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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.

On 8 September 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/mfc-project-update-drill-programme-mobilisation/15621071

HIGHLIGHTS

– High-resolution ground magnetic geophysics (“Ground-Mag”) survey completed over high priority Target 1-6 (“T1-6”).

– Three dimensional (“3D”) inversion modelling of Ground-Mag data and all other available geophysical datasets covering the T1-6 electromagnetic (“EM”) conductor, also completed.

– Interpretation of historical airborne electromagnetic (“AEM”) survey data with recently collected moving-loop EM (“MLEM”) geophysics results, estimates the T1-6 conductor has an approximate strike length of 2,600m and an estimated down dip extent of 1,000m.

– Diamond core drillhole parameters for the first two planned holes at T1-6 have now been established, with the two drill collar sites under preparation and drilling expected to commence shortly.

– MLEM surveys are ongoing at additional target areas T1-3 and T2-3, and MLEM and Ground-Mag surveys are ongoing at target area T1-14, with further updates to follow shortly.

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

“Our work at Molopo Farms is gathering pace with the parameters for the first two diamond core drillholes into Target 1-6 now confirmed. With the drill rig now on-site we expect to start drilling the first priority target hole shortly.

Significantly, based on recently completed 3D geophysical modelling the strike-length of the priority conductor at T1-6 is interpreted to be 2,600m, a considerable target.

We are working closely with the team in Botswana who have done an incredible job thus far.  It is less than a month since the initial geophysical survey findings at T1-6 that inspired this acceleration to drilling and I look forward to providing further progress updates.”

FURTHER INFORMATION

– A high-resolution Ground-Mag survey covering an area of approximately 2,700m by 1,600m has now been completed over priority target area T1-6. A strong east-west trending magnetic anomaly was identified near the southern edge of the survey area.

– Magnetic inversions of this newly identified anomaly show that the magnetic body intersects the down dip extent of the southerly dipping EM conductor identified by the previously completed ground-based MLEM survey over T1-6.

– As a result of the recently completed geophysics work at T1-6, as well as the extensive 3D analysis and inversion modelling now completed, two priority drillholes have now been planned for T1-6. The two drill collar sites are now being prepared and cleared in preparation for the programme start. The two sites selected are summarised below:

–  Diamond core drillhole DDH1-6B : Located 530m directly south of drillhole KKME 1-6 (completed  December 2020 ¹). Planned 600m hole depth, inclined at 80° dip and 0° azimuth (to the north). Based on the 3D modelling completed, DDH1-6B has been planned to intersect the southerly dipping conductor at a relatively shallow depth of 300m.

–  Diamond core drillhole DDH1-6C : Located 830m directly south drillhole KKME 1-6 ¹. Planned 650m hole depth, inclined at 80° dip and 0° azimuth (to the north). Based on the 3D modelling completed, DDH1-6C is planned to test the intersection zone between the southerly dipping conductor and the newly identified strongly magnetic E-W trending body, which is estimated to be at a depth of approximately 350m.

– Based on 3D modelling of all available geophysical data including the previous AEM survey, the targeted T1-6 EM conductor been estimated to have an approximate strike-length of 2,600m in a broadly E-W direction and is estimated to extend for around 1,000m down dip (towards the south).

– Power is currently preparing a short video which highlights the above information and will include a demonstration of the 3D geophysical modelling with the plots of previous drillhole KKME 1-6 and the planned drillholes DDH1-6B and DDH1-6C.

– Camp setup and preparation for the upcoming programme continues at pace. The Company will announce to the market once drilling has commenced, which is expected shortly.

– MLEM surveys are ongoing at target areas T1-3 and T2-3, and MLEM and Ground-Mag surveys are ongoing at target area T1-14. A further update in regard to this work, as well as survey results, are also expected shortly.  

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 Mineral Exploration (Pty) Ltd (“KKME”).  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms 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.

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.

REFERENCES

1:  Power Metal PLC announcement, 14 December 2020

  ( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w )

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: