Power Metal Resources

  • Cause to celebrate as Kavango and Power Metal KCB survey finds seven extensive anomalies (KAV, POW)

    Kavango Resources (LON:KAV) and Power Metal Resources(LON:POW) posted highly encouraging survey results on Friday, with an impressive seven targets now identified at the South Ghanzi copper project.

    South Ghanzi, a 50-50 joint venture (“JV”) between Power Metals is located in Botswana’s underexplored Kalahari Copper Belt (“KCB”). This mineral belt extends for almost 1,000 kilometres from northeast Botswana all the way to western Namibia.

    The KCB discovery rate has accelerated over the past ten to fifteen years, delineating significant new mineral resources, with two copper-silver mines developed.

    Now, the JV partners are intent on securing their own slice of the pie, with Airborne Electromagnetic (“AEM”) surveys in February defining seven kilometre-scale anomalies, each representing a possible drill target.

    Follow up ground-based exploration found what Kavango rightly described as “very encouraging results”. There was close correlation between the AEM data, copper-zinc in soils geochemistry, and regional geological mapping.

    Michael Foster, Kavango’s chief executive, commented on the “very promising”results so far from South Ghanzi, and the “elevated copper and zinc readings”especially.

    All of this closely aligns with Kavango’s prior fieldwork, as well as the regional exploration model. Based on initial data interpretation, the target depths range from 40 metres (“m”) to 400m for exploration drilling.

    Foster said the “generally shallow depth of the conductors is a major asset” for the JV.

    The next step for operator Kavango will be additional soil sampling, as well as trenching and geological mapping before the drill programme planned later this year.  Three of the conductors identified were “associated with anticlines/fold structures”, making them the highest priority for this programme.

    First priority is target 36A, known as Acacia, a 4 kilometre (“km”) by 4km conductor located inside a fold “nose”, plunging southeast. Directly over this anomaly, soil geochemistry found extensive elevated copper and zinc levels – more than 42 parts per million (“ppm”) copper and over 75 ppm zinc.

    Paul Johnson, chief executive of Power Metal, said the company was “particularly encouraged” by Acacia. He noted that the target contained both “a high conductivity signature” found in the AEM survey as well as “almost perfectly coincident” zinc and copper-in soil anomalies.

    Johnson pointed out that these “are key signatures typical of nearby copper-silver discoveries within the Belt”.

    Second priority target 36G, Morula, is around 2km wide, plus at least 12km of strike – open at both ends. Morula is likely to be “the sheared and thrust faulted southern limb of the ‘Acacia’ fold”. Soil sample lines taken at Morula found significant 38ppm to 62ppm copper concentrations and 59ppm to 111ppm zinc all across the 12km soil anomaly.

    Then there’s target B, or Baobab, a 2km by 3km closed conductor sitting across the ‘nose’ of a second on Acacia’s same stratospheric horizon. This is the third priority target.

    An addition to the first three is target E, or Elephant, 2.5 kilometres wide and with a strike of at least 6km. This is open at both ends, with Elephant’s main body between 400m and 600m from surface. This is unusual for the project, given the generally shallower depth of other conductors.

    Elephant is fourth priority, and has a number of faults intersecting the main body, resulting in “several close surface conductors”that might be sampled though shallow drilling.

    On top of all this, Kavango may choose to conduct even more AEM survey work aimed at closing off and establishing the true extent of the conductor.

    “The exploration story at South Ghanzi continues to progress at pace and we eagerly await the next phase of results and drill testing of several of these high-priority targets,” Johnson said.

    The copper price recently hit a new high, with a current copper shortage and declining inventories set to push prices even higher. Right now, Bank of America is expecting a 186,000 tonne deficit for 2021 and a 369,000 tonne shortfall in 2022.

    The red metal is in high demand thanks to electrification, with electric cars especially requiring a great deal of copper. An electric vehicle might need over a mile of copper wiring for its stator windings alone.

    On the regulatory front, the Environmental Management Plan (“EMP”) for South Ghanzi, submitted in February, is making progress.

    Botswana’s Department of Environmental Affairs (“DEA”) has now accepted the EMP project brief. The next step will see a consultant, on Kavango’s behalf, start engaging and consulting with local farmers. The consultant will then submit “a report to the DEA to progress the application”.

    Kavango and Power Metals each hold their 50% interest in South Ghanzi through Kanye Resources, with plans underway for a Kanye IPO on a recognised stock exchange.

    “With the Environmental Management Plan application progressing well, the next few months in South Ghanzi will be key,” Foster concluded.

    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

  • Excellent results lead Kavango and Power Metal to crown Morula new South Ghanzi priority (KAV, POW)

    Kavango Resources (LON: KAV) and Power Metal Resources (LSE:POW) on Monday unveiled yet more encouraging results from their South Ghanzi project in the Kalahari Copper Belt.

    Since an announcement on May 14, Kavango has now completed and analysed samples taken from 16km of infill soil-sampling at Morula.

    Airborne Electromagnetic (“AEM”) surveys at South Ghanzi previously defined “seven kilometre-scale conductors” at South Ghanzi. Targets Acacia and Morula are the highest priority short term, with Acacia previously top of the list.

    Now, as a result of these latest highly encouraging results, Morula has overtaken Acacia to become the 50/50 joint venture’s (JV) highest priority target for exploration.

    As soon as the JV partners obtain the necessary Environmental Management Plan (“EMP”) for South Ghanzi, drilling at Morula will begin.

     

    Encouraging results

    The latest sampling involved four 4km-long sample lines spaced 1km apart, sampled every 100m.

    Work found anomalous copper levels, from all soil sample lines, of between 35 parts per million (“ppm”) and 68ppm, as well as anomalous zinc levels of between 59ppm and 111ppm.

    These new readings closely correlated with results from seven original soil-sampling lines at South Ghanzi.

    Impressively, samples confirmed that the conductor/anomaly at Morula extends at least 12km along strike.

    This “clearly defined mineralised zone” is on a south-westerly trend and runs parallel to two steep anticlinal structures. It is open in both directions along strike.

    The JV partners are now working to assess optimal locations for drilling at Morula and Acacia, where targets look to be near the surface and have “minimal Kalahari sand cover”.

    Estimated intercept depths for drilling are between 120m and 200m.

     

    Well researched targets

    Until Morula, Acacia was the highest priority target for drilling at South Ghanzi. Acacia is located on Prospecting Licence (“PL”) 036/2020’s northern boundary, inside an interpreted fold “nose”.

    In geology, a fold is when factors like heat, stress, and pressure cause rocks to bend or flex. Folds can have a “nose”, a curved shape at the fold’s tip where metals often accumulate.

    Soil geochemistry over the anomaly shows highly elevated copper levels of more than 42ppm and zinc of more than 75ppm.

    Morula, meanwhile, is an estimated 2km wide, with its at least 12km of strike following a south-westerly ttend along PL 036’s central backbone.

    The target was discovered by extending soil sampling lines south of Acacia, and is “supported by a well-defined AEM linear conductor”. 

    Through geological mapping, the JV parties have found evidence that Morula is the mineralised sheares southern limb of the Acacia fold.

    Initial drilling depths for Morula are thought to be less than 200m, based on AEM profiles showing relatively shallow mineralisation.

     

    Transformational potential

    The two companies have made plans to transfer the PLs for South Ghanzi into Kanya Resources, their recently established Botswana JV company. Looking ahead, the two intend to float Kanye on a recognised stock exchange.

    Kavango chief executive Michael Foster said “Morula is rapidly developing into one of the most exciting drill targets in our entire portfolio”, noting that the company plans to start drilling “as soon as we can, after we have received approval of our EMP”.

    Paul Johnson, Power Metal’s chief executive, commented on “the substantial opportunity the Kalahari Copper Belt offers for major base metal discoveries”.

    He pointed out that, during his time as chief executive of Kalahari Copper Belt explorer Metal Tiger (LON: MTR) in 2016, “we followed a similar exploration methodology”.

    That same methodology led to the discovery of the T3 Deposit, a “transformational”discovery for Metal Tiger and its shareholders.

    “The exploration datasets from South Ghanzi have delineated very strong drill targets and I am very much looking forward to the commencement of a programme of drill testing at the Project,” Johnson concluded.

    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

     

  • Excitement grows as Power Metal and Kavango get underway in the Kalahari Copper Belt (POW, KAV)

    Power Metal Resources (LSE:POW) and Kavango Resources (LSE:KAV) are to begin exploration on the Kalahari Copper Belt (KCB) in Botswana, where they are targeting a large copper-silver discovery. 

    Their 50:50-held KCB Joint Venture operates in a well-known area of newly-discovered sediment-hosted copper deposits that are now being developed as fully-fledged mining operations. 

    Chief executive Paul Johnson said the plan is to follow an “efficient, disciplined, and methodical approach” designed to build a geological model of the license area that can be tested swiftly through drilling.  

    Exploration will focus on soil sampling and geophysics to identify “dome structures” that are known to host potential copper deposits regionally. The JV will then quickly move on to test drilling of shallow targets. 

    Kavangoand Power Metal’slicenses, PL036/2020 and PL037/2020, cover 1,294km2 immediately south of Botswana district capital Ghanzi. Here, they are surrounded by several hugely significant copper discoveries made in recent years. 

    Both are along strike west of Australian mid-tier miner Sandfire Resources (ASX:SFR), which is already working in the region on T3 and A4 dome-hosted copper-silver discoveries.  

    Meanwhile, Cupric Canyon Capital’s world-class copper and silver mine Zone 5 also sits in northwestern Botswana. This private firm raised $565 million in 2019 to develop its Khoemacau project. and its annual production is expected to exceed 63,000 tonnes of copper and 1.9 million tonnes of silver.

    ASX-listed miner MOD Resources was working on a similar high grade copper-silver project nearby called T3 before it was snapped up in a £93 million takeover by Sandfire in October 2019.  

    News that exploration will get underway is the culmination of years of hard work by both Power Metal and Kavango to understand the region and the metals these structures hold. 

    The Kalahari Copper Belt extends a vast 1,00km-by-250km from northeast Botswana into central Namibia. Both countries are safe, mining-friendly jurisdictions. 

    And as The Economist noted recently, copper prices have been rising in tandem with gold, an unusual state of affairs during a period of manufacturing slowdown. As gold rose towards $2,000 per ounce, copper surged to a two-year high of over $6,500 in July 2020. 

    Economic downturns usually result in a predictable decoupling in the prices of the two metals. As gold climbs with investors seeking a safe haven, copper tends to dip as construction projects fall away. The steep shock caused by the Covid-19 pandemic did see copper prices drift from a peak of $6,300 per tonne in January to just over $4,700 in March. But despite lockdowns covering most of the western world, the price of copper did start climbing again and has continued this general trend into the latter half of the year.

    With copper now behaving much more like gold, Power Metal Resources and Kavango Resourcesare perfectly placed to take advantage. 

    Johnson added: “Power Metal is seeing a number of its projects launch exploration programmes and it is particularly positive to see the expeditious launch of exploration at the KCB JV in Botswana.”

    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

  • Exciting Molopo Farms option sets Power Metal up for accelerated exploration in Botswana (POW, KAV, EVA)

    Power Metal Resources (LON:POW)welcomed news of a deal last week that stands to accelerate exploration considerably at one of its highly prospective Botswana-based projects.

    On Friday, Kavango Resources (LSE:KAV)announced that it had signed a three-month option that, if exercised, would see it acquire 51.15% of the Molopo Farms Complex (“MFC”) project in an all-share transaction. Under the terms of the deal, Power Metal would continue to hold on to a 40% stake in the asset, which it secured earlier this year, while London peer Evrima (LSE:EVA)would hold on to the remaining 8.85%.           

    Covering 1,723km2in south Botswana, the MFC project is highly prospective for nickel, copper, and platinum group elements (“PGEs”)–all metals that are currently enjoying strong demand in the face of limited supply. As the map below shows, the asset also sits firmly in a key area of mining activity, in the vicinity of projects being explored by peers such as Rio Tinto Exploration, Premier Gold Resources, and Kumo Resources.