REG - Power Metal - FDR – Paterson Region Update

Power Metal ResourcesAnnouncement

22/11/2021 13:20

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RNS Number : 1599T  Power Metal Resources PLC  22 November 2021

22 November 2021

Power Metal Resources plc

("Power Metal" or the "Company")

FDR - Paterson Region Update

Power Metal Completes Paterson Region Acquisitions and All Exploration
Licences Now Granted with Braeside West Licence Grant Confirmed Today

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
Region of Western Australia (the "Paterson Interests").

The Paterson Interests are held by First Development Resources Limited ("FDR")
which now has a 100% interest in local Australian operating company First
Development Resources Pty Limited ("FDR Australia"). FDR Australia's licence
interests are outlined below.

Power Metal has an effective interest of 83.33% in FDR, with a 16.67%
effective interest held by the shareholders of 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)

HIGHLIGHTS

-      Completion of the 100% acquisition of FDR Australia, the
Australian operating company with the Paterson Region interests.

 

-      Braeside West Licence application (E45/5854), covering 137km(2) of
strategic ground neighbouring Rumble Resources, now granted.

 

-      Heritage Agreements with Native Title Holders signed across
Paterson Region properties.

 

-      Planning for deep drill programmes progressing well at the Wallal
Project focused on magnetic bullseye targets.

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

"We now hold granted licences across all Paterson Region properties and have
fully completed the acquisition of the local operating company.  Combined,
the five granted licences represent a significant opportunity for a major
discovery.

Our technical work continues in parallel to define drill targets including
those within the Wallal triple licence package where we are investigating
drill targets with interpreted geological and geophysical similarities to the
Paterson Havieron discovery.

The aim of our work is to expedite the route to drilling of key targets, and
further information with regard to our plans will be released in the near
term."

 

PATERSON REGION PROJECTS - BACKGROUND

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 desktop study completed by the Company over the Wallal Project
identified three prospective magnetic bullseye targets. These include the
Western, Eastern and Border anomalies which, based on geophysical
interpretation, have estimated dimensions of 5km x 5km, 2.5km x 2.5km and 1km
x 1km respectively.

Further analysis has determined that the Eastern and Border anomalies are
located at depths similar to Greatland Gold's Havieron discovery. Greatland
Gold's Havieron was discovered by blind drilling a magetic bullseye anomaly
through circa. 420m of post-mineral sedimentary cover.

The latest exploration update focused on the Wallal Project and released by
the Company on 13 September 2021 may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/fdr-australia-paterson-region-exploration-update/15132674
(https://www.londonstockexchange.com/news-article/POW/fdr-australia-paterson-region-exploration-update/15132674)

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 enhancesd 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
expooration data is currently underway over the Project.

 

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.

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

 Athabasca Uranium           Canada     100%             Phase I field exploration completed                                           Laboratory assay results of samples collected for uranium and REEs
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 Silver Peak                 Canada     30%              Following drill programme demonstrating bonanza grade silver, overlimit       Overlimit analysis results
                                                         testing being undertaken where sample grade exceeded previous assay method
                                                         detection limits
 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
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill targets for near term drilling

 Wallal Gold/Copper Project  Australia  83.33%           Passive seismic and 2D seismic processing work programme completed            Results awaited

 

 

 

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