Power Metal unveils plan for deep diamond drilling at Haneti project (POW)

Power Metal Resources (LON:POW) revealed Wednesday that, on the back of a maiden rotary air blast drill programme at Haneti, the project will move to the next step of deep diamond drilling.

The company has 35% ownership interest in Haneti, a platinum group metals (“PGM”) project in Tanzania, while Katoro Gold (LON:KAT) holds the other 65%.

The now complete 1,965 metre, 50-hole, shallow rotary air blast (“RAB”) programme took place at the Mihanza Hill and Mwaka Hill targets. Results have now been received from SGS Laboratories.

On the basis of this, Power Metal and Katoro have opted for a maiden diamond drilling programme testing for nickel and PGM sulphide mineralisation at depth. This, too, will take place at the Mihanza Hill and Mwaka Hill targets.

Nickel is used in lithium-ion batteries, with demand set to grow along with the electronic vehicle (“EV”) market. It is also used to make stainless steel. PGMs could also end up in the EV space, while the PGM outlook overall is one of limited supply amid growing demand.

The goal of the RAB drilling was to determine the extent of “ultramafic intrusive geology” found beneath the “nickel enriched laterite and regolith cover” for two transects of around 1 kilometre in length at the targets. The transects are orientated across time-domain electromagnetic ("TDEM") geophysics anomalies already identified.

Because the shallow RAB drilling took place on deeply weathered rocks, it was not able to delineate “fresh un-altered rock or primary nickel sulphide mineralisation” but did assist in further constraining the target area for diamond drilling.

Notably, the surface mapping that took place at the time found “small scale nickel-copper-magnetite gossanous veins” located within a new Mihanza Hill outcrop. According to the geological team, this is evidence of potential primary nickel rich sulphide mineralisation in the underlying ultramafic body.

The diamond drilling is intended to reach a depth of 400 metres, at minimum, so as to intersect the TDEM and magnetic geophysics anomalies as well as testing for primary sulphide mineralisation. This drilling will also be used to gather fresh unaltered rock samples to be analysed.

As chief executive Paul Johnson explained, the additional geological information from the shallow drilling, as well as the “discovery of new gossanous nickel-copper-magnetite veining at Mihanza Hill”, made a clear case for deep diamond drilling at Haneti.

Johnson noted that this drilling will help determine the possibility of “economic nickel sulphide mineralisation” at the project.

Power Metal said more details of the programme, including a start date, will follow soon.

Author: Anna Farley

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 not 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 seizes Silver Peak stake as project interest booms (POW)

Power Metal Resources (LON: POW) has accelerated its earn-in for Silver Peak and agreed a stock exchange listing for the promising Canadian asset.

The metals exploration and development firm took the opportunity to snap up the rest of its optioned stake in the project after witnessing exciting levels of third-party interest in quality silver projects, and now holds a 30% position.

Alongside its partners, who hold the other 70% interest, Power Metals has agreed to list Silver Peak “on a recognised stock exchange”. The process for this has started already, with paperwork prepared.

Power Metal paid the remaining $108,952 of its $250,000 earn-in commitments, fullfilling the earn-in requirement using existing cash resources. The firm also chose to issue 5.1 million of new shares at 2.225p each, worth $200,000, to satisfy the final earn-in payment. Power Metal has also issued 2.6 million warrants with a 2.89p exercise price.

Chief executive Paul Johnson said: “Alongside its extensive exploration activities Power Metal is intent on generating material organic value from corporate work in respect of its portfolio of interests. In just seven months since we engaged with Silver Peak we are now, with our partners, planning to move this project interest into its own independent listing.

“The level of interest in quality silver projects is considerable and we believe that material value can be generated for Power Metal through the listing of Silver Peak.”

Silver Peak’s potential

Silver Peak is made up of a portfolio of mineral claims over a system of high-grade veins, part of the historical Eureka-Victoria silver mine in British Colombia.

In late December last year, Power Metal reported results from a November drilling campaign at Silver Peak. Despite challenging weather conditions, which curtailed the programme, drilling still “delineated very high-grade silver” including 5,270 grams per ton (“g/t”) or 169.5 troy ounces per tonne (“oz/t”) of silver in the Victoria vein.

This was around 150 metres deeper than the summer due diligence programme, which found “exceptionally high-grade channel sampling intersections” of up to 14,937 g/t or 480 troy oz/t silver.

Given the soaring price of silver, far ahead of its pre-pandemic price, Power Metal’s decision to secure its stake in Silver Peak is more than justified.

In January 2020, silver was trading at $18.04 per ounce. After dipping to only $12.27 per ounce in March 2020, silver quickly began its ascent and now stands at $26.08 per ounce – an incredible 45% jump from the January price.

No wonder, then, that silver project interest is on the rise.

Other IPOs on the horizon

Silver Peak is not Power Metals’ only upcoming project IPO to look forward to. The Kanye Resources strategic joint venture with Kavango Resources and Australia gold joint venture with Red Rock Resources are also planning IPOs. These spell great opportunities ahead for Power Metals.

“We believe that these proposed IPOs could accelerate the crystallisation of value from the company's projects into 2021, providing an earlier recognition of project value,” Johnson said.

Author: Anna Farley

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 not 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 pushes exciting global exploration portfolio forward at pace (POW)

Power Metal Resources (LSE:POW) last week updated investors on the latest developments across its global exploration portfolio, including progress at its potentially transformational gold joint venture in Australia.

Within the update, chief executive officer Paul Johnson explained the basis of the company’s global approach, which – as well as Australia – includes interests in Africa, the US, and Canada. In particular, he noted that the company not only looks to generate value by making “large scale metal discoveries”, but also by vending out some project stakes to third-parties.

To ensure it can manage its projects as effectively as possible, Johnson also noted that Power Metal has now expanded its operational capacity. This has included taking on a variety of new team members with expertise in “operational management, public & investor relations, and new business development.”

“We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today,” added Johnson.

 

Pushing forward in Australia

Power Metal notably holds a stake in a gold joint venture called Red Rock Australasia alongside its London-listed exploration peer Red Rock Resources (LON:RRR). The duo plan to list core assets of Red Rock Australasia though a public listing in Canada, and have now begun the process with legal counsel.

Critically, Red Rock Australasia has a major position in heart of the Victoria Goldfields.

Three licences have already been granted to Red Rock Australasia, as announced in early February. A further seven are at an advanced stage while another is subject to a ballot between Red Rock Australasia and Rumble Resources. This new licence covers 227 square kilometres in Western Australia.

The Victoria area has attracted considerable interest in recent years in the wake of the spectacular discoveries made by Kirkland Lake Gold (NYSE:KL) at Fosterville – the highest grade and lowest cost gold mine globally.

Power Metal has previously highlighted that historic mining in the Victoria Goldfields has so far been alluvial or at shallow depths. It remains largely underexplored in modern times.

Given the Geological Survey of Victoria estimates that the region’s planes could contain as many as 75 million high-grade ounces of gold, the rewards on offer for early movers who follow in Kirkland Lake’s footsteps could be spectacular.

It will come as no surprise, then, to learn that Power Metal and Red Rock Resources aren’t the only firms to have moved in on Victoria. Others include ECR Minerals (LSE:ECR) – owner of the Bailieston and Creswick licenses – and Fosterville South Exploration (CVE: FSX). Fosterville South’s Victoria gold projects include Lauriston, Golden Mountain, and Providence.

Power Metal has said that its licence application areas already have extensive evidence of gold mineralisation and recorded production and historical drilling, giving it a major head start in the race for discoveries.

 

Drilling in Botswana

Elsewhere in last week’s update, Power Metal noted that it has also now formed Kanye Resources PLC in the UK and Kanye Resources Pty Ltd in Botswana. This is part of a plan to list Kanye Resources on a recognised stock exchange.

Kanye is Power Metal’s 50-50 joint venture with Botswana-focused mineral exploration company Kavango Resources (LON:KAV), and includes the Ditau project alongside the Ghanzi South (Kalahari Copper Belt) project.

The Kalahari Copper Belt joint venture project targets copper and silver, while Ditau targets rare earth elements. The potential for rare earth elements discoveries could prove to be particularly valuable. These 17 elements have critical uses in various high-growth areas like mobile phones, hard drives, televisions, and – perhaps most importantly – electric vehicles.

At the Kalahari Copper Belt, intensified soil sampling, airborne electromagnetic survey and magnetic geophysics surveys are all taking place. Sampling and surveys focus on key target areas as well as delineating key drill areas. Meanwhile, an environmental management plan is currently being finalised to enable drilling.

Elsewhere, an exploration camp has now been established at Ditau, and the project’s field team has continued to conduct soil sampling and ground magnetic surveys. A new senior geologist has also been recruited to oversee Ditau’s operations.

Right now, data on the I10 target is being analysed, with the results expected guide the future exploration of other possible carbonatite targets at Ditau.

Also in Botswana, Power Metal has a stake of up to 50.96% in the Molopo Farms Complex, where it is targeting nickel, copper, and platinum group metals (“PGMs”). Two drill holes have now been completed, with core being sent to a lab in South Africa for assaying.

A third drill hole will be drilled soon, with an ongoing technical review underway.

So far, Power Metal has already acquired an 18.26% stake in the Molopo Farms Complex for $194,810, and will earn-in to a 40% direct project interest once it has spent another $500,000 on further exploration. Once this is complete, Power Metal will have a total economic interest of 50.96%.

 

Latest from Tanzania

Finally, in Tanzania, Power Metal has a 35% stake in the Haneti project. Here, it is targeting nickel, platinum group metals, copper, gold, and lithium alongside peer Katoro Gold (LON:KAT).

With 1,965 metres of rotary air blast drilling completed, composite samples have been delivered to Tanzanian assay laboratory SGS Tanzania. Some will be analysed using multi-element Aqua Regia Digestion/ICP-OES method, while others will be testing using fire assay for gold, platinum, and palladium.

Power Metal opted to increase its ownership interest in Haneti to 35% from 25% in August 2020 for a £25,000 payment, with the balance held by Katoro.

Katoro and Power Metal’s principal target at Haneti is an 80km-long ultramafic belt, the exact type of subsurface structure where PGMs and nickel sulphide worldwide are generally found. Previous exploration work has identified stunning grades from surface sampling of up to 13.6% nickel and 2.33g/t platinum and palladium.

Results from this testing at Haneti are expected shortly, with findings used to guide the next stage of exploration.

CEO Johnson said: “We are a fast-moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength.  Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities.”

 

Author: Anna Farley

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 Red Rock see shining light in Australia gold (POW, RRR)

Power Metal Resources (LSE:POW) and its Australia gold JV partner Red Rock Resources (LSE: RRR) will be well known to UK investors. 

Each has seen its share price triple in the last six months. And yet, with market caps of £32 million and £11 million respectively, there remains a strong argument that both are still cheap given their global portfolio of work. 

The most highly-rated of POW and RRR’s opportunities is their 50-50 joint venture project Red Rock Australasia (RRAL). This is focused on developing what could be a series of world-class discoveries in Victoria, Australia’s newest gold hub.

Under the RRAL banner, the pair have 13 licenses in application in the area around the long-producing Ballarat mine. Ballarat is an anchor for the region, maintaining an annual production of between 40,000 and 50,000 ounces of gold in since production kicked off in Q3 2011.

Ballarat, of course, is also just down the road from the Fosterville project. As readers will likely be aware, Fosterville kickstarted south Australia’s precious metals revolution when owner Kirkland Lake announced the discovery of one of the highest-grade gold resources on earth at the asset.

It’s understood that the Ballarat trend lies on a similar structural setup to the 2.5Moz Swan-Eagel orebody that underpins Fosterville. 

Bottom line is, this is Australia’s premier gold belt. 

Clear skies 

Investors and shareholders have been champing at the bit for RRAL’s Victoria gold projects to get moving, but the wheels of Victoria’s government have turned slowly amid the pandemic. 

With the state locked down for most of the last 12 months, progress on the license applications has been less rapid than either Power Metal or Red Rock would have liked. 

But we heard on 2 February 2021 that RRAL had successfully won three licenses across substantial five-year periods. Blue Whale, Blue Chip and Blue Ribbon together cover 215km2. 

And with ten more licenses in application, there appears to be no end to the potential riches on offer here. 

Now the key is for POW and RRR to get on the ground in Victoria and to start marshalling that vital data to identify potential drill targets. 

The way data was handled even ten years ago is a world away from how it works now. Back then, it would be entirely possible to miss an asset, but that happens so much less frequently now. 

Modern sampling techniques and 3D modelling really have revolutionised the industry, allowing smaller firms to compete on a level playing field with the largest gold players in the world in many respects.

Small mercies

There are a clutch of ASX-listed miners all vying for the licences that RRAL already have in hand. That adds a superb amount of value to the JV and elevates this partnership to a new level. Barely a month goes by without some new discovery being reported in Victoria. 

We need only look at the likes of Navarre Minerals, which has just a single 122km2 tenement under its control and reported strong maiden drilling results from its Ballarat prospect in early February 2021.

RRAL has licences granted that almost double that area, and another ten in the works. It’s no wonder investors are turning their attention to Power Metal Resources and Red Rock Resources. 

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 Resources shines with first Australia gold license wins (POW)

Power Metal Resources (LSE: POW) has won three hotly-contested licenses to explore for gold in the world‘s fastest-growing precious metals region in Australia.

All three licenses have been granted for five-year periods, allowing POW and its joint venture partner Red Rock Resources (LSE: RRR) to fast-track an exploration campaign. 

CEO Paul Johnson cemented a deal in 2020 to form a JV with its fellow AIM-listed miner to explore the highly-prospective region. 

Power Metal Resources owns 49.9% of Red Rock Australasia Pty Ltd (RRAL) while its opposite number owns 50.1%. 

RRAL won formal grants for: the 133km2 Blue Whale license (EL007271); the 74 km2 Blue Chip license (EL007281) and the 8km2 Blue Ribbon license (EL007285). Each area sits within the historic mining district of Ballarat and along the Ballarat gold trend.  

Johnson noted: 

The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licences. We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months, utilising the RRAL Ballarat headquarters as the centre of operations

Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”

Gold rush

RRAL has lodged 10 other license applications around Ballarat covering a total of over 1,900km2. 

These include the 489km2 Blue Sky (EL007282), the 486km2 Evergreen (EL007329) and the 349km2 Kilmore West (EL007460).

The state of Victoria is experiencing a remarkable second gold rush 150 years after artisanal miners found vast quantities of the yellow metal in near-surface alluvial mines.

Now mining firms are flocking to Victoria to explore its gold deposits at depth. 

The government’s own geoscientists have said there remains potential for an 75 million ounces of undiscovered gold further underground. 

Copper play expands

This week Power Metal also offered a market update on the latest portion of its massive Kalahari Copper Belt play in Botswana. POW is in a 50-50 JV with Kavango Resources (LSE: KAV). 

At the South Ghanzi project the JV is targeting potential large-scale copper silver deposits. 

South Ghanzi consists of two licenses covering 1294km2.

Geological studies of the area have revealed features consistent with other recent major copper/silver discoveries. These include ASX-listed Sandfire Resources (ASX:SFR), whose T3 Motheo project lies just northeast of Power Metal’s own license areas. Sandfire’s board approved a $259 million investment for its development in December 2020.

At South Ghanzi POW and KAV now plan to roll out both airborne electromagnetic surveys and ground exploration to fast-track the definition of initial drill targets 

Johnson noted: “There is a sense across the team that the South Ghanzi project is shaping up rather well with each step forward. Having seen the benefits of major discovery in the Kalahari Copper Belt previously, I am personally keen that we continue to push on at pace.” 

Johnson owns 61,500,000 of all the Power Metal Resources shares in issue, approximately 5.72%. His directors own a total of more than 11.3%.  

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