TIDMPOW
RNS Number : 8493I
Power Metal Resources PLC
13 August 2019
13 August 2019
Power Metal Resources plc ("POW" or the "Company")
Kalahari Key Botswana - Completion of Ground Geophysics
Power Metal Resources plc (LON:POW) the AIM listed African
focused metals exploration and development company is pleased to
confirm the completion of ground geophysics by Kalahari Key Mineral
Exploration Pty Ltd ("Kalahari Key" or "KKME") 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 (the "Earn-in").
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: "I am pleased to advise that, as previously indicated,
the KKME team have now completed the ground geophysics
programme.
The extensive data collected from the 11 loops, covering the 10
best target areas, will now be interpreted with a view to designing
a drill programme to test the key targets.
I look forward to receiving the results of that interpretation
process which are expected to be received by the Company later this
month."
Highlights:
-- Spectral Geophysics, Gaborone, Botswana have now completed
the ground geophysics programme over targets for Ni-PGM
mineralization identified by a recently completed
helicopter-supported, High-resolution electro magnetic survey (the
"EM Survey");
-- In total 11 loops were conducted on 10 of the best target
areas from the 17 target areas identified from the EM survey;
-- The data from the programme is now being interpreted and the
KKME team will be hosting a technical review meeting shortly to
review the findings;
-- KKME expect to have defined top priority drill targets by the end of August 2019;
-- In parallel and in preparation for the planned drill
programme KKME are preparing the relevant environmental submissions
required in Botswana prior to commencement of drilling;
-- Also, KKME are in discussions with drilling companies to
ensure, subject to environmental approvals, that the drilling
contractors are in place and able to undertake the required drill
programme;
-- POW will provide a further update outlining the top priority
drill targets and next steps, when this information becomes
available to the Company.
GROUND GEOPHYSICS FURTHER INFORMATION
The system employed was 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 were laid out
using 35mm2 aluminium wire and lines (100 or 200m spacing) were
surveyed at either 50m or 100m reading interval, depending on depth
to target.
In total 11 loops were undertaken around 10 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, NRG(TM) 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 rns@lseg.com or visit www.rns.com.
END
UPDFMGMRRFDGLZG
(END) Dow Jones Newswires
August 13, 2019 06:00 ET (10:00 GMT)
African Battery Metals (LSE:ABM)
Historical Stock Chart
From Apr 2024 to May 2024
African Battery Metals (LSE:ABM)
Historical Stock Chart
From May 2023 to May 2024