REG - Power Metal - FDR - Paterson Project Exploration Update

Power Metal ResourcesAnnouncement

18/02/2022 16:00

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RNS Number : 1825C  Power Metal Resources PLC  18 February 2022

18 February 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Paterson Project Exploration 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" or "Paterson
Projects") held through First Development Resources Limited ("FDR").

This update relates specifically to FDR's 100% owned Paterson Projects. The
Paterson project package includes the Wallal tenements (E45/5816, E45/5853 and
E45/5880), Braeside West Project (E45/5854) and Ripon Hills Project
(E45/5088). All exploration licences for the Company's Paterson Projects are
granted.

Highlights

·    Comprehensive geophysical desktop study for the Company's flagship
Wallal Project is now complete and an estimate of the thickness of Phanerozoic
sedimentary cover sitting above the Proterozoic basement rocks hosting the
magnetic anomalies of interest has been determined. The Proterozoic basement
is interpreted to host the sources of the magnetic bullseye anomalies observed
in images generated from airborne magnetic surveying, and these magnetic
anomalies have similar geophysical characteristics to the anomalies found over
Greatland Gold Plc's Havieron gold-copper ("Au-Cu") deposit located
approximately 260 kilometres to the south-southeast of the Wallal Project
within the same geological province.

 

·    A cover-constrained magnetic three dimensional ("3D") model of the
Eastern magnetic bullseye anomaly has been refined and suggests that the
anomaly is comprised of two lobes. This is supported within higher-order
derivative filtered images of the airborne magnetic data, and it results in a
well-defined target which will be tested during the planned Phase I diamond
core drilling programme.

 

·  The comprehensive desktop study has estimated the depth of cover above
the Eastern anomaly is approximately 800 metres and approximately 330 metres
above the Border anomaly. The Phase I diamond core drilling programme has been
designed to target the Eastern and Border magnetic bullseye anomalies.

 

·   A Wallal Project reconnaissance field visit was recently completed,
where the site team successfully mapped and surveyed over 100 kilometres of
existing tracks linking the Wallal tenements containing the magnetic bullseye
anomalies to the Great Northern Highway, showing that existing access is very
good, with no significant logistical constraints identified.

 

·    A Programme of Works ("PoW") application for ground disturbance in
preparation of the planned Phase I diamond core drilling programme has been
submitted to the Government of Western Australia Department of Mines, Industry
Regulation and Safety, and a Heritage Clearance Survey Request has been
submitted to the Yamatji Marlpa Aboriginal Corporation traditional owners in
anticipation of securing land access in advance of the planned  work
anticipated to commence later this year.

 

 

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

"The completion of the passive seismic survey and geophysical desktop study
has provided clarity as to the estimated thickness of sedimentary cover
sitting above the Proterozoic aged basement rocks which are interpreted by
Power Metals to host the magnetic bullseye anomalies of interest on our Wallal
Project. This crucial work provides us with clearer insight as to the depth
and geometry of the magnetic anomalies and has enabled us to commence more
detailed discussion with potential drilling contractors to drill through the
cover sediments and test the source of the magnetic bullseye anomalies.

With our work at the Wallal Project progressing well we have also now turned
our attention to FDR's other mineral interests in the Paterson Province and
have initiated an in-depth data review of all available geological,
geophysical and geochemical data associated with the Ripon Hills and Braeside
West Projects and we look forward to providing updates as this study
progresses."

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

"The successful execution of the Wallal Project reconnaissance and geophysical
study is an essential step to understanding any limiting factors which could
constrain our proposed Phase I diamond core drilling programme. The presence
of existing, well-maintained tracks linking the Wallal Project to the Great
Northern Highway significantly de-risks certain logistical challenges typical
of drilling in such a remote location. This, combined with the findings of the
now complete comprehensive passive seismic survey and subsequent geophysical
desktop study, have constrained the interpreted depth of our primary drill
targets and has allowed us to plan logistics accordingly and engage with
capable drilling contractors as we look to secure deep drilling diamond rigs
for the next phase of exploration at Wallal."

PATERSON INTERESTS - OWNERSHIP STRUCTURE

The Paterson Interests are held by First Development Resources Limited which
holds a 100% interest in local Australian operating company First Development
Resources Pty Limited ("FDR Australia").

Power Metal has a current effective interest of 96.15% in FDR and will have an
effective interest of 83.33% after the grant of three licences owned by URE
Metals Pty Limited ("URE") which was acquired outright by FDR in an all-share
purchase announced on 19 November 2021.  Further details of the acquisition
of URE and its uranium and rare earths interests may be viewed in the
Company's announcement:

https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001
(https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001)

PATERSON PROVINCE - EXPLORATION RATIONALE

The Paterson Province is host to major gold-copper deposits including Winu
(Rio Tinto Group), Telfer (Newcrest Mining Limited), and Havieron (Newcrest
Mining Limited - Greatland Gold Plc JV).

To date, FDR has undertaken in-depth desktop analyses with the aim of
comparing the geological and geophysical features of both Winu and Havieron to
those found within the Wallal Project.

The exploration hypothesis is that if FDR is able to identify geological and
geophysical similarities of areas within the Wallal Project to established
large-scale Au-Cu deposits elsewhere in the Paterson region, these targeting
criteria would increase the chance of a discovery and justify more detailed
exploration.

A comprehensive desktop study commissioned by FDR over the Wallal Project is
now complete and has identified three prospective magnetic bullseye targets at
depth. These include the Western, Eastern and Border anomalies which, based on
geophysical interpretation and 3D modelling, have estimated dimensions of 5km
x 5km, 2.5km x 2.5km and 1km x 1km respectively.

Greatland Gold Plc's Havieron project was discovered by blind drilling a
magnetic bullseye anomaly through approximately 420m of post-mineral
sedimentary cover before intersecting the Proterozoic basement rocks hosting
the source of the magnetic anomaly and Au-Cu mineralisation. The magnetic
anomaly identified within the western tenement block is close to the centre of
the Wallal Embayment, a Palaeozoic rift graben, and is therefore likely to be
in excess of 1,500 metres deep and will not be targeted as part of the Phase I
diamond core drilling programme, which will focus on the shallower Eastern and
Border magnetic targets located below shallower cover, at approximately 800
metres and 330 metres deep respectively, on the north side of the rift basin.

The latest exploration update focused on the Wallal Project and released by
the Company on 11 January 2022 may be viewed through the following link:

Wallal Project Exploration Update - 07:00:07 11 Jan 2022 - POW News article |
London Stock Exchange
(https://www.londonstockexchange.com/news-article/POW/wallal-project-exploration-update/15281969)

 

WALLAL GEOPHYSICAL DESKTOP STUDY

Perth, WA, based consultancy Resource Potentials Pty Ltd ("Resouce
Potentials") have recently completed a geophysical desktop study of the Wallal
Project, which follows on from an initial brief and high-level study completed
during March 2021. The updated study involved the compilation and reprocessing
of two dimensional ("2D") reflection seismic data acquired for oil and gas
exploration in the deeper parts of the rift basin, and the acquisition and
processing of passive seismic horizontal spectral ratio ("HVSR") survey data
for FDR. This was followed by the integration and interpretation of these data
with magnetic and gravity survey results in order to estimate the depth of
Phanerozoic sediment cover sitting above the target Proterozoic basement
geology that hosts Au-Cu mineralisation in the Paterson Province. It is the
Proterozoic basement rocks which are interpreted to host the sources of the
magnetic bullseye anomalies observed in the images generated from airborne
magnetic survey data, and the sources of these anomalies have the potential to
represent Au-Cu mineralised breccia-style magnetite and / or pyrrhotite-rich
bodies similar to those recently discovered at Greatland Gold's Havieron and
Rio Tinto's Winu deposits though there can be no assurance of this at such an
early stage of exploration.

In addition to the magnetic survey data analysis, three 2D reflection seismic
lines were reprocessed by Velsis Integrated Seismic Technologies Pty Ltd, and
these results were then provided to Resource Potentials for further image
filtering and analysis. Three passive seismic HVSR survey lines were acquired
by Atlas Geophysics Pty Ltd and the raw field data were provided to Resource
Potentials for data quality control, editing, processing and depth modelling.
A review of the data reprocessing is presented below:

2D REFLECTION SEISMIC RE-PROCESSING

FDR commissioned Velsis to reprocess three survey lines of historical 1980's
vintage open-file 2D reflection seismic data over the Wallal project area.
From north to south, seismic lines 85RH-02, MC88-033 and MC88-344 were
analysed.

 85RH-002  The longer northern 2D seismic survey line was selected for reprocessing
           because it is the only survey line crossing the tenement along strike of the
           Eastern anomaly and also extends to the southwest, where it can be used to
           estimate the depth of the sedimentary cover sequence over the larger, but
           likely very deep, Western anomaly which sits close to the centre of the Wallal
           Embayment within a series of asymmetric rift half-graben structures.
 MC88-033  The central 2D seismic survey line crosses over the nearby Corbett-1 petroleum
           well, and although Corbett-1 did not penetrate through the cover sequence to
           Proterozoic basement, a basalt sill intersected in the drillhole was used to
           calibrate the seismic data from two-way travel time to depth conversion.
 MC88-344  The southern 2D seismic line was selected for reprocessing because interpreted
           features may be projected off-line to the northeast across the primary Eastern
           magnetic bullseye target, which sits on a shallower shelf forming the
           north-eastern margin to the rift basin, and where passive seismic lines were
           tied into the vintage seismic reflection lines for more accurate estimation of
           sedimentary cover thickness sitting over Proterozoic basement rocks.

 

The historical seismic survey data required reprocessing because the open-file
data available were not converted to depth measurements and it was difficult
to interpret features within the upper few kilometres from surface. Historical
data stored on 9-track tapes were recovered and converted to modern digital
files. Velsis then used a modern processing workflow, which took into account
the basalt sill intersected in Corbett-1 and focussed on enhancing seismic
reflectors in the upper five kilometres from surface in the axis of the rift
basin.  This reprocessed and depth-converted 2D reflection seismic data was
then used by Resource Potentials to generate georeferenced section images for
each survey line to produce a 3D model of sediment cover and rift related
faults. Resource Potentials were then able to incorporate the reprocessed 2D
reflection seismic data with passive seismic HVSR data results to model the
base of the sedimentary cover sequence and the top of the Proterozoic basement
surface to help constrain magnetic inversion modelling to the Proterozoic
basement rocks.

PASSIVE SEISMIC HVSR SURVEY METHOD AND DATA ACQUISITION

The total thickness of the relatively soft sediments lying above the more
resistant basement rock has been estimated to be approximately 800 metres
above the Eastern anomaly and 330 metres above the Border anomaly; using a
passive seismic HVSR survey method by measuring horizontal (east-west and
north-south) and vertical (up-down) components of naturally occurring ground
vibrations using a three-component seismometer. The ambient or passive seismic
signal is measured in units (mm/second) and typically for a period of 20
minutes. At the resonant frequency of the softer sedimentary cover sequence,
the vertical vibrations will be at a minimum, thereby resulting in a peak in
the ratio of averaged horizontal components to the vertical component
response.

The thickness ("H") of the cover sequence is then related to its resonant
frequency ("f0") and an average shear wave velocity ("Vs"), where H is
calculated using the following formula:

 

As f0 is determined from the passive seismic measurements, Vs is the only
other unknown term in this equation which needs to determined in order to
calculate the cover thickness H. When there are a sufficient number of
existing drillholes that have penetrated the cover sequence to hard "acoustic
basement" in a survey area (e.g. 10 or more), then a reasonable estimate of Vs
can be made from experience in certain rock types, from single dimension
forward modelling of the data, and/or via integration of other geophysical
datasets. In this case, the northernmost passive seismic HSVR survey line
(85RH-002) has overlap with the 2D reflection seismic survey line MC88-33, and
so the 2D reflection seismic has been used to help calibrate the Vs and come
up with a reliable thickness of sedimentary cover. The other two passive
seismic HVSR survey lines were carried out over the magnetic anomaly targets
being considered for drill testing.

Atlas Geophysics Pty Ltd acquired the passive seismic HSVR survey data during
September 2021. Passive seismic readings were acquired at 100 metre station
spacing along each survey line. The raw field data were supplied to Resource
Potentials for data editing and cleaning, modelling and HVSR cross section
generation.

Using the data sets available Resource Potentials have been able to estimate
the depth of the cover sequence to constrain the modelled depth to the top of
the magnetic source bodies for 3D inversion modelling and rill targeting.

EASTERN ANOMALY

The interpreted thickness of cover sequence directly over the top of the
Eastern anomaly magnetic source based on the geophysical analysis is
approximately 800 metres. Interestingly, the resulting cover-constrained
magnetic 3D model of the anomaly has significantly more detail than previous
models and suggests that the anomaly is comprised of two distinct lobes. This
is supported within higher-order derivative filtered images of the airborne
magnetic data and results in a well-defined target which will be tested in the
Phase I diamond core drilling programme. A deep borehole has now been designed
to intersect the cover constrained magnetic 3D inversion model for the Eastern
anomaly magnetic bullseye target.

BORDER ANOMALY

The Border anomaly is situated towards the eastern margin of the Wallal
Embayment. Passive seismic HVSR results have enabled Resource Potentials to
estimate the thickness of cover over the Border anomaly to be approximately
330 metres. It should be noted the unconstrained magnetic models for the
Border anomaly have a significantly lower amplitude than the Eastern anomaly
which could be due to its source having a lower magnetic susceptibility, less
magnetic mineral concentration or a lower thickness or size.

The estimates of the depth of cover sequence have been used to constrain the
modelled depth to the top of the magnetic source bodies. The true depths to
the magnetic source bodies of the Eastern and Border anomalies can only be
confirmed by analysis of drill cores during the planned diamond drilling
programme.

PHASE I DIAMOND CORE DRILLING PROGRAMME

FDR's Phase I diamond core drilling programme has been designed in conjunction
with Resource Potentials. A comprehensive desktop study, completed by Resource
Potentials, has focused on providing clarity as to the scale, geometry and
depth of three magnetic bullseye anomalies identified within the Wallal
tenement area. FDR strongly believe there is sufficient exploration data to
support further works, which now includes the Phase I diamond core drilling
programme designed to test the Eastern and Border bullseye anomalies.
 Estimates of depth of the cover sequence have been used to constrain the
modelled depth to the top of the Eastern and Border magnetic source bodies. To
test these anomalies, FDR's Phase I diamond core drilling programme has been
designed to intersect the magnetic model bodies.

The drilling programme, which will consist of a minimum of two near vertical
boreholes totalling approximately 2,000 metres, will be drilled using rotary
open hole to about 100 metres and then full core drilling techniques there
onwards. Depending on ground conditions encountered, it is expected that the
boreholes might be constructed using mud rotary or reverse circulation
techniques to approximately 150 metres below ground level, followed by 83mm
(PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth.

The expected geological conditions have been inferred from the nearby Corbett
1 petroleum borehole. Corbett 1 was a hydrocarbon exploration well which was
drilled in 1994 to test a seismic amplitude anomaly located on the crest of a
broad anticline at Permian levels. The borehole reached a total depth of 800
metres below ground level and is located some 10 kilometres from Wallal. Based
on the data inferred from Corbett 1 the expected lithology is as follows:

·    Unconsolidated superficial Quaternary aeolian sand dunes of variable
thickness (circa 0-30 metres)

·    Jurassic Wallal Sandstone, which forms a thick sequence of sandstone
with minor claystone and coal (circa 30-325 metres)

·    Permian Liveringa Group comprising of a few metres of claystone on
top of a 15 metre thick basalt sill and interbedded claystones and sandstones
(circa 325 - 435 metres)

·    Permian Grant Group upper sandstone and lower claystone units (circa
435 - 800 metres)

·    Proterozoic basement (circa >800 metres)

The Phase I diamond core drilling programme is targeting the Proterozoic
basement rocks below the Permian Grant Group which are believed to host the
sources of the magnetic bullseye anomalies observed in images generated from
airborne magnetic survey data. Due to their relative depth, FDR will initially
target the Eastern anomaly before relocating to, and drill testing, the Border
anomaly. The Western anomaly is not planned to be drill tested in the Phase I
diamond core drilling programme due to its modelled depth. The company is
currently in advanced discussions with potential drilling contractors to
investigate and test the source of the magnetic bullseye anomalies.

                  Eastern Anomaly proposed borehole details  Border Anomaly proposed borehole details
 Collar Easting   260325mE                                   269100mE
 Collar Northing  7780690mN                                  7772153mN
 Azimuth          090˚ (East)                                090˚ (East)
 Dip              80˚                                        75˚
 Lift             1˚                                         0.5˚
 Total depth      1,220m                                     650m

 

WESTERN AUSTRALIAN GOVERNMENT EXPLORATION INCENTIVE SCHEME

In October 2021 Power Metal Resources announced that FDR Australia had
submitted an application to the Government of Western Australia Department of
Mines, Industry Regulation and Safety ("DMIRS") for government co-funding at
the 100% owned Wallal project in the Paterson region of Western Australia. The
funding was granted as part of Western Australia's Exploration Incentive
Scheme ("EIS"). The EIS is a funding programme which offers up to a 50% refund
(capped at AU$150,000 for multi-hole drilling campaigns). FDR's application
sought co-funding for the Phase I diamond core drilling programme at Wallal
Main licence area, specifically targeting the Eastern and Border magnetic
bullseye anomalies identified from the exploration to date. FDR Australia has
written confirmation from DMIRS that the application was successful and a
co-funded drilling offer for up to AUS$165,000 has been received (including
the maximum amount available under the EIS of AUS$150,000 plus up to
AUS$15,000 in respect of drill mobilisation). The EIS government co-funding
will be used to offset the cost of the Phase I diamond core drilling programme
at Wallal.

 

WALLAL RECONNAISANCE

On Monday 10 January 2022 a field team was deployed to the Wallal project area
to undertake site-specific reconnaissance in advance of the proposed Phase I
diamond core drilling programme. The objective of the reconnaissance was:

·    to map and conduct a condition survey of all existing access tracks
linking the Wallal tenements with the Great Northern Highway, and;

·    to visit the planned Phase I diamond core drill hole locations to
assess the logistics of getting the drilling rig to site using existing access
tracks.

The site visit was conducted in accordance with the terms of the Heritage
Agreement in place with Yamatji Marlpa Aboriginal Corporation ("YMAC") as
agent for the Nyangumarta Warrarn Aboriginal Corporation RNTBC ("NWAC").
 Ahead of the reconnaissance, notification was submitted to YMAC who are
acting as an agent for the traditional owners of the Wallal Tenements, NWAC.
YMAC agreed to allow the low-impact preparatory exploration works to go ahead
prior to completion of the Heritage Clearance Survey.

The reconnaissance team mapped and completed a condition survey of
approximately 100 kilometres of existing tracks. The condition of the tracks
was found to be generally very good, the team was able to drive to within 1
kilometre of the proposed Phase I diamond core drill locations. Some
maintenance and improvement will be required to enable drilling rig access,
however no significant logistical constraints were identified. The Phase I
diamond core drilling positions are located in sparely vegetated, relatively
flat terrain. The surface topography at Wallal does not include the
characteristic dune corridors which are known to create logistical challenges
in other areas of the Paterson region.

PROGRAMME OF WORK

The Western Australian Mining Act 1978 requires any explorer or prospector who
intends to undertake ground disturbing activities with mechanised equipment on
a mining tenement to submit a Programme of Work ("PoW") application for
approval prior to proceeding with any ground disturbing works. In accordance
with the Western Australian Mining Act 1978 a PoW has been submitted to DMIRS.
The PoW, which includes details on FDR's proposed Phase I diamond core drill
programme, was lodged by FDR's appointed Exploration Manager, Ian Shackleton,
on 20 January 2022. DMIRS advise that PoW applicants should allow at least 30
business days for the proposal to be assessed.

 A summary of the proposed drilling activity is presented below:

 Name      Type        Tenements  Drilling                                                     Pad Details         Number of Sumps                 Comments
 Drilling  Drill Area  E45/5816   2 holes Diamond Core. Max Depth = 1,400m Min Spacing = 500m  2 pad(s) 25m x 20m  2 5m x 4m x 3m Sump within pad  Target = Mineral

                                  Track = 4,000m x 3.5m                                                                                            Groundwater anticipated
 Drilling  Drill Area  E45/5816   2 holes Diamond Core. Max Depth = 750m Min Spacing = 400m    2 pad(s) 25m x 20m  2 5m x 4m x 3m Sump within pad  Target = Mineral

                                  Track = 4,000m x 3.5m                                                                                            Groundwater anticipated

 

 

HERITAGE CLEARANCE SURVEY REQUEST

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 YMAC as
agent for the Nyangumarta Warrarn Aboriginal Corporation RNTBS, a Heritage
Clearance Survey Request has been submitted to YMAC. A Heritage Clearance
Survey is required where Heritage sites (archaeological or ethnographic) have
been identified, and disturbance of these sites cannot be avoided by the
development.  If, following assessment by YMAC, a Heritage Clearance Survey
is required at the Wallal tenements, a survey team, appointed by YMAC will be
assembled. The survey team will consist of the Heritage consultant(s) which,
if necessary, will comprise both an anthropologist and an archaeologist; and
such members of the Common Law Holders as the Manager Heritage Services
advises are necessary to examine and assist in the Heritage Survey, and a
Community Liaison Officer. A Heritage Survey Clearance Survey request which
included a detailed description of the Phase I diamond core drilling programme
of work and site-specific maps and special data was submitted to YMAC by the
Company's appointed Exploration Manager on 31 January 2022.

RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW

An in-depth desktop study has been initiated to better understand the
prospectivity of the Ripon Hills and Braeside West projects. The study is
being led by Brian Richardson, a geologist with over 35 years of Australian
and International exploration and mining experience. Mr Richardson has worked
in all facets of mineral exploration including the generation, exploration and
development of gold, base metal, Platinum Group Metal, uranium, diamonds,
lithium and tin-tantalite projects in Western Australia, the Northern
Territory, North America and West Africa.

The objective of the study is to capture and assess all relevant geological,
geophysical and geochemical information and 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. Working
with Resource Potentials Pty Ltd and Rock Solid Data Consultancy Pty Ltd, the
desktop study will incorporate all Open File geophysical data sets available
through DMIRS' database as well as a review of all historical mineral
exploration reports stored in the Western Australian mineral exploration
reports ("WAMEX") database also available through DMIRS.

The Ripon Hills and Braeside West tenements cover part of the western and
eastern limbs of the Oakover Syncline and contains outcropping Carawine
Dolomite of the Archaean Hamersley Group overlying rocks of the Fortescue
Group. The project is 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. 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  (ASX:RTR)
("Rumble") adjacent to the Braeside West tenement.

 

Recent exploration by Rumble along the eastern limb of the Oakover Syncline
within rocks of the Fortescue Group has defined a regional scale porphyry to
epithermal mineralised system that extends over 60 kilometres in strike and 8
kilometres in width. Rumble have defined 45 priority
copper-gold-zinc-lead-silver targets and have also delineated five distinct
deposit types. Similar prospective rock types occur within the Ripon Hills
area which has had very limited past base metal and gold exploration. We look
forward to providing updates as the in-depth desktop study progresses.

COMPETENT 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 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.

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.

GLOSSARY:

 ·   2D reflection seismic survey: In two-dimensional (2D) reflection
 seismic surveying both the sound source and the sound detectors (numbering up
 to a hundred or more per shot) are moved along a straight line. The same line
 contains recording cables and geophones as well as source points.  The
 resultant product can be thought of as a vertical sonic cross-section of the
 subsurface beneath the survey line. It is constructed by summing many
 compressional (pressure) wave reflections from the various sound source and
 sound detector locations at the halfway sound path points beneath each
 location (common depth point stacking).

 ·   Basement rocks: The undifferentiated assemblage of rock (basement
 rock) underlying the oldest stratified rocks in any region, usually
 crystalline, metamorphosed, and mostly, but not necessarily, Precambrian in
 age.

 ·    Geophysics: Geophysics is the application of physics to study the
 Earth, oceans, atmosphere and near-Earth space. It is a broad subject that
 encompasses many of the major sciences - physics, astronomy, planetary
 science, geology, environmental science, oceanography, and meteorology.

 ·    Gravity survey: Gravity surveys are carried out to map
 subsurface density contrasts caused by geological structures.  A gravimeter
 is an instrument used for measuring the local gravitational field of the
 Earth. It is a type of accelerometer, specialized for measuring the constant
 downward acceleration of gravity, which varies by about 0.5% over the surface
 of the Earth.

 ·    Half-graben: A half-graben is a geological structure bounded by a
 fault along one side of its boundaries, unlike a full graben where a depressed
 block of land is bordered by parallel faults.

 ·   Horizontal-to-Vertical Spatial Ratio (HVSR): The
 Horizontal-to-Vertical Spectral Ratio (HVSR) methodology is a passive seismic
 technique that uses the environmental noise present everywhere in nature.
 These environmental micro-tremors are recorded in their three spatial
 components, allowing to obtain the fundamental resonance frequency of the
 ground.

 ·    Jurassic: Is the period of geologic time from about 208 to 146
 million years ago.

 ·   Magnetic survey: Magnetic geophysical surveys consist of measuring the
 intensity of the geomagnetic field in order to detect local magnetic
 variations from the rocks. The resulting aeromagnetic data is generally used
 to support the mapping of geological formations and accidents that have
 effects on these in order to directly detect any concentrations of magnetic
 minerals.

 ·  Passive seismic survey: Passive seismic is the detection of natural low
 frequency earth movements, usually with the purpose of discerning geological
 structure and locate underground oil, gas, or other resources.

 ·    Permian: Is the period of geologic time from about 299 to 251 million
 years ago, the seventh and last period of the Palaeozoic Era. The Permian
 Period is characterised by the formation of the supercontinent Pangaea.

 ·  Phanerozoic: The geologic time period from approximately 542 million
 years ago to the present, comprising the Palaeozoic, Mesozoic, and Cenozoic
 Eras.

 ·    Proterozoic: The most recent of the two divisions of Precambrian
 time, between the Archaen aeon and the Cambrian period, from about 2.5 billion
 to 542 million years ago, marked by the formation of stable continents, the
 build-up of oxygen, and the appearance of the first multicellular eukaryotic
 life forms.

 ·    Quaternary: Is the period of geologic time from about 2.6 million
 years ago to the present.

 ·    Rift: A rift is a region where the lithosphere extends as two parts
 of the Earth's crust pull apart. Often a rift will form in an area of the
 crust that is already weakened by earlier geological activity.

 ·  Seismic Reflector: An interface between layers of contrasting acoustic,
 optical or electromagnetic properties. Waves of electromagnetism, heat, light
 and sound can be reflected at such an interface. In seismic data, a
 reflector might represent a change in lithology, a fault or
 an unconformity. A reflector is expressed as a reflection in seismic data.

 ·    Syncline: A fold in rocks in which the rock layers dip inward from
 both sides towards a central line.

 

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                                       Interpretation results from 5 of 7 properties.
 Authier North Lithium                     Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Interpretation of laboratory assay results of samples collected defining next
                                                                                                                                                        exploration steps.
 Ditau Project                             Botswana   50%              Preparatory exploration work underway on target I10 leading to planned           Field programme findings and defined drill targets for near term drilling.
                                                                       accelerated drilling targeting rare-earth elements and base metals

 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%(A)           Kavango Option to acquire an interest in local project holding company.          Results from various work activities underway as part of the Kavango Option.
                                                                       Option fee payable through defined work programme
 Tati Gold/Nickel                          Botswana   100%             Reverse circulation drill programme completed                                    Laboratory assay results awaited.
 Haneti Project                            Tanzania   35%              Diamond drill programme completed                                                Laboratory assay results awaited.
 Selta Uranium Rare Earth Element Project  Australia  83.33(B)         Geological, geophysical and geochemical review across the project.               Findings of review including confirmation of key targets for next stage
                                                                                                                                                        exploration.
 Victoria Goldfields                       Australia  49.9%            Diamond drill programme underway                                                 Field updates and Laboratory assay results awaited.

 Paterson Projects                         Australia  83.33%(B)        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

( )

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

(B) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors

 

 

 

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