Power Metal Resources PLC (LON:POW) said interest from “third parties continues to be received” for a Botswana massive nickel sulphide project it is helping bankroll.
The annual Mining Indaba conference in Cape Town this week has provided the stage to update on the progress at the Molopo Farms Complex Project (MFC).
Power has an 18.26% stake in the deposit’s owner Kalahari Key Mineral Exploration and will have a 50.96% economic interest in the project once it has “earned in” by spending US$500,000 on exploration.
The highlight to date from the geophysics and 3D modelling is the discovery of eight “compelling” drill targets.
At the same time, the environmental management plan ahead of the drill bit turning has now been completed and submitted to the authorities. Consultants believe the work will have a low environmental impact.
On the corporate front, Power Metals’ chief executive Paul Johnson has joined the Kalahari Key board following the decision pull the trigger on the earn-in.
“For our shareholders, I believe we are perfectly poised,” said Johnson in a progress report.
“Subject to local approvals we have the high profile drill targets, and the cash at bank to instigate a drill programme asap. Local liaison with drill contractors continues and measures are being implemented that will allow commencement of drilling at the earliest opportunity.
“As I have stated before high impact exploration drilling carries a high risk of failure, in that we may not find the mineralised structures we seek.
“However, an economic large scale nickel sulphide deposit discovery would be transformational, highly valuable and particularly sought after. Therefore, for the MFC project, I believe the risk-reward balance is highly favourable.
“I look forward to providing our shareholders with further updates regarding the MFC project, its potential and our approach to its development in the coming weeks and months."