Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update with regard to the South Ghanzi Project (the “Project”) in the Kalahari Copper Belt (“KCB”), Botswana.
The South Ghanzi Project is part of a Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV) covering precious, base and strategic metal opportunities in Botswana. Power Metal and Kavango each have a 50% interest in the SJV.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Both Kavango and Power Metal are eager to push ahead with ground exploration in the KCB, with the South Ghanzi Project demonstrating geological features similar to recent major copper/silver discoveries in the area.
We now intend to conduct an airborne electromagnetic and magnetic geophysics survey in parallel to ongoing ground exploration work which includes intensified soil sampling around target areas. By doing this we will speed up the exploration process at this key stage, hopefully fast-tracking the delineation of initial drill targets.
There is a sense across the SJV team that the South Ghanzi project is shaping up rather well with each step forward. Having seen the benefits of a major discovery in the KCB previously, I am personally keen that we continue to push-on at pace.”
· At the South Ghanzi Project the SJV is exploring for potential large-scale copper/silver deposits on the highly prospective KCB.
· Kavango has signed a contract with SkyTEM Surveys ApS (“SkyTEM”), a leading airborne geophysical survey company, to fly 1,173 km of airborne electromagnetic (“AEM”) and magnetic (“Mag”) geophysics survey over the South Ghanzi Project.
· AEM and Mag geophysics have been instrumental in helping other companies identify significant copper mineralisation and copper deposits in the KCB. Through analysis of combined data of geological structures, ground conductivity and surface soil geochemical anomalies, exploration companies can increase chances of drilling success.
· The AEM survey flights are due to commence this month, while ongoing soil sampling and ground survey programmes will continue.
· Given the acceleration of exploration programmes at the KCB, the SJV expects to commence work on an Environmental Management Plan (“EMP”) imminently. An approved EMP will allow the drilling of key targets subject to postive outcomes from the current exploration work .
· In addition to exploration progress outlined above, and in preparation for the potential listing of the SJV on a recognised stock exchange, holding companies for the SJV have now been established with Kanye Resources Pty Ltd in Botswana (“Kanye Botswana”) and Kanye Resources Ltd in England (“Kanye UK”).
THE SOUTH GHANZI PROJECT
The SJV South Ghanzi Project includes two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.
The South Ghanzi Project includes lengthy geological reduction-oxidation (“redox”) boundaries, close to surface, that represent prospective exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges.
Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources Ltd (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
KCB AEM SURVEYS AND FURTHER EXPLORATION
SkyTEM acquires electromagnetic, magnetic and radiometric data from a helicopter platform. The highly accurate data it delivers is a critical component for subsurface exploration.
AEM data is gathered by transmitting an electromagnetic signal from a system attached to the helicopter. This signal induces current eddies in the ground, which are received by a large loop of coils carried underneath the helicopter.
This technology enables SkyTEM to detect variations in the conductivity of ground up to depths of over 300 metres. Processing and interpretation of this data will enable Kavango’s exploration team to identify and differentiate any conductors encountered. Depending on the conductivity response of these conductors and their position in the ground, if any of these are found they could become targets for future drilling.
SkyTEM will fly 1,173km over the South Ghanzi Project.
Final flight plans are currently being prepared, guided by encouraging initial soil sample results from the South Ghanzi Project.
Following its reinterpretation of previous regional airborne survey data, Kavango’s geological team has mapped certain underground formations of particular interest. Soil samples taken above these formations conformed well to Kavango’s exploration model.
Kavango expects that SkyTEM will fly the first AEM surveys later in February.
In the meantime the SJV will continue to carry out further soil sampling and ground magnetic surveys at the South Ghanzi Project.
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
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