TIDMPOW
RNS Number : 9601B
Power Metal Resources PLC
05 February 2020
5 February 2020
Power Metal Resources PLC
("Power Metal" or the "Company")
Botswana Molopo Farms Complex - Progress Update
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to provide an
exploration update in respect of 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 mineralisation in Botswana.
POW 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 expending US$500,000 on exploration expenditure, notably target
drilling, in 2020. On completion of the Earn-In, POW will have an
effective economic interest of 50.96% in the MFC Project.
HIGHLIGHTS
Geophysics and 3D modelling identifies eight compelling drill
targets:
-- Eleven conductor targets generated from the 2019 airborne
electromagnetic ("AEM") geophysical survey have been investigated
by follow-up ground based Time Domain Electromagnetic ("TDEM")
geophysics and three dimensional ("3D") modelling in order to
prioritise and optimise the planned drill testing.
-- The TDEM survey utilised Supracon Jesse Deep SQUID B field
sensors with high power transmitters to greatly enhance the depth
penetration, definition and discrimination of the target
conductors.
-- At least six of the highly conductive bodies have the
potential to be massive nickel sulphides due to the spatial
location, particular geological setting and associated geophysical
response.
-- The TDEM Survey has recommended detailed drilling parameters
and drill testing priorities for eight compelling drill targets,
through a combination of vertical and wedge deviated drill strings.
The holes are designed to intersect the highly conductive targets
at depths ranging between 300m and 800m.
Environmental Work:
-- The Environmental Management Plan ("EMP") for the proposed
drilling programme at the MFC Project has now been completed by
Kalahari Key's consultants, Wellfields Consulting Services,
Gaborone, Botswana.
-- The findings of the EMP were favourable with the project
being considered as "low impact" from an environmental
perspective.
-- The completed EMP has now been submitted to the Botswana Government's Tsabong office.
Corporate developments:
-- Following the election to Earn-In by POW as announced on 31
December 2019, Paul Johnson has joined the Board of the MFC Project
holding company Kalahari Key Mineral Exploration Pty Ltd.
-- In addition, and also subsequent to the election to Earn-In
by POW, an MFC Project operational committee has been formed and
Andrew Bell, Executive Chairman of POW, has joined as POW's
representative.
-- Kalahari Key are working with advisers in the UK and Botswana
to establish a UK holding company Kalahari Key Ltd which it is
intended will hold 100% of Kalahari Key Mineral Exploration Pty
Ltd, the local operating company in Botswana.
-- Dr Roger Key, Chief Executive Officer of Kalahari Key gave a
presentation on the MFC Project at the London Geological Society's
Mineral Deposit Study Group's annual meeting in London on the 8
January 2020. This was well received by attendees as reflected in
feedback received following the presentation.
-- Interest in the MFC Project from third parties continues to
be received, and Kalahari Key continue to engage with interested
parties. Discussions in respect of the MFC Project are expected to
continue at the Mining Indaba conference this week.
-- Kalahari Key have an exhibition stand at the Mining Indaba
Conference being held 3 - 6 February 2020 in Cape Town, South
Africa and further information can be viewed through the following
link:
https://www.miningindaba.com/Exhibitor-list/kalahari-key-mineral-exploration
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC, commented:
"Back in May 2019 when POW entered the transaction the
expectation of the Kalahari Key team was to identify 2 or 3 key
targets from the ground geophysics work. Instead we now have 8 high
profile drill targets which is a considerable uplift.
Kalahari Key have always stated their main strategic objective
was to target nickel-PGM-bearing massive sulphide deposits similar
to the Voisey's Bay nickel deposit. As POW's key strategic
objective is to make a large scale metal discovery our interests
are aligned and now we find ourselves in an interesting
position.
POW has elected to Earn-In to the MFC Project and we have the
cash at bank to cover the cost of that Earn-in. The EMP has been
submitted in Botswana and we await the clearance to undertake the
drill programme.
For our shareholders, I believe we are perfectly poised. Subject
to local approvals we have the high profile drill targets, and the
cash at bank to instigate a drill programme asap. Local liaison
with drill contractors continues and measures are being implemented
that will allow commencement of drilling at the earliest
opportunity.
As I have stated before high impact exploration drilling carries
a high risk of failure, in that we may not find the mineralised
structures we seek. However an economic large scale nickel sulphide
deposit discovery would be transformational, highly valuable and
particularly sought after. Therefore, for the MFC project, I
believe the risk-reward balance is highly favourable.
I look forward to providing our shareholders with further
updates regarding the MFC project, its potential and our approach
to its development in the coming weeks and months."
Survey Detail
The TDEM survey was conducted on 11 targets identified by the
AEM survey located over the ENE-WSW striking Jwaneng-Makopong
Feeder/Shear Zone through the centre of the Molopo Farms Complex
(MFCFZ).
The targets were covered with TDEM traverses using a highly
sensitive SQUID (Super Conducting Quantum Interference Device)
sensor and ultra-powerful HPTX transmitter.
The TDEM transmitter loops were located based on the respective
target spatial orientation as determined/estimated from the AEM
data interpretation. The locations of the loops were also
influenced by the presence of formational conductors as indicated
by the AEM.
North-south traverses were surveyed through (and in some case,
to the east or west of) the loops at 200 m line spacing and 50 m or
100 m station spacing.
The nominal parameters employed for the full duration of the
survey were:
-- Transmitter loop size = 1 km by 1 km
-- Transmitter current = 100 Amp
-- Transmitter turn-off time = 1.8 msec
-- Transmitter frequency = 0.5 Hz (1 sec off-time)
-- Stacking = 64 cycles.
Equipment utilised:
-- Receiver: EMIT Smartem24 16 channel digital
-- Supracon Jesse Deep SQUID 3 component B field sensor
-- HPTX ultra-high power transmitter
-- Deutz 60 kVA 3 phase motor-generator set
-- 35mm(2) Aluminium transmitter wire.
The data was modelled and interpreted using a combination of
plate modelling and 3D inversion techniques with a combined plot of
the recommended borehole parameters for each target and the decay
analysis of each targeted anomaly reported.
Nine targets were surveyed over Block 1 and two over Block 2 of
the original AEM survey area. The responses of three of the targets
over Block 1 and one of the targets over Block 2 were found to be
dominated by IP effects, i.e. the recorded responses cannot be due
to massive sulphides. No or limited quantitative interpretation was
done on these data sets.
Seven of the selected targets in Block 1 and two in Block 2,
were quantitively analysed using plate models and/or 3D compact
body inversion. The analysis confirmed the presence of at least six
discreet, highly conductive bodies at depth - five in Block 1 and
one in Block 2.
Kalahari Key and MFC Project Background
Kalahari Key Mineral Exploration Company (Pty) Ltd, registered
in Botswana, is a mineral exploration and geological consultancy
company.
The MFC Project originally consisted of three licenses in
covering an area of 2,725 square kilometres that are considered
prospective for Nickel-Copper-PGMs mineralisation and 100% owned by
Kalahari Key.
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.
Licences PL310/2016 and PL311/2016 were due for renewal in late
2019 and renewal applications were submitted including evidence of
work undertaken and associated costings in excess of the minimum
stipulations for maintaining the licences and seeking renewal. We
understand that renewals have been granted, with the usual
provision of circa 50% land area relinquishment. The exploration
work undertaken has proved extremely useful in identifying the
ground hosting the potential mineralisation and the remaining areas
held under the renewal applications contains the key potentially
mineralised structures. A further update to the market will be
provided when formal renewed licence documentation has been
received.
Power Metal Resources Interest in Kalahari Key and The MFC
Project
Power Metal Resources has an 18.26% shareholding in Kalahari Key
and on 31 December 2019 elected 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").
Following completion of the 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
Further Information on the POW Project Level 40% Earn-In to the
MFC Project
On 31 December 2019 POW elected 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 an MFC Project operational
committee (the "Committee") has been 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, following POW electing to Earn-In, Paul Johnson (POW
Director) has now joined the Board of Kalahari Key.
Also, now POW has elected to 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.
Competent Person's Statement
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, 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.
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
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed 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.
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
UPDUPUWPPUPUGQC
(END) Dow Jones Newswires
February 05, 2020 02:00 ET (07:00 GMT)
Grafico Azioni African Battery Metals (LSE:ABM)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni African Battery Metals (LSE:ABM)
Storico
Da Apr 2023 a Apr 2024
