Power Metal Resources finalises earn-in to major Botswana nickel-copper-PGM asset (POW)

Power Metal Resources (LSE:POW) has exercised its option to earn-in to a 40% direct stake in the highly prospective Molopo Farms Complex (MFC) nickel-copper-PGM project in Botswana.

On Tuesday, the business said it had written to the 2,7525km2 asset’s owner Kalahari Key Mineral Exploration to confirm that it will take the position in exchange for $500,000 worth of funding in 2020. This money, which Power Metal said is fully covered by its existing cash resources, will be used to support the drilling of critical targets for mineralisation.

Alongside its 40% direct interest, the firm owns an 18.26% position in Kalahari Key’s equity, giving it an effective 50.96% position in the MFC property.

In the second quarter of 2019, a helicopter-borne electromagnetic (EM) survey was completed over the MFC project feeder zone, identifying 17 sub-surface conductor targets.  Subsequent follow-up ground EM surveys over 14 of these targets – the results of which were released in October 2019 – produced five high priority targets across the asset. These are all thought to be of ‘considerable size and scale’, and potentially even home to massive nickel sulphides due to their location, geological setting, and associated magnetic response.

Eight drill holes have now been designed to penetrate all targets, and Kalahari Key has engaged a local consulting firm to complete a pre-drilling environmental management plan for the project. Meanwhile, Power Metal and Kalahari Key are awaiting the final results of a gravity survey over the priority target to reduce the chance that they are graphite rather than sulphide bodies as much as possible. Finally, the two businesses are in discussions with drilling conductors, with several expressing interest in completing initial work on the MFC in exchange for a combination of equity and cash.

Power Metal’s chief executive Paul Johnson said the business chose to earn-in to a significant position in the asset following the ‘very encouraging’ results yielded from work to date.

‘In recent weeks we have held a number of meetings and discussions with the KKME team and there is clear and growing confidence in the potential of the MFC project for a nickel discovery,’ he said on Tuesday. ‘We are now working with the KKME team on preparations and options for an upcoming drill programme and will provide further updates to the market as material developments occur.’

He added that, if initial exploration work at proves to be successful, the project’s potential valuation could rise ‘dramatically’ and attract interest from larger mining companies.

‘I would like to be clear that exploration drilling of the nature we plan to support is high risk, albeit the in-depth preparatory work undertaken by KKME helps to mitigate that risk and increase the chance of success,’ said Johnson. ‘That said, I also want to be clear why we are enthusiastic and have decided to proceed with the earn in opportunity. It is rare for investors in the junior resource space to have exposure to near term drill campaigns that could have the potential to yield a large-scale nickel sulphide discovery and we believe that the MFC project is one such opportunity.’

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 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

Ground geophysics completes at Power Metal Resources and Kalahari Key’s Botswana asset (POW)

Power Metal Resources (LSE:POW) revealed that ground geophysics has completed at its part-owned Molopo Farms Complex (MFC) project in Botswana on Tuesday. The work was completed by Kalahari Key and will be used to design a drilling programme at the nickel, copper, and platinum group metals (PGM) asset.

In total 11 loops were conducted on 10 of the best target areas for nickel and PGM mineralisation identified in a recent helicopter-supported, high-resolution electromagnetic survey. The data collected is now being interpreted to identify top priority drill targets by the end of August.

The MFC project consists of three exploration licences spanning 2,725km2 in southern Botswana. Kalahari Key’s primary target is nickel and platinum mineralisation in the geophysically-delineated, major shear/feeder zone through the centre of the project. The business will also seek to identify massive or disseminated nickel sulphide deposits at the base of, or within the ultramafic zone of the MFC moving forward.

Power Metal has an 18.26pc shareholding in Kalahari Key. It also has a right by 31 December 2019 to elect to earn into a 40pc direct interest in MFC through an investment of $500,000 in the project by 31 December 2020. If it chooses to do this, the firm will hold an effective economic interest of 50.96pc in the project.

Alongside its geophysics work, Kalahari Key is preparing relevant environmental submissions for MFC as required in Botswana ahead of drilling. Power Metal noted that the business is also in discussions with drilling companies to ensure that contractors are in place and able to begin drilling when required.

Paul Johnson, executive director of Power Metal, said: ‘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 ten 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.

To read our recent report on the MFC project and the opportunity it offers to Power Metal Resources and its investors, please click here.

Author: Daniel Flynn

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

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

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

REPORT: Power Metal Resources- Unlocking Haneti’s transformational potential

Earlier this year, Power Metal Resources added Tanzania to the growing list of African countries where it is exploring for the key battery metals powering the electrification of the world. The company entered an option to buy up to a 35pc position in a project owned by AIM-listed Katoro Gold (LSE:KAT) called Haneti that is thought to be prospective for both nickel and lithium.

Together, the two businesses have pooled their collective experience to launch immediately into an accelerated programme of work designed to inform a drilling campaign at Haneti. In this report, Power Metal’s executive chairman Paul Johnson, who joined alongside chairman Andrew Bell as part of a restructuring earlier this year, explains why he thinks this work could be ‘transformational’ for the firm.

CLICK HERE TO DOWNLOAD YOUR COPY OF THE REPORT

Power Metal reveals option to acquire early-stage DRC copper-cobalt project(POW)

Power Metal Resources’ (LSE:POW) busy week continued on Thursday with the news that it had purchased an option to acquire a majority stake in a DRC-based copper-cobalt project.

The business has paid $5,000 for a 60-day exclusivity period over licence PR 13479, during which it will carry out legal and technical due diligence and prepare JV documentation. It will also complete a termite mound sampling programme to test cobalt mineralisation at a greater depth than the 27-30cm soil sampling depth.

If Power Metal decides to exercise its option, it will pay $50,000 to the licence’s current owner SCOMIS – a local Congolese firm – in exchange for a 70pc stake. The organisation would then pay a further $250,000 to SCOMIS once drilling begins.

PR 13470 covers around 3.5km2 in the Lualaba district of the DRC and is based some 5km north of the producing Tondo cobalt and copper mine owned by a Lerexcom. According to Power Metal, PR 13470 sits in the same geology as Tondo in a known cobalt-prospective area that is attracting increased exploration attention.

What’s more, early-stage soil sampling has already shown the presence of anomalous cobalt at 500-750 parts per million on the licence. One early sample was even found to contain more than 4pc of the metal by an x-ray fluorescence spectrometer. The area has also been found to contain dispersed sections or fragments of R2 mineralisation, a part of the Roan sequence that hosts much of Congo’s cobalt. Some of these sections are visible locally as elevated ridges.

Power Metal’s executive director Paul Johnson described the option as ‘very exciting’, adding that the company’s goal at the licence is to prove up a shallow, open-pittable, and high-grade resource.

‘This license is in a highly prospective area for copper-cobalt, near an existing mine, and is primarily a cobalt target. We are fortunate to have secured this option at an early stage when the presence of anomalous cobalt has already been proven. However, the shallow depth at which soil sampling has been carried out means the results derive from material where the mineralisation may have been reduced by weathering,’ added Johnson.

‘If we test deeper in the regolith, we may get results of higher tenor that show more of the potential of the License. Initially we propose to do this by termite mound sampling across the license. That may be followed by a small number of pit excavations to take us down to the bedrock, which we expect to encounter at about a depth of 10m.’

Thursday’s release came just a day after Power Metal revealed substantial ground operation progress at the Molopo Farms Complex (MFC) project in Botswana.

The business said that Kalahari Key, owner of the nickel, copper, and platinum group metals project, has largely completed ground geophysics work to identify priority drill targets for the next stage of exploration. The work follows a high-resolution EM and magnetic survey completed in May last year that identified 17 conductor targets within the project’s feeder/shear zone.

Kalahari Key expects to complete its ground geophysics work by early August, with results interpretation expected to commence shortly after that. A full update will be provided to the market detailing the outcome of the ground geophysics and the priority drill targets upon completion.

Power Metal’s exposure and interest in MFC comes through its 18.26pc position in Kalahari Key. The firm also has the right by 31 December this year to earn-in to a 40pc direct investment in the project by committing to spending $500,000 on its development by 31 December 2020. If it chooses to exercise this option, then it will hold a 50.96pc effective economic interest in MFC.

Meanwhile, on Monday, the business welcomed the news that Katoro Gold (LSE:KAT), in which it owns a 5.95pc stake, had received third-party interest in two of its gold projects in northern Tanzania.

Katoro said it had received expressions of interest around a purchase of - or joint venture agreement on - its Imweru and Lubando gold projects in the Lake Victoria Goldfields. Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

Power Metal also owns a 25pc direct interest in Katoro’s Haneti Nickel project, which can be increased to 35pc through a £25,000 cash payment. Based in Central Tanzania, Haneti is a nickel sulphide project made up of near-contiguous tenements covering around 5,000km 2 of land.  Much of the project lies on top of a highly-prospective belt of rocks called the Haneti-Itsio Ultramafic Complex (HIUC), which is made up of metamorphosed ultrabasic rocks like dunite and peridotite called serpentinites.

Author: Daniel Flynn

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

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

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 Resources advances following strong exploration progress at Botswana investment (POW)

Power Metal Resources (LSE:POW) inched up to 0.54p on Tuesday after updating investors on the strong ground operation progress being made at the Molopo Farms Complex (MFC) project in Botswana.

The business said that Kalahari Key, owner of the nickel, copper, and platinum group metals project, has largely completed ground geophysics work to identify priority drill targets for the next stage of exploration. The work follows a high-resolution EM and magnetic survey completed in May last year that identified 17 conductor targets within the project’s feeder/shear zone.

Kalahari Key expects to complete its ground geophysics work by early August, with results interpretation expected to commence shortly thereafter. A full update will be provided to the market detailing the outcome of the ground geophysics and the priority drill targets upon completion.

Power Metal’s exposure and interest in MFC comes through its 18.26pc position in Kalahari Key. The business also has the right by 31 December this year to earn-in to a 40pc direct interest in the project by committing to spending $500,000 on its development by 31 December 2020. If it chooses to exercise this option, then it will hold a 50.96pc effective economic interest in MFC.

Paul Johnson, executive director of Power Metal, said he was ‘impressed’ by the pace at which Kalahari Key is advancing exploration at MFC, adding:

‘This important groundwork is designed to initially follow up 11 areas within the 17 conductor targets identified from the helicopter Electromagnetic ("EM") Survey and narrow down to a number of high-profile drill targets. In this region mineral deposits are under sand cover with no surface expression so the application of high-resolution geophysics is vital in identifying the most attractive drill locations.

‘I am hugely excited by the opportunity the MFC project presents for our shareholders, both through the POW 18.26% shareholding in Kalahari Key and the potential for the Company to earn in to a 40% direct project interest. Consequently, we await with some excitement the outcome of the ground geophysics programme and the important results interpretation.’

MFC consists of three exploration licences spanning 2,725km2 in southern Botswana. Kalahari Key’s primary target is nickel and platinum mineralisation in the geophysically-delineated, major shear/feeder zone through the centre of the MFC. The business will also seek to identify massive or disseminated nickel sulphide deposits at the base of, or within the ultramafic zone of the MFC moving forward. To read our recent report on Power Metals’ deal with Kalahari Key and the opportunities offered by the MFC project, please click here.

Tuesday’s news comes just a day after Katoro Gold (LSE:KAT) confirmed third-party interest and expanded exploration plans for two of its gold projects in northern Tanzania. The £1.92m business said that it had received expressions of interest around a purchase of - or joint venture agreement on - its Imweru and Lubando gold projects in the Lake Victoria Goldfields.  Although no suitable agreement has yet been made, Katoro said the interest shows a ‘clear appreciation of the inherent value’ of the projects, which have a combined JORC-compliant gold resource of 754,980oz.

With gold prices rising and a recent review confirming exploration upside potential at both Imweru and Lubando, Katoro said the best way to create near-term value would be to build the projects’ resource inventory. Indeed, it is targeting an initial target of 1MMozs of gold across both sites, an increase of nearly a third on existing resources.

Power Metal owns a 5.95pc stake in Katoro as well as a 25pc direct interest in the firm’s Haneti Nickel project. Based in Central Tanzania, Haneti is a nickel sulphide project made up of near-contiguous tenements covering around 5,000km 2 of land. Much of the project lies on top of a highly-prospective belt of rocks called the Haneti-Itsio Ultramafic Complex (HIUC), which is made up of metamorphosed ultrabasic rocks like dunite and peridotite called serpentinites.

Author: Daniel Flynn

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

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

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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