Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide mineralisation in Botswana.
OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT
Power Metal has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by expending US$500,000 on exploration expenditure, notably target drilling, in 2020. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.
ENVIRONMENTAL MANAGEMENT PLAN APPROVAL
Power Metal advises that Kalahari Key has received written confirmation from the Department of Environmental Affairs (“DEA”) in Botswana, that the Environmental Management Plan (“EMP”) submitted to the DEA has now been approved.
The EMP covers planned drilling operations at the MFC Project and represented the last formal regulatory step prior to commencement of drilling.
Kalahari Key is now finalising drilling plans and is looking to commence work as soon as possible.
CHIEF EXECUTIVE OFFICER’S COMMENTS
Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:
“The receipt of EMP approval is a major step forward for Kalahari Key and Power Metal. We have the funds reserved in a USD account to cover the cost of drilling and are working with Kalahari Key on finalising drill plans, with a view to mobilisation at the earliest opportunity.
“Power Metal has a diverse portfolio of interests, but undeniably the launch of a drill programme targeting prospective large-scale massive nickel sulphide mineralisation must be one the key moments in a junior exploration company’s life cycle.
“As part of the preparatory work Kalahari Key, and their geophysical consultants, have been completing the Audio Magneto-tellurics survey (“AMT Survey”) to further refine drill targets, which was announced recently. The AMT Survey is well advanced and the initial results in terms of target confirmation are positive.
“I look forward to providing further information with regard to the AMT Survey and drilling plans in the near future.”
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, 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.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
18 August 2020