Power Metal Resources to push on “innovatively and aggressively” following recent placing (POW)

Earlier this week, Power Metal Resources (LSE:POW) outlined in detail its plans to "push on with existing interests more innovatively and aggressively" following a recent £1 million fundraise.

The company's chief executive Paul Johnson said he and his team are pursuing two key objectives. The first of these is to make one or more major metal discoveries within the firm's gold, base, and strategic metal projects. It will then look to crystallise the value of any such discovery for the benefit of shareholders.

Although Johnson said each of Power Metal's five projects has the potential to deliver such a discovery, he highlighted three standout opportunities for the remainder of 2020.

The first is the firm's 51%-held Molopo Farms Complex project in Botswana, where drilling over coming months will target major nickel, copper, and platinum group metal ("PGM") targets. The second is its Haneti polymetallic project in Tanzania, where exploration drilling plans are being developed to target major nickel, copper, and PGM targets.

The third, and arguably most exciting, opportunity is its Australia gold joint venture with AIM peer Red Rock Resources. The two firms have been building up their position in the highly-prospective region of Victoria over the past few months, and proactive exploration may be completed in 2020 subject to permitting developments.

"So now we find ourselves with a diverse and exciting portfolio of project interests, and with the support of shareholders and investors in the recent financing, a considerable working capital position with which to drive forward those interests," added Johnson. "If we are fortunate in making a major discovery in just one of our projects, we could create significant value for our shareholders."

Power Metal's second key objective is to build up its working capital and balance sheet towards what it describes as "financial self-sufficiency". Moving forward, the company means that it aims to reduce its reliance on funding from the market to achieve its business objectives. This is something the firm does not feel like many of its junior resource peers are pursuing, highlighting their reliance on a "more traditional model of cash burn for exploration" in Monday's release.

Johnson said that his firm would achieve financial independence in three different ways.

The first is by taking positions in project holdings companies alongside direct project participation. This is something it has already done at Molopo Farms with Kalahari Key and Haneti with Katoro Gold, and in Botswana with Kavango Resources.

"The aim is that successful project development will drive the value of the ultimate holding company in which Power Metal has a stake, driving the value of our investment in that company higher," the company added.

Alongside this, the firm said it is working to monetise its existing project interests, as already described. Finally, it will invest in other junior resource sector opportunities, having recently established a "Junior Resource Fund" that allows it to invest up to £75,000 in value cases it finds across the market.

"In the current climate there are opportunities for significant capital returns to be generated from investment in junior resource equity or related financial instruments," it added.

Rounding up, Johnson added: "I am keen for us to be bold and adventurous with reward weighted risk-taking, but with solid underlying principles of risk management covering geopolitical, commodity, operational and financial considerations. In other words, combining boldness with risk management means diversification, which is what we have achieved.

Many companies put their business case forward-focused around a single major project and concentrate their energies around that.  I understand this, but it's not the Power Metal approach, where instead, in our view, we have numerous major projects, each of which is capable of delivering a transformational discovery and by virtue of this shareholder wealth."

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

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Power Metal Resources pushes forward at Kisinka copper-cobalt project (POW)

Friday morning saw Power Metal Resources (LSE:POW) reveal enlarged areas of prospectivity at its 70%-owned Kisinka copper-cobalt project in the DRC.

The firm launched into a pitting and mapping exploration programme at the site in February, having discovered a large 6.8km copper anomaly during field work last year.

Results have not only confirmed the two copper anomalous zones previously identified, but also demonstrated that they contain higher values than expected, span a greater width, and are open to the north-west and south-east.

Meanwhile, the work also found that these zones are “quite well correlated” with major structures the operators had already inferred from mapping Kisinka.

Finally, cobalt anomalism was indicated in both zones.

Power Metal said that once sampling is fully completed, the next recommended steps are expected to be a ground magnetic survey and a ground electromagnetic survey.

These will aim to detect both low magnetic and chargeable lithologies and indicate structures and faulting and areas of carbonate rocks and further pitting.

Paul Johnson, Power Metal’s chief executive, said the latest results allow the firm to “go forward with confidence” at Kisinka:

“The laterization and leaching that we encountered support the theory that there may be supergene enriched mineralisation at a lower level, so we particularly want to investigate this.

The presence of cobalt partly correlated with the copper is another positive indication. After confirmation from the ICP analysis, which we may extend to include samples from the earlier termite mound sampling, we will release the data on cobalt and copper levels in the anomalies.

We were able to relate some mineralisation areas to structures and faulting, and to build on that work and generate the best drill targets we will need to carry out some geophysics.”

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Power Metal and Red Rock JV to double Australian gold footprint (POW, RRR)

AIM-listed metals explorer Power Metal Resources (LSE:POW) will double the size of its joint venture Australian gold project in central Victoria.

The application for four new gold license areas totalling 916km2 in the historic Goldfields region will make it one of the largest tenement holders in the area. 

Gold production has doubled in the Goldfields region in the last five years, attracting serious corporate attention. Recent studies suggest that more than 2.2 million ounces remains to be found. 

Power Metal has a 49.9% stake in Red Rock Australasia Pty Ltd (RRAL), a JV it formed with Red Rock Resources (LSE:RRR).

Power Metal CEO Paul Johnson said the move to increase RRAL’s landholding to 1,835km2 gives it “one of the largest strategic footprints in one of the most sought-after gold explorations territories.”

Johnson added: “This has been achieved partly through longstanding preparations in the background that yielded the early license applications and then by proactive search and expedient action when new opportunities were identified.” 

The application for the licenses:  EL007327, EL007328, EL007329, and EL007330 marks another step in POW’s rapid Australian expansion.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Power Metal picks four key drill targets at Botswana nickel opportunity (POW)

Power Metal Resources (LSE:POW) is pushing ahead with a massive nickel sulphide project in Botswana and now says it has identified four key targets for drilling.

The AIM-listed explorer has an interest in a major project at Molopo Farms Complex (MFC), three licenses covering 2,725km2 prospective for Nickel-Copper-PGM which straddles the country’s southern border with South Africa. 

Geoscientists carried out an electromagnetic study of the area by helicopter and a followup by ground survey identified a “larger than expected number” of high-profile targets, Power Metal said. 

Now the exploration company has divided potential sites into four target groups where it will drill eight large holes to test for the valuable element. 

The target groups comprise Chipo in the north, Galaletsang to the south, Tshenolo to the west and Tsepho in the central region. Initial drilling will focus on the Chipo target group where surveys show the highest possibility of results consistent with other massive sulphide discoveries in the region.

Two project licences originally granted in 2016 have been successfully renewed, Power Metal CEO Paul Johnson said, with authorisation received from the Botswanan Department of Mines. 

"The scale of potential prospectivity at the MFC project was demonstrated by the large number of Nickel-PGM targets identified during ground geophysics and this has now led to a clustering of targets into four groups. The MFC project is increasingly attractive and we look forward to the pursuit of ground exploration, notably high-profile target drilling.” 

Last year, Power Metal took an 18.26% shareholding in Kalahari Key, a local exploration company that has 100% ownership of the Botswana project. In December 2019, it elected to earn-in a 40% interest in the project by spending $500,000 on exploration and target drilling, with CEO Paul Johnson joining the Kalahari Key board. 

After completing the earn-in POW will have a 50.96% economic interest in MFC. 

Power Metal is looking for metal deposits buried in the igneous rock. Magmatic sulphide deposits, like those in Botswana, produce between 40% and 95% of the world’s total resources of nickel and platinum group elements.  These metals are key components in electric vehicle battery manufacturing, a sector that before coronavirus restrictions were imposed was soaring globally. 

Botswana has been relatively little affected by the pandemic thus far but authorities are not taking any chances. The country’s first case was recorded on 31 March, and days later President Mokgweetsi Massi declared a 28-day state of emergency involving lockdown, where only those providing essential services would be allowed to leave their homes. To date the country has recorded 20 cases and one death from Covid-19. The lockdown is expected to end on 28 April 2020. 

In the meantime the Kalahari Key team are using the lockdown period to review all available geological and geophysical data to refine their drilling plans, Power Metal said, and to liaise with third parties who have expressed an interest in the nickel project.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Power Metal moves to exploit “very extensive” Kisinka copper anomaly (POW)

The discovery of a vast seam of copper at the Kinsinka mine in the Democratic Republic of Congo has produced a welcome bump for Power Metal Resources (LSE:POW).

The AIM-listed explorer has been concentrating recent efforts on expanding its gold prospects at Alamo in Arizona, so developments at its 70%-owned copper and cobalt mine have flown under the radar somewhat. 

But chief executive Paul Johnson told the market on Wednesday morning that his company was now commissioning Congolese experts Minex Consulting to carry out detailed mapping of 24 pits across nine cross sections of the 6.8 kilometre target area where a large copper anomaly was discovered. Kisinka is located in the southern part of the Katangan copper belt, home to some of the world’s largest and highest-grade copper and cobalt deposits. 

Shares in the £2.3 million market cap firm were 6% higher at 0.4p in early Wednesday trading. Meanwhile, technical analysis of the share price shows it as a buy on the daily and weekly charts, as it sits above both the short-term 5-day EMA of 0.373p and medium-term 50-day EMA of 0.362p.

The news backs up statements chief executive Paul Johnson made in June 2019 that “the potential significance of this large anomalous zone makes this a high-priority prospect for the company”. Initial exploration started in 2018 had failed to pick up any significant signs of mineralisation. 

When Johnson took over as executive chairman in August 2019, the Kisinka project was the first work the company looked at in an effort to rationalise its portfolio. Our expectations were not high, and we were surprised and encouraged by the discovery,” he noted. 

He was also brought in, along with executive chairman Andrew Bell, to boost POW’s technical capability at board level. 

Johnson added that the next planned work at Kinsinka would be to use the rest of the rainy season to carry out less weather-dependent work in sampling and mapping, while preparing for potential future drilling.

While the spot price of copper dipped in the second half of January, the metal is still trading near five-year highs at $2.59 per lb.

Author: Tom Rodgers 

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance