Evrima Plc - Investee Update: Kalahari Key Operational Update

23 August 2022

Evrima plc

("Evrima" or the "Company")

Investee Update: Power Metal Resources provides Molopo Farms– Drill Programme and Geophysics Update

Evrima is pleased to provide an update on its investee company, Kalahari Key Minerals Exploration Pty Limited (“Kalahari Key”) and its Molopo Farms Complex Project (“MFC”).

On 18 May 2022, Power Metal Resources plc (“Power Metal”) (AIM: POW) announced a conditional acquisition of certain of the Kalahari Key shareholdings which if approved would result in Power Metal becoming the single largest shareholder of Kalahari Key 87.71% and the project operator. The acquisition was approved by the shareholders and Power Metal continues to make strong progress in completing the acquisition with the principal elements outstanding being that of regulatory and legal approvals, in-country.

Evrima elected to retain its equity investment and upon closing of the acquisition, will maintain an 8.93% project-level interest in Kalahari Key. The interest is to be governed by a shareholder agreement that provides the terms for retention of the Company’s interest.
 

On 16 August 2022 Power Metal announced an update highlighting the identification of a large electromagnetic (“EM”) conductor, the edge of which, had been intersected by previous diamond core drillhole KKME 1-6 (“K1-6”), at similar stratigraphic levels to a broad nickel sulphide mineralised interval. As announced, drill testing this conductor is to be the focus of the upcoming expedited diamond drill programme. The link to this announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-complex-project-drill-target-k1-6/15586161

Power Metal has today provided an upate regarding the proposed Drill Programme and Geophysics Update. The source copy of the Power Metal news release can be found here.

HIGHLIGHTS

• Preparations for the first Power Metal managed and operated diamond drill programme at Molopo Farms are advancing at pace and the commencement date for drilling is expected to be announced shortly.

• The drilling will target the core of the new conductor, immediately south of K1-6, with multiple drillholes planned of varying positions in order to maximise the discovery potential of the programme.

• Precision drill hole targeting work at K1-6 is also underway, given the size of the conductor the first two holes are expected to be located approximately 500m and 1,000m to the south of original hole K1-6.

• The programme is being designed to ensure expeditious core analysis to include: geologists on site to conduct continuous core inspection and logging, identification of visible sulphides, selection of core samples for assay testing and the arrangement where appropriate of expedited laboratory assays to minimise turnaround time.

• Two additional high-priority targets located southwest of K1-6 have been selected for moving loop electro-magnetic (“MLEM”) surveys, to provide further targets for planned diamond drilling.

Drill Programme Planning

• Following detailed review of the geophysical data and in consultation with Power Metal’s in-country technical team, the Company is planning to drill multiple holes targeting the southerly dipping conductor at K1-6, the core of which has never been drilled. The conductor is highlighted in Figure 2 and 3 in the link below:

https://www.powermetalresources.com/molopo-farms-complex-rns/

• The first two drill holes are planned to be located approximately 500m and 1,000m south of previous diamond drillhole K1-6.  The drill holes will be drilled towards the north at a ~70 degree angle in order to best intersect the southerly dipping conductor.

• Spectral Geophysics are undertaking inversions of the MLEM data collected to date as well as high-resolution ground-magnetic surveys over drillholes K1-6 and KKME 1-14 (“K1-14”), to enable further refinement of the target areas prior to selecting final drillhole parameters (precise collar location, dip and azimuth).

• The Company is finalising all preparations for the upcoming programme, including drill contract finalisation and the engagement of drill rig geologists, field technicians, core cutting personnel and general labourers. The senior project geologist from MSA Consulting Inc. engaged to help manage the Project in-country on behalf of Power, and who has extensive working knowledge of the Project, will be responsible for day-to-day oversight while drilling is ongoing.

Expansion of Geophysics over Additional Targets

• The Company has also engaged Spectral Geophysics to undertake additional MLEM surveys over two additional targets K1-3 and K2-3, located approximately 30km and 60km southwest of target K1-6 and within prospecting licence (“PL”) 310/2016.

• The additional targets are considered by the Power Metal technical team to hold significant potential prospectivity for nickel, copper and platinum group element mineralisation and the MLEM surveys will assist in the development of additional drill targets in those locations.

• A location plan map of the Project highlighting the location of all geophysical target areas can be found at the link below:

https://www.powermetalresources.com/molopo-farms-complex-airborne-em-target-map/

The Directors of Evrima accept responsibility for this announcement.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

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Enquiries  : 

Company: 
Burns Singh Tennent-Bhohi (CEO & Director): burns@evrimaplc.com
             
Simon Grant-Rennick (Executive Chairman): simon@evrimaplc.com

Novum Securities Limited (AQSE Corporate Adviser):

David Coffman / Lucy Bowden: + 44 (0) 20 7399 9400