RCS - Power Metal - First Development Resources - Australia site visit

Power Metal ResourcesAnnouncement

11/04/2022 07:00

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RNS Number : 8778H  Power Metal Resources PLC  11 April 2022

11 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Australia site visit

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
provides an update to shareholders in respect of its 83.33% owned First
Development Resources Limited ("FDR").

FDR is planning to list on the London capital markets in Q3 2022 (the "IPO")
and is focussed on district scale exploration opportunities in Australia.

This update summarises the findings from the recent FDR management site visit
to projects in Australia which included reconnaissance at the Wallal and
Braeside West Projects in the Paterson Province of Western Australia ("WA")
and the Selta Project in the Northern Territory ("NT").

Highlights

·    FDR management visited and conducted reconnaissance at the FDR's
Wallal and Braeside West projects in the Paterson Province of Western
Australia and the Selta project located in the Northern Territory. The
reconnaissance team was able to access all granted licences using established,
well-maintained tracks with direct links to sealed highways.

 

·    Whilst on site the team was able to make high-level observations and
document, where possible, the underlying geology and the structural setting at
each project. Plans are now being made to determine the most effective way to
develop the target areas identified in the recently completed desktop studies.

 

·    The comprehensive geophysical desktop study for the flagship Wallal
Project is now complete. The geometry and depth to the main Eastern Magnetic
Bullseye anomaly has been constrained and work is progressing to facilitate
the commencement of a planned Phase I diamond drilling programme.

 

·    The in-depth data review for the Selta project has identified
multiple separate uranium and rare-earth element targets along with the
potential for lithium, gold and base-metal mineralisation as well as the
possibility of tin-tantalum-tungsten rich pegmatites. Significant outcrop is
accessible across the project area and the next phase of exploration to
delineate prospective targets is progressing.

 

·    The in-depth review of all historical geological, geophysical and
geochemical data associated with the Ripon Hills and Braeside West Projects is
nearing completion. The objective of the review is to identify potentially
prospective targets associated with the deep-seated north to northwest
trending fault structures prevalent throughout the area. The surface
expression of these structures were easily observed during the recent site
visit to Braeside West.

 

·    As part of the visit the FDR management team had a number of positive
meetings with various parties, including;

 

o  Several prospective investors based in Perth, WA. It was encouraging to
note the level of interest in the FDR business proposition;

 

o  FDR's Australia based non-executive directors and key advisors including
local legal and accounting teams along with the vendor group; and

 

o  The Government of Western Australian Department of Mines, Industry
Regulation and Safety ("DMIRS") and the Northern Territory Geological Survey
("NTGS"). DMIRS and the NTGS are the custodians of knowledge and data of their
respective geology and resources. Both government departments are supportive
of FDR and will be a valuable source of data as FDR's exploration progresses.

Tristan Pottas Chief Executive Officer of First Development Resources Ltd
commented:

"The recent management visit to FDR's projects in Western Australia and the
Northern Territory was a great success. The main objective of the visit was to
gain a better understanding of the nature of our interests in Australia from a
geological and logistical perspective and crucially, to meet and spend time
with the in-country teams working to realise our aim of making major mineral
discoveries.

What was particularly positive was the level of engagement and commitment
clearly evident across the advisor and consultancy teams along with a
high-level of interest from prospective investors."

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

"The rate at which work is progressing across the FDR portfolio is
encouraging. What started out as number of promising conceptual targets now
includes a drill-ready target at Wallal and several defined areas for further
investigation at the Selta Project.

The broader understanding of the projects gained by spending time on the
ground with the teams working with FDR, was important as we enter a key stage
in FDR's development."

PROJECT UPDATE - WALLAL

The geophysical desktop study for FDR's flagship Wallal project is now
complete. Three magnetic bullseye anomalies including the Western , Eastern
and Border anomalies, representing Havieron and Winu style Au-Cu base metal
targets have been identified within the Wallal project area. The sources of
these magnetic highs are expected to occur within the Proterozoic basement
rocks underlying thick Phanerozoic cover sediment sequences. A
cover-constrained magnetic three dimensional model of the Eastern magnetic
bullseye anomaly has been refined and suggests that the anomaly is comprised
of two lobes located at approximately 800 metres below surface. This is
supported within higher-order derivative filtered images of the airborne
magnetic data, and it results in a well-defined drill target which will be
tested during the planned Phase I diamond core drilling programme.

A Programme of Works application for ground disturbance in preparation for the
planned Phase I diamond core drilling programme, initially targeting the
Eastern anomaly, has been approved by the DMIRS. Additionally, in accordance
with Section 18 of the Aboriginal Heritage Act 1972 and in accordance with
the terms of the Heritage Agreement in place with the Yamatji Marlpa
Aboriginal Corporation ("YAMC") as agent for the Nyangumarta Warrarn
Aboriginal Corporation RNTBS, a Heritage Clearance Survey Request which covers
the Eastern and Border anomalies and all associated access tracks has been
submitted to YMAC. FDR expect to receive confirmation of the commencement date
of the Heritage Survey in the coming weeks.

The Wallal project area was recently visited by the FDR management team as
part of a broader visit which incorporated all of FDR's project locations in
Australia. The relative ease of access to the Wallal licence area from the
Great Northern highway was noted along with the absence of significant dune
corridors which are characteristic within other areas of the Paterson region.
Both points are particularly encouraging when considering the logistical
challenges typically associated with operating in remote areas.

PROJECT UPDATE - BRAESIDE WEST AND RIPON HILLS

FDR's Braeside West and Ripon Hill licence areas are located approximately 260
kilometres southeast of Port Hedland on the western edge of the Paterson
Province in Western Australia. The projects are located on the western and
eastern limbs of the Oakover Syncline. The area is believed by FDR to be
primarily prospective for manganese similar to the nearby Woodie
Woodie manganese mine, as well as base-metal and gold mineralisation
associated with deep-seated north to north-westerly trending fault structures.
FDR believe these fault structures have the potential to be conduits for
various styles of hydrothermal mineralisation as evidenced by recent
exploration conducted by ASX listed Rumble Resources Limited ("Rumble") on
land adjacent to the Braeside West tenement.

 

Recent exploration by Rumble along the eastern limb of the Oakover Syncline
has defined a regional scale porphyry, epithermal and volcanogenic massive
sulphide ("VMS") mineralised system that extends over 60 kilometres in strike
length and 8 kilometres in width within which they have identified over 40
priority Cu-Au-Zn-Pb-Ag targets. Similar prospective rock types occur within
the Ripon Hills project which has had very limited past base-metal and gold
exploration.

An in-depth desktop study has been initiated to better understand the
prospectivity of the Ripon Hills and Braeside West projects. The objective of
the study is to capture and assess all relevant geological, geophysical and
geochemical data over the Ripon Hills and Braeside West project areas. Upon
completion of this exercise, FDR will be able to plan the next phase of
exploration over defined target areas.

The FDR management team visited Braeside West in March 2021. Encouragingly,
the team was able to travel the entire length of the western margin of the
tenement along existing access tracks. Whilst on site the team was able to
observe outcropping geology and evidence of structural deformation potentially
associated with the aforementioned north-westerly trending fault structures.
FDR expect to receive the results of the in-depth desktop study which will
include defined targets in the coming weeks.

PROJECT UPDATE - SELTA

The in-depth review of all publicly available geological, geophysical and
geochemical data for the Selta Project is now complete. Based on a review
of historical datasets, four high-priority areas have been identified with the
potential for uranium mineralisation as well as three areas with the potential
for rare-earth element mineralisation. In addition to uranium and rare-earth
element mineralisation, the review has identified the potential for lithium,
gold, and base-metal mineralisation as well as the possibility of
tin-tantalum-tungsten-rich pegmatites within the Selta Project. It is
noteworthy that hard rock pegmatite fields elsewhere in Australia represent
important sources of lithium.

Historical exploration on the Selta Project has in general been limited. Based
on the positive findings within the recently completed Review, FDR is equipped
to be the first company to carry out systematic, project-wide exploration
focusing on the discovery of several strategically important metals.

During the site visit the FDR management team was accompanied by Matt
Stephens, the author of the in-depth review over the Selta Project. The key
takeaway from the site visit was the accessibility of the project area along
existing, exceptionally maintained access tracks. The Selta project covers an
area of almost 1,600km(2), the ability to access all three granted licences
easily is of particular significance, especially when planning the next phase
of exploration. Additionally, the amount of accessible outcrop was
encouraging. Prior to the site visit it was hoped the Selta licence area would
be underpinned by granites similar to those prevalent across the nearby
Arafura Nolan's Bore deposit. Felsic granitic intrusions were observed across
the project area and, although further work is required to determine the
minerology of the local geology, the presence of potentially comparable
outcrop presents an intriguing target for the next phase of investigation.

IPO AND LISTING PROCESS

FDR is seeking a listing on the London capital markets and is working with
advisors in this regard and is targeting a listing on the London capital
markets in Q3 2022.

FDR EXPLORATION INTERESTS

FDR Australia holds the following exploration licence interests:

Wallal Project (Wallal Main-E45/5816 - 390km(2) - granted), (Wallal West
1-E45/5853 96km(2) - granted) and (Wallal West 2 -
E45/5880 86km(2) - granted).

A comprehensive geophysical review has identified three magnetic bullseye
anomalies located under Phanerozoic sedimentary cover which are interpreted to
have possible geological similarities major Au-Cu deposits within the Paterson
Province including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland
Gold JV)

Braeside West Project (E45/5854 - 137km(2) - one granted licence)

In-depth desktop analysis of historic exploration data is currently underway
on the Braeside West Project. A recent base-metal discovery by neighbouring
company Rumble Resources has enhanced the overall prospectively within
the Braeside West Project area as it is hosted within a similar geological
environment to that of Rumble Resources discovery.

Ripon Hills Project (E45/5088 - 42km(2) - one granted licence).

The Ripon Hills Project is prospective for base-metal and gold mineralisation
associated with deep-seated north-south oriented fault structures which run
through the Ripon Hills Project area. In-depth desktop analysis of historic
exploration data is currently underway over the project.

Selta Project (EL 32737, EL 32738, EL 32755-1,575km(2)-three granted licences)

The Selta Project is located in an area considered to be highly-prospective
for uranium and rare earth element mineralisation. FDR recently completed an
in-depth review of all geological, geophysical and geochemical data which also
identified the potential for lithium, gold and base-metal mineralisation as
well as the possibility of tin-tantalum-tungsten rich pegmatites.

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/)  or contact:

 Power Metal Resources plc
 Paul Johnson (Chief Executive Officer)                                          +44 (0) 7766 465 617

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Charlie Bouverat                                                    +44 (0) 20 3470 0470

 SI Capital Limited (Joint Broker)
 Nick Emerson                                                                    +44 (0) 1483 413 500

 First Equity Limited (Joint Broker)
 David Cockbill/Jason Robertson                                                  +44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.

 

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa and Australia.

 

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

 

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

 

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie distributions of assets.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 

 Project                Location   POW %            Work Completed or Underway                                                       Results Awaited

 Alamo Gold Project     USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                         Field and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                       Define next steps of exploration.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential             Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 Kalahari Copper Belt   Botswana   50%              Exploration programme underway across the South Ghanzi Project and further       Field programme findings and defined drill targets for near term drilling.
                                                    exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                    licence areas
 Molopo Farms           Botswana   53%              Review of recent exploration findings.                                           Determine next exploration steps and action plan.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                                 Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  83.33%           Wallal passive seismic and 2D seismic processing work programme completed.       Findings from multiple work programmes including final approvals and

                                                                                preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills & Braeside
                                                    West projects.

 Selta Project          Australia  83.33%           Field reconnaissance work now underway, including mapping and sampling.          Field updates.

 

 

 

 

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