Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the completion of the second diamond drill hole (KKME 1-6) and the signing of geophysics collaboration agreements, 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:
“We are pleased with progress at Molopo Farms Complex in Botswana where the second drill hole has intersected 520 metres of ultramafic rock.
Results from the second drill hole continue to demonstrate the target geological model of an intrusive feeder zone which is a prospective setting for nickel and PGM mineralisation.
We are also excited to report that Kalahari Key has signed collaboration agreements with two companies which are at the cutting-edge of remote sensing and data processing for exploration targeting.
These collaborations have the potential to provide valuable insight and efficiencies into the exploration process proving supplementary high resolution targeting over the extensive Molopo Farms Complex licences.
Drilling for the remaining two drill targets will recommence after the Christmas break and in the interim the extensive technical work in relation to the first two completed holes continues. We will provide further updates as material developments occur.”
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 by 31 January 2021, 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 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 with an end of hole depth of 547 m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.
KKME 1-6 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.
14 December 2020