Pty Limited.

The JV partners are working on an initial public offering (“IPO”) of Kanye Resources plc in the UK capital markets.

The Ditau Camp Project (“Ditau”) is a rare earths exploration project with licences covering a footprint of 1,386 km² and held in JV with Kavango Resources plc, as with the South Ghanzi Project.

Ditau provides Power Metal with exposure to a potentially large scale rare earths opportunity in a secure operating jurisdiction just at the time that secure and stable sources of rare earths are in demand globally.

Exploration work continues at Ditau with soil sampling and ground magnetic surveys investigating ten potential carbonatite targets.

Further market updates covering the results of exploration findings are expected in the near term.

Following completion of the current work programmes the JV partners  expect to undertake shallow drilling to test for the presence of carbonatites and potential rare earth elements.

The Ditau interest is held through the same JV holding company structure as the South Ghanzi Project above.

Power Metal announced on 6 May 2021 a 60 business day option (the “Tati Option”) to acquire a 100% interest in two gold-nickel focused exploration properties in the Tati Greenstone Belt area of eastern Botswana, subject to due diligence (the “Tati Project”).  The properties comprise two prospecting licences covering 124 km².

A historical data compilation on the properties, completed as part of the due diligence process, has led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on both properties. 

As a result, immediate ground based exploration is being undertaken to include infill geochemical survey grids, as well as mapping and prospecting over these newly delineated geochemical anomalies.

Further market updates will be provided in respect of this due diligence exploration programme in the near term.

Should Power Metal exercise the Tati Option, it will hold the interest in the Tati Project through the newly formed, 100% owned Botswana private subsidiary, Power Metal Resources Botswana Pty Limited.  Upon the Tati Option exercise the plan would be to undertake exploration drilling at the project.

Exploration work undertaken since 2019 has delineated a 6.8 km copper-cobalt soil anomaly through the heart of the single licence representing the Kisinka Project.

It was previously planned to follow-up the recently completed ground magnetics survey with in an induced polarisation geophysics survey, however following a review of the data sets it is considered that progressing work straight to drill testing is warranted. 

This drill programme is being planned at present and a further update will be provided in due course.

The Kisinka Project has secured a 25 year Permis d’Exploitation (or Production Licence) which will significantly enhance the value and flexibility of the project should drilling lead to a discovery.

A Rotary Air Blast (“RAB”) 1,965m drill programme was successfully completed at the Haneti Project in early 2021 and the results announced on 7 April 2021.  The project is held with JV partner Katoro Gold Plc (LON:KAT).

The next step at the Haneti Project is deep diamond drilling in order to assess the potential for economic nickel sulphide mineralisation. 

Power Metal is eager to undertake this diamond drill programme and is working with its JV partner to secure commencement of this at the earliest opportunity.

Further work is ongoing with regard to other opportunities at Haneti, which as a polymetallic opportunity also has prospectivity for gold, lithium and rare earths.

First Development Resources Pty Limited (“FDR Australia”) is a private Australian company with 100% ownership (or the right to acquire 100% ownership) in five exploration licence interests (1 granted licence Ripon Hills and 4 licence applications namely Wallal, Wallal West 1, Wallal West 2 and Braeside West) in the Paterson Province, East Pilbara, Western Australia.

Power Metal announced the conditional acquisition of FDR Australia on 28 April 2021 and is working with its Australian partners to finalise matters precedent on the acquisition including the grant of the Wallal licence application.

Good progress is being made with all matters including finalisation of Heritage Agreements locally which are necessary prior to formal grant.

FDR Australia will be acquired outright by a newly formed private UK company First Development Resources Limited (“FDR UK”) in which Power Metal will have a 75% interest.

Following completion of the acquisition above, the intention is to IPO FDR UK in the London capital markets and we are taking preparatory steps to enable that proposed listing.

Alongside the corporate work underway the Power Metal team have also been undertaking a detailed review of exploration data to date, planning principally for drilling of key gold-copper targets.

The Paterson Province is well known for two recent and significant gold-copper discoveries, namely the Winu discovery by Rio Tinto and the Havieron discovery by Greatland Gold plc (LON:GGP).

A desktop review has identified numerous geological analogues between the Wallal Project (comprising three licence applications) held by FDR Australia and both the Winu and Havieron discoveries.

Notably, the magnetic properties of the Havieron discovery were evaluated in comparison to the Wallal Eastern magnetic anomaly which was identified during the recent desktop analysis.

The magnetic amplitude and size of this anomaly was determined to be comparable (Havieron; diameter – 1 km, amplitude – 80nT, Wallal; diameter – 1.5 km, amplitude – 100nT).

Additionally, the geological position of the Winu discovery was determined to be similar to that of Wallal, which includes a position along the western margin of a major shelf (Winu – Anketell Platform, Wallal  – Wallal Platform).

The Company is reviewing findings in conjunction with its partners in Australia and expects to release a market update in this regard in the near term.

This opportunity is held in JV with Red Rock Resources plc (LON:RRR) and represents one of the largest land footprints at the heart of the high profile Victoria Goldfields in Australia.

The footprint totals some 2,334 km² comprising an original sixteen licence applications from which, to date, seven licences covering 848 km² have now been granted.

Having licences granted enables ground exploration work to be launched and we now have an active programme of exploration underway including soil sampling and mapping across the granted licence areas.

Historical data demonstrates the presence of gold mineralisation across all the licence areas, with evidence of historical mine workings across the properties. 

Programme planning which is being led by the exploration team, all of whom are residents of Victoria, is utilising the extensive regional and historical exploration datasets and mining records available, combined with local knowledge and land holder relationships.

The holding company for the JV is Red Rock Australasia Pty Limited (“RRAL”) and RRAL is working on the IPO process for certain core interests of RRAL on the Canadian capital markets. 

This listing recognises the attractiveness of the Victoria Goldfields area amongst Canadian investors and institutions, with numerous listed companies on the Canadian Securities Exchange  (“CSE”) and Toronto Stock Exchange (“TSX”) having achieved success on the markets with business models focused on exploration in the Victoria Goldfields.

To facilitiate this listing process RRAL have previously completed a National Instrument 43-101 technical report on eight of the licence areas (four now granted licences and four licence applications) and this report will form a key part of the listing documentation. 

RRAL is working with advisors to complete the work streams necessary for the listing and will be providing further market updates in the near term in connection with this workflow.

Based on the valuation of listed peers who have a focus on the Victoria Goldfields, Power Metal believe the Victoria Goldfields JV to hold considerable value for the Company and our partners Red Rock Resources plc.

Note: in addition to the Victoria Goldfields interests described above RRAL has also submitted three licence applications in the Pilbara/Paterson region of Western Australia.  Two applications (260 km²) are competing and therefore subject to ballot and one has RRAL as sole applicant (70 km²).  The strategic plans for the three Western Australia licences are under review at present however it is likely that RRAL will seek to house these licences under a new vehicle in due course to allow the core interests of RRAL to move into the Canadian IPO process with focus on the Victoria Goldfields.