Botswana Molopo Farms Complex – Drilling Progress Update

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.

UPDATES

  • Drill hole (KKME 1-6) which is the second hole of a planned four-hole programme, has completed successfully to a depth of 547 metres.
  • Ultramafic rocks were intersected immediately beneath the Kalahari Group sediments at 27m and continue to the end of hole, a total down hole ultramafic intercept of approximately 520m. Preliminary inspection of the core shows indications of possible cyclic layering within the ultramafics.
  • Two shear zones were intercepted by the drilling, at 501m and 515m respectively. The hole will be surveyed with a downhole electromagnetic geophysics probe (“Downhole EM”) to determine whether the conductive target interpreted from the surface deep penetrating anisotropic magnetic susceptibility (“AMT”) geophysics survey is related to these shears or whether a conductive body could be located beyond the current end of hole.
  • Core from the drill hole will now undergo detailed geological logging with selected core samples to be sent for both nickel and PGM assay at an accredited laboratory. The third drill hole will commence when the drilling team return from their scheduled December Christmas break.
  • KKME have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing KKME airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.
  • AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement KKME’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.
  • The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three KKME Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016).

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.

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14 December 2020

 
 
 

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