Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drilling update for the second diamond drill hole (KKME 1-6) at 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 and platinum-group metal (“PGM”) mineralisation in Botswana.
CHIEF EXECUTIVE OFFICER UPDATE
Paul Johnson Chief Executive Officer of Power Metal Resources commented:
“Further significant progress has been achieved with the geological model of the feeder zone being demonstrated through the core from the first and second holes.
The first hole produced 167 metres of ultramafic rock and this second hole has already produced about 260 metres of ultramafic rock, which has potential to host nickel and PGMs, and will be subject to assay testing.
After a short weekend break the drilling team will now continue the hole down to target depth of circa 500 metres.”
OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT
Power Metal currently 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 funding US$500,000 of exploration expenditure in 2020, notably the diamond drilling of selected targets (the “Drill Programme”). To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.
The original Earn-in period was to 31.12.20 however Power Metal and Kalahari Key have mutually agreed to extend this to 31.1.21 as some drill programme activities and invoices relating thereto and requiring payment may not be received until early in 2021.
THE DRILL PROGRAMME
The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.
The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic ("EM") and Natural Field Audio Magneto Telluric ("NF-AMT") geophysics surveys.
DRILL HOLE KKME 1-6
Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.
This second drill collar is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.
The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.
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.
30 November 2020