TIDMPOW
RNS Number : 4752C
Power Metal Resources PLC
21 June 2021
21 June 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Kalahari Copper Belt - Kanye Resources Exploration Update
Morula target soil sampling confirms conductor/anomaly extends
along strike for at least 12km
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to announce results
from further geochemical soil sampling and geological mapping on
the Morula Target in Prospecting Licence ("PL") 036/2020 at the
South Ghanzi Project ("South Ghanzi" or the "Project") in the
Kalahari Copper Belt ("KCB"), Botswana.
The South Ghanzi Project is held in a 50/50 Joint Venture ("JV")
with Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the
operator of the Project.
-- Following the announcement on 14 May 2021, Kavango has
completed and analysed samples from 16km of infill soil-sampling at
Morula, which confirms the conductor/anomaly identified by airborne
electromagnetic geophysics conducted previously and extends along
strike for at least 12km.
-- Morula is now the highest priority exploration target at South Ghanzi.
-- Exploration test drilling planned later this summer on award
of Environmental Management Plan. Further details on the drill
programme to be provided in due course.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"Today's news includes significant and positive Project
developments.
At Morula we have confirmed a soil geochemistry anomaly of at
least 12km strike length, presenting a considerable scale target,
which also remains open at both ends.
Power Metal and Kavango are seeking large scale copper-silver
discoveries and without question the progress to date is even
better than expected.
Once again, I am reminded of the substantial opportunity the
Kalahari Copper Belt offers for major base metal discoveries. In
2016, whilst CEO of Metal Tiger plc, we followed a similar
exploration methodology which led to the discovery of the T3
Deposit, a discovery which was to be transformational for that
company and its shareholders.
The exploration datasets from South Ghanzi have delineated very
strong drill targets and I am very much looking forward to the
commencement of a programme of drill testing at the Project."
HIGHLIGHTS:
-- Previously, seven, kilometre-scale conductors defined by
airborne electromagnetic ("AEM") geophysics surveys at South
Ghanzi:
- Morula & Acacia identified as the highest priority targets in the short-term.
- Drilling planned as soon as the South Ghanzi Environmental Management Plan ("EMP") is awarded.
-- Infill soil geochemical sampling of Morula:
- 4 sample lines, each 4km long, 1km apart, sampled every 100m.
- Concentrated levels of copper (35ppm to 68ppm) and zinc (59pmm
to 111ppm) in soil correlate closely with results from original
seven soil-sampling lines.
- Soil geochemistry clearly defined a 12km long anomalous zone,
on a south-westerly trend, parallel to the perceived geological
strike and to two steep anticlinal structures.
- Soil geochemical anomaly remains open along strike in both directions.
-- Assessment of optimal drill locations now underway at Morula
and Acacia with further information to follow in due course with
regard to the proposed drill programme:
- Targets appear to be close to surface.
- Minimal Kalahari sand cover expected.
- Estimated mineralised intercept depths of 120m to 200m.
BACKGROUND TO THE MORULA AND ACACIA TARGETS
-- The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020:
- Lies within an interpreted fold "nose", which is plunging southwest
- Lies just above the expected D'Kar - Ngwako Pan contact zone.
- Soil geochemistry directly over the anomaly at Acacia Target
demonstrates significantly anomalous levels of copper (>42ppm)
and zinc (>75ppm).
- Acacia was considered to be the highest priority drill target
until the Morula Target was identified.
- Zinc is a key pathfinder element for the discovery of major
copper/silver deposits within the KCB
-- The Morula Target is estimated to be about 2km wide with at
least 12km of strike on a south-westerly trend along the central
backbone of PL 036/2020:
- Discovered by extending soil sampling lines south of the
Acacia Target but also supported by a weaker AEM linear
conductor.
- Geological mapping, the AEM data and the soil geochemistry
suggest this target represents the mineralised sheared (and
possibly thrust faulted) southern limb of the "Acacia" fold.
- It appears to be a linear zone of deformed rocks, lying where
the syncline (between 2 anticlines) should be located.
- Initially, seven 4km long soil sample lines (500m apart with
100m spaced samples) were completed, with four intersecting the
southwest and three intersecting the northeast parts of Morula. The
two groups of soil sample lines were 7km apart.
- Now, four new 4km long infill soil sample lines (1km apart
with 100m sample intervals) have been completed to close the
gap.
- All soil sample lines returned readings with significant
concentrations of copper (35ppm to 62ppm) and zinc (59ppm to
111ppm) confirming the continuity of the geochemical anomaly over a
strike of 12km.
- AEM profiles suggest that the depth of mineralisation is
relatively shallow such that initial drilling depths would be less
than 200m.
THE POWER METAL/KAVANGO JOINT VENTURE
The South Ghanzi PLs are held in the name of Kavango and are
subject to a JV Agreement in which each company holds a 50%
interest via Kanye Resources plc, an England and Wales public
company.
Exploration costs are equally shared. Kavango is the operator of
the Project.
Application has been made to transfer the PLs into a recently
established Botswana JV company, Kanye Resources (Pty) Ltd which is
wholly owned by Kanye Resources plc.
There are plans to IPO Kanye Resources plc on a recognised stock
exchange.
COMPETENT 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 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.
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 (LON:POW) is an AIM listed metals
exploration and development company seeking a large scale metal
discovery.
The Company has a global portfolio of project interests
including precious and base 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.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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