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.

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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 “perfectly poised” in Botswana as it reveals host of nickel drill targets (POW)

Power Metal Resources’ (LSE:POW) strong newsflow run continued on Wednesday when it announced that eight “compelling” drill targets had been established at the Botswana-based project into which it is earning.

The firm said Kalahari Key, the current owner of the Molopo Farms Complex (“MFC”) asset, followed up 11 conductor targets generated from airborne surveys last year with ground-based geophysics and modelling. The work not only recommended detailed drilling parameters and drill testing priorities for eight targets, but indicated that at least six of the highly-conductive bodies have the potential to be massive nickel sulphides.

The MFC project consists of many licences covering thousands of square kilometres in southern Botswana and is being targeted by Kalahari Key for prospective massive sulphide mineralisation. Power Metal has an 18.6% shareholding in Kahari Key and has elected to earn in to a 40% direct interest in the asset by way of spending $500,000 on exploration and target drilling this year. When this completes, the organisation will have an effective economic interest in the property of 50.96%.

Paul Johnson, Power Metal’s chief executive officer, said the presence of eight targets far outstrips both his own firm’s and Kalahari Key’s expectations for the MFC project.

"Back in May 2019 when POW entered the transaction the expectation of the Kalahari Key team was to identify 2 or 3 key targets from the ground geophysics work.  Instead we now have 8 high profile drill targets which is a considerable uplift,” he said. “Kalahari Key have always stated their main strategic objective was to target nickel-PGM-bearing massive sulphide deposits similar to the Voisey's Bay nickel deposit. As POW's key strategic objective is to make a large-scale metal discovery our interests are aligned and now we find ourselves in an interesting position.”

Elsewhere on Wednesday, Power Metal said that an environmental plan for the proposed drilling programme at MFC has been completed with favourable results and has been submitted to Botswana’s government. Power Metal also said that third-party interest in the asset has continued, with Kalahari Key continuing to “engage with interested parties”. Meanwhile, the firm said Johnson has joined Kalahari Key’s board and an operational committee has been formed between the MFC partners following Power Metal’s decision to exercise its project option in December.

Johnson added that, following recent progress, he believes that Power Metal and its shareholders are “perfectly poised” in Botswana, adding:

Subject to local approvals we have the high-profile drill targets, and the cash at bank to instigate a drill programme asap.  Local liaison with drill contractors continues and measures are being implemented that will allow commencement of drilling at the earliest opportunity.”

Wednesday’s update comes just one day after Power Metal confirmed the presence of gold nuggets at its newly-acquired Alamo asset in Arizona, USA.

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

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