Paul Johnson, executive director, said the licence was primarily a cobalt play and in a known area of mineralisation.
Initial exploration will be through termite mound sampling potentially to be followed by pit excavations down to a depth of 10m.
“Given the location of the licence and the results so far, this is a very exciting project where our objective is to prove up a shallow, open-pittable and high-grade resource."
Soil sampling has shown anomalous cobalt at 500-750 parts per million and mineralisation on trend from nearby occurrences of R2 rocks.
Power Metal has paid US$5,000 to vendor SCOMIS for the option, which will be followed by US$50,000 if the option is exercised and a further US$250,000 when mining starts.