TIDMPOW

RNS Number : 8924J

Power Metal Resources PLC

15 December 2022

15 December 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Gold Project, Botswana - Exploration Plans

Company in Final Stages of Planning Next Exploration Steps which will Include Soil Sampling, Geophysics, Trenching and Reverse Circulation & Diamond Drilling

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update from its 100% owned and operated Tati Gold Project ("Tati" or the "Project") located within the Tati Greenstone Belt near Francistown, Botswana.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:

" At the Tati Gold Project we are focused on discovering a large gold deposit. So far, in our view, the evidence gathered is increasingly compelling.

We have therefore accelerated next stage Project exploration plans, through which we believe we can move the Project forward quite considerably.

Those plans are outlined in further detail below and will test a much larger portion of the 8km gold-in-soil anomaly. The plans also include the first testing of gold at depth to add to the near surface mineralisation already identified.

Further announcements will follow in due course as we execute on the plans outlined below."

KEY PROJECT FEATURES

 
 Gold-in-soil anomaly identified             Anomaly coincident with a major 
  (the "Anomaly").                            regional shear structure extending 
                                              over a strike distance of approximately 
                                              8 kilometres through the centre 
                                              of Project (Figure 1 below). 
 Soil sampling and reverse circulation       To date, shallow high-grade 
  ("RC") drilling undertaken within           and bonanza grade gold (up to 
  the Anomaly.                                47.1g/t Au) intersected within 
                                              northwest and southeast segments 
                                              of the Anomaly. 
                                            ----------------------------------------- 
 Extensive near-surface gold                 Identified from the 175m strike 
  mineralisation.                             length tested with the prospect 
                                              of further mineralisation across 
                                              the remainder of the 8km Anomaly. 
                                            ----------------------------------------- 
 Potential for further gold mineralisation   Maximum RC drillhole depth to 
  at depth.                                   date of 55m, additional drill 
                                              testing expected to test for 
                                              further gold mineralisation 
                                              at depth. 
                                            ----------------------------------------- 
 Cherished Hope, a former working            Extensive evidence of gold production 
  gold mine, situated within the              from Cherished Hope, providing 
  Project footprint.                          a focal point for initial and 
                                              follow-on exploration. 
                                            ----------------------------------------- 
 Local processing plant.                     Within 20km from the Project, 
                                              capable of processing fines 
                                              dumps and any other material 
                                              mined from the Project (subject 
                                              to relevant local approvals). 
                                            ----------------------------------------- 
 

DRILL RESULTS TO DATE LEAD TO EXPEDITED NEXT STAGE EXPLORATION

Assays results from the August 2022 reverse circulation ("RC") drilling programme returned multiple near-surface bonanza grade intercepts including 1m of 47.1g/t gold ("Au") from 6m downhole in drillhole CHRC0003 as well as 1m of 40.6g/t Au (from 2m of 23.2g/t Au) from 26m downhole in drillhole CHRC0006.

Due to the high-grade nature of the results achieved, the Company has fast tracked planning for the next stage of exploration, the details of which are highlighted below.

Full drill programme assays were released on 3 & 7 November 2022 and can be found at the links below:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-final-drill-assay-results/15703794

NEXT STAGE EXPLORATION HIGHLIGHTS

The next stage planned exploration programme will include various elements which are highlighted below:

-- High-resolution soil geochemistry programme focused on approximately 3km of strike-length extension from the Cherished Hope mine where a historical widely spaced soil sampling programme highlighted multiple gold-in-soil anomalies with individual results up to 2,150ppb (2.15g/t) Au-in-soil. Approximately 500-600 individual soil samples are planned with follow up assay testing of samples.

-- A ground magnetometer geophysics survey focusing on the northwestern strike length extension of the Cherished Hope Mine. The goal of the magnetometer survey is to provide high-resolution imaging of any structures or geology which may have had an influence on the emplacement of mineralised quartz reef structures.

-- A mechanised trenching programme focused on extending the known strike-length extension of the main quartz reef structure at Cherished Hope which has currently been intersected by drilling over a 175m strike-length (see Figure 2 below). The quartz reef currently remains open towards the northwest and southeast as well as down dip.

Approximately 12-15 RC drillholes are planned which will be designed to test for the along strike, and down dip extension of the main mineralised quartz reef structure. Multiple holes from the 2022 programme intersected mined-out voids, including drillhole CHRC0002 which was designed to test one of the thicker portions of the quartz reef, but due to the shallow dip chosen, it intersected a mining void from 10-15m downhole. Interestingly, 1m of 5.6g/t Au was intersected from 15-16m representing the footwall of the main quartz reef structure. At least one planned hole will have a steepened dip here in order to drill test the entire section of this quartz reef.

-- Following the completion of the RC drilling component, approximately 3-5 diamond drillholes are planned which will be designed to drill test select portions of the quartz reef structures which were successfully delineated by the RC drilling. Diamond drilling provides full core rock samples, and therefore valuable information about structure, geology, and the nature of gold mineralisation.

-- Preparations for the above programme are currently underway and the Company will provide further information in due course as programme elements are launched, commencing in early 2023. Components of the planned exploration programme could be changed dependent on results from the various elements planned.

FURTHER INFORMATION

Figure 1 - Tati Project Overview Plan Map:

Figure 2 - Tati Project Q3 Drilling Area Zoomed Plan Map:

QUALIFIED 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 Qualified 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.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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/Charlie Bouverat                          +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 - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal holds a number of priority exploration projects with active exploration underway currently. The status of each project is outlined in the table below:

 
  Project        Operations        POW                      Project Status 
                                     % 
 
 Athabasca     12 properties       100%    Exploration programmes undertaken 
  Uranium        covering an               across three properties during summer 
              area of 842km(2)             2022 and preliminary planning for 
              in the Athabasca             work in Spring/Summer 2023 is ongoing. 
                Basin region               Desktop review work ongoing across 
                   Canada.                 the existing portfolio and data rooms 
                                           established for all the projects, 
                                           to enable third party review of opportunities 
                                           for potential acquisition, joint 
                                           venture or earn-in. 
                                           Ongoing review of new opportunities 
                                           to further expand the Company's Athabasca 
                                           uranium property exposure. 
            -------------------  -------  ------------------------------------------------- 
 Molopo        3 prospecting      87.71%   Currently a 2,600m diamond drill 
  Farms       licences covering             programme is underway with a planned 
  Nickel         1,723km(2)                 5-6 holes targeting four previously 
  - PGMs        in south-west               identified magnetic conductors prospective 
                  Botswana                  for Nickel - Platinum Group Metals. 
                                            2 drill holes at target conductor 
                                            T1-6 and one at T1-14 have been completed 
                                            and drilling at target T1-3 target 
                                            is underway currently. 
                                            Downhole geophysics completed at 
                                            DDH1-6A and underway at DDH1-14B. 
                                            Further Moving Loop Electro-Magnetic 
                                            surveys are planned over additional 
                                            Airborne Electro-Magnetic targets 
                                            identified, to develop further drill 
                                            targets. 
            -------------------  -------  ------------------------------------------------- 
 Tati             Botswana         100%    Reverse Circulation drilling and 
  Project                                   soil sampling confirmed high-grade 
  Gold -                                    and bonanza grade gold mineralisation 
  Nickel                                    within a gold-in-soil anomaly extending 
                                            for 8km across the Company's prospecting 
                                            licences. 
                                            Next stage exploration plans announced 
                                            15.12.22. 
                                            Sampling of fines dumps, representing 
                                            waste material from the Cherished 
                                            Hope gold mine on the project has 
                                            confirmed circa 1g/t gold and suitability 
                                            of the fines dumps for processing 
                                            to extract gold and generate income. 
                                            Preparations for the fines dumps 
                                            processing are advancing. 
            -------------------  -------  ------------------------------------------------- 
 

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required. These interests are summarised in the table below:

 
   Company            Operations             Status          POW                    Further Information 
                                                              %                             Link 
 First          Exploration                  Listed        27.91%               www.firstclassmetalsplc.com 
  Class          in the Schreiber-Hemlo     Investment 
  Metals         region of Ontario, 
  PLC            Canada 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 Kavango        Exploration                  Listed         9.85%                 www.kavangoresources.com 
  Resources      in Botswana                Investment 
  PLC 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 First          Exploration                  Planned       62.12%*           www.firstdevelopmentresources.com 
  Development    in Western Australia          IPO 
  Resources      and the Northern 
  PLC            Territory of 
                 Australia 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 Golden         Exploration                  Planned       83.13%               www.goldenmetalresources.com 
  Metal          and development               IPO 
  Resources      in Nevada, USA 
  PLC 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 New Ballarat   Exploration                  Planned        49.9%     New website under development 
  Gold PLC       in the Victoria               IPO                    which can be found at 
                 Goldfields of                                        www.newballaratgoldcorp.com 
                 Australia                                            . 
                                                                      In the interim further 
                                                                      information in respect 
                                                                      of NBGC can be found 
                                                                      at: 
                                                                      https://www.powermetalresources.com/project/vict 
                                                                      oria-goldfields/ 
                                                                      . 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 NewCo          Exploration                  Planned         20%              NewCo website under development. 
                 in Queensland's           IPO/Disposal      (^) 
                 Mount Isa copper 
                 belt and in 
                 South Australia 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 Uranium        Uranium exploration          Planned      50-55%()           www.uraniumenergyexploration.com 
  Energy         in the Athabasca              IPO 
  Exploration    region of Canada 
  PLC 
               ------------------------  --------------  ----------  ------------------------------------------------- 
 

(*) reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.

(^) subject to completion of Merger announced 15.12.22.

() subject to completion of disposal of Reitenbach and E-12 properties, announced on 8.8.22 and 4.11.22, respectively.

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