TIDMPOW
RNS Number : 8982O
Power Metal Resources PLC
06 October 2023
6 October 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Molopo Farms Complex, Botswana - Exploration Update
Identification of High-Priority Drill Target
Power Metal Resources PLC (AIM:POW), the AIM listed exploration
Company seeking large-scale metal discoveries across its global
project portfolio, announces an exploration update from its Molopo
Farms Complex Project ("Molopo Farms" or the "Project" or "MFC")
where the Company is targeting a district-scale nickel ("Ni") and
platinum group element ("PGE") discovery in southwestern
Botswana.
KEY FINDINGS
-- The previously conducted airborne electromagnetic ("EM")
geophysics surveys flown in 2018, followed up with ground moving
loop electromagnetic ("MLEM") geophysics surveys completed in 2022,
led to the identification of targets subsequently drilled during
the 2022/2023 campaign.
-- Target area T1-14 demonstrated the highest potential due to
the strength of the super conductor originally identified.
-- Drillhole DDH1-14B from the 2022/2023 drill campaign did not
intersect the modelled superconductor. This led the Company to
engage a geophysicist to complete inversions of widely spaced
audio-frequency magnetotelluric ("AMT") survey results from 2020
that was completed over target area T1-14. AMT technology can
measure a wider range of conductivities compared to airborne and/or
ground EM and to a greater depth.
-- Significantly, this work has led to the identification of two
distinct conductors at target area T1-14 (compared to one
moderately dipping conductor identified by the MLEM) including a
very strong steeply dipping multi-kilometre long conductor which is
co-incident with the keel of the feeder zone intrusion (see figure
1 and figure 2). This conductor has the potential to host massive
sulphide mineralisation and thus has been deemed a high priority
exploration target which has never been drill tested to date.
-- The second conductor identified is relatively flat lying and
determined to be sedimentary in origin which led to the false
targeting during the previous drilling campaign.
-- The Company is working with its technical consultants
regarding the implementation of a drill programme at target area
T1-14 to test this newly modelled steeply dipping conductor (see
figure 1 and figure 2).
Sean Wade, Chief Executive Officer of Power Metal Resources,
commented:
"Historical exploration work at Molopo Farms has been
multi-year, extensive and absolutely necessary in order to narrow
down key targets for exploration drilling within a very large
licence footprint. The Company is targeting major discoveries and
the work completed to date has confirmed that the MFC has the
required geological ingredients to host a significant nickel
deposit as found in other mafic/ultramafic belts worldwide.
"In exploration, geophysics alone is never enough and drilling
is always necessary to firm up the geological model and confirm
economic deposits. As drilling is undertaken, the additional data
gathered can, with other exploration techniques, provide a
step-change enhancement of the technical understanding of a project
and its potential.
"On this basis, the work focussed on target area T1-14 has
delivered a superior database and is now the highest priority
conductor target, based on all the evidence we have gathered thus
far. We are particularly excited by this development and look
forward to updating the market in due course with drilling plans
for this target.
"This exploration work, which is currently focussed on target
area T1-14, is being conducted in parallel with our ongoing
engagement with third parties with regard to commercial avenues for
Molopo Farms as previously highlighted."
KEY TECHNICAL HIGHLIGHTS
-- EM surveys and drilling have proven the presence of a funnel
shaped ultramafic intrusion within the northeastern part of the
Molopo Farms Complex. This dyke-like intrusion ("the intrusion")
can be traced on magnetic maps for at least 20km towards the
southwest where it is seen to merge with a thick sequence of
layered ultramafic rocks.
-- The intrusion follows a well-established NE-SW fault zone and
is interpreted to be the geological feeder zone to the Molopo Farms
Complex and therefore an important target when searching for
magmatic nickel and PGE rich sulphides.
-- Such feeder zones are known to be potential loci of sulphide
mineralisation associated with the intrusion, for example at
Voisey's Bay in Canada or Uitkomst in the eastern Bushveld Complex
located in South Africa which is an age equivalent unit to the
MFC.
-- Inversions of a historical AMT survey completed over target
area T-14 in 2020 in the region of the known feeder zone have
identified a very strong steeply dipping conductor co-incident with
the keel of the intrusion.
-- The base, or keel, of such a feeder intrusion may well be the
site of massive sulphide mineralisation and is thus a priority
exploration target which has never been drill tested to date.
-- As a result, drilling plans are currently being developed by
Power Metal's technical team in order to optimally test this
target.
-- Given the success of the AMT technology and inversions
thereof to decipher between multiple conductors at target area
T1-14. A MobileMT survey (airborne AMT) is also being considered in
order to further image other target areas which have only been
investigated by airborne or ground EM to date.
Discussion on Future MFC Exploration
As the demand for nickel continues to increase, exploration for
magmatic sulphide deposits within mafic/ultramafic complexes will
continue to be of significant interest to junior and major mining
companies.
Compared to many other significant mafic provinces, the MFC is
comparatively underexplored, likely as a result of the extensive
Kalahari sand cover. However, based on the information provided
above it is evident that the MFC has the required ingredients which
could allow for the formation of a magmatic sulphide
deposit(s).
To that end, one of the major challenges of exploration within
the MFC is due to the fact that the mafic-ultramafic rocks intruded
into Transvaal Supergroup sediments, many of which are known to be
sedimentary conductors (e.g. pyritic carbonaceous mudstones).
While the presence of these iron rich sedimentary rocks is one
of the key ingredients required in order to form primary magmatic
nickel sulphides, the presence of multiple conductors can make
drill targeting difficult, especially considering the lack of
outcrop exposure within the MFC.
Due to the above considerations, Power Metal is of the belief
that significant further exploration is warranted in the future at
Molopo Farms, including:
-- Drilling of further drillholes at target area T1-14 where
recently completed inversions of AMT data have clearly established
the presence of two distinct conductors (not one moderately dipping
conductor as imaged and targeted previously). Of particular
interest is the steeply dipping conductor which was traced for
several kilometres and which has never been drill tested. This
conductor is coincident with the funnel shaped ultramafic intrusion
and therefore represents a very compelling target compared to the
shallow dipping lying sedimentary conductor.
-- Based on the success of the AMT survey results, complete a
high-resolution mobile magnetotellurics ("MobileMT") airborne
geophysical survey. MobileMT (R) is on the cutting edge of
geophysical survey methodology and compared to time domain
electromagnetics ("TDEM") has multiple advantages including:
o Allows for good discrimination between resistive units (e.g.
TDEM cannot effectively map resistive units or discriminate between
1000 ohm-m and 5000 ohm-m formations). In the case of target area
T1-14 it can more easily image multiple conductors within a given
survey area (compared to other EM techniques which often 'average'
these conductors).
o Provides superior depth penetration compared to high powered
TDEM systems (up to 2km in certain geological environments).
o System experiences no problems with induced polarisation
("IP") effects, zero coupling zones or super para-magnetic
effects.
o Highest efficiency and quick surveying over flat areas like
southern Botswana and can average data acquisition of 100 line-km
per day with a comparatively low production cost. A quote for this
work has been obtained and will be held pending finalising of any
next exploration steps at the MFC.
Figure 1: 1(st) vertical derivative magnetics show in the
background. 4 AMT cross-section lines highlight the presence of a
steeping dipping conductor (blue) as well as a shallow conductor
which was ultimately drilled by both historical drillholes at
target area T1-14 (see Figure 2 for inset cross-section line A-A').
The total distance between L3 and L4 is approx. 6km.
Figure 2: Cross-section A-A' showing inversion results from AMT
line 1. The red traces represent the location of the historical
drillholes which targeted what has now been determined to likely be
a shallow dipping sedimentary conductor. The large purple to blue
conductor is the newly discovered steeply dipping conductor which
has not yet been drill tested. The black line represents a possible
drill location to target this priority conductor.
Glossary
Dyke Magmatic intrusion that is discordant with the surrounding
geology.
Feeder zone The plumbing system from which magma is supplied
into the intrusive from the lower crust. These can often form as
elongated dykes at the base of an ultramafic layered intrusion.
Sulphide mineral accumulations can often form in the vicinity of
the feeder zone.
Induced Polarisation IP is a geophysical imaging technique used
to identify the electrical chargeability of subsurface
materials.
Keel Semi-confined area with a magmatic intrusion.
Lopolith A lens shaped intrusion of igneous rock.
Para-magnetic Refers to the state of an atom with one or more
unpaired electrons.
Pyritic mudstone Mudstone containing elevated amounts of iron
pyrite - with refence to nickel sulphide deposits, these represent
important sources of sulphur.
Transvaal Supergroup The Transvaal Supergroup is a group of
rocks in northern South Africa and southern Botswana, situated on
the Kaapvaal Craton, composed of sedimentary and volcanic
lithologies.
Ultramafic rock An igneous rock in which has a very low silica
content and in which more than 90% of the rock is composed of
magnesium and iron-rich minerals like pyroxenes, amphiboles, and
olivine.
Power Metal Interest
Power Metal holds an 87.71% interest in Kalahari Key Mineral
Exploration Pty Ltd, a Botswana private company, which holds a 100%
interest in the Molopo Farms Complex Project.
QUALIFIED PERSON STATEMENT
The technical information contained in this disclosure has been
reviewed 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
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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
BlytheRay (PR Advisors)
Tim Blythe/Megan Ray +44 (0) 20 7138 3204
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.
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