Power Metal Resources PLC Molopo Farms Complex, Botswana -- Drilling Underway (1851A)

TIDMPOW

RNS Number : 1851A

Power Metal Resources PLC

21 September 2022

21 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms Complex, Botswana - Drilling Underway

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 15 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/molopo-farms-complex-geophysics-drill-update/15631016

HIGHLIGHTS

Drill Programme

-- Power Metal's inaugural drilling campaign at Molopo Farms has now commenced.

-- Diamond core drilling at drillhole DDH1-6B is now underway and is targeting a large southerly dipping conductor that was identified by the Company's recently completed moving loop electromagnetic ("MLEM") geophysics survey over the priority Target area 1-6 ("T1-6").

-- DDH1-6B is located 530m to the south of December 2020 drill hole KKME 1-6 which intersected significant nickel mineralisation (1, 2) subsequently interpreted to be on the edge of a large electromagnetic ("EM") conductor.

-- The second diamond core drillhole DDH 1-6C planned for the ongoing drilling campaign will be located 830m to the south of KKME1-6. Site preparations are underway and will be completed shortly.

Geophysics

-- Additional ground magnetic and MLEM geophysics surveys over target areas 1-3, 2-3 and 1-14 have now been completed.

-- Preliminary geophysical data has now been received, and the Company is now compiling and interpreting these results.

-- Power Metal will release a further update to the market in due course with the findings of this geophysical work and the additional drill targets derived from the analysis undertaken.

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

"The world needs security of metal supply, which is enhanced if from a stable and supportive operating environment, such as Botswana.

Molopo Farms presents the possibility for a district scale nickel exploration opportunity, with priority drill target T1-6 expected to be the first in a series of prospective drill targets based on current geophysical work and exploration planning.

We are targeting a large-scale nickel-copper-PGE discovery or discoveries, which would be transformational for the Company and, importantly, may lead to Molopo Farms being a focal point for investment and lead to significant job creation and opportunity.

We are therefore enthused with the opportunity the Molopo Farms Complex Project offers and are particularly pleased to announce the commencement of drilling.

I appreciate all our shareholders, and other current and potential stakeholders in the Project, will be watching developments with interest."

FURTHER INFORMATION

Figure 1 - Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.

Figure 2 - Priority Target Area T1-6 Cross-Section: A cross section showing the location of the first two planned holes, DDH1-6b and DDH1-6c, can be found in Figure 2 below.

Image - Diamond Drill Rig in Position at K1-6: In addition, an image of the drill rig at hole DDH1-6b is provided below, after positioning with the azimuth and dip set for drilling.

The diagrams and image presented above may also be viewed on the Company's website through the following link:

https://www.powermetalresources.com/molopo-farms-complex-drill-commencement/

Further photographs and videos from the drill programme are and will be available on the Company's website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/

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.

QUALIFIED 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 Qualified 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, Botswana Molopo Farms Complex - Drilling Progress Update, 14 December 2020

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

2: Power Metal PLC announcement, Significant Nickel Intersections Confirmed by Drill Sample Assay Results, 8 April 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw )

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

 
  Project    Location   Current         Work Completed or              Results Awaited 
                           POW               Underway 
                            % 
 
 Athabasca    Canada      100%     Ground exploration             Results from ground 
  Uranium                           programme underway             exploration including 
                                    at 3 properties. Continuing    spectrometer analysis, 
                                    data analysis across           sampling and mapping. 
                                    the property portfolio. 
            ---------  ---------  -----------------------------  -------------------------- 
 Authier      Canada    Earn-in    Property Evaluation            Update covering 
  North                  to 100%    Report completed.              exploration plans 
  Lithium                                                          for target areas 
                                                                   identified during 
                                                                   the Evaluation. 
            ---------  ---------  -----------------------------  -------------------------- 
 Molopo      Botswana    53%(#)    Final preparations             Commencement of 
  Farms                             for the launch of              T1-6 drill programme, 
                                    K1-6 conductor target          and findings therefrom 
                                    drilling and MLEM              and results from 
                                    surveys over T1-6,             MLEM surveys. 
                                    T1-14, T1-3 and T2-3 
                                    targets. 
            ---------  ---------  -----------------------------  -------------------------- 
 Tati        Botswana     100%     RC drilling and sampling       Review of mine dumps 
  Project                           of mine dumps complete.        sampling and results 

                                                                   from RC drill programme. 
            ---------  ---------  -----------------------------  -------------------------- 
 

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

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required.

These interests are summarised in the table below:

 
       Company            Status/Operations                                    Link 
 First Class           Investment -                                 www.firstclassmetalsplc.com 
  Metals PLC            POW 28.19% 
                        Exploration 
                        in the Schreiber-Hemlo 
                        region of Ontario, 
                        Canada 
                      ------------------------  ------------------------------------------------------------------ 
 First Development     Planned IPO                               www.firstdevelopmentresources.com 
  Resources             - POW 62.12% 
  PLC                   Exploration 
                        in Western Australia 
                        and the Northern 
                        Territory of 
                        Australia 
                      ------------------------  ------------------------------------------------------------------ 
 Golden                Planned IPO                                 www.goldenmetalresources.com 
  Metal Resources       - POW 83.13% 
  PLC                   Exploration 
                        and development 
                        in Nevada, USA 
                      ------------------------  ------------------------------------------------------------------ 
 Kavango               Investment -                                  www.kavangoresources.com 
  Resources             POW 14.03% (subject 
  PLC                   to completion 
                        of Kanye Resources 
                        disposal announced 
                        8.7.22) 
                        Exploration 
                        in Botswana 
                      ------------------------  ------------------------------------------------------------------ 
 New Ballarat          Planned IPO               A new website is currently in development 
  Gold PLC              - POW 49.9%               which will be found at www.newballaratgoldcorp.com 
                        Exploration               . 
                        in the Victoria           In the interim further information 
                        Goldfields of             in respect of NBGC can be found at: 
                        Australia                 https://www.powermetalresources.com/project/victoria-goldfields/ 
                                                  . 
                      ------------------------  ------------------------------------------------------------------ 
 Uranium               Planned IPO                               www.uraniumenergyexploration.com 
  Energy Exploration    - POW on listing 
  PLC                   estimated 40-55% 
                      ------------------------  ------------------------------------------------------------------ 
 

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September 21, 2022 08:50 ET (12:50 GMT)