TIDMPOW
RNS Number : 1681J
Power Metal Resources PLC
15 August 2019
15 August 2019
Power Metal Resources plc ("POW" or the "Company")
Cameroon Project - Significant Exploration Results
Power Metal Resources plc (LON:POW) the AIM listed African
focused metal exploration and development company is pleased to
announce positive preliminary findings from the pitting, mapping
and sampling programme at its 100% owned Cobalt-Nickel project (the
"Project") in Cameroon.
Exploration Background:
In 2018 the Company acquired license interests in south-eastern
Cameroon including 4 licenses adjacent or near to the Nkamouna
cobalt-nickel deposit of Geovic Mining Corporation ("Geovic").
Nkamouna is believed to be the largest defined cobalt Resource
outside the Democratic Republic of the Congo and is exceptional
among laterites for its high cobalt to nickel ratio.
Geovic identified and holds 7 lateritic plateaus in its 1,250 sq
km permit area, of which Nkamouna and Mada have been explored, and
the 4km by 2km Nkamouna deposit is the most defined.
The Company holds nearly 2,000 sq km containing a number of
potentially similar plateaus. A short-notice programme was
undertaken in June and July 2019 to dig 6 pits through the
hypothesised lateritic profile and 65 samples were taken for X-ray
Fluorescence ("XRF") testing.
The principle purpose of this work was to test the hypothesis
that the POW licenses bear geological similarity to that found at
the Nkamouna deposit adjacent or near to POW licenses.
Highlights:
-- POW's Cameroon project, in the key respects, has been
confirmed as having similar geology as that found at Nkamouna;
-- XRF testing of samples has identified anomalous cobalt across
all pits with samples grading up to 1m at 0.23% cobalt which is in
line with Nkamouna grades;
-- XRF testing also identified precious metals in samples, which
was unexpected as Geovic had not referred to them in their results
at Nkamouna, however technical review has confirmed that the
presence of precious metals may not be anomalous given the nature
of the geological system encountered;
-- POW is continuing its technical review of the results and
will be submitting samples for full laboratory assay tests to
validate the results identified;
-- Further updates to follow as our work continues at what is
now a highly significant project for the Company.
Paul Johnson, Executive Director of Power Metal Resources
commented: "We consider this programme to have been successful in
demonstrating that our project, in the key respects, has similar
geology as at the large scale Nkamouna cobalt deposit, our
neighbour.
This is highly significant, demonstrating the potential for a
new cobalt district within which our project is positioned.
The identification of precious metals in numerous samples was
initially surprising and we are taking care to fully investigate
this, including assay testing, before we conclude.
The results of this exploration programme have exceeded our
expectations and affirms the Company's Cameroon project as a very
important strategic project for the Company."
Exploration Programme - Further Information
The four pits NGP003 to NGP006 dug across two licenses achieved
target depths of between 10m and 12m and penetrated as far as the
bottom, saprolitic, part of the lateritic profile;
The final two pits NGP002 and NGP001 were dug in a third license
as poor weather began to affect access and working conditions and
reached 9m and 5m respectively, with the lateritic profile only
partially penetrated;
The sequence of lithologies and the pattern of mineralisation
appears to share certain differentiating features with the adjacent
Nkamouna deposits, including the presence of an occasionally thick
ferricrete breccia or hardpan above the mottled limonite/ferralite,
a high cobalt to nickel ratio, and the cobalt mineralisation
typically occurring fairly high in the profile in lithologies
containing little accompanying nickel;
65 homogenised samples (including 6 duplicates) of 2 kg were
collected at each metre of depth and submitted to the Mississauga
Mining and Exploration Cameroon sarl ("MMEC") laboratory in Douala
for sample preparation and preliminary X-ray fluorescence ("XRF")
multi-element analysis with a XL3 Niton XRF analyser;
11 samples tested over 0.09% cobalt, with a further 2 samples
over 0.08%, and these grades were encountered in every pit except
the shallower NGP001; 6 of these samples were in NGP006, where over
a 4 metre interval the grade was 0.2% (including 1 metre at 0.23%),
which is comparable with the Nkamouna grades;
Low nickel readings were recorded even compared with Nkamouna,
which may in part reflect calibration factors for the hand-held XRF
device; samples have been prepared for a multi-element laboratory
analysis in South Africa next week;
High concentrations of cobalt in assay results were mainly
associated with indurated/hardpan laterite profiles and were more
significant in profiles with thicker lateritic cover; POW's
consultants recommend concentration of future work at higher
elevations where these thicker profiles are more likely to
occur.
At Nkamouna the cobalt is carried in a coarse crystalline type
of Asbolane mineral, which Geovic's testwork indicated could be
concentrated physically by up to 3.1x prior to leaching, with a
significant impact on the project economics. Our next phase of work
will need to include some mineralogical testwork as well as further
pitting.
Precious metal grades were also encountered, which was
unexpected in this area as Geovic had not referred to them in their
results at Nkamouna, and we have asked for the raw data from the
XRF testwork to check the elemental analysis.
Note: With respect to Nkamouna Geovic published an NI 43-101
compliant Mineral Resource(1) on the Nkamouna deposit with a total
Measured, Indicated and Inferred Mineral Resource of 323mt of 0.21%
cobalt, 0.61% nickel and 1.26% manganese.
(1) Source: NI 43-101 Technical Report, Geovic Mining Corp by
SRK Consulting, 02 June 2011 (viewable at Edgar Online)
Competent Person Statement
The technical and related information in this report relates to
exploration results based on information from third parties and
data compiled by Mr John Asafo-Akowuah who is a member of
Australian Institute of Geoscientists. Mr John Asafo-Akowuah has
sufficient experience in the style of mineralisation and type of
deposit under consideration. Mr John Asafo-Akowuah consents to the
inclusion in this announcement of the matters based on their
information in the form and context in which it appears.
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.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Executive Director) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed African
focused metals exploration and development company exploring for
the key metals used in power generation, transmission, storage and
utilisation. The Board and team of advisors, who have proven
expertise in exploration, mining and project generation, have
identified an opportunity to utilise the Company's position to
become a leader in the London market for investors to gain exposure
to the power metal commodity suite, particularly cobalt, lithium,
copper and nickel.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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