REG - Power Metal - Licence Grant Australia - Potential IOCG Target

Power Metal ResourcesAnnouncement

01/09/2022 07:00

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RNS Number : 8491X  Power Metal Resources PLC  01 September 2022

1 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Licence Grant South Australia - Potential IOCG Target identified

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update from its wholly owned Australian subsidiary Power Metal
Resources Australia Pty Ltd ("POW Australia").

 

HIGHLIGHTS:

Licence Grant

§ POW Australia has received confirmation of the grant of exploration licence
application ("ELA") 2021-000163, covering 999km(2) of ground in the Anna Creek
area of South Australia.

 

§ The ELA has now converted to an exploration licence numbered EL6819 and
carries an initial term of 6 years ending 24 August 2028, subject to a minimum
exploration spend of A$100,000 (Circa £59,000) prior to 23 August 2024.

 

§ Recognising the grant of EL6819, the property has been named the Wilan
Project ("Wilan" or the "Project").

Potential IOCG Target Identified

§ A desktop technical review completed over EL6819 has identified an
under-cover, approximately 4x6km coincident magnetic and gravity geophysical
anomaly (the "Target") located in the southeast of the Project.

 

§ The existence of a coincident magnetic/gravity anomaly is considered highly
significant given the location of the licence within the Gawler Craton(1),
which constitutes a major Iron Oxide-Copper-Gold ("IOCG") deposit province.
IOCG deposits consist of important and highly valuable concentrations
of copper, gold and uranium mineralisation(2), the most famous example in the
Gawler Craton is the Olympic Dam Mine(3) ("Olympic Dam"). Most IOCG deposits
were initially discovered through regional magnetic and gravity geophysics
targeting.

 

§ Based on geophysics interpretation the Target is hosted within cratonic
basement below 200-300m of younger cover sediments - this part of the Project
has never been drill tested.

 

§ Olympic Dam is located approximately 150km south of the Property and owned
and operated by BHP Group Limited and is the largest known IOCG deposit in the
world and an important source of copper-gold and uranium. Notably, the
discovery of Olympic Dam was made by drilling a blind coincidental magnetic
& gravity anomaly.(4)

Next Steps

§ Power Metal are currently planning for expedited field exploration which is
expected to include high-resolution gravity and magnetic surveys over the
Target.

 

§ The Wilan Project also includes ongoing licence application ELA
2021-000162, covering an area of 995km(2) and which lies contiguous and to the
northwest of EL6819.

 

§ The Company is working through the balancing administration work to secure
the grant of ELA 2021-000162, where our technical review to date has
identified multiple exploration targets.

A map highlighting the location of the Wilan Project, the newly granted
licence, as well as the relative location of the new IOCG target can be found
at the link below:

https://www.powermetalresources.com/wilan-copper-gold-licence-map/
(https://www.powermetalresources.com/wilan-copper-gold-licence-map/)

 

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

"As mentioned previously, Power Metal is resolutely focused on the imminent
drill programme at the Molopo Farms Complex project located in Botswana, and
our team are working hard there to maintain the momentum.

However, the grant of the first Wilan Project exploration licence (EL6819)
represents a potentially significant milestone, as ongoing desktop work has
identified a large Target located wholly within the newly granted licence.

There is more work to do, clearly, and we are early stage here, however all
projects of substance start early stage and the Wilan Project is off to a
great start."

 

BACKGROUND

On 27 October 2021 Power Metal announced the submission of two licence
applications in South Australia covering a total of 1,994km(2) and targeting
Olympic Dam style mineralisation.

A link to this announcement is provided below:

https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456
(https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456)

NOTES & REFERENCES

1:                    Gawler Craton:  The Gawler Craton
covers approximately 440,000 km(2) of central South Australia and constitutes
a major IOCG deposit province and a major source of Australia's iron, gold,
copper and uranium. A craton is an old and stable part of the continental
crust that has survived the merging and splitting of continents and
supercontinents for at least 500 million, to over 2 billion years. Cratons are
generally found in the interiors of continents and are characteristically
composed of ancient crystalline basement crust of lightweight felsic igneous
rock such as granite. They have a thick crust and deep roots that extend into
the mantle beneath to depths of 200 km.

 

2:                    Iron Oxide Copper Gold ("IOCG")
Deposit: IOCG ore bodies range from around 10 million to >4,000 million
tonnes of contained ore, and have a grade of between 0.2% and 5% copper, with
gold contents ranging from 0.1 to 1.41 grams per tonne. Source: Zhu, Zhimin
(2016-01-01). "Gold in iron oxide copper-gold deposits". Ore Geology Reviews.
72: 37-42. doi:10.1016/j.oregeorev.2015.07.001. ISSN 0169-1368.

 

3:                    The Olympic Dam mine is a large
poly-metallic underground mine located in South Australia, 550 km NNW of
Adelaide. It is the fourth largest copper deposit and the largest known single
deposit of uranium in the world. Copper is the largest contributor to total
revenue, accounting for approximately 70% of the mine's revenue, with the
remaining 25% from uranium, and around 5% from silver and gold. 1  BHP has
owned and operated the mine since 2005. The mine was previously owned by
Western Mining Corporation. Source: Wikipedia

 

2:                    Austin. J., Foss C., (2012) Rich,
attractive and extremely dense: A geophysical review of Australian IOCGs, ASEG
Extended Abstracts, 2012:1, 1-4, DOI: 10.1071/ASEG2012ab278.
https://www.tandfonline.com/doi/pdf/10.1071/ASEG2012ab278

 

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.

 

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration programme underway at 3 properties.  Continuing data       Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 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%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 Tati Project           Botswana  100%             RC drilling underway and previously sampling of mine dumps complete.          Review of mine dumps sampling, and processing potential.  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 28.19%                                                     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)

                                  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/) .

 

 

 

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