Botswana Molopo Farms Complex – Drilling Progress Update
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide a drilling progress update on the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key” or “KKME”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.
OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT
Power Metal has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure in 2020, notably the diamond drilling of selected targets. On completion of the Earn-In, Power Metal will have an effective economic interest of 50.96% in the MFC Project.
For clarity, the US$500,000 cost is fully funded and covered by Power Metal existing cash resources.
Paul Johnson Chief Executive Officer of Power Metal Resources commented:
“We are pleased to provide a drilling update for our first drill hole at the Molopo Farms Complex where high-resolution geophysics has identified a series of exciting high conductivity bodies which could be related to massive sulphide mineralisation.
The drill hole has now reached a depth of 445m and is now approaching the start of the target zone and the upper edge of the geophysically modelled conductive body at around 505m depth.
As this is the first hole on the project into unknown geology the drilling has been proceeding cautiously to maintain the 100% core recovery, but with the rig now expected to average around 30m/shift we expect the hole to reach the start of the conductive target within the next few days.
We look forward to providing further updates as the programme progresses.”
· Drill Hole 1 at the MFC Project has now attained a depth of 445m at end of shift on Tuesday 10th November. As the hole has deepened the drilling has been proceeding cautiously as it is the first hole of the project and the drilling team are getting accustomed to the ground conditions whilst continually achieving 100% core recovery.
· Hole 1 is now approaching the start of the target zone and should reach the upper side of the modelled Target 1-14 conductor at a depth of approximately 505m, within the next few days.
· In addition to recovering core samples from the target zone for assay at an accredited laboratory, the drill hole will be used by a down-hole geophysical probe which will gather additional deep-seated data to supplement the surface derived Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysical modelling.
· The downhole geophysics should enable the conductive target model to be refined and will help determine whether the drill hole could be extended or deviated to gather more data.
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.
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