TIDMPOW
RNS Number : 3985K
Power Metal Resources PLC
28 August 2019
28 August 2019
Power Metal Resources plc ("POW" or the "Company")
Kalahari Key Botswana - Positive Outcome Geophysics
Power Metal Resources plc (LON:POW) the AIM listed African
focused metals exploration and development company is pleased to
outline the initial findings from an interpretation of the ground
geophysics undertaken by Kalahari Key Mineral Exploration Pty Ltd
("Kalahari Key" or "KKME") at the Molopo Farms Complex project in
Botswana ("MFC" or the "Project").
The Project consists of licenses covering an area of 2,725
square kilometres that are considered prospective for
Nickel-Copper-PGMs mineralisation and is 100% owned by Kalahari
Key.
Power Metal Resources has an 18.26% shareholding in Kalahari Key
and also has a right by 31 December 2019 to elect to earn into a
40% direct project interest in the MFC project by investing
US$500,000 in the Project by 31 December 2020 (the "Earn-in").
Should the Company elect to earn in, Power Metal Resources will
hold an effective economic interest of 50.96% in the Project.
The Company's Kalahari Key acquisition agreement was announced
on 13 May 2019 and readers can review this announcement through the
following link:
https://www.powermetalresources.com/n/n104/acquisition-and-earn-in-agreement-botswana-project
Paul Johnson, Executive Director of Power Metal Resources plc
commented: "Once again, the Kalahari Key team have delivered on
schedule with 6 priority drill targets outlined from the ground
geophysics programme.
A full technical report is being finalised and we look forward
to receipt of that document whereupon we can provide much more
information to shareholders.
Given the surge in nickel prices of late, and what we believe
are compelling supply/demand dynamics into the future, Power Metal
Resources is fortunate to have this exposure to Kalahari Key and
the promising MFC project in Botswana."
Highlights:
-- In late 2018 a helicopter airborne electromagnetic programme
was undertaken at the MFC from which 17 conductor targets were
identified within the feeder/shear zone;
-- Kalahari Key completed a ground geophysics programme in early
August 2019 which included 11 loops over a total of 14 nickel-PGM
mineralisation targets (increased from the 10 targets previously
advised due to clustering of targets, and certain loops covering
more than one target);
-- The data gathered from the ground geophysics programme has
now been subject to technical review in South Africa, with
consultant geophysicist Cas Lotter;
-- From the technical review 6 high priority drilling targets
have been identified and it is expected that 4 key targets will be
the focus for planned Phase 1 drilling;
-- A full technical report is being finalised to cover the
priority drill targets and to outline the full extent of the drill
programme planned;
-- POW will provide a further update outlining the top priority
drill targets and next steps, when the detailed technical report
has been received.
BACKGROUND TO KALAHARI KEY AND THE MFC PROJECT
Kalahari Key, registered in Botswana, is a mineral exploration
and geological consultancy company that was established by Roger
Key, Andy Moore, Simon Bate and Rick Bonner in November 2014.
In November 2016 the company acquired two mineral exploration
licences (PL310/2016 and PL311/2016) from the Botswana Government.
The licences cover the eastern and central parts of a shear/feeder
zone through the centre of the Bushveld-related Molopo Farms
Complex in southern Botswana. A third licence (PL202/2018) was
acquired in early 2018 immediately to the south of PL311/2016.
The target mineralization is Ni-PGM in the shear/ feeder zone.
Re-processing and re-interpretation of existing high-resolution
airborne magnetic data and regional gravity data was initially used
to identify target areas. Selected core from previous exploration
programmes has also been examined to better understand the geology
of the Complex.
Towards the end of 2018, NRG(TM) was contracted to complete a
high-resolution helicopter airborne magnetic and Electro Magnetic
survey over the feeder/shear zone using their Xcite (TM)
methodology. The preliminary analysis of the new geophysical data
identified 17 conductor targets within the feeder/shear zone.
In mid-2019 a ground geophysics programme was undertaken. The
system employed was the High-Power Electro-Magnetic ("HPEM")
transmitter capable of transmitting up to 200A together with the
ultra-sensitive Supracon Jesse-Deep SQUID ("superconducting quantum
interference device ") sensor hooked up to the industry standard
EMIT Smartem24 receiver.
Transmitter loops of approximately 1km by 1km were laid out
using 35mm2 aluminium wire and lines (100 or 200m spacing) were
surveyed at either 50m or 100m reading interval, depending on depth
to target. In total 11 loops were undertaken around 14 individual
targets from the original helicopter EM Survey.
The data generated from the ground geophysics programme was
reviewed in South Africa in August 2019 and 6 priority drill
targets have been identified from which it is expected that 4 key
targets will be the focus of a Phase 1 drilling programme. A
detailed technical report covering the ground geophysics programme
and the priority drill targets is under preparation.
In addition, measures are being undertaken to implement the
necessary environmental survey work prior to drilling, and liaison
with drilling contractors to ensure, subject to environmental
approvals, that the appropriate drilling contractors are in
place.
PROJECT LEVEL 40% EARN-IN TO THE MFC PROJECT
Not later than 31 December 2019 POW may elect, at its sole
discretion, to earn-in to 40% of the MFC Project by entering into
and then fulfilling a commitment to spend US$500,000 ("Committed
Spend") during the period to 31 December 2020.
Upon POW entering into the Earn-in (or earlier with the
agreement of all parties) an MFC Project operational committee (the
"Committee") will be established comprising members Roger Key
(Kalahari Key Director), Andrew Bell (POW Director) and Andrew
Moore (Kalahari Key Director). The Committee will determine the
allocation of the Committed Spend and management of operational
activities. Upon completion of the Earn-in expenditure requirement
POW will hold 40% of the MFC Project
The Committed Spend will be applied primarily to the completion
of drilling of four targets at the MFC Project.
Also, upon POW entering into the Earn-in (or earlier if agreed
by all parties) Paul Johnson (POW Director) will join the Board of
Kalahari Key.
Neither the Committee members nor the existing or new directors
of Kalahari Key will be remunerated for their services.
Also, upon the Company entering into the Earn-in, a Joint
Venture Agreement will be established between the parties which
will determine strategy, operational management and corporate
structuring. This will include the usual fund or dilute provisions
unless an alternate structure is agreed by the parties.
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 (Chief Executive Officer) +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 nickel, copper and
cobalt.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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