TIDMPOW

RNS Number : 7003D

Power Metal Resources PLC

30 June 2021

30 June 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Business Operational Update

Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to provide a business operational update for shareholders.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:

"In the tables below you will see the Power Metal project portfolio, the key value drivers in our business and, the latest position regarding each project interest. The Company portfolio is focused on Africa, Australia and North America; all considered to be great exploration, development and mining destinations.

Whilst each project has individual qualities, many are targeting the discovery of large metal deposits with follow-on district scale potential. The key drivers for our project acquisitions have been positioning and timing, taking strategic footholds before regional popularity strikes.

As we have seen recently with our interests in the Kalahari Copper Belt Botswana, the Victoria Goldfields Australia and the Hemlo-Schreiber Greenstone Belt Canada, early positioning places the Power Metal business in an incredibly strong position.

We have in the last year undertaken extensive exploration with some notable results including significant nickel sulphide intersections from drilling at Molopo Farms Complex Botswana and bonanza grade silver (up to 14,937 g/t silver) from channel sampling at Silver Peak Canada.

We have extensive exploration planned in 2021 including drilling across much of our portfolio. It is worth noting that many of our projects now sit on the cusp of potential discoveries. An exciting time for any junior resources company.

Alongside exploration our corporate work continues at pace focused on the spin-out and IPO activities for certain project interests.

In summation we are, in my view, bursting at the seams with discovery potential and crystallisable value and the balance of 2021 is the proving ground for this opinion."

Note: in addition to the material presented below, investors are guided to the Power Metal corporate presentation which is available on the Company's website through the following link:

https://www.powermetalresources.com/presentation/

KEY VALUE DRIVERS

Table 1 below briefly summarises the key value drivers across the Company's portfolio. Further detailed project information including supporting information behind the value drivers is provided in Tables 2, 3 and 4 later in the announcement.

Table 1 - Key Value Drivers by Project

 
       Project                                  Key Value Drivers 
 AFRICA 
 Molopo Farms Complex 
  (Nickel - Copper             *    Update following completion of technical work and 
  - PGE)                            review of initial drill programme data including 
                                    testwork being carried out on holes K1-6, K1-14 and 
                                    K1-11a sulphide mineralisation zones 
 
 
                               *    Next steps exploration to understand the potential 
                                    scale of the mineralisation identified 
                       ------------------------------------------------------------------ 
 South Ghanzi 
  (Copper - Silver)            *    Planned exploration drilling at South Ghanzi 
                                    targeting copper-silver discoveries subject to 
                                    approval of the Environmental Management Plan 
 
 
                               *    Updates regarding IPO of holding JV company Kanye 
                                    Resources plc 
                       ------------------------------------------------------------------ 
 Ditau Camp 
  (Rare Earths)                *    Release of exploration findings 
 
 
                               *    Subject to exploration results, drilling of 
                                    carbonatite and rare earth deposit targets 
                       ------------------------------------------------------------------ 
 Tati Project 
  (Gold - Nickel)              *    Results from due diligence exploration programme 
                                    including infill geochemical surveys targeting newly 
                                    identified significant gold and nickel anomalies 
                       ------------------------------------------------------------------ 
 Kisinka 
  (Copper - Cobalt)            *    Exploration drilling at Kisinka targeting a 
                                    copper-cobalt discovery 
                       ------------------------------------------------------------------ 
 Haneti Project 
  (Polymetallic)               *    Exploration drilling at Haneti targeting a nickel 
                                    sulphide discovery 
                       ------------------------------------------------------------------ 
 AUSTRALIA 
 Paterson Province 
  (Gold - Copper)              *    Release of exploration findings including technical 
                                    comparisons of Wallal targets with regional 
                                    discoveries including the Winu and Havieron deposits 
 
 
                               *    Updates regarding IPO of UK holding company 
                       ------------------------------------------------------------------ 
 Victoria Goldfields 
  (Gold)                       *    Exploration programme initial results 
 
 
                               *    Updates regarding IPO of core interests 
                       ------------------------------------------------------------------ 
 NORTH AMERICA 
 Hemlo-Schreiber        *    Exploration updates 
  (Gold - Nickel) 
                       ------------------------------------------------------------------ 
 Silver Peak 
  (Silver)                     *    Completion of Silver Peak drill programme (commenced 
                                    Q4 2020 but halted due to poor weather) 
 
 
                               *    Updates regarding IPO of Silver Peak on a recognised 
                                    stock exchange 
                       ------------------------------------------------------------------ 
 Golconda Summit 
  (Gold)                       *    Launch of ground exploration targeting near surface 
                                    high grade gold mineralisation to validate historic 
                                    work following receipt of permits 
                       ------------------------------------------------------------------ 
 Garfield/Stonewall     *    Launch of exploration programmes 
  (Gold - Copper - 
  Silver) 
                       ------------------------------------------------------------------ 
 Alamo 
  (Gold)                       *    Launch of next stage exploration following receipt of 
                                    permits 
                       ------------------------------------------------------------------ 
 

PROJECT OPERATIONAL UPDATE

Tables 2, 3 and 4 below summarise the latest status of each project within the Company's portfolio.

Table 2 - African Projects - Latest Position

 
         Project                                Latest Position 
   Molopo Farms Complex     Power Metal participated in the Molopo Farms 
          Project            Complex (MFC) Project as it provided exposure 
         Botswana            to a new nickel sulphide - Platinum Group 
    (Nickel - Platinum       Elements ("PGE") project in south-west Botswana. 
  Group Elements (PGEs))     The layered ultramafic-mafic intrusion constituting 
  POW: Effective Economic    the Molopo Farms Complex holds the potential 
      Interest 50.8%         for a significant nickel discovery, and 
                             the ground held within the project licences 
                             is interpreted as the feeder zone. 
                             Exploration diamond drilling commenced in 
                             Q4 2020 and to date the Company has announced 
                             significant nickel sulphide intersections 
                             from the second hole drilled, K1-6 . To 
                             encounter intervals with the highest nickel 
                             grades found to date in the MFC so early 
                             in the initial 3 hole drill programme was 
                             an outstanding result reflecting the significant 
                             investment in preparatory research and exploration 
                             prior to drilling. 
                             Much ongoing technical work is being undertaken 
                             and further results will follow from testwork 
                             being carried out on holes K1-6, K1-14 and 
                             K1-11a with market updates expected in the 
                             near term. 
                             Following completion of the first drilling 
                             phase technical work the next stage of exploration 
                             is to build an understanding of the potential 
                             scale of the mineralisation identified and 
                             work towards defining a Mineral Resource. 
                             This next stage is perhaps the most exciting 
                             phase of the project exploration. It is 
                             now confirmed that the nickel sulphides 
                             sought are present, so now we must seek 
                             to delineate an economic deposit through 
                             further drilling, which is likely to be 
                             preceded by a soil geochemistry programme 
                             focussed on the area between K1-14 and K1-6. 
                             Clearly if successful, the value of this 
                             project may well be transformational for 
                             all parties with an ownership interest, 
                             including Power Metal. 
                             Power Metal holds its 50.8% effective economic 
                             interest through a direct 40% project stake 
                             and through an 18% interest in the orginal 
                             project holding company Kalahari Key Mineral 
                             Exploration (Pty) Limited, a private Botswana 
                             Company ("Kalahari Key"). 
                             As announced 6 May 2021 Kalahari Key is 
                             to be restructured to reflect the 40% Power 
                             Metal project interest and the Company is 
                             actively engaged on commercial work streams 
                             in respect of this restructuring. 
                           -------------------------------------------------------- 
   South Ghanzi Project     The South Ghanzi Project covering a footprint 
         Botswana            of some 1,294 km(2) provides Power Metal 
     (Copper - Silver)       with exposure to potential copper - silver 
         POW: 50%            discoveries within the prolific Kalahari 
                             Copper Belt ("KCB") alongside joint venture 
                             ("JV") partner Kavango Resources plc (LON:KAV). 
                             Power Metal's CEO Paul Johnson was CEO of 
                             Metal Tiger Plc in 2016 when they and ASX 
                             listed JV partner MOD Resources made the 
                             T3 Deposit discovery nearby in the KCB. 
                             The South Ghanzi Project is following a 
                             similar exploration methodology to the T3 
                             discovery. 
                             Exploration work at South Ghanzi includes 
                             airborne electromagnetic ("AEM") surveys 
                             that have identified eight anomalies representing 
                             targets for further ground based exploration. 
                             Follow up soil sampling work has so far 
                             has been focused on two targets, Acacia 
                             and Morula, with both targets showing significant 
                             zinc and copper in soils which closely follow 
                             the structures identified through the AEM 
                             work. 
                             Both targets present significant scale soil 
                             anomaly targets, Acacia measuring 4 km by 
                             4 km and Morula about 2 km wide by 12 km 
                             long (open at both ends). They will both 
                             be subject to exploration drilling following 
                             approval of the project Environmental Management 
                             Plan ("EMP"). 
                             In addition on 29 March 2021 Power Metal 
                             and JV partners announced two conditional 
                             agreements to acquire a 100% interest in 
                             eight prospecting licences to significantly 
                             expand the KCB land footprint and work continues 
                             to finalise these transactions. 
 
                             The South Ghanzi Project interest is held 
                             through JV vehicle Kanye Resources Pty Limited 
                             in Botswana, which is held outright by Kanye 
                             Resources plc, a UK public company. Currently 
                             the licences in respect of South Ghanzi 
                             are being transferred into Kanye Resources 
                             Pty Limited. 
 
                             The JV partners are working on an initial 
                             public offering ("IPO") of Kanye Resources 
                             plc in the UK capital markets. 
                           -------------------------------------------------------- 
    Ditau Camp Project      The Ditau Camp Project ("Ditau") is a rare 
         Botswana            earths exploration project with licences 
       (Rare Earths)         covering a footprint of 1,386 km(2) and 
         POW: 50%            held in JV with Kavango Resources plc, as 
                             with the South Ghanzi Project. 
                             Ditau provides Power Metal with exposure 
                             to a potentially large scale rare earths 
                             opportunity in a secure operating jurisdiction 
                             just at the time that secure and stable 
                             sources of rare earths are in demand globally. 
                             Exploration work continues at Ditau with 
                             soil sampling and ground magnetic surveys 
                             investigating ten potential carbonatite 
                             targets. 
                             Further market updates covering the results 
                             of exploration findings are expected in 
                             the near term. 
 
                             Following completion of the current work 
                             programmes the JV partners expect to undertake 
                             shallow drilling to test for the presence 
                             of carbonatites and potential rare earth 
                             elements. 
                             The Ditau interest is held through the same 
                             JV holding company structure as the South 
                             Ghanzi Project above. 
                           -------------------------------------------------------- 
       Tati Project         Power Metal announced on 6 May 2021 a 60 
         Botswana            business day option (the "Tati Option") 
      (Gold - Nickel)        to acquire a 100% interest in two gold-nickel 
   POW: Option to Aquire     focused exploration properties in the Tati 
           100%              Greenstone Belt area of eastern Botswana, 
                             subject to due diligence (the "Tati Project"). 
                             The properties comprise two prospecting 
                             licences covering 124 km(2) . 
                             A historical data compilation on the properties, 
                             completed as part of the due diligence process, 
                             has led to the identification of several 
                             kilometre-scale nickel, arsenic and gold 
                             in-soil anomalies on both properties. 
 
                             As a result, immediate ground based exploration 
                             is being undertaken to include infill geochemical 
                             survey grids, as well as mapping and prospecting 
                             over these newly delineated geochemical 
                             anomalies. 
 
                             Further market updates will be provided 
                             in respect of this due diligence exploration 
                             programme in the near term. 
 
                             Should Power Metal exercise the Tati Option, 
                             it will hold the interest in the Tati Project 
                             through the newly formed, 100% owned Botswana 
                             private subsidiary, Power Metal Resources 
                             Botswana Pty Limited. Upon the Tati Option 
                             exercise the plan would be to undertake 
                             exploration drilling at the project. 
                           -------------------------------------------------------- 
     Kisinka Project        Exploration work undertaken since 2019 has 
          The DRC            delineated a 6.8 km copper-cobalt soil anomaly 
     (Copper - Cobalt)       through the heart of the single licence 
         POW: 70%            representing the Kisinka Project. 
                             It was previously planned to follow-up the 
                             recently completed ground magnetics survey 
                             with in an induced polarisation geophysics 
                             survey, however following a review of the 
                             data sets it is considered that progressing 
                             work straight to drill testing is warranted. 
                             This drill programme is being planned at 
                             present and a further update will be provided 
                             in due course. 
                             The Kisinka Project has secured a 25 year 
                             Permis d'Exploitation (or Production Licence) 
                             which will significantly enhance the value 
                             and flexibility of the project should drilling 
                             lead to a discovery. 
                           -------------------------------------------------------- 
      Haneti Project        A Rotary Air Blast ("RAB") 1,965m drill 
         Tanzania            programme was successfully completed at 
      (Polymetallic)         the Haneti Project in early 2021 and the 
         POW: 35%            results announced on 7 April 2021. The project 
                             is held with JV partner Katoro Gold Plc 
                             (LON:KAT). 
                             The next step at the Haneti Project is deep 
                             diamond drilling in order to assess the 
                             potential for economic nickel sulphide mineralisation. 
 
                             Power Metal is eager to undertake this diamond 
                             drill programme and is working with its 
                             JV partner to secure commencement of this 
                             at the earliest opportunity. 
 
                             Further work is ongoing with regard to other 
                             opportunities at Haneti, which as a polymetallic 
                             opportunity also has prospectivity for gold, 
                             lithium and rare earths. 
                           -------------------------------------------------------- 
 

Table 3 - Australian Projects Latest Position

 
       Project                            Latest Position 
  Paterson Province     First Development Resources Pty Limited 
   Western Australia     ("FDR Australia") is a private Australian 
    (Gold - Copper)      company with 100% ownership (or the right 
       POW: 75%          to acquire 100% ownership) in five exploration 
                         licence interests (1 granted licence Ripon 
                         Hills and 4 licence applications namely 
                         Wallal, Wallal West 1, Wallal West 2 and 
                         Braeside West) in the Paterson Province, 
                         East Pilbara, Western Australia. 
                         Power Metal announced the conditional acquisition 
                         of FDR Australia on 28 April 2021 and is 
                         working with its Australian partners to 
                         finalise matters precedent on the acquisition 
                         including the grant of the Wallal licence 
                         application. 
                         Good progress is being made with all matters 
                         including finalisation of Heritage Agreements 
                         locally which are necessary prior to formal 
                         grant. 
                         FDR Australia will be acquired outright 
                         by a newly formed private UK company First 
                         Development Resources Limited ("FDR UK") 
                         in which Power Metal will have a 75% interest. 
                         Following completion of the acquisition 
                         above, the intention is to IPO FDR UK in 
                         the London capital markets and we are taking 
                         preparatory steps to enable that proposed 
                         listing. 
                         Alongside the corporate work underway the 
                         Power Metal team have also been undertaking 
                         a detailed review of exploration data to 
                         date, planning principally for drilling 
                         of key gold-copper targets. 
                         The Paterson Province is well known for 
                         two recent and significant gold-copper discoveries, 
                         namely the Winu discovery by Rio Tinto and 
                         the Havieron discovery by Greatland Gold 
                         plc (LON:GGP). 
                         A desktop review has identified numerous 
                         geological analogues between the Wallal 
                         Project (comprising three licence applications) 
                         held by FDR Australia and both the Winu 
                         and Havieron discoveries. 
                         Notably, the magnetic properties of the 
                         Havieron discovery were evaluated in comparison 
                         to the Wallal Eastern magnetic anomaly which 
                         was identified during the recent desktop 
                         analysis. 
                         The magnetic amplitude and size of this 
                         anomaly was determined to be comparable 
                         (Havieron; diameter - 1 km, amplitude - 
                         80nT, Wallal; diameter - 1.5 km, amplitude 
                         - 100nT). 
                         Additionally, the geological position of 
                         the Winu discovery was determined to be 
                         similar to that of Wallal, which includes 
                         a position along the western margin of a 
                         major shelf (Winu - Anketell Platform, Wallal 
                         - Wallal Platform). 
                         The Company is reviewing findings in conjunction 
                         with its partners in Australia and expects 
                         to release a market update in this regard 
                         in the near term. 
                       ----------------------------------------------------- 
 Victoria Goldfields    This opportunity is held in JV with Red 
  Victoria, Australia    Rock Resources plc (LON:RRR) and represents 
        (Gold)           one of the largest land footprints at the 
      POW: 49.9%         heart of the high profile Victoria Goldfields 
                         in Australia. 
                         The footprint totals some 2,334 km(2) comprising 
                         an original sixteen licence applications 
                         from which, to date, seven licences covering 
                         848 km(2) have now been granted. 
                         Having licences granted enables ground exploration 
                         work to be launched and we now have an active 
                         programme of exploration underway including 
                         soil sampling and mapping across the granted 
                         licence areas. 
                         Historical data demonstrates the presence 
                         of gold mineralisation across all the licence 
                         areas, with evidence of historical mine 
                         workings across the properties. 
                         Programme planning which is being led by 
                         the exploration team, all of whom are residents 
                         of Victoria, is utilising the extensive 
                         regional and historical exploration datasets 
                         and mining records available, combined with 
                         local knowledge and land holder relationships. 
                         The holding company for the JV is Red Rock 
                         Australasia Pty Limited ("RRAL") and RRAL 
                         is working on the IPO process for certain 
                         core interests of RRAL on the Canadian capital 
                         markets. 
                         This listing recognises the attractiveness 
                         of the Victoria Goldfields area amongst 
                         Canadian investors and institutions, with 
                         numerous listed companies on the Canadian 
                         Securities Exchange ("CSE") and Toronto 
                         Stock Exchange ("TSX") having achieved success 
                         on the markets with business models focused 
                         on exploration in the Victoria Goldfields. 
                         To facilitiate this listing process RRAL 
                         have previously completed a National Instrument 
                         43-101 technical report on eight of the 
                         licence areas (four now granted licences 
                         and four licence applications) and this 
                         report will form a key part of the listing 
                         documentation. 
                         RRAL is working with advisors to complete 
                         the work streams necessary for the listing 
                         and will be providing further market updates 
                         in the near term in connection with this 
                         workflow. 
                         Based on the valuation of listed peers who 
                         have a focus on the Victoria Goldfields, 
                         Power Metal believe the Victoria Goldfields 
                         JV to hold considerable value for the Company 
                         and our partners Red Rock Resources plc. 
                         Note: in addition to the Victoria Goldfields 
                         interests described above RRAL has also 
                         submitted three licence applications in 
                         the Pilbara/Paterson region of Western Australia. 
                         Two applications (260 km(2) ) are competing 
                         and therefore subject to ballot and one 
                         has RRAL as sole applicant (70 km(2) ). 
                         The strategic plans for the three Western 
                         Australia licences are under review at present 
                         however it is likely that RRAL will seek 
                         to house these licences under a new vehicle 
                         in due course to allow the core interests 
                         of RRAL to move into the Canadian IPO process 
                         with focus on the Victoria Goldfields. 
                       ----------------------------------------------------- 
 

Table 4 - North American Projects Latest Position

 
       Project                            Latest Position 
   Hemlo-Schreiber     In Q1 2021 Power Metal moved quickly to 
       Project          secure a 100% interest in seven properties 
   Ontario, Canada      in the heart of the Hemlo-Schreiber Greenstone 
   (Gold - Nickel)      Belt in Ontario, Canada. All properties 
      POW: 100%         are held by Power Metal Resources Canada 
                        Inc. ("Power Metal Canada") a newly formed 
                        wholly owned subsidiary of Power Metal. 
                        The seven properties have been allocated 
                        into five projects including Hemlo North, 
                        McKeller, Coco-East, Enable and Magical. 
                        Hemlo North is a package of three properties 
                        (Dotted East, Roger Lake and Olga Lake). 
                        London listed Panther Metals (LON:PALM) 
                        are planning to drill gold targets just 
                        to the west of Hemlo North and just to the 
                        East, Palladium One Mining (TSX:PDM) has 
                        recently announced excellent data from drilling, 
                        including significant nickel sulphide intersections. 
                        The accelerated building of the Hemlo-Schreiber 
                        Project has been validated by the level 
                        of interest shown in the area in 2021 with 
                        a number of companies securing ground in 
                        the area. 
                        The Hemlo-Schreiber Project has attracted 
                        interest already with third party approaches 
                        with regard to certain of the projects in 
                        the Hemlo - Schreiber portfolio held by 
                        Power Metal Canada. This further demonstrates 
                        the building interest in the region. 
                        Alongside any corporate discussions Power 
                        Metal Canada are planning to implement first 
                        stage exploration programmes for the five 
                        projects in the summer/early autumn period 
                        of 2021 and a further market update will 
                        be provided on this when appropriate. 
                      ------------------------------------------------------ 
 Silver Peak Project   In September 2020 Power Metal exercised 
  British Columbia,     an option allowing it to earn-in to a 30% 
        Canada          holding in the Silver Peak Project. The 
       (Silver)         Company considered Silver Peak, incorporating 
       POW: 30%         a former high grade working silver mine, 
                        would be a valuable addition to the Power 
                        Metal portfolio. 
                        Exploration findings ratified that decision 
                        with assay results of up to 14,937 g/t silver 
                        from channel sampling from historically 
                        mined veins and up to 5,270 g/t silver from 
                        drill samples. 
                        On 15 March 2021 the Company announced it 
                        was to accelerate the earn-in and has now 
                        made all related payments and holds a 30% 
                        interest in the project. 
                        Power Metal and partners are working towards 
                        the planned IPO of the Silver Peak Project 
                        on a recognised stock exchange and work 
                        is underway in this regard. 
                        The Company is also working with our partners 
                        to complete the drill programme commenced 
                        in Q4 2020 but paused due to weather conditions 
                        in the project area. 
                        Further corporate and exploration updates 
                        are expected in respect of Silver Peak in 
                        the near future. 
                      ------------------------------------------------------ 
   Golconda Summit     On 1 June 2021 Power Metal announced the 
       Project          signing of an Assignment and Assumption 
     Nevada, USA        agreement where the Company acquired an 
        (Gold)          option enabling it to earn-in to a 100% 
   POW: Earn-in to      interest in the Golconda Summit gold property 
         100%           ("Golconda") in Nevada, USA. 
                        Golconda is located approximately 15km east 
                        of to the town of Winnemucca, at the confluence 
                        of the prolific Battle Mountain-Eureka Trend 
                        and Getchell Trends and within Nevada's 
                        Great Basin metallogenic province which 
                        is one of only six global gold belts hosting 
                        gold endowments of +200 Moz. 
 
                        Previous exploration work on the Golconda 
                        property encountered significant gold mineralisation 
                        including trench assay results of 7.6m @ 
                        24.0g/t gold and 15.2m @ 8.6g/t gold, as 
                        well as shallow drilling results of 10.7m 
                        @ 3.9g/t gold. 
                        Reflecting all the above, the low cost of 
                        entry and modest ongoing costs Power Metal 
                        considered the acquisition of the Golconda 
                        interest was an important transaction for 
                        the Company, providing exposure to a highly 
                        prolific gold producing region in Nevada. 
                        Subject to the receipt of appropriate permits, 
                        ground exploration will commence shortly 
                        with a principle focus on the validation 
                        of the historic exploration findings and 
                        demonstration of high grade, near surface 
                        gold mineralisation. 
                        The Golconda property agreement is held 
                        by Golden Metal Resources Limited ("Golden 
                        Metal UK"), a UK private company and 100% 
                        owned subsidiary of Power Metal which will 
                        be the ultimate holding company for all 
                        Power Metal Nevada interests. 
                      ------------------------------------------------------ 
 Garfield/Stonewall    The Company announced on 17 June 2021 the 
       Projects         acquisition of a 100% interest in the Garfield 
     Nevada, USA        and Stonewall Projects in Nevada USA. These 
   (Gold - Copper -     are prospective for gold, copper and silver. 
       Silver)          The projects were acquired by Golden Metal 
      POW: 100%         Resources llc ("Golden Metal Nevada") a 
                        newly formed 100% owned subsidiary of Golden 
                        Metal UK. 
                        Golden Metal Nevada will be the local operating 
                        company of Golden Metal UK. 
                        The Garfield and Stonewall Projects are 
                        located in the prolific Walker Lane mineral 
                        belt which hosts several world class gold-silver 
                        epithermal (Comstock Lode, Tonopah), copper-gold 
                        porphyry (Anaconda), and iron-oxide-copper-gold 
                        deposits (Pumpkin Hollow). 
 
                        Taken with the Golconda Summit gold project 
                        above, Power Metal through its Golden Metal 
                        subsidiaries now has a trio of projects 
                        within its Nevada focused business model. 
 
                        Exploration work is planned for the projects 
                        following completion of the work planned 
                        at Golconda. This includes soil chemical 
                        sampling, trenching and drilling. 
                      ------------------------------------------------------ 
    Alamo Project      Power Metal signed an agreement in July 
     Arizona, USA       2020 to earn-in to a maximum 75% interest 
        (Gold)          in the Alamo Project in Nevada USA where 
   POW: Earn-in to      the project was considered prospective for 
         75%            gold following the discovery of native gold 
                        nuggests near surface in multiple locations 
                        across the property. 
                        Reflecting additional information acquired 
                        through the ground exploration work undertaken 
                        over the last year, additional claims have 
                        been added to increase the property size 
                        and to ensure coverage of prospective areas. 
                        A further planned exploration programme 
                        has been developed and will commence subject 
                        to the receipt of relevant permits. This 
                        programme is expected to include trenching 
                        on one area of the Alamo Project, with associated 
                        sampling, assaying and mapping and the drilling 
                        of a number of short percussion holes to 
                        test for gold and silver mineralisation. 
                        For this work to be completed a Notice Level 
                        Plan of Operations permit is required prior 
                        to commencement. 
                      ------------------------------------------------------ 
 

ADDITIONAL OPPORTUNITIES

Power Metal has access to an extensive pipeline of new opportunities.

However, given the strength, depth and diversity of the Company's existing portfolio Power Metal will only acquire further interests if there is a significant strategic reason to do so. That strategic reason could be the inherent substantial value of a new project or where an acquisition would fit well with other currently held interests, particularly if that would add value to a corporate spin-out package.

In this regard and at present, Power Metal is currently in discussions with third parties in respect of a lithium exploration project in Canada and potential new gold exploration opportunities in and around Nevada USA. Unless and until any formal transaction is agreed and announced there can be no certainty that any additional interests will be acquired.

Alongside the main Company acquisitions, it is noted that Power Metal has set up Power Capital Investments Limited ("Power Capital") a new 100% owned resource project incubator subsidiary (announced 4 May 2021). This was formed to provide a means to continue engagement with smaller but potentially valuable resource opportunities.

A maximum investment level of GBP100,000 per opportunity has been set and a minimum 50% Power Capital holding interest in any opportunitiy following Power Capital's investment.

A further update specifically in respect of Power Capital's operations will be provided in due course.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

 
Power Metal Resources plc 
Paul Johnson (Chief Executive Officer)                +44 (0) 7766 465 617 
 
SP Angel Corporate Finance (Nomad and Joint Broker) 
Ewan Leggat/Charlie Bouverat                          +44 (0) 20 3470 0470 
 
SI Capital Limited (Joint Broker) 
Nick Emerson                                          +44 (0) 1483 413 500 
 
First Equity Limited (Joint Broker) 
David Cockbill/Jason Robertson                        +44 (0) 20 7330 1883 
 
 
 
 

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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