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Power Metal Resources

Kalahari Key Botswana Update

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RNS Number : 1647H
Power Metal Resources PLC
30 July 2019
 

30 July 2019

Power Metal Resources plc ("POW" or the "Company")

Kalahari Key Botswana Update

Power Metal Resources plc (LON:POW) the AIM listed African focused metals exploration and development company is pleased to provide an update on ground operations being undertaken by Kalahari Key Mineral Exploration Pty Ltd ("Kalahari Key") at the Molopo Farms Complex project ("MFC" or the "Project") a Botswana Nickel-Copper-PGMs exploration project 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 Molopo Farms Complex project, through an investment of US$500,000 in the Project by 31 December 2020. 

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: "The pace at which the Kalahari Key team are progressing is impressive, with the ground geophysics programme expected to be completed by early August.

This important groundwork is designed to initially follow up 11 areas within the 17 conductor targets identified from the helicopter Electromagnetic ("EM") Survey and narrow down to a number of high-profile drill targets. In this region mineral deposits are under sand cover with no surface expression so the application of high-resolution geophysics is vital in identifying the most attractive drill locations.

I am hugely excited by the opportunity the MFC project presents for our shareholders, both through the POW 18.26% shareholding in Kalahari Key and the potential for the Company to earn in to a 40% direct project interest.

Consequently, we await with some excitement the outcome of the ground geophysics programme and the important results interpretation."

 

Highlights:

·    In May 2019 Kalahari Key engaged consultants Spectral Geophysics based in Gaborone, Botswana to immediately commence ground geophysics over targets for Ni-PGM mineralization identified by a recently completed helicopter-supported, High-resolution EM and magnetic survey (the "EM Survey");

 

·    The EM Survey had identified 17 conductor targets within the feeder/shear zone and were found by interpretation of the multiple parameter data obtained from the combined helicopter borne XCITETM electromagnetic-magnetic survey carried out by New Resolution Geophysics ("NRGTM");

 

·    The survey was carried out over the ENE-WSW Jwaneng-Makopong Feeder/Shear Zone through the centre of the Molopo Farms Complex;

 

·    Following a detailed review of EM survey and the 17 conductor targets identified a ground geophysics programme over the most promising targets commenced in May 2019 as planned;

 

·    The ground geophysics work is largely completed and is expected to conclude in early August 2019, with results interpretation shortly thereafter by the Kalahari Key team, alongside their consultant geophysicist, Cas Lotter;

 

·    The strategic objective of the ground geophysics programme is to produce in-depth information with regard to sub-surface conductors, including 3D imagery which will enable the technical team to identify priority drill targets for the next stage of the exploration programme;

 

·    A full update will be provided to the market detailing the outcome of the ground geophysics work and outlining the priority drill targets expected to be identified from that work.

 

GROUND GEOPHYSICS FURTHER INFORMATION

The system being employed is 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 are being laid out using 35mm2 aluminium wire and lines (100 or 200m spacing) are being surveyed at either 50m or 100m reading interval, depending on depth to target.

In total eleven loops were planned around individual targets from the original helicopter EM Survey.

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, NRGTM was contracted to complete a high-resolution airborne magnetic and Electro Magnetic survey over the feeder/shear zone using their Xcite TM methodology.  The preliminary analysis of the new geophysical data has to date identified 17 conductor targets within the feeder/shear zone.

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 (Executive Director)

+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 cobalt, lithium, copper and nickel. 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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