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Evrima Plc - Update re Investee Drilling

·13-min read

BY VIRUE OF THE PRIOR PUBLICATION ELSEWHERE OF THE SUBSTANTIVE INTELLIGENCE IN THIS ANNOUNCEMENT, THE DIRECTORS OF EVRIMA PLC DO NOT CONSIDER IT TO CONTAIN INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO. 594/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

Evrima plc
AQSE: EVA
(“Evrima” or the “Company”)

Kalahari Key Minera lExploration Pty Ltd. Operational Update: Significant Nickel Interesections Confirmed by Drill Sample Assay Results

Evrima plc is an investment issuer quoted on the AQSE Growth Market. The Company is focused on the idenitfication of investment opportunities in the natural resource sector. The announcement reproduced in part below and denoted by quotation marks (“ “) is an operational update on Kalahari Key Mineral Exploration Pty Ltd., an investee company in which Evrima has a 19.6% stake, and was originally issued on 8th April 2021 by Power Metal Resources PLC:

“Power Metal Resources PLC

("Power Metal" or the "Company")

Botswana Molopo Farms Complex - Assay Results

Significant Nickel Intersections Confirmed by Drill Sample Assay Results

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update at the Kalahari Key Mineral Exploration Pty Ltd ("Kalahari Key" or "KKME") Molopo Farms Complex Project (the "Project" or "MFC Project"), which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element ("PGE") mineralisation in Botswana.

BACKGROUND:

The MFC Project is a district scale exploration opportunity in south-west Botswana.

After extensive preparatory exploration work over a number of years the Project was suitably advanced to commence exploration drilling in 2020.

Diamond drilling commenced at the MFC Project in October 2020 and to date three holes have been completed. Examination of the drill core to date has demonstrated the geological model for the presence of a magmatic feeder zone prospective for the accumulation of Ni/PGE sulphides in the intrusive system.

More recently, core samples were sent to the Geology Department of the University of Witwatersrand in Johannesburg for thin section mineralogical analysis. This analysis confirmed the presence of nickel sulphides in the drill core adding more weight to the geological proposition.

Results have now been received from Scientific Services Geological Laboratories where drill core samples from hole KKME 1-6 were sent for assay testing.

CHIEF EXECUTIVE OFFICER UPDATE:

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

"We are delighted to report that significant nickel intersections have been confirmed by the first batch of assay results received for the diamond drilling at the MFC Project. Recognising these drill results come from early stage reconnaissance drilling it is extremely positive to identify nickel mineralisation as confirmed today.

As only select intervals of drill core were sent for laboratory assay all five of the significant drill intersections can be considered open until the intervening samples are analysed.

These results corroborate the earlier identification of Pentlandite, the primary nickel sulphide mineral, in the mineralogical samples previously submitted to Witwatersrand University.

The nickel mineralisation encountered in this drill hole includes sections at grades that have been found to be economic in similar geologies and given the scale of the inferred feeder zone being investigated there is a good prospect of further positive results as exploration continues."

HIGHLIGHTS:

The first batch of assay results for nickel (Ni), copper (Cu) and zinc (Zn) have been received for the diamond drilling programme at the Molopo Farms Complex Project.

• Angled diamond drill hole KKME 1-6, downhole, significant Ni intersections 1 include:

o 4.8m @ 0.2% Ni from 292.7m

o 4.1m @ 0.49% Ni from 309m, including

§ 1.6m @ 0.72% Ni from 309.6m

o 16.7m @ 0.16% Ni from 501.8m

o 10.9m @ 0.13% Ni from 518.2m

o 3.4m @ 0.28% Ni from 594.4m

• As drill core was selectively sent for sample analysis the reported mineralised intervals are considered to be open.

• Assay results confirm Ni grades for pentlandite-bearing mineralogical samples analysed by the University of Witwatersrand in Johannesburg (announced 30 March 2021):

o IMK-05139 (0.44m pyroxenite sample from 310m down-hole depth) assayed at 6,999ppm Ni (0.70% Ni) from a primary magmatic, pentlandite-bearing, assemblage.

o IMK-05149 (0.58m pyroxenite sample from 295m down-hole depth) assayed at 6,606ppm Ni (0.66% Ni).

o IMK-05153 (0.54m pyroxenite sample from 297m down-hole depth) assayed at 2,244ppm Ni (0.22% Ni).

o Both IMK-05149 and IMK-05153 contained primary pentlandite within predominant secondary nickel sulphides, arsenides and alloys.

• Further assay data for gold and PGE content for the reported intervals is currently awaited.

Assay Testing

Scientific Services Geological Laboratories ("SCISERV") in Cape Town analysed half core samples for nickel, copper, zinc, gold and platinum with the results for Ni, Cu and Zn received in the current assay batch, with the Ni and Cu results summarised in Table 1 below.

SCISERV employed a two acid (HNO3 + HF) digest with analysis by inductively coupled plasma optical emission spectrometry ("ICP-OES").

A full assessment of hole KKME 1-6 will be made once all of the mineralogical and chemical analyses have been received.

Table 1: Diamond Drill Hole KKME 1-6 Ni & Cu Assay Data (Batch 1)

Drill Hole ID

From (m)

To (m)

Downhole Interval (m)

Ni (ppm)

Cu (ppm)

University of Witwatersrand Mineralogical Sample ID

KKME 1-6

292.68

293.40

0.72

1,417

<5

KKME 1-6

293.40

294.18

0.78

1,213

<5

KKME 1-6

294.18

294.70

0.52

1,177

6

KKME 1-6

294.70

295.28

0.58

6,606

163

IMK-05149

KKME 1-6

295.28

295.96

0.68

1,182

60

KKME 1-6

295.96

296.47

0.51

1,235

<5

KKME 1-6

296.47

297.48

1.01

1,621

15

KKME 1-6

296.94

297.48

0.54

2,244

<5

IMK-05153

KKME 1-6

308.49

309.04

0.55

1,779

17

KKME 1-6

309.04

309.61

0.57

3,280

159

KKME 1-6

309.61

310.05

0.44

6,999

664

IMK-05139

KKME 1-6

310.05

310.67

0.62

7,018

530

KKME 1-6

310.67

311.22

0.55

7,459

448

KKME 1-6

311.22

311.58

0.36

4,867

343

KKME 1-6

311.58

312.00

0.42

4,065

185

KKME 1-6

312.00

312.41

0.41

3,714

35

KKME 1-6

312.41

313.19

0.78

2,558

21

KKME 1-6

501.80

502.98

1.18

1,212

<5

KKME 1-6

502.98

503.55

0.57

1,076

<5

KKME 1-6

503.55

504.50

0.95

1,237

<5

KKME 1-6

504.50

505.40

0.90

1,501

<5

KKME 1-6

505.40

506.23

0.83

1,088

<5

KKME 1-6

506.23

507.15

0.92

1,140

<5

KKME 1-6

507.15

508.00

0.85

1,411

<5

KKME 1-6

508.00

509.00

1.00

1,883

7

KKME 1-6

509.00

510.00

1.00

1,974

8

KKME 1-6

510.00

511.00

1.00

1,953

6

KKME 1-6

511.00

512.00

1.00

1,888

8

KKME 1-6

512.00

513.00

1.00

2,081

7

KKME 1-6

513.00

514.00

1.00

1,862

9

KKME 1-6

514.00

514.50

0.50

2,131

7

KKME 1-6

514.50

516.00

1.50

1,934

8

KKME 1-6

516.00

517.00

1.00

1,269

7

KKME 1-6

517.00

518.52

1.52

1,414

<5

KKME 1-6

518.15

518.52

0.37

1,489

<5

KKME 1-6

518.52

519.47

0.95

1,047

<5

KKME 1-6

519.47

520.28

0.81

1,740

<5

KKME 1-6

520.28

521.22

0.94

1,692

<5

KKME 1-6

521.22

521.78

0.56

1,629

<5

KKME 1-6

521.78

522.62

0.84

1,606

<5

KKME 1-6

522.62

523.13

0.51

1,504

<5

KKME 1-6

523.13

524.00

0.87

1,467

<5

KKME 1-6

524.00

524.48

0.48

1,642

<5

KKME 1-6

524.48

525.28

0.80

1,239

<5

KKME 1-6

525.28

526.20

0.92

924

<5

KKME 1-6

526.20

527.46

1.26

698

<5

KKME 1-6

527.46

528.17

0.71

911

<5

KKME 1-6

528.17

529.05

0.88

918

<5

KKME 1-6

585.00

586.00

1.00

2,536

<5

KKME 1-6

594.40

595.17

0.77

2,469

<5

KKME 1-6

595.17

596.00

0.83

2,755

<5

KKME 1-6

596.00

597.00

1.00

3,038

5

KKME 1-6

597.00

597.80

0.80

2,852

6

Hole KKME 1-6, the second hole to be drilled at the MFC Project, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project's Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme's first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone. The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

Third Drill Hole Progress

The third drill hole at the MFC Project, KKME 1-11a (into Target 1-11a), has been completed to a downhole depth of 502.4m. The 60-degree inclined hole was drilled to intersect a conductive body, associated with a prominent magnetic response, modelled from geophysical survey data. KKME 1-11a is located in the Project's Chipo (Gift) Northern Target Area, and 1,250m west of the programme's first drill hole KKME 1-14 and still within the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

Preliminary examination of the uncut core indicates a fine-grained black ultramafic rock that is magnetic, and relatively unfractured. There are minor serpentine/talc veins. The core will now undergo detailed geological logging and selected sample intervals will be submitted for assay.

References:

1:

Significant Ni intersections derived from weighted averages of samples intervals above a nominal 0.13%Ni. Figures are rounded. 10,000ppm = 1%.

Feeder zone:

The plumbing system from which magma is supplied into the intrusive from the lower crust. These can often form as elongated dykes at the base of an ultramafic layered intrusion. Sulphide mineral accumulations can often form in the vicinity of the feeder zone.

PGE:

Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)

Pentlandite (Fe,Ni)9S8:

A primary nickel sulphide mineral

Pyroxenite:

Pyroxenite is an ultramafic plutonic igneous rock. In pyroxenite the dominant mafic mineral is a pyroxene. Pyroxenite may contain up to 40% olivine. Pyroxenite mostly forms by accumulation of pyroxene crystals in the mafic-ultramafic igneous intrusions. It forms variously shaped igneous bodies like sills, layers, dikes Pyroxenite may host economically important metals like chromium, nickel and platinum.

Serpentinisation:

A low temperature anaerobic oxidation process of ultramafic rocks in the course of which density is reduced and volume increased by the addition of water, in the course of which nickel and other elements undergo remobilisation as a result of hydrothermal activity

Ultramafic rock:

An igneous rock in which has a very low silica content and in which more than 90% of the rock is composed of magnesium and iron-rich minerals like pyroxenes, amphiboles, and olivine.

OWNERSHIP STRUCTURE - MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in ("Earn-In") to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, including the diamond drilling of selected targets (the "Drill Programme").

On completion of the Earn-In, and on the basis of the current 18.26% shareholding in Kalahari Key, Power Metal will have an effective economic interest of 50.96% in the MFC Project.

To date Power Metal has funded US$498,500 of the US$500,000 earn-in requirement, with US$1,500 (c. £1,085) remaining to complete the earn-in funding requirement. This amount will be paid by Power Metal from existing funds in the Company's US dollar account.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m and is designed to intersect high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic ("EM") and Natural Field Audio Magneto Telluric ("NF-AMT") geophysics surveys.

COMPETENT PERSON STATEMENT

The drilling and sampling programme has been overseen on site by Mr. Ian McGeorge MSc CGeol FGS a qualified person and chartered geologist working on behalf of the independent mining consultancy The MSA Group ("MSA"). Information in this announcement relating to the exploration drilling results is based on data reviewed by Mr McGeorge. Mr McGeorge has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr McGeorge consents to the inclusion of the exploration results in the form and context in which they appear.

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.”

Evrima plc,

London, 8th April 2021

The Directors of the Company, who have issued this RIS announcement after due and careful enquiry, accept responsibility for its content.

Enquiries

Company:

Burns Singh Tennent-Bhohi (CEO & Director)
burnsstb@evrimaplc.com
Simon Grant-Rennick (Executive Chairman)
simongr@evrimaplc.com
Direct Office Line: +44 (0) 20 3778 0755

Keith, Bayley, Rogers & Co. Limited (AQSE Corporate Adviser):

Graham Atthill-Beck: +44 (0) 7506 43 41 07; Graham.Atthill-Beck@kbrl.co.uk; blackpearladvisers@gmail.com

Peterhouse Capital Limited (Corporate Stockbroker):

Lucy Williams: +44 (0) 20 7469 0930
Duncan Vasey: +44 (0) 20 7220 9797 (Direct)