Power Metal - Kalahari Key- Positive Outcome Geophysics
Kalahari Key Botswana - Positive Outcome Geophysics
The Project consists of licenses covering an area of 2,725 square kilometres that are considered prospective for Nickel-Copper-PGMs mineralisation and is 100% owned by Kalahari Key.
Power Metal Resources has an 18.26% shareholding in Kalahari Key and also has a right by
Should the Company elect to earn in, Power Metal Resources will hold an effective economic interest of 50.96% in the Project.
The Company's Kalahari Key acquisition agreement was announced on
A full technical report is being finalised and we look forward to receipt of that document whereupon we can provide much more information to shareholders.
Given the surge in nickel prices of late, and what we believe are compelling supply/demand dynamics into the future, Power Metal Resources is fortunate to have this exposure to Kalahari Key and the promising MFC project in
· In late 2018 a helicopter airborne electromagnetic programme was undertaken at the MFC from which 17 conductor targets were identified within the feeder/shear zone;
· Kalahari Key completed a ground geophysics programme in early
· The data gathered from the ground geophysics programme has now been subject to technical review in
· From the technical review 6 high priority drilling targets have been identified and it is expected that 4 key targets will be the focus for planned Phase 1 drilling;
· A full technical report is being finalised to cover the priority drill targets and to outline the full extent of the drill programme planned;
· POW will provide a further update outlining the top priority drill targets and next steps, when the detailed technical report has been received.
BACKGROUND TO KALAHARI KEY AND THE MFC PROJECT
Kalahari Key, registered in
The target mineralization is Ni-PGM in the shear/ feeder zone. Re-processing and re-interpretation of existing high-resolution airborne magnetic data and regional gravity data was initially used to identify target areas. Selected core from previous exploration programmes has also been examined to better understand the geology of the Complex.
Towards the end of 2018, NRGTM was contracted to complete a high-resolution helicopter airborne magnetic and Electro Magnetic survey over the feeder/shear zone using their Xcite TM methodology. The preliminary analysis of the new geophysical data identified 17 conductor targets within the feeder/shear zone.
In mid-2019 a ground geophysics programme was undertaken. The system employed was the High-Power Electro-Magnetic ("HPEM") transmitter capable of transmitting up to 200A together with the ultra-sensitive Supracon Jesse-Deep SQUID ("superconducting quantum interference device ") sensor hooked up to the industry standard EMIT Smartem24 receiver.
Transmitter loops of approximately 1km by 1km were laid out using 35mm2 aluminium wire and lines (100 or 200m spacing) were surveyed at either 50m or 100m reading interval, depending on depth to target. In total 11 loops were undertaken around 14 individual targets from the original helicopter
The data generated from the ground geophysics programme was reviewed in
In addition, measures are being undertaken to implement the necessary environmental survey work prior to drilling, and liaison with drilling contractors to ensure, subject to environmental approvals, that the appropriate drilling contractors are in place.
PROJECT LEVEL 40% EARN-IN TO THE MFC PROJECT
Not later than
Upon POW entering into the Earn-in (or earlier with the agreement of all parties) an
The Committed Spend will be applied primarily to the completion of drilling of four targets at the
Also, upon POW entering into the Earn-in (or earlier if agreed by all parties)
Neither the Committee members nor the existing or new directors of Kalahari Key will be remunerated for their services.
Also, upon the Company entering into the Earn-in, a Joint Venture Agreement will be established between the parties which will determine strategy, operational management and corporate structuring. This will include the usual fund or dilute provisions unless an alternate structure is agreed by the parties.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
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+44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
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+44 (0) 20 3470 0470
Notes to Editors:
This information is provided by RNS, the news service of the
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