REG - Power Metal - First Development Resources - Selta Lithium Update

Power Metal ResourcesAnnouncement

13/06/2022 07:00

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RNS Number : 5517O  Power Metal Resources PLC  13 June 2022

13 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Selta Lithium Update

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a lithium focused exploration update for the Selta Project ("Selta"
or the "Project") located in the Northern Territory, Australia, and held by
the Power Metal's 82.78%-owned subsidiary First Development Resources Ltd
("FDR").

HIGHLIGHTS:

·    Following on from a recent in-depth data review covering Selta, FDR
have undertaken a lithium specific review based initially on further desktop
analysis.

 

·    The review specifically focussed on the potential for pegmatite
geology across the Selta Project and its capacity to host lithium
mineralisation.

 

·    The desktop work included a review of lithium specific publicly
available data, along with a review of satellite imagery and hyperspectral
analysis to identify high-priority targets for further field investigation.

 

·    The multi-layered approach to the target definition process has
identified several hundred coincident anomalies potentially indicative of
pegmatite geology and 65 initial primary and secondary targets have been
selected for further investigation

 

·    FDR have mobilised a field investigation team which will arrive on
site in the coming days to conduct mapping and surface sampling of the
prospective targets identified.

 

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

"During our recent site visit to the Northern Territory, pegmatite style
outcrop was observed within the Selta Project area, further adding weight to
the findings from the original in-depth review of the Project.

Given the potential for lithium mineralisation, we commissioned a remote
sensing study to look at the pegmatite specific potential and following the
identification of 65 prospective targets we have expedited a field-based work
programme to test whether the identified targets host lithium bearing
mineralisation."

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

"The recent £1,125,000 Pre-IPO financing undertaken by FDR demonstrated the
level of investor interest in the business proposition.  This capital is
being deployed into the planning and listing process, as well as enabling
expedited exploration within the FDR project portfolio.

Our confidence in the prospectivity of Selta has grown considerably in recent
months, from uranium, rare earth and now lithium potential. Therefore, as the
largest shareholder in FDR, Power Metal is eager to see the results from the
field exploration programme which is now commencing."

 

BACKGROUND:

A recently completed 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 also highlighted the potential for lithium, gold and base-metal
mineralisation.

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

https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081
(https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081)

The above review identified the possibility of tin-tantalum-tungsten rich
pegmatites within the Selta Project. It is noteworthy that pegmatite fields
elsewhere in Australia represent important sources of lithium.

Following consideration of the findings, the Company initiated a follow up
lithium specific desktop and remote sensing review over the Selta Project.

 

SELTA PROJECT - LITHIUM REVIEW

The potential for lithium presents 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 has undertaken a review of all publicly
available data to help refine target areas for further investigation. The
datasets included in the review have included satellite imagery, known mineral
occurrence data recorded on the Northern Territory Government STRIKE database,
hyperspectral analysis using Sentinal-2 visible / near infrared and shortwave
infrared imagery and historic stream sediment sampling data acquired by
Crossland Uranium between 2014-16. The announcement dated 20 May 2022 in
respect of the Crossland Uranium stream sediment data may be viewed through
the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-project-update/15462581
(https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-project-update/15462581)

By applying a multi-layered approach to the target definition process, several
coincident anomalies have been identified and a number of primary and
secondary targets have been selected for further investigation.

The priority lithium targets selected are primarily associated with surface
anomalies which have been identified on satellite imagery and are coincident
with a spectral response relating to the spectral fingerprint of identified
spectral endmembers. The interpretation of the spectral endmembers has been
determined by comparing them to a library of 481 mineral spectra compiled by
the United States Geological Survey.  The endmembers of interest at Selta
include neodymium (Nd) and lepidolite. Neodymium is a rare-earth element which
based on our hyperspectral review, is prevalent across Selta and the adjacent
licence areas. Lepidolite can be associated with lithium-bearing minerals like
spodumene (LiAl(SiO(3))(2)), in pegmatite bodies.

A field team will be deployed immediately to Selta to conduct site-specific
reconnaissance and to collect samples for analysis from multiple high-priority
lithium and REE targets. The initial target area will focus on 65 primary and
secondary targets identified across two areas. One group of targets covers an
area of approximately 3km x 2km and a second area covering approximately 4km x
3km. These two groupings are part of a larger area covering approximately
100km(2) within which, several hundred similar surface anomalies have been
identified

SELTA PROJECT OWNERSHIP

Selta is held within URE Metals Pty Limited ("URE"), an Australian private
company and wholly owned subsidiary of FDR .

Power Metal has an 82.78% interest in FDR (62.12% on completion of the
recently announced Pre-IPO financing).

The announcement dated 01 June 2022 in respect of the Pre-IPO Financing may be
viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-pre-ipo-financing/15477133
(https://www.londonstockexchange.com/news-article/POW/first-development-resources-pre-ipo-financing/15477133)

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.

URE was acquired by FDR in the transaction managed and funded by Power Metal
and the announcement dated 19 November 2021 in respect to this transaction may
be viewed through the following link:

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)

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 joint venture).

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 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 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.

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   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 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 all Properties complete. Next steps upcoming.
 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.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed.                                            Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%*          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  82.78%*          Lithium review underway including desktop and field mapping and sampling.     Findings from lithium review exploration programme.

* Reducing to 62.12% after issue of FDR shares after completion of the
Pre-IPO Financing

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

 

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