Power Metal Resources PLC Ditau Project - Drilling and Geophysics Update (8900O)

TIDMPOW

RNS Number : 8900O

Power Metal Resources PLC

15 June 2022

15 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Project - Drilling and Geophysics Update

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a drilling update in respect of the Ditau Camp Project ("Ditau"), located in southwestern Botswana. Ditau is considered prospective for carbonatite hosted rare-earth element ("REE"), base metal and possible precious metal mineralisation.

Ditau is held within a 50/50 Joint Venture ("Kanye Resources") with London-listed Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the operator.

Project Background

The third diamond core drill hole of the programme, drill hole DITDD005 on the i1 Target is now complete, and the drill rig has relocated to the i8 target, where drilling has now commenced on hole DITDD006. The final siting of DITDD006 followed the completion of a Controlled Source Audio-Magnetotelluric (CSAMT) ground geophysical survey and survey data inversion modelling.

The CSAMT survey imagery has provided enhanced interpretative model of the geology and structural setting of the i8 Target beneath the Kalahari sands and sediments. Images highlighting the i8 Target with a CSAMT section overlay can be found at the link below:

Ditau drilling and AMT update - Power Metal Resources plc (LON: POW)

Additionally, Kanye has shipped the first batch of drill core samples from hole DITDD004 for testing at a certified laboratory in South Africa, with fast-track analyses requested.

Highlights:

   -    Diamond core drillhole DITDD006 has commenced on the i8 Target: 

- CSAMT survey completed over i8 has provided an enhanced targeting model enabling drill collar location, hole dip and azimuth optimisation.

- The i8 Target is highlighted by a circa 4km diameter ring structure which was interpreted from airborne magnetic survey data.

- This target was the subject of 5.5-line km of CSAMT surveying, using both high and low frequency configurations.

- Inversion processing of the CSAMT data over the i8 Target, which was completed by an external geophysical consultant, has shown bedrock signatures below the i8 Target magnetic anomaly that are significantly different from the surrounding flat lying signatures which are interpreted to be sedimentary country rock.

- These geophysical signatures appear disturbed in dip and vertical position and are interpreted to relate to an intrusive body. These signatures are significantly different to those seen in the CSAMT survey for the i10 and i1 Targets.

- Drillhole DITDD006 is targeting the ring of the magnetic geophysics high, where it is coincident with resistivity geophysics high features, near the edge of the i8 Target.

- Drillhole DITDD005, targeting the i1 Target, is now complete with a final down-hole depth of 343.9m.

   -    DITDD005 intersected extensive conglomerate with a measurable magnetic mineral content. 

- The interpretation of these findings is to be aided by an expanded CSAMT survey programme - which includes additional line-km over the i1 target.

   -    Update in respect of Drillhole DITDD004, targeting the i10 Target: 

- DITDD004 intersected thick successions of highly magnetic brecciated rock units, confirmed by magnetic susceptibility readings on drill core, with the magnetism interpreted as being related to hydrothermal alteration processes.

- First batch of drill core samples have been cut and shipped for multi-element analyses (including select fire-assays), at a certified laboratory located in South Africa, with fast-turnaround 'rush analysis' requested.

   -    Further sample batches from hole DITDD004 will be dispatched during the coming weeks. 
   -    A separate batch of samples for petrographic analysis are currently in preparation. 

- High frequency CSAMT geophysics survey underway on the i10 Target, with the purpose of augmenting the existing AMT survey dataset, to assist further modelling and interpretation of the range of lithologies intersected in the DITDD004 drill hole.

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

"The Ditau drilling is moving at significant pace through the key targets and today we announce the commencement of hole DITDD006, which is located on the i8 Target, the third main area being tested as part of this ongoing programme. As you will see from the AMT images linked above, the i8 target is particularly interesting.

Photographs of the drill core from hole DITDD004 are now available to view in the Gallery section of the Company's website, the core samples have been submitted to the assay laboratory in South Africa and the results are eagerly anticipated with the faster-turnaround 'rush' analytical service requested.

There is an intensely active period underway in the Kanye JV and I look to providing further updates to the market in the near future."

Target I8

The inversion modelling of the CSAMT and aeromagnetic survey data has led Kanye to conclude that the i8 Target anomaly could be caused by a buried intrusive body, approximately 4km in diameter. The inversions modelling, undertaken by an external geophysical consultant, shows 'intrusive' signatures below a magnetic ring anomaly, that are significantly different to the surrounding flat lying 'sedimentary' signatures.

The CSAMT survey has detected signatures that appear disturbed in their dip and vertical position. There is also possible thrust faulting that has been identified by the inversions.

The area of disturbance is radially symmetric with the aeromagnetic ring structure and is interpreted to be a possible intrusion. Further, there are CSAMT signatures that are coincident with the outer magnetic ring that are protruding high into the resistivity section, further suggesting the possibility of an intrusive body. This signature is significantly different from that interpreted from preliminary CSAMT data collected on the i10 and i1 Targets.

The target conforms to an idealised model for a carbonatite. The composition of this is now being tested by drillhole DITDD006, planned to a depth of 400m.

Background to Targeting

Kanye has identified 12 geophysical structures/targets at Ditau (i1 through i12 Targets), which could be possible carbonatites and/or intrusive complexes that may host carbonatites. Nine of these targets are particularly well defined.

There are two target types at Ditau:

   1)    Discrete kilometre-scale carbonatite pipe targets; and 

2) Larger multi-kilometre scale intrusive complex targets that may also be host to carbonatite intrusives.

The 12 Ditau geophysical targets are not known to have been tested for REEs historically. Kanye identified these targets, which range in size from circa 2km to 18km in diameter, using modern geophysical interpretative techniques. Kanye has used combined and integrated Airborne Magnetics, Ground Magnetics and CSAMT surveys in the exploration of the Project and for drill targeting.

Recently completed and inverted CSAMT surveying of the i8 Target, using both high and low frequency configurations, has resulted in high resolution of the basement below the Kalahari sand and sediment cover, providing enhanced target definition. As a result, Kanye is now running both high and low frequency CSAMT surveys over the i1 and i10 Targets to further enhance the interpretation of these, post drilling.

Completed Holes

A total of three drillholes for a combined core length of 1,037.3m have now been completed as part of the 2022 drilling programme. Mindea Exploration and Drilling Services (Pty) ("Mindea") is conducting the drilling. Analytical results will be provided once assays are received, compiled, and interpreted.

2022 Drill Programme Summary Table (WGS 84 UTM Z34S):

 
 Target    Drillhole    UTM E    UTM N     Azimuth   Inclination   Final 
                                            ( deg)    ( deg)        depth 
 i10       DITDD003     640350   7231120   000       -80           300.1m 
          -----------  -------  --------  --------  ------------  ------------ 
 i10       DITDD004     640350   7230500   000       -80           393.3m 
          -----------  -------  --------  --------  ------------  ------------ 
 i1        DITDD005     650000   7246515   000       -80           343.9m 
          -----------  -------  --------  --------  ------------  ------------ 
 i8        DITDD006     654100   7233400   180       -80           In progress 
          -----------  -------  --------  --------  ------------  ------------ 
 

POW/KAV Joint Venture at Ditau

Ditau is held in a 50/50 Joint Venture ("Kanye Resources") with London-listed Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the operator.

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)                  [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

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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

 
    Project       Location    Current        Work Completed            Results Awaited 
                                 POW           or Underway 
                                  % 
 
 Alamo               USA      Earn-in    Excavation of            Field and assay results 
  Gold Project                 to 75%     multiple test            from on-site work 
                                          pits and mapping         programme. 
                                          & sampling. 
                 ----------  ---------  -----------------------  --------------------------- 
 Athabasca         Canada       100%     Data compilation         Interpretation results 
  Uranium                                 across uranium           from all Properties 
                                          properties               complete. Next steps 
                                                                   upcoming. 
                 ----------  ---------  -----------------------  --------------------------- 
 Authier           Canada     Earn-in    Soil & rock sampling     Technical Review of 
  North Lithium                to 100%    completed                exploration results 
                                                                   & define next exploration 
                                                                   steps. 
                 ----------  ---------  -----------------------  --------------------------- 
 Ditau            Botswana      50%      Drill programme          Field updates and 
  Project                                 focused on key           receipt & review of 
                                          targets notably          laboratory assay results. 
                                          drilling of potential 
                                          carbonatites 
                                          and targeting 
                                          rare-earth elements. 
                 ----------  ---------  -----------------------  --------------------------- 
 Kalahari         Botswana      50%      Exploration programme    Field programme findings 
  Copper                                  underway across          and defined drill 
  Belt                                    the South Ghanzi         targets for near term 
                                          Project and further      drilling. 
                                          exploration at 
                                          the more recently 
                                          acquired South 
                                          Ghanzi Extension 
                                          and Mamuno licence 
                                          areas 
                 ----------  ---------  -----------------------  --------------------------- 
 Molopo           Botswana      53%#     Review of recent         Determine next exploration 
  Farms                                   exploration findings.    steps and action plan. 
                 ----------  ---------  -----------------------  --------------------------- 
 Victoria         Australia    49.9%     Diamond drill            Field updates and 
  Goldfields                              programme completed.     receipt & review of 
                                                                   laboratory assay results. 
                 ----------  ---------  -----------------------  --------------------------- 
 Paterson         Australia   82.78%*    Wallal passive           Findings from multiple 
  Projects                                seismic and 2D           work programmes including 
                                          seismic processing       final approvals and 
                                          work programme           preparations for planned 
                                          completed.               deep diamond drilling. 
                                          Review of historical 
                                          data and target 
                                          generation for 
                                          Ripon Hills & 
                                          Braeside West 
                                          projects. 
                 ----------  ---------  -----------------------  --------------------------- 
 Selta            Australia   82.78%*    Lithium review           Findings from lithium 
  Project                                 underway including       review exploration 
                                          desktop and field        programme. 
                                          mapping and sampling. 
                 ----------  ---------  -----------------------  --------------------------- 
 
   *   Reducing to 62.12% after Completion of the Pre-IPO Financing 

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

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June 15, 2022 02:00 ET (06:00 GMT)