TIDMPOW
RNS Number : 2634N
Power Metal Resources PLC
23 September 2019
23 September 2019
Power Metal Resources plc ("POW" or the "Company")
Business Update
The Board of AIM listed Power Metal Resources plc (LON:POW) is
pleased to inform shareholders of key developments in the
progression of the Company's significant operational
activities.
Chief Executive Officer Paul Johnson commented: "The key
strategic objective of POW is to make large scale metal
discoveries. This is a bold statement, particularly when market
conditions have dampened the ardour of even the most resilient
junior resource investors. In spite of market conditions, the
Company has continued to make good progress with its projects as
detailed further below.
Our work in Cameroon and The Democratic Republic of the Congo
("DRC") has identified vanadium and copper anomalies respectively.
The irony is in both jurisdictions we were looking for principally
cobalt and found something else to investigate further which we
intend to do.
In Botswana and Tanzania in conjunction with our partners we
have now completed a body of work that demonstrates large scale
nickel sulphide targets in both projects. Whilst our work in
Cameroon and the DRC is at an early stage, in Botswana and
Tanzania, the projects are more advanced and progressing to the
drill stage.
I recall reading a quote a few years ago that the truth lies in
the drill bit, and that is true, we will only really answer the
exploration questions through drilling and of course with that
comes the risk of failure. Though I can tell you that the technical
teams in Botswana and Tanzania are encouraged by the potential for
a large scale nickel sulphide discovery.
The potential for a nickel sulphide discovery in both Botswana
and Tanzania compel us to apply time and resource to these
projects, which we intend to do. By doing this we hope to expose
our shareholders to the upside that can come with a major
discovery.
The demand for nickel, and particularly nickel sulphides, is
starting to drive the price of the commodity higher and whatever
junior resource market conditions may be, a nickel sulphide
discovery will attract a considerable valuation, which is
justification for our commitment.
The Company and its partners continue to pursue external
dialogue with larger organisations with a view to project farm-in,
joint venture or disposal. There is clear interest in the nickel
sulphide exploration projects.
So, we push on, committed, focused and intent on delivering for
shareholders with the willingness and determination to share the
Company's vision."
OPERATIONAL UPDATE:
Botswana Nickel - Molopo Farms Complex
In Botswana the Company has an 18.26% stake in Kalahari Key
Mineral Exploration Pty Ltd ("KKME"), which owns outright a single
project, the Molopo Farms Complex ("MFC" or the "MFC Project")
nickel-copper-PGM project, in South West Botswana (POW can by
31.12.19 elect to earn-in to a 40% direct MFC Project interest by
spending US$500,000 on the project by 31.12.20 - upon earn-in POW
will hold a 50.96% effective economic interest in the MFC
Project).
The KKME team in Botswana completed the helicopter airborne
electromagnetic work defining 17 sub-surface targets earlier in the
year and very recently the ground geophysics with 11 loops over 14
targets.
Initial interpretation of the geophysics data identified 6 top
targets and we anticipate the final report covering these targets
will be available shortly, enabling us to update the market with
regard to specific technical findings.
The Company attended an KKME operational meeting recently and
reviewed the top 6 targets and initial drill plans in further
detail. The six targets are extremely large conductor bodies,
within a reasonable distance from surface and if hosting economic
mineralisation, would represent a discovery on the scale we seek to
achieve.
It is fair to say the number, size and scale of the top targets
identified at the MFC project have exceeded initial expectations
with further target selection needing to be undertaken. KKME and
POW may consider farm-in or joint venture partners in respect of a
larger drill programme at the MFC project which could enable the
full expanded 6 target drill programme to proceed.
Next steps are the receipt of the full geophysics technical
report which is expected to be received shortly, confirmation of
drill targets, completion of environmental approvals, gravity
surveys and drill contractor selection and engagement.
Cameroon Project
In 2018 the Company acquired license interests in south-eastern
Cameroon including 4 adjacent or near to the Nkamouna Co-Ni deposit
of Geovic Mining Corporation ("Geovic"). Nkamouna is believed to be
the largest defined cobalt Resource outside the Democratic Republic
of Congo and is exceptional among laterites for its high Cobalt to
Nickel ratio.
Geovic identified and holds 7 lateritic plateaus in its 1250 sq
km permit area, of which Nkamouna and Mada have been explored, and
the 4km by 2km Nkamouna deposit is the most defined.
POW holds nearly 2000 sq km containing a number of potentially
similar plateaus, on which it conducted a preliminary
reconnaissance and sampling programme last year but failed to reach
the depth at which the target laterised strata might be
encountered.
The Company undertook a pitting, sampling and mapping programme
at the project in June/July earlier this year, and following
initial x-ray fluorescence ("XRF") testing, identified anomalous
results requiring samples to be sent for laboratory assay
analysis.
We have received the assay results and these are being
interpreted at present. Significantly the samples have confirmed
the exploration successfully intersected the distinct laterite
profile that is most likely to be mineralized from average depths
of 5m, which is consistent with depths in the mineralized zones at
the adjacent Nkamouna project.
Initial XRF results pointed to elevated cobalt grades, a high
cobalt to nickel ratio and some presence of precious metals. The
assay results themselves demonstrate lower cobalt readings than
within the XRF readings and although at lower grades a high cobalt
to nickel ratio was confirmed. No material precious metal grades
were demonstrated, however the assay results demonstrated anomalous
elevated levels of vanadium and titanium, which was not identified
in the XRF results. In essence the XRF results indicated cobalt,
however the more reliable assay results confirmed vanadium, which
is equally of interest to the Company, albeit at this stage
something of a surprise and will require further investigation.
The Cameroon geology is complex and the exercise to review and
interpret the data collected is equally complex. The Company has
sourced guidance from international experts to help interpret the
information and to determine the forward work programme for what is
becoming an intriguing project.
Based on the work undertaken thus far it is clear that cobalt
exploration is best focused on the thicker lateritic cover and
POW's consultants recommend concentration of future work at higher
elevations where these thicker profiles are more likely to
occur.
However also key is to understand the elevated vanadium and
titanium and to develop our further exploration programme around
this understanding.
In this regard a further announcement will be made in due course
regarding next steps noting that exploration on the ground can only
recommence when weather conditions allow, notably on expiration of
the rainy season in October. Upon completion of the follow up
programme the Company should have a larger data set from which to
form material conclusions with regard to the project prospectivity
and further medium term operational development.
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)
DRC - Copper/Cobalt Projects
In the DRC the Company identified a 6.8km copper anomaly running
through the heart of its 70% owned Kisinka copper-cobalt license,
as announced in July 2019. This was a significant step forward for
the project and as a result further exploration is planned, and
details will be announced to the market in due course.
Also in the DRC the Company's technical team are progressing
well with the due diligence ground operational programme in respect
of the PR 13479, ("Permis de Recherches") a license prospective for
cobalt and copper to the north and east of the Tondo cobalt-copper
mine (the "N Tondo copper-cobalt License" or the "License") in the
DRC. The Company has an option to acquire a 70% interest in the
License subject to due diligence.
Due diligence work has included the completion of 400 termite
mound samples and the completion of 1 trench in an area believed to
contain higher grade mineralisation with results expected to be
subject to XRF testing shortly.
A further update will be provided to the market should the
Company decide to proceed with option exercise.
Tanzania Nickel - Haneti Project
In Tanzania POW has acquired a 25% holding in the Haneti nickel
project held in joint venture with Katoro Gold plc (LON:KAT) with a
right to increase to 35% through a payment of GBP25,000 by 15 May
2020.
Power Metal Resources also holds 10,000,000 Katoro shares
representing 5.90% of Katoro Gold's issued share capital. In
addition, POW also holds 10,000,000 warrants in Katoro Gold
exercisable at 1.25p (2,500,000 warrants expiring on 15 March 2022
and 7,500,000 warrants expiring on 15 May 2022).
The Company recently participated in operational discussions
with Katoro in respect of the upcoming drill programme to be
undertaken over the two principal drill targets at Haneti at the
heart of what is considered to be an 80 km potential mineralised
strike.
The targets identified have been selected following years of
preparatory work and we are keen to implement with our joint
venture partners a programme that rapidly establishes the presence
of sulphides and if confirmed, nickel sulphide, which we hope would
be economically mineable.
As with Botswana the conductor bodies that are the subject of
this work are substantial and if bearing nickel sulphides at
economically mineable grade and metallurgy, could represent what we
consider to be a major discovery.
POW is working with our partners Katoro to finalise and
implement the first drill programme over what is a compelling
opportunity. And further to this to articulate the fact that the
Haneti project is not simply nickel, but also offering
prospectivity for many other metals within the target zones.
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 metal 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.
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END
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