REG - Power Metal - First Development Resources - Company Update

Power Metal ResourcesAnnouncement

29/07/2022 10:30

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RNS Number : 2565U  Power Metal Resources PLC  29 July 2022

29 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Company 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 project portfolio in
Western Australia and the Northern Territory held through its 62.12%
subsidiary First Development Resources Limited ("First Development Resources"
or "FDR") which is seeking a planned listing in the London capital markets.

HIGHLIGHTS:

·    Wallal Heritage Clearance Survey dates confirmed by Yamatji Marlpa
Aboriginal Corporation. The survey is scheduled to take place between 16 - 19
August 2022.

 

·    A drilling contract has been signed with DDH1 Drilling Limited ("DDH1
Drilling") for the Wallal Phase I diamond drilling programme. DDH1 Drilling
have extensive experience in the Paterson region and drilled the discovery
holes for the Greatland Gold plc Havieron deposit.

 

·    The in-depth desktop review for the Ripon Hills and Braeside West
projects is now complete with multiple targets identified for gold and
base-metals associated with deep-seated fault structures confirmed for further
investigation.

 

·    Selta Project reconnaissance confirms the presence of pegmatite
geology and the litho-geochemical analysis of samples suggests the area is
dominated by a zoned pegmatite system originating from nearby granites.

 

·    FDR board and advisor group composition has been finalised. All key
advisors have been engaged and are now working with FDR to secure its planned
UK listing targeted for later this year.

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

"In-depth analysis has now been completed for all projects within FDR's
portfolio and we now have multiple targets identified for further
investigation across all our assets. The excellent work completed by our
in-house geological team and external consultants has resulted in the
development of conceptual targets to a point where plans are now being made to
simultaneously test multiple priority areas following FDR's planned listing
later this year.

Wallal remains our primary focus and we are pleased to confirm that we now
have a date for our Heritage Clearance Survey which, when complete, will allow
us to work with our drilling partner DDH1 Drilling to complete all preparatory
work to facilitate commencement of diamond drilling post targeted completion
of FDR's planned UK listing."

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:

"The FDR team continue to progress work across its project portfolio in
Australia whilst at the same time advancing the various workstreams necessary
to efficiently complete the planned UK listing process.

The cumulative findings from our internal work supported by feedback from
FDR's advisor group gives us the confidence to push ahead aggressively with
our work, enhanced particularly by the ongoing investment into detailed
desktop reviews which is significantly increasing our project knowledge at
very modest cost."

WALLAL HERITAGE CLEARANCE SURVEY

The Heritage Clearance Survey (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 is
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 ("YMAC") as agent for the Nyangumarta Warrarn
Aboriginal Corporation. A Survey is required where Heritage sites
(archaeological or ethnographic) have been identified, and disturbance of
these sites cannot be avoided by the development.

The Survey team, appointed by YMAC, will consist of the Heritage
consultant(s) which, if necessary, will comprise both an anthropologist and an
archaeologist; such members of the Common Law Holders as the Manager Heritage
Services advises are necessary to examine and assist in the Heritage Survey;
a Community Liaison Officer; and representatives from FDR.

The Survey request which included a detailed description of the Phase I
diamond core drilling programme and site-specific maps was submitted to YMAC
by the Company's appointed Exploration Manager on 31 January 2022. The Survey
is scheduled to take place between 16 - 19 August 2022 and will cover the
proposed drilling locations and all associated access tracks.

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 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 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 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

 

WALLAL DRILLING CONTRACT SIGNED

FDR have engaged the services of DDH1 Drilling (ASX:DDH) to complete the Phase
I diamond core drilling programme. Established in 2006, DDH1 Drilling is a
leading provider of technically innovative drilling services to the Australian
mineral exploration and mining industry. DDH1 Drilling operate Australia's
largest surface fleet of state-of-the-art drilling rigs capable of drilling
and extracting geological core samples from depths of up to 3,000 metres with
Industry best practice safety systems supported by a professional and
well-trained workforce. DDH1 have extensive experience operating in the
Paterson region working on notable projects including Greatland Gold's
(LON:GGP) discovery drillholes at Havieron.

RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW

The in-depth data review for FDR's Braeside West and Ripon Hills projects is
now complete. Resource Potentials have reviewed all publicly available
geological, geophysical and geochemical data and have identified multiple
targets associated with major northwest trending faults prevalent across the
region.

PROJECT BACKGROUND

First Development Resources has the precious and base-metal rights, excluding
manganese and iron, over their Braeside West and Ripon Hills project
tenements, which are located close to each other in the eastern Pilbara region
of Western Australia.  These projects are in the same region as the world
class Woodie Woodie manganese mine, next to recent gold-silver and base metal
discoveries by Rumble Resources Limited at their Braeside Project (ASX:RTR,
"Rumble" or "Rumble Resources"), and located to the west of gold-copper mines
and deposits of the Paterson region, including Telfer (Newcrest), Havieron
(Greatland-Newcrest), Nifty (Cyprium) and Winu (Rio Tinto).

The FDR project areas are accessible via sealed highway from Port Hedland via
Marble Bar, or unsealed and sealed highway from Newman via Nullagine, and then
unsealed tracks into the project areas.  The Braeside West project is
comprised of one granted exploration licence (E45/5854, 138km(2)) and is held
100% in the name of Pardoo Resources Pty Limited, a wholly owned subsidiary of
FDR. The Ripon Hills project is comprised of one granted exploration licence
(E45/5088, 48km(2)) and is owned 100% by Great Sandy Pty Ltd.  Both project
tenements are subject to a split commodity agreement with Accelerate Resources
Limited (ASX listed under AX8, "Accelerate"), whereby Accelerate holds mineral
rights to manganese and iron while FDR retains rights to all other mineral
commodities.

RIPON HILLS

The Ripon Hills tenement covers part of the western limb of the Oakover
Syncline and contains outcropping Carawine Dolomite of the Archaean Hamersley
Group overlying rocks of the Fortescue Group. The project is considered to be
prospective for base-metal and gold mineralisation associated with deep seated
north to north westerly trending fault structures. These structures have the
potential to be conduits for various styles of hydrothermal mineralisation as
evidenced by recent exploration conducted by Rumble Resources, some 25km to
the east.

Exploration by Rumble over the last 4 years 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 60km in
length and 8km in width. They have defined 45 priority
copper-gold-zinc-lead-silver targets and delineated five deposit types.
Similar prospective rock types occur within the Ripon Hills area which has had
very limited past base metal and gold exploration.

The immediate targets for exploration within the Ripon Hills tenement are the
mapped and interpreted north to north westerly striking deep seated fault
structures which have the potential to host various styles of hydrothermal
base metal and gold mineralisation.

BRAESIDE WEST

The Braeside West tenement is located approximately 250km east south-east of
Port Hedland on the western edge of the Paterson Province, Western Australia.
The tenement covers approximately 138km(2) and is accessed via the sealed
Marble Bar-Woodie Woodie road and unsealed station tracks. First Development
Resources has the base-metal and gold rights over the tenement while
Accelerate Resources holds the manganese and iron rights. This split-commodity
arrangement will present several beneficial opportunities to FDR when it comes
to exploration in the field.

Past exploration over the Braeside West Project tenement and surrounding area
was focused primarily on the exploration for manganese within the Carawine
Dolomite and overlying Pinjian Chert. These rock types host the manganese
deposits of the Woodie Woodie Mining centre, one of Australia's major high
grade manganese mines. There is only very minor reported base-metal or gold
exploration over the tenement with work restricted to a regional stream
sediment sampling programme by Carpentaria Exploration 1989-1991. The tenement
area has been held almost continuously since the 1960's by manganese explorers
precluding any serious base metal assessment.

Commencing in 2017, Rumble Resources recognised the potential of the Braeside
area and they became the first modern explorer to systematically evaluate the
base-metal and gold potential of the region. Through this work they have now
defined regional scale porphyry, epithermal and Volcanogenic Hosted Massive
Sulphide system. Polymetallic exploration is continuing on this extensive,
highly prospective yet under explored region of the Pilbara.

Significantly, the Braeside West tenement which is adjacent to the Rumble
Project contains a considerable strike length of the unexplored, yet
prospective mafic and sedimentary units targeted by Rumble. These units and
the important north northwest trending regional structures will be the focus
for FDR during its initial exploration campaigns.

EXPLORATION TARGETING AND PROPOSED ACTIVITIES

The main mineral targets in the FDR Braeside West and Ripon Hills project
areas are similar to the gold-silver-lead-zinc-copper-vanadium mineral
deposits and occurrences within the Rumble Braeside Project located to the
east.  Historically, the FDR tenements have been explored for shallow
manganese deposits since the 1960s, with only minor base-metal exploration.
More recent exploration for shallow manganese deposits by Jupiter Mines and
Pilbara Manganese (a subsidiary of Consolidated Minerals) consisted of
detailed geological mapping, rock chip sampling, small gravity surveys and
detailed aerial geophysical surveys, mainly VTEM and XTEM airborne
electromagnetics to target conductive zones of shallow manganese
mineralisation.  A ZTEM airborne audiomagnetotelluric survey was also flown
over the Braeside West tenement.  Other government acquired geophysical
datasets over the project areas include regional aeromagnetics and
radiometrics, airborne gravity, and very wide spaced TEMPEST airborne
electromagnetics.

FDR has obtained copies of all these historical exploration datasets and
intends to re-process and interpret these datasets to focus targeting for base
metal sulphide style deposits in older outcropping geological units to the
side or below the Carawine Dolomite - Pinjian Chert Breccia formations.
Accelerate have also recently carried out drone-based LiDAR digital elevation
and aerial photography surveying at Braeside West, which has helped them to
generate manganese drilling targets.  FDR will be working closely with
Accelerate to co-explore the project tenements and combine efforts in the
field.

FDR is now working with Resource Potentials to develop the next phase of
exploration at both Braeside West and Ripon Hills.

SELTA PROJECT - LITHIUM REVIEW

The in-depth review of all publicly available geological, geophysical and
geochemical data for the Selta Project identified multiple uranium and
rare-earth element ("REE") targets within the Selta Project area and
highlighted the potential for lithium, gold and base-metal mineralisation. The
potential for lithium presented an additional opportunity for a mineral
discovery within the Selta Project area, an opportunity which had previously
been unknown. To gain a better understanding of the potential for
lithium-caesium-tantalum ("LCT") type pegmatites, the Company immediately
commenced a lithium review of all publicly available data to help refine
target areas for further investigation and deployed a team to Selta to confirm
the presence of pegmatite geology.

The announcement in respect of this lithium review may be viewed through the
following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241
(https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241)

During the reconnaissance the site team was able to confirm the presence of
pegmatite geology and collect samples to determine mineralogy.

The results of the sampling and chemical testing of pegmatites on the property
indicates that the pegmatites analysed on the southwest of the property is
part of zoned pegmatite system, most likely originating from the nearby
granite. However, it must be noted that only seventeen samples were analysed,
and pegmatites typically have variable composition, even over short distances.

Lithogeochemical analysis of Selta continues to support the lithium and REE
prospectivity of the project, and the initial sampling programme, over a very
small proportion of the property has provided valuable information for future
exploration programmes.

CORPORATE ACTIVITIES

FDR corporate activities are focussed on achieving its planned listing on the
London capital markets later this year. The Company has appointed an
experienced finance director further enhancing what is already a very
experienced management team. In addition to finalising the board, FDR's full
advisor group has now been assembled. The listing advisory group which
includes FDR's legal, accounting and corporate advisory teams are meeting
regularly and are compiling all the necessary documentation to support the
planned listing process.

An initial draft of FDR's Competent Person Report ("CPR") has been received
from SRK Consulting (Australasia) Pty Ltd. The CPR is a key document which
forms part of the listing documentation and is produced to provide an
independent view of the Company's assets for potential investors. The CPR
incorporates the findings of the in-depth review of the company's Braeside
West and Ripon Hills projects along with the geochemical data associated with
the lithium specific reconnaissance completed in June at Selta.

Ahead of FDR's planned listing later this year, the board and senior
management will attend a site visit to Australia in August. The purpose of the
visit is to provide the team with site specific experience prior to engaging
with the market ahead of the planned initial public offering ("IPO").

In addition to visiting all FDR's project sites, the team will meet with
in-country legal and accountancy teams along with key advisors supporting
FDR's proposed listing. FDR is working with its corporate broker to enable
Australia based investors to participate in the IPO financing and meetings
will be scheduled to introduce them to FDR and the company's plans post
listing.

FDR EXPLORATION INTERESTS

FDR holds the following exploration licence interests through its wholly owned
Australian subsidiaries:

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 joint venture).

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

In-depth desktop analysis of historic exploration data is now complete on
the Braeside West Project. A recent base-metal discovery by neighbouring
company Rumble Resources Ltd (ASX:RTR) 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 now complete for 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.

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.

 

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 internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

Exploration work programmes may also be underway within 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:

www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

www.goldenmetalresources.com (http://www.goldenmetalresources.com)

www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

Power Metal also holds a material investment in Kavango Resources plc with
exploration updates available through their regulatory announcements and on
their website:

www.kavangoresources.com (http://www.kavangoresources.com)

 Project                Location   Current          Work Completed or Underway                                                     Results Awaited

                                   POW %

 Athabasca Uranium      Canada     100%             Hyperspectral data analysis conducted across 7 properties. Updating to 7 data  Finalise review of data from 3 properties.  Prepare for summer exploration
                                                    rooms for third party review.                                                  programme across 4 properties.
 Authier North Lithium  Canada     Earn-in to 100%  Property Evaluation Report completed.                                          Update covering exploration plans for target areas identified during the
                                                                                                                                   Evaluation.
 Molopo Farms           Botswana   53%(#)           Comprehensive data review complete and establishment of data room for third    Finalise next exploration steps and action plan.
                                                    party review.
 Tati Project           Botswana   100%             Site visit with mapping of gold workings and mine dumps.                       Exploration planning underway including further mapping, sampling and launch
                                                                                                                                   of an RC drill programme.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed. Review of Ajax & Berringa mine              Final drill programme results analysis and resource potential analysis from
                                                    remaining resource potential.                                                  former high-grade producing mines in granted licences.

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

 

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