REG - Power Metal - FDR Australia – Wallal Drill Clearance & Update

Power Metal ResourcesAnnouncement

27/10/2022 07:01

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RNS Number : 2527E  Power Metal Resources PLC  27 October 2022

27 October 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

FDR Australia - Wallal Drill Clearance & Update

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 interests in the Paterson
Province of Western Australia (the "Paterson Interests") held through its
62.12% subsidiary First Development Resources PLC ("FDR") which is seeking a
planned listing on the London capital markets.

This update relates specifically to the Wallal Project ("Wallal" or the
"Project"), one of three Paterson Province projects held by FDR and includes
the Wallal Tenements (E45/5816, E45/5853 and E45/5880) (the "Tenements").

Highlights

·    The Heritage Clearance Survey at Wallal, completed under the
supervision of the Yamatji Marlpa Aboriginal Corporation and the Nyangumarta
people in September 2022 has confirmed site establishment works for drilling
may now proceed.

 

·    FDR have immediately mobilised an operational team to site to the
eastern magnetic bullseye anomaly identified during the in-depth desktop
review (the "Eastern Anomaly) to establish access and to prepare the drilling
pad, enabling the commencement of diamond drilling which is expected to follow
immediately after the listing of FDR in the London capital markets.

 

·    The Phase I diamond core drilling programme has been designed to
initially test the Eastern Anomaly, which is interpreted to consist of two
lobes which result in a distinct target area of approximately 2.5km x 2.5km,
targeting a large-scale gold-copper discovery.

 

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

"The completion of the Heritage Clearance Survey provides FDR with the final
approval required to proceed with the Phase I diamond core drilling programme
at FDR's flagship Wallal Project in the Paterson province.

I would personally like to thank all the key stakeholders and consultants who
have helped us get to this decisive point in the evolution of FDR,
particularly the Nyangumarta people and Yamatji Marlpa Aboriginal Corporation.

On receipt of the final report, we have immediately engaged the services of an
earthworks contractor to prepare the site to enable our drilling partner DDH1
to commence drilling at the earliest convenience following our planned UK
listing."

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

"Without question this is an exciting time for the Power Metal and FDR teams
as we close in on listing, an event which will be followed with drilling at
Wallal targeting a large-scale gold-copper discovery.

From day one to date, FDR have demonstrated their intention to deploy capital
immediately into the ground to improve the understanding of the various
targets across their project portfolio. This is a mindset that I expect to
continue after the planned UK listing."

FURTHER INFORMATION

FIGURE 1: Paterson Province Tenement Map

 

 

 

 

 

 

 

 

FIGURE 2: Wallal Geophysical Anomaly Map

FIGURE 3: 3D View to the North of the Eastern Anomaly

The diagrams and images presented above may be viewed on FDR's website and may
be reached through the following link:

https://firstdevelopmentresources.com/project/wallal-project/
(https://firstdevelopmentresources.com/project/wallal-project/)

Further photographs and videos are and will be available on FDR's website
gallery section, through the following link:

https://firstdevelopmentresources.com/investor-centre/gallery/
(https://firstdevelopmentresources.com/investor-centre/gallery/)

WALLAL HERITAGE CLEARANCE SURVEY

The Heritage Clearance Survey (the "Survey") was completed at Wallal between
12-15 September 2022. The original Survey request which included a detailed
description of the Phase I diamond core drilling programme and site-specific
maps was submitted to Yamatji Marlpa Aboriginal Corporation ("YMAC") by the
Company's appointed Exploration Manager on 31 January 2022. The Survey is a
required precursor to the planned Phase I diamond core drilling programme at
the company's Wallal project located in the Paterson Province of Western
Australia.

The Survey was completed in accordance with Section 18 of the Aboriginal
Heritage Act 1972 and in accordance with the terms of the Heritage Agreement
in place with YMAC as agent for the Nyangumarta Warrarn Aboriginal
Corporation. The Survey was undertaken with the full involvement of
Nyangumarta representatives. As native title holders the Nyangumarta possess
rights and interests according to traditional law and custom including the
right to be fully informed about activities on their country and to speak
about their country.

The Survey team, appointed by YMAC, included representatives from
Nyangumarta, a YMAC archaeologist, a consulting anthropologist, and members of
FDR senior management team. Two 400m x 400m areas were surveyed covering the
two planned drill locations designed to initially test the Eastern anomaly
("Area A") and the secondary target, the Border anomaly ("Area B"). In
addition to the drill sites, the Survey also covered the route of new tracks
necessary to access the drill locations.  At both drill locations additional
east-west orientated survey grids (measuring 2.73km x 4km at Area A and 1.27km
x 4km at Area B) were delineated to facilitate potential future on-ground
geophysical surveys.

Following the Survey, the Nyangumarta representatives asserted that the work
programme proposed at Area A and Area B, was clear of ethnographic and
archaeological sites or concerns and that the proposed works programme could
proceed.

SITE ESTABLISHMENT AND ACCESS

Following receipt of the Heritage Clearance Survey Report a team led by the
FDR's Exploration Manager has been mobilised to Wallal to prepare the site in
preparation for drilling which is scheduled to commence immediately following
FDR's proposed UK listing.

 

To enable site works to proceed efficiently, the existing access track which
links the drilling sites to the well-maintained Nyangumarta Highway, will
require minor earthwork improvements and the drill pads and camp accommodation
areas will be levelled and prepared ahead of drill contractor mobilisation

 

Both the access and the drill pad location were surveyed during the recent
Heritage Clearance Survey. Site clearance is expected to take approximately
three days to complete.

WALLAL PHASE I DIAMOND CORE DRILLING PROGRAMME

FDR's Phase I diamond core drilling programme has been designed in conjunction
with Perth based consultancy Resource Potentials Pty Ltd ("Resource
Potentials"). The programme is targeting the Proterozoic basement rocks below
the Permian Grant Group which are believed to host the sources of the
magnetic bullseye anomalies identified during the completion of an in-depth
review of all geological and geophysical data associated with the Wallal
project area.

Three magnetic bullseye anomalies were identified in the review, the Western,
Eastern and Border anomalies. The magnetic bullseye anomalies are of
particular interest due to their possible geological similarities to the
regionally significant Havieron discovery (Greatland Gold - Newcrest Joint
venture).

The Havieron deposit is coincident with a magnetic bullseye anomaly detected
by an airborne magnetic survey and has a similar amplitude to Wallal,
approximately 100nanoTesla ("nT") for the Eastern Anomaly and 80nT for
Havieron.

The Phase I diamond core drilling programme has been designed to initially
test the Eastern Anomaly. The Eastern Anomaly is interpreted to consist of two
lobes which result in a distinct target area of approximately 2.5km x 2.5km.
An estimate of depth of the cover sequence has been used to constrain the
modelled depth of approximately 800 metres to the top of the Eastern magnetic
source body.

The Phase I diamond core drilling programme will consist of a minimum of two
sub-vertical boreholes totalling approximately 2,720 metres, which will be
drilled using rotary open hole to about 150 metres downhole depth and then
full core drilling techniques there onwards.

Depending on ground conditions encountered, it is expected that the holes will
be commenced using reverse circulation drilling techniques, followed by 83mm
(PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth.
The parameters for the planned boreholes are set out in Table 1:

Table 1: Planned Wallal Phase I diamond core drillhole parameters

 Drillhole ID  Easting  Northing  Azimuth (°)   Dip (°)   Nominal depth (m)
 DH1           260325   7780690   90            80        1,220
 DH2           259850   7780772   270           80        1,500

 

QUALIFIED PERSON STATEMENT

 

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 Qualified 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.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

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.

 

Exploration Work Overview

 

Power Metal has multiple internal exploration programmes completed or
underway, with results awaited.  The status for each of the Company's
priority exploration projects is outlined in the table below.

 

 Project            Location  Current   Work Completed or Underway                                                     Results Awaited

                              POW %

 Athabasca Uranium  Canada    100%      Ground exploration programme complete at 3 properties.  Preliminary planning   Assay results from samples collected during fieldwork.
                                        for work in Spring/Summer 2023 is ongoing.
 Molopo Farms       Botswana  c.53%(#)  T1-6 conductor target drilling underway. Further MLEM surveys planned over     Drill programme updates and findings from further MLEM survey work.
                                        additional AEM targets identified.
 Tati Project       Botswana  100%      RC drilling and sampling of mine dumps complete.                               Review of mine dumps sampling and assay results from RC drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.  These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 27.91%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com/)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com/)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com/)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com/)
                                  announced 8.7.22 and issue of Kavango shares e.g. financing announced

                                  24.10.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found

                                                                           at www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com/) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 Uranium Energy Exploration PLC   Planned IPO - POW on listing estimated 40-55%                               www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com/)

                                  Uranium exploration in the Athabasca region of Canada

 

 

 

 

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