What it owns
Previously known as African Battery Metals PLC, and before that Sula Iron & Gold PLC, the explorer has diversified into platinum group metals, copper, cobalt and nickel after discontinuing its earlier iron and gold exploration at Ferensola in Sierra Leone.
The Power Metal portfolio consists of a number of major assets:
- Kisinka copper-cobalt project in the Democratic Republic of Congo in which a 7 kilometres zone anomalous for copper has been identified
- A suite of cobalt-nickel projects in Cameroon, neighbouring the Nkamouna-Mada project, which is currently the largest cobalt project anywhere in the world outside of the Democratic Republic of Congo
- A 25% stake in the Haneti project in Tanzania currently being worked up by Louis Coetzee’s Katoro Gold PLC (LON:KAT), with a right to increase its interest to 35% through the payment to Katoro Gold of £25,000 in cash by 15 May 2020
- A nickel, platinum group metals and copper exploration complex in Botswana, Molopo Farms, that’s wholly owned by Kalahari Key Metals in which Power Metal has 18.26% rights that can rise to 40%.
- The Alamo project in Arizona comprises some 340 acres see as being prospective for gold, with native gold nuggets observed near-surface in multiple locations.
- A gold joint venture in Australia with Red Rock Resources, called Red Rock Resources Australasia.
- Most recently, Power Metal agreed an earn-in to the Silver Peak Project in British Columbia, Canada.
How it's doing
In September, Power Metal said significant drill programmes are impending in Botswana and Tanzania, targeting large-scale nickel sulphide targets and with current levels of local regulation allowing the company to plan to commence drilling.
Significant advances have been made in the Australia joint venture, with 2,188 square kilometres of ground under application in the Victoria Goldfields over 12 distinct project areas and a draft of the NI 43-101 technical report under review.
Due diligence ground exploration programme is underway at the Silver Peak project in Canada, where channel sampling for silver is the key focus and where exploration results are expected shortly and within the 30-day option period announced on August 17.
A reconnaissance survey was completed successfully at the Alamo gold project in Arizona reviewing the key areas where the bulk of gold nuggets were found in alluvium on the property.
Watch the interview
- POW has six major interests all of which it believes can produce a major discovery
- Drilling commences at Molopo Farms in Botswana
- Increasing exposure to battery metals and copper
What the market says; First Equity
"Power Metal now joins a very small band of AIM-listed companies with exposure to silver focused projects, a commodity viewed as a safe-haven alternative to gold, along with having important industrial applications.
"We believe investors have yet to price in the importance and potential upside of this new project to Power Metals portfolio of exploration and development projects. Since the option over Silver Peak was first revealed just under a month ago to the market, Power Metal shares have surprisingly only traded sideways.
"We would expect much more in terms of exploration led news flow to emanate from Silver Peak in the coming months before the weather window closes in, for this part of Canada.
"Along with Power Metals’ two impending drill programmes in Botswana and Tanzania over large scale nickel targets, further progress anticipated on the Victoria Goldfields JV in Australia and a strong Group financial position (£1.6m cash and listed investments as at 4 Sept 2020) we continue to rate the shares as a ‘Buy’. "