Power Metal Resources plc expects to start in mid-September 2,600m diamond drilling in six drillholes at its Molopo Farms Complex project in southwest Botswana.
PROGRAMME
The project, targeting a large scale nickel-copper-platinum group element (PGE) discovery, is the company’s first managed and operated diamond drilling programme at Molopo.
Before drilling begins, Power Metal will conduct expanded geophysical surveys to confirm precision drill targeting at T1-6, and follow-up surveys at targets T1-14, T1-3 and T2-3.
The company said it planned to drill at least two drillholes into the newly identified conductor within the T1-6 target area.
CONTRACT
Power Metal will pay part-cash and part-equity to Mindea Exploration and Drilling Services (Pty) Ltd to conduct the diamond drilling.
More than 50% of the expected cost will be met with up to 10 million new ordinary shares of 0.1p each in Power Metal, at an issue price of 2.25p per share.
The company will issue the shares within one month of the completion of 2,600m drilling.
Mindea’s base of operations lies 98km from Molopo with the expected mobilisation and start of drilling scheduled for mid-September 2022.
HIGH PRIORITY
Chief executive Paul Johnson added that it had taken an incredible effort to start drilling only a few weeks after discovering the new conductor in target T1-6.
“The electromagnetic conductor, the edge of which was intersected by previous diamond drillhole K1-6 at a similar stratigraphic level to a broad nickel sulphide mineralisation interval, represents a high-priority target during the upcoming drilling programme.
“The potential offered by this drill programme is amply demonstrated by Mindea, the drill contractor, taking a significant portion of the contract costs in Power Metal shares.”
MOLOPO FARMS
Power Metal has a 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd.
In May 2022, Power Metal signed a conditional transaction to increase its interest in Molopo to 87.71%.