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 (the "Anomaly"). | Anomaly coincident with a major regional shear structure extending over a strike distance of approximately 8 kilometres through the centre of Project (Figure 1 below).
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| Soil sampling and reverse circulation ("RC") drilling undertaken within the Anomaly. | To date, shallow high-grade and bonanza grade gold (up to 47.1g/t Au) intersected within northwest and southeast segments of the Anomaly. |
| Extensive near-surface gold mineralisation. | Identified from the 175m strike length tested with the prospect of further mineralisation across the remainder of the 8km Anomaly. |
| Potential for further gold mineralisation at depth. | Maximum RC drillhole depth to date of 55m, additional drill testing expected to test for further gold mineralisation at depth. |
| Cherished Hope, a former working gold mine, situated within the Project footprint. | Extensive evidence of gold production from Cherished Hope, providing 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:
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 Uranium | 12 properties covering an area of 842km2 in the Athabasca Basin region Canada. | 100% | Exploration programmes undertaken across three properties during summer 2022 and preliminary planning for work in Spring/Summer 2023 is ongoing. Desktop review work ongoing across 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 Farms Nickel - PGMs | 3 prospecting licences covering 1,723km2 in south-west Botswana | 87.71% | Currently a 2,600m diamond drill programme is underway with a planned 5-6 holes targeting four previously identified magnetic conductors prospective 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 Project Gold - Nickel | Botswana | 100% | Reverse Circulation drilling and soil sampling confirmed high-grade and bonanza grade gold mineralisation 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 Class Metals PLC | Exploration in the Schreiber-Hemlo region of Ontario, Canada | Listed Investment | 27.91% |
|
| Kavango Resources PLC | Exploration in Botswana | Listed Investment | 9.85% |
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| First Development Resources PLC | Exploration in Western Australia and the Northern Territory of Australia | Planned IPO | 62.12%* | www.firstdevelopmentresources.com
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| Golden Metal Resources PLC | Exploration and development in Nevada, USA | Planned IPO | 83.13% |
|
| New Ballarat Gold PLC | Exploration in the Victoria Goldfields of Australia | Planned IPO | 49.9% | New website under development which can be found at www.newballaratgoldcorp.com. In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/. |
| NewCo | Exploration in Queensland's Mount Isa copper belt and in South Australia | Planned IPO/Disposal | 20%^ | NewCo website under development. |
| Uranium Energy Exploration PLC | Uranium exploration in the Athabasca region of Canada | Planned IPO | 50-55%~ |
* 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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