Power Metal Resources spikes to fresh highs on Ditau Project update (POW)

Power Metal Resources (LSE: POW) has hit new all time highs above 3p on news about its Ditau Project in Botswana. 

The London-listed miner climbed more than 5% on Tuesday 5 January after announcing the first stage of orientation work at Ditau was now complete. 

The Ditau project is made up of two licenses covering 1386km2, with the main focus being 10 large geological formations known as ‘ring structures’. One of the largest of these is 7km by 5km across. Each is thought to host carbonatite rocks, which are the principal source of rare earth elements. 

The exercise examined the magnetic anomaly called ‘I10’, and included taking soil geochemistry samples along with controlled source audio-frequency magnetotellurics across a 5km run. The objective was to identify the position of rocks beneath the surface by testing their magnetic resistance.

Power Metal said it planned follow-up surveys for I10 in mid-January 2021, including gravity surveys at 50m intervals and a ground magnetic geophysics survey at 12.5m spacing. 

Assay results and processed geophysics from the exercise are expected by early February 2021. 

The results will shape the calibration of survey equipment for follow-on surveys of the remaining nine ring structures, Power Metal said. 

The company’s Botswana project comprises a 50-50 joint venture with fellow AIM-listed explorer Kavango Resources (LSE: KAV) to discover rare earth elements including Neodymium (Nd) and Praseodymium (Pr). 

The two metals are key elements in the manufacture of high-level magnets and parts for electric vehicles. Tesla (NASDAQ:TSLA) and Chinese competitor NIO (NYSE:NIO), for example, both use the sought-after metals in their engines. 

Power Metal Resources has extensive geophysical surveying and soil sampling planned at Ditau throughout Q1 and Q2 2021, and an exploratory drill campaign is expected to start in early Q3 2021. Exploration is expected to be relatively straightforward: assuming the surveys can isolate specific drill targets, they can be tested by very low-cost reverse circulation drilling. 

Back in April 2020, the Power Metal share price jumped to a then-high of 0.3p on news of the Ditau JV. Now the share price has gained some 900%, 3p is expected to be the baseline for the company to grow much more strongly.  

CEO Paul Johnson commented:  

With the Ditau Project we are seeking a discovery of rare earth elements (REEs), which are highly valuable and sought after commodities, particularly from secure and stable jurisdictions such as Botswana.”

"The Strategic Joint Venture with Kavango is surging ahead with work completed and announced from the Kalahari Copper Belt, and now from the Ditau 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, 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.

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 CEO ups stake as firm pushes forward across portfolio (POW)

Power Metal Resources (LSE: POW) chief executive Paul Johnson has upped his stake in the firm to 7.12% by buying 1 million shares. It’s another endorsement for the AIM-listed metals explorer at a time when it is firing on all cylinders.

News flow has been flooding in throughout November 2020, with the company’s share price peaking at a fresh all time high. Power Metal shares surged to a two-year high of 1.43p in early September 2020, before climbing over 2p for the first time in two years in October.

Cash is also flowing into Power Metal’s bank account. As confidence grows in the multiple opportunities on offer, early investors have started to exercise warrants in greater numbers. Warrants exercised since mid-October alone have brought in over £429,000 for the company.

So, what are some of Power Metal’s most prospective projects?

 

Haneti

The Haneti project in Tanzania is one of Power Metal’s largest avenue for future riches.

The firm has a 35%-owned joint venture here with fellow London-listed miner Katoro Gold (LSE: KAT). The main target is an 80km-long belt thought to contain a world-class nickel deposit, given the level of near-surface nickel sulphide mineralisation.

On 19 November, the JV announced it had signed a drill contract with Amazon Drilling for a 2,000m project — drilling 50 rotary air blast holes to a depth of 40m — across three target areas. Previous exploration work has identified surface sampling grades up to 13.6% nickel and 2.33g/t platinum and palladium.

 

Molopo Farms Complex

The Molopo Farms Complex (MFC) is a massive nickel sulphide and platinum group metals project in Botswana. It has the potential to transform Power Metal, given the multiple large-scale targets and data pointing towards a “district-scale” discovery.

Power Metal’s phase one drilling is planned for 2,505m across four diamond core drill holes, with target depths ranging from 525m to 710m. The company is using the same drill company which was instrumental in the discovery of the massive nearby T3 copper project now owned by mid-tier Australian explorer Sandfire Resources (ASX:SFR).

We are increasingly excited by the MFC project and its potential for a company transformational discovery,” Johnson said this month.

Power Metal has a 40% earn-in on MFC for a fully-funded $500,000 exploration deal that includes diamond drilling selected targets. On completion of the earn-in, Power Metal will have an effective interest of 50.96% in the MFC thanks to its 18.26% shareholding in the project's 100% owner Kalahari Key.

Investors are salivating at the prospect of what could be a set of monster results from the MFC project.

The complex as a whole straddles the southern border of Botswana and South Africa, and lies within the same province as Bushveld, which contains the world’s largest reserves of PGMs.

Power Metal raised £700,000 in December 2019, with £400,000 specifically ringfenced to progress the Molopo Farms development. Johnson and his chairman Andrew Bell each subscribed for £25,000 in the 0.4p placing. 

 

Map showing the Molopo Farms Complex

 

Silver Peak

Just this week, Power Metal also reported an update on its bonanza grade silver project at Silver Peak in British Columbia. Channel sampling completed over summer 2020 revealed sections up to 14,937g/t silver alongside significant levels of copper and lead.

The project consists of a portfolio of mineral claims over a system of high grade polymetallic silver-lead-zinc-copper veins.

Engineers have completed a revised drill and sampling programme and rock chip samples from six diamond drill holes have now been delivered to the geochemical analysis laboratory run by ALS in North Vancouver for assay testing. Additional work on the structure of the vein system “has added to our geological understanding of the silver mineralisation,” Johnson told the market last week.

And despite stormy conditions and heavy snowfall in the Canadia region, managers pushed ahead to finish the work programme ahead of expectations. 

Wider macro conditions are playing into Power Metal’s hands, Johnson said, with palpable demand for high grade silver projects in the market at the moment. 

Silver prices remain elevated near seven-year highs. As of 26 November 2020 the spot price for the precious metal was $750/kg. 

 

Victoria Gold

And then there is Power Metal’s massive gold project in Victoria, Australia.

In a 49.9% JV with Red Rock Resources (LSE: RRR) called RRAL, Power Metal is targeting huge potential high-grade quartz-hosted gold vein systems, applying modern techniques to under-explored areas in the historic Victoria Goldfields.

Power Metal updated the market on 6 November that RRAL had swooped to apply for an extra 148km2 license just days after it became available.

The new license is in a ring around the highly prospective Ballarat mine and covers ground surrounded on all sides by the existing 2236km2 of licenses RRAL has applied for.

Unprecedented global interest has now descended on Victoria, mainly driven by the success of the highest-grade gold mine in the world, Fosterville, run by $11bn market cap Canadian giant Kirkland Lake Gold (NYSE: KL).

Recent interpretations of structural data have provided explorers with new models to target both shallow and deep gold mineralisation, while An independent NI-43-101 report sampled the RRAL portfolio in September and discovered multiple “excellent targets for gold mineralisation” spread across 8 license areas.

Work continues at pace developing the Australia gold JV, said Johnson, with the main focus on technical planning for exploration and drilling programmes. RRAL will also appoint a dedicated CEO while the JV awaits license grants.

Power Metal also said that RRAL's license package has attracted approaches from private companies looking to acquire interests or secure an earn-ins or JV. Meanwhile, there are still plans underway to list some or all of RRAL on a North American stock exchange to capitalise on intense international investor interest.

 

JV Red Rock Australia: map

 

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, 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.

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 expands Alamo project area as exploration for large gold system continues (POW)

Power Metal Resources (LSE:POW) has extended the size of its Alamo gold project in Arizona, US, after a recent exploration programme identified a number of additional areas prospective for mineralisation.

Alamo is a package of mining claims first identified as prospective for gold following the discovery of native gold nuggets of up to five ounces near the surface in numerous locations.

Power Metal, which has the right to earn-in to a 75% interest in the project, believes the area warrants further exploration to investigate the source of the precious metal and the potential for a large mineralised gold system. Adding to this promise is the fact that west-central Arizona- the area in which the project is based – boasts numerous mines that have produced significant quantities of silver, lead, gold, zinc, and copper.

In August, Power Metal launched a reconnaissance level exploration survey of Alamo, which focused on assessing the key areas where the bulk of the gold nuggets had previous been found.

On Friday, the firm announced that in light of the results of the work, it has decided to stake a further nine Alamo claim blocks. This widens the size of the project by 180 acres to an overall total area of 946 areas.

"We are very happy to support the enlargement of the Alamo Gold Project in Arizona following the encouraging results of the August reconnaissance work and further gold nugget discoveries at the Project,” said Power Metal’s chief executive Paul Johnson.

Follow-on exploration work will now continue, including detailed geological mapping along with trenching, pitting, and mini-bulk sampling. The aim of the work is to further ascertain the distribution and abundance of native gold nuggets within the project area.

Given the nature of the mineralisation and its near-surface location, Power Metal said it believes that bulk sampling will give it a more accurate assessment of gold prospectivity than drilling.

The firm expects the work to be conducted through the first three weeks of December, and it will be managed by a qualified geological contractor using local labour and logistical support.

The local exploration team have designed a follow on programme of trenching and bulk sampling, which is currently planned to commence in December, with a view to building an assessment of gold prospectivity,” added Johnson.

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.

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 Katoro gold to kick off hotly-tipped Haneti drill programme (KAT, POW)

Drilling is ready to begin at the highly-prospective Haneti polymetal project in Tanzania owned by London-listed miners Katoro Gold (LSE:KAT) and Power Metal Resources (LSE:POW). 

The JV has signed a drill contract with Amazon Drilling Ltd and the rig is ready for deployment, it said on Thursday, with the cost for both sides covered by existing cash. 

Katoro and Power Metal believe that they have a world-class nickel deposit on their hands in Tanzania. 

The principal target zone is an 80km-long ultramafic belt, the exact type of subsurface structure where PGMs and nickel sulphide worldwide are generally found. In Haneti, the key goal is for the JV is to discover the potential for economic nickel mineralisation on the linear dyke-like complex which crops out throughout the middle of the tenement holding. 

This first 2,000m drill programme seeks to verify near-surface nickel sulphide mineralisation across three target areas.

Previous exploration work has identified stunning grades from surface sampling up to 13.6% nickel and 2.33g/t platinum and palladium. 

The maiden drill project will comprise 50 holes at depths of around 40m. This rotary air blast drilling should provide engineers with enhanced data about the subsurface shape and orientation of the metals within the massive system.

A 2015 study with a consultant expert in ultramafic geochemistry identified a nickel, copper, platinum, and palladium anomaly at Mihanza Hill as a drill ready target. 

Once the new data from the drill programme has been analysed, engineers will design a planned follow-on precision diamond drilling workset. Power Metal CEO Paul Johnson said the drill mobilisation for this maiden programme “has been a long-anticipated event”, adding that he was “extremely pleased” to begin.

He added: “Power Metal are delighted to have significant exposure to the Haneti project which is now our third where drill programmes are underway.” 

Katoro Gold (LSE:KAT) acquired the rights to the massive 5,000km2 Haneti system from energy firm Kibo Mining in June 2018. It owns 65% of the project while Power Metal has the other 35%. 

Power Metal noted Haneti’s massive nickel sulphide potential in a May RNS, adding that Katoro had received further approaches by other companies to take an earn-in or joint venture on the project throughout 2020.

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.

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 updates on Silver Peak drilling progress (POW)

Power Metal Resources (LSE:POW) has said that the drilling of its Silver Peak project in British Columbia, Canada, is on schedule to begin before the end of the week.

The firm plans to complete an initial 500m confirmatory diamond core drill programme at the historically-producing property to test the Victoria vein.

And in a Friday update, it announced that its drilling contractor has now mobilised the drilling rig, bulldozer and ancillary equipment from northern British Columbia to the local town of Hope where Silver Peak is based. The drilling rig and support equipment is from being moved from Hope up the valley to the first Silver Peak drill pad with a view to commencing diamond core drilling before Monday.

Paul Johnson Chief Executive Officer of Power Metal Resources added: "Following the logistics involved with shipping the drilling rig and equipment from northern British Columbia to the local town of Hope and finishing the final access from the road head to the drill pads, the team is mobilising up the valley and orientating the drill rig ready to commence the first hole during the course of today.

This is an exciting time for the Power Metal team and our partners as we launch our first silver focused drill programme. We are targeting the Victoria Vein where Power Metal due diligence sampling returned bonanza silver grades (up to 480 troy oz/tonne) with significant copper and lead grades. The information which will be secured from this drilling programme will be key to directing the next development steps for the project."

The Silver Peak Project consists of a portfolio of mineral claims over a system of high grade, intrusion related, polymetallic silver, lead, zince, and copper. The area also contains the historical Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.

Power Metal announced the exercise of an option agreement giving it the right to earn-in to a 30% interest in the Silver Peak project in September following a period of due diligence.

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.

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