Power Metal Resources PLC Business Operational Update (6010Q)

TIDMPOW

RNS Number : 6010Q

Power Metal Resources PLC

01 March 2021

1 March 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Business Operational Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business operational update for shareholders.

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

"The team at Power Metal are intent on building a great company for our shareholders. Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.

We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our "balance sheet" through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.

As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.

We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.

We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength. Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities."

The table below outlines the latest status of each project in the current Power Metal active portfolio. For further project information readers should review the latest Power Metal presentation which may be accessed on the Company's website through the following link:

https://www.powermetalresources.com/p/193/presentations

 
         PROJECT                             LATEST POSITION 
 AUSTRALIA                 Initial Public Offer ("IPO") process has 
  Australian Gold JV        formally commenced with the appointment 
  Gold                      of legal counsel in Canada. The intention 
  (POW 49.9%)               is to list certain core assets of Red Rock 
                            Australasia (Pty) Ltd (the JV holding company) 
                            by IPO in the Canadian capital markets. 
                            Shareholders should note that there can 
                            be no certainty that the proposed IPO of 
                            certain core assets of Red Rock Australasia 
                            (Pty) Ltd will be successful, further updates 
                            will be made to shareholders as appropriate. 
                            Following the grant of first three licenses, 
                            as announced on 2(nd) February 2021, a 
                            further seven applications are at an advanced 
                            stage of processing. 
                            Application made for a new exploration 
                            license covering 227 sq km (EL 45/5859) 
                            in Western Australia, which will be subject 
                            to a ballot between RRAL and Rumble Resources 
                            Ltd (ASX:RTR). 
                          ----------------------------------------------------- 
 BOTSWANA                  Kanye Resources Plc now formed in the UK, 
  Kanye Resources           and Kanye Resources Pty Ltd in Botswana. 
  Copper, Silver, Rare      This is the holding company company structure 
  Earths                    for a planned listing of Kanye Resources 
  (POW 50%)                 on a recognised stock exchange. 
                            Kanye Resources includes the Ditau Project 
                            and the Ghanzi South (Kalahari Copper Belt) 
                            Project, and the exploration status of 
                            each project is outlined below. 
                            Ditau Project 
                            An exploration camp has been established 
                            and the field team has continued taking 
                            soil samples and conducting ground magnetic 
                            surveys. A new senior geologist has been 
                            recruited to oversee operations. 
                            Data is currently being analysed on the 
                            I10 target. Results from this are expected 
                            to guide future exploration of the remaining 
                            9 potential carbonatite targets. 
                            Ghanzi South (Kalahari Copper Belt) Project 
                            Intensified soil sampling, airborne electromagnetic 
                            survey and magnetic geophysics survey, 
                            all underway. 
                            Sampling and surveys focused on key target 
                            areas and seeking delineation of key drill 
                            targets. 
                            Environmental Management Plan being finalised, 
                            which following approval will allow drilling 
                            to be undertaken. 
                          ----------------------------------------------------- 
 BOTSWANA                  Following completion of two drill holes, 
  Molopo Farms Complex      drill core has been cut and inspected. 
  Nickel, Copper, PGMs      Drill core samples sent to South African 
  (POW with Economic        accredited laboratory and assay results 
  Interest up to 50.96%)    awaited. Samples also sent to Witswatersrand 
                            University for mineralogical and thin section 
                            analysis and results awaited. 
                            Third drill hole to be commenced shortly 
                            and ongoing technical review underway. 
                          ----------------------------------------------------- 
 CANADA                    Acquisition of seven projects now complete 
  Hemlo/Schreiber           and comprising exploration Claim packages 
  Gold, Base Metals         strategically located across the Hemlo/Schreiber 
  (POW 100%)                greenstone belt. 
                            Preliminary exploration work planned includes 
                            remote sensing data interpretation and 
                            ground based fieldwork with systematic 
                            soil sampling and geophysics expected to 
                            yield defined targets for future drill 
                            testing. 
                          ----------------------------------------------------- 
 CANADA                    Recommencement of exploration work including 
  Silver Peak               completion of the planned drill programme 
  Silver                    following the snow thaw in Spring 2021 
  (POW Earn-in to 30%)      targeting high-grade silver and to establish 
                            vein continuity. 
                            Currently working with our partners to 
                            review corporate options including a potential 
                            listing of the Silver Peak project on a 
                            recognised stock exchange. 
                          ----------------------------------------------------- 
 THE DRC                   Ground magnetics completed and induced 
  Kisinka Project           polarisation to begin over 6.8 kilometre 
  Copper, Cobalt            copper-cobalt anomaly nearing completion. 
  (POW 70%)                 Following the completion of fieldwork, 
                            and interpretation of findings, likely 
                            next step will be exploration drilling 
                            of key targets. 
                            Application to secure a 25 year Permis 
                            d'Exploitation (production licence) is 
                            progressing well and in the final stages 
                            of processing. 
                          ----------------------------------------------------- 
 TANZANIA                  Following completion of 1,965 metres of 
  Haneti Project            Rotary Air Blast drilling, 776 three metre 
  Nickel, PGMs, Copper,     composite samples have been delivered to 
  Gold, Lithium             SGS Tanzania, an accredited assay laboratory 
  (POW 35%)                 in Tanzania. 
                            Samples being analysed using multi-element 
                            Aqua Regia Digestion/ICP-OES* method with 
                            13 select samples to also be tested using 
                            Fire Assay for gold, platinum, and palladium. 
                            Assay results expected shortly and the 
                            findings will guide next stage exploration. 
                          ----------------------------------------------------- 
 USA                       Ground exploration programme (as announced 
  Alamo Gold Project        11 December 2020) now completed and detailed 
  Gold                      operational report received by Power Metal. 
  (POW Earn-in up to        Full technical review underway to determine 
  75%)                      next exploration and commercial steps. 
                          ----------------------------------------------------- 
 

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)                [phone] 
 
SP Angel Corporate Finance (Nomad and Joint Broker) 
Ewan Leggat/Charlie Bouverat                          [phone] 
 
SI Capital Limited (Joint Broker) 
Nick Emerson                                          [phone] 
 
First Equity Limited (Joint Broker) 
David Cockbill/Jason Robertson                        [phone] 
 
 
 
 

Notes to Editors:

P ower 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 metals 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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March 01, 2021 02:00 ET (07:00 GMT)