The Power Metal Resources PLC (LON: POW) share price plunged 6.21% after releasing an update about its drilling operations at the Molopo Farms complex in Botswana. A crucial highlight of the update was the discovery of targeted nickel sulphides at the inaugural drill hole into target area T1-3.
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The mineral resource exploration company is still drilling the T1-3 target and has reached a depth of 355.66 metres, with a planned total depth of 450 metres. The company identified visible nickel sulphides at 327 metres and within the 348-354 metres range.
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Power Metal noted that the intensity of visible disseminated sulphide mineralisation increased at the lower range, which prompted today’s drilling update. Still, the company warned investors that today’s figures were findings from an initial review of the core results and that assay testing at an accredited laboratory would determine the final grades of the identified nickel sulphides.
Investors were unhappy with the update because the company does not seem to have progressed much with the drilling process at Molopo. The firm also did not have the final results for the T1-14 drill hole, completed to a depth of 520 metres.
Power Metal also noted that a technical review of the drill core was ongoing, and the results would be ready in the coming days. The company is also awaiting the final results from hole T1-6, completed to a shallow depth of 300 metres.
The markets punished the company for releasing incomplete results, which left many wondering why the firm hurriedly did this. Many would think that it is best to wait for some tangible results before updating the markets, which explains the negative reaction to today’s release.
Hopefully, the company’s next release will be more detailed and will provid investors with the much-needed final data to help them decide what comes next for the company. If the results are positive, we cn expect a surge higher in Power Metal shares and the opposite would be true for disappointing results.
*This is not investment advice.
Power Metal (POW) share price.
The Power Metal share price plunged 6.21% to trade at 1.36p, falling from Tuesday’s closing price of 1.45p.
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