Power Metal Resources PLC (LON:POW) has selected the initial targets for drilling at the Molopo Farms nickel project in Botswana.
An airborne survey was carried out earlier in the year and an original list of 17 possible drill sites has been whittled down to five by Kalahari Key, the company carrying out the exploration.
Power Metal has an 18.26% shareholding in Kalahari Key and a right to earn into a 40% direct project interest in the project via an investment of US$500,000 by the end of 2020.
Today's statement said the five targets selected are highly conductive bodies, which could potentially be host to massive nickel sulphides due to the spatial location, geological setting and associated magnetic response.
Gravity surveys will now be carried out to eliminate as far as possible any chance that they are graphite rather than sulphide bodies.
Paul Johnson, Power Metals’ chief executive, said: “The initial programme will cover five very strong conductor targets and will optimise the chance of making a discovery.
“Nickel stocks at the LME continue to fall dramatically, and we believe that the price of nickel will appreciate accordingly.
“As such, partially positioning POW in the nickel exploration space is deliberate to expose our shareholders to the upside that comes within the nickel sector during times of positive supply/demand dynamics.”