Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of the third diamond drill hole (KKME 1-11a) 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:
“I am pleased to report the drilling of the third exploration hole, KKME 1-11a, has got off to a great start after the drillers recommenced work on Thursday after an agreed period of no-cost stand-by. We paused drilling between holes two and three to review the extensive technical information gathered and to determine the optimal target for the third hole on the basis of the technical review work undertaken.
This hole is designed to test a conductive geophysical body within the Chipo (Gift) Northern Target Area. Core samples from the previous two holes have been submitted for assay and compositional analysis and we await the results.
We look forward to sharing further findings in due course.”
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 30 April 2021, including the diamond drilling of selected targets (the “Drill Programme”).
On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.
To date Power Metal has funded US$408,141 of the US$500,000 earn-in requirement, with US$91,859 (£65,991) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company’s US dollar account.
THE DRILL PROGRAMME
The Drill Programme is for an initial planned 2,505m and is designed to intersect 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.
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.
15 March 2021