TIDMPOW
RNS Number : 3293O
Power Metal Resources PLC
01 October 2019
01 October 2019
Power Metal Resources plc ("POW" or the "Company")
Botswana - Nickel Sulphide Targets Confirmed
Power Metal Resources plc (LON:POW) the AIM listed African
focused metals exploration and development company is pleased to
announce that nickel sulphide targets have been confirmed from an
interpretation of the ground geophysics undertaken by Kalahari Key
Mineral Exploration Pty Ltd ("Kalahari Key" or "KKME") at the
Molopo Farms Complex project in Botswana ("MFC" or the "MFC
Project").
The MFC Project consists of licenses covering an area of 2,725
square kilometres that are considered prospective for
Nickel-Copper-PGMs mineralisation and is 100% owned by Kalahari
Key.
Power Metal Resources has an 18.26% shareholding in Kalahari Key
and also has a right by 31 December 2019 to elect 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").
Should the Company elect to 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
Paul Johnson, Executive Director of Power Metal Resources plc
commented: "I am delighted that our shareholders have exposure to
the Kalahari Key opportunity and, potentially in the near term, to
the upside potential that comes with drilling for massive nickel
sulphides.
Drilling carries risk and the outcome is always uncertain, but
the opportunity is immense, for if the drilling of the MFC Project
yields a nickel sulphide discovery, no matter the market
conditions, the potential upside for all those interested in the
project could be significant.
I have been here before as a director of other companies before
the drilling of major targets; when the market doesn't quite gather
the potential and my job is to engage the market with the
opportunity before us.
It is far easier to engage post discovery than pre-drilling, but
I will over the coming months make it my task to ensure that
investors cannot say, should we make a nickel sulphide discovery,
that they were not adequately informed of the possibility.
I remain fascinated by the Kalahari Key opportunity and
intrigued as to what might lie beneath the drill locations. I am
equally keen to work with the Kalahari Key team to determine and
implement the project development pathway. We look forward to
keeping shareholders updated in this regard."
Highlights:
-- The helicopter-borne electro magnetic ("EM") survey over the
Molopo Farms Feeder Zone project area, was extremely successful in
delineating targets for potential nickel sulphide exploration;
-- The targets identified were followed up with ground EM
surveys utilising B field sensors (Supracon Jesse Deep SQUID
("Super Conducting Quantum Interference Device")), with high power
transmitters ("HPTX"), which greatly enhance depth penetration and
definition and discrimination of target conductors;
-- Several discrete, highly conductive bodies were detected that can be classified as close to super-conductors;
-- The identified conductors can possibly be massive nickel
sulphides due to the spatial location, particular geological
setting and associated magnetic response;
-- 8 drill holes have been designed to intersect the 6 highest priority targets;
-- Kalahari Key will shortly appoint consultants to implement
the necessary environmental surveys and to conduct the statutory
consultations with landowners and other stakeholders prior to any
decision to undertake drilling;
-- Kalahari Key are also liaising with various drilling
contractors with regard to the potential drill programme;
-- POW directors are working with Kalahari Key to review the
information gathered from the technical geophysics report,
implementation of the above steps and to agree a pathway
forward;
-- Further updates to shareholders will be provided at the earliest opportunity.
FURTHER INFORMATION - GROUND SQUID TDEM INVESTIGATION OF
SELECTED HELICOPTER AIRBORNE TDEM (EXCITETM) ANOMALIES
The information below is extracted from the full technical
report prepared by Cas Lotter of Spectral Geophysics in Gaborone
International Business Park, Gaborone, Botswana.
The full report will be uploaded to the Kalahari Key website
shortly.
Executive Summary
"Eleven conductor targets generated from a combined helicopter
borne XCITETM electromagnetic-magnetic survey, were followed up
with ground electromagnetics, during the period June to August
2019. The targets are located within the ENE-WSW Jwaneng-Makopong
Feeder/Shear Zone through the center of the Molopo Farms Complex
(MFCFZ).
All the targets were covered with Time Domain Electromagnetic
traverses using a highly sensitive SQUID sensor and ultra-powerful
HPTX transmitter. Three orthogonal components of the B field were
measured at stations 50m or 100m apart, along 200m spaced lines.
All the airborne electromagnetic ("AEM") targets surveyed, except
1, were located on the ground, as well as additional conductors
that were beyond the depth penetration capabilities of the AEM
system employed.
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, ie. 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
discrete, highly conductive bodies at depth - five in Block 1 and
one in Block 2.
Eight exploration boreholes were designed, and relevant
parameters calculated to intersect the highly conductive targets at
depths ranging between 300m and 800m.
Conclusions and Recommendations
The NRGTM XCITETM helicopter-borne EM survey over the Molopo
Farms Feeder Zone project area, was extremely successful in
delineating targets for potential nickel sulphide exploration.
These targets were followed up with ground EM surveys utilising
B field sensors (Supracon Jesse Deep SQUID), with high power
transmitters (HPTX), which greatly enhance depth penetration and
definition and discrimination of target conductors.
Several discreet, highly conductive bodies were detected that
can be classified as close to super-conductors. The identified
conductors can possibly be massive nickel sulphides due to the
spatial location, particular geological setting and associated
magnetic response.
Borehole parameters are provided to intersect the highest
priority targets and recommendations are made for further
investigation of targets where warranted."
BACKGROUND TO KALAHARI KEY AND THE MFC PROJECT
Kalahari Key, registered in Botswana, is a mineral exploration
and geological consultancy company that was established by Roger
Key, Andy Moore, Simon Bate and Rick Bonner in November 2014.
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.
The target mineralization is Ni-PGM in the shear/ feeder zone.
Re-processing and re-interpretation of existing high-resolution
airborne magnetic data and regional gravity data was initially used
to identify target areas. Selected core from previous exploration
programmes has also been examined to better understand the geology
of the Complex.
Towards the end of 2018, NRG(TM) was contracted to complete a
high-resolution helicopter airborne magnetic and Electro Magnetic
survey over the feeder/shear zone using their Xcite (TM)
methodology. The preliminary analysis of the new geophysical data
identified 17 conductor targets within the feeder/shear zone.
In mid-2019 a ground geophysics programme was undertaken. The
system employed was the High-Power Electro-Magnetic ("HPEM")
transmitter capable of transmitting up to 200A together with the
ultra-sensitive Supracon Jesse-Deep SQUID ("superconducting quantum
interference device ") sensor hooked up to the industry standard
EMIT Smartem24 receiver.
Transmitter loops of approximately 1km by 1km were laid out
using 35mm2 aluminium wire and lines (100 or 200m spacing) were
surveyed at either 50m or 100m reading interval, depending on depth
to target. In total 11 loops were undertaken around 14 individual
targets from the original helicopter EM Survey.
The data generated from the ground geophysics programme was
reviewed in South Africa in August 2019 and 6 priority drill
targets have been identified from which it is expected that 4 key
targets will be the focus of a Phase 1 drilling programme. A
detailed technical report covering the ground geophysics programme
and the priority drill targets is under preparation.
In addition, measures are being undertaken to implement the
necessary environmental survey work prior to drilling, and liaison
with drilling contractors to ensure, subject to environmental
approvals, that the appropriate drilling contractors are in
place.
PROJECT LEVEL 40% EARN-IN TO THE MFC PROJECT
Not later than 31 December 2019 POW may elect, at its sole
discretion, 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 (or earlier with the
agreement of all parties) an MFC Project operational committee (the
"Committee") will be 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, upon POW entering into the Earn-in (or earlier if agreed
by all parties) Paul Johnson (POW Director) will join the Board of
Kalahari Key.
Neither the Committee members nor the existing or new directors
of Kalahari Key will be remunerated for their services.
Also, upon the Company entering into the 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.
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 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 nickel, copper and
cobalt.
This information is provided by RNS, the news service of the
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END
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