Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project (“Molopo Farms” or the “Project”) targeting a large scale nickel-copper-platinum group element (“PGE”) discovery in southwestern Botswana.
On 23 August 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms, as well the expansion of the geophysics programme over target (“T”) areas T1-6 and T1-14 (covering prior 20/21 drill holes K1-6 and K1-14) and two new target areas T1-3 and T2-3. The link to this announcement is below:
§ Diamond drilling contract has been signed with Mindea Exploration and Drilling Services (Pty) Ltd (“Mindea”), an experienced Botswana-based company with extensive drilling experience in-country. Mindea is 100% Botswana citizen owned.
§ The current planned programme is for circa 2,600m of diamond drilling across an expected 6 drillholes, with at least two drillholes planned into the newly identified conductor within the T1-6 target area.
§ The drilling will be paid for on a part-cash, part-equity basis, with over 50% of the expected contract cost to be satisfied through the issue of up to 10,000,000 new ordinary shares of 0.1p each in the Company at an issue price of 2.25p per share (“Drilling Cost Shares”). The Drilling Cost Shares will be issued by the Company within one month of the completion of 2,600 metres of drilling.
§ Mindea’s base of operations is located only 98km from Molopo Farms allowing for quick and efficient mobilisation of crews and equipment, with the expected mobilisation and drilling commencement scheduled for mid-September 2022.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“It has been an incredible effort by the team to put us in the position to launch expedited drilling at Molopo Farms only a matter of weeks after the discovery, through geophysical surveys, of a new and very compelling conductor in target T1-6 located immediately south of previous drillhole K1-6.
The electromagnetic conductor, the edge of which was intersected by previous diamond drillhole K1-6 at a similar stratigraphic level to a broad nickel sulphide mineralisation interval, represents a high-priority target during the upcoming drilling programme.
The potential offered by this drill programme is amply demonstrated by Mindea, the drill contractor, taking a significant portion of the contract costs in Power Metal shares.
Now the real work begins, with the few weeks prior to drilling commencement to be used to undertake the expanded geophysical surveys to confirm precision drill targeting at T1-6, and the follow up surveys at targets T1-14, T1-3 and T2-3. That survey work is underway currently.
Further Molopo drilling updates are expected prior to and following mobilisation, alongside updates in respect of the expanded geophysics drill target generation programme.”
PROJECT BACKGROUND AND OWNERSHIP
Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd (“KKME”). On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the “Transaction”). The announcement may be viewed through the following link:
As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.
Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.
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
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