REG - Power Metal Res. - Block 8 Oman: Exploration Update

Power Metal ResourcesAnnouncement

30/01/2025 07:00

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RNS Number : 1888V  Power Metal Resources PLC  30 January 2025

 

30 January 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Block 8 Oman: Exploration Update

 

Power Metal Resources PLC (AIM: POW, OTCQB: POWMF), the London listed
exploration company with a global project portfolio, and its majority held
subsidiary Power Arabia Ltd ("Power Arabia"), is pleased to provide an update
on exploration progress and the identification of new copper mineralisation on
the Block 8 exploration concession in Oman ("Block 8" or the "Project").

Block 8 is the subject of a Proposed Agreement for Power Metal to earn a 12.5%
stake in the Project (Figure 1) held by ASX listed Alara Resources Limited
("Alara") and Awtad Copper LLC ("Awtad Copper").

The exploration work led and undertaken by the Power Arabia technical team to
date was conducted during October, November and December 2024, and commenced
following the signing of a formal and legally binding agreement containing the
full terms and conditions of a Proposed Agreement, on 22 October 2024(1, 2).

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:

"I am very pleased to be able to report such meaningful progress at this
flagship project for Power Arabia and am very grateful to Bill Brodie Good and
his excellent team of geologists on the ground.  We continue to explore
multiple avenues for a long-term funding solution for the Power Arabia
business and look forward to updating shareholders in due course."

Atmavireshwar Sthapak, Alara Managing Director, said:

"We are very pleased with the excellent progress being made by our partners in
exploring the Block 8 exploration licence in Oman. It is truly exciting to see
new locations of copper mineralisation being discovered, further enhancing
confidence in the previously identified Al Mansur prospect in the Block.

Alara is committed to invest further by intensifying exploration activities in
the block and looks forward to continuing our cooperation with Power Metals as
they advance this promising endeavour."

 

Exploration Overview

The exploration fieldwork completed to date includes: two phases of stream
sediment sampling; geological outcrop mapping and rock sampling; an ionic
leach soil geochemical sampling orientation study; trenching on the Al Mansur
target; and the planning of a proposed gravimetric geophysics survey and
sourcing of a geophysical contractor.

Recently received assay results from an initial 13 rock and float samples
(Table 1) have returned two significant copper results: an in-situ outcrop
sample at the Al Maidar prospect returned 4.46% Cu; and a malachite float
sample collected during the stream sediment sampling programme from a 500m
strike catchment returned 1.75% Cu (Figure 2) from an area within 2km of Al
Maidar.

These copper results are considered very significant in a previously
unexplored area and provide excellent potential for the discovery of a copper
deposit within Block 8, subject to further exploration work which is planned
to follow.

Figure 1: Location of Block 8, Oman, September 2024

Figure 2: Location of the significant new copper results and area of recent
fieldwork overlain on Magnetic Geophysics Imagery in the Block 8 concession
area, Oman

 

 

Table 1: Block 8 Rock Chip and Float Sample Assay Results

 

Note: Coordinates stated in UTM Zone 40 N(WGS84)/EPSG:32640. Samples 530796
and 530800 returned overlimit (>10,000 ppm) copper by ALS method ME-ICP61
so the stated copper results are by ALS method Cu-OG62 (for high grade
copper).

The current Power Arabia exploration strategy is focussed on advancing five
initial target areas (Figure 3) identified from a review of historical and new
data concerning the Al Mansur copper prospect in the southern central area of
the Block 8 concession, as well as the findings of the recent fieldwork
undertaken in the previously unexplored southern and northern regions of the
concession.

Details of the initial work programmes undertaken to date are outlined below.

Historical Data Review

A detailed review of historical technical, geophysical and geological data was
carried out both for the Block 8 concession area and the surrounding regional
belt. This target generation has delineated an initial five target areas
outlined below and in Figure 3, with the review work on-going as more data and
further historical reports come to light.

·    Target Area 1 is prospective for Cyprus-type volcanogenic massive
sulphide(3) ("VMS") Cu-Au mineralisation. The area around the Al Mansur
prospect displays coincident magnetic low geophysical anomalies and
prospective Semail volcanic rock units, and was the focus of previous
exploration work undertaken by Alara, and the recent outcrop verification,
mapping and three trenches completed by the Company during December.

 

·    Target Area 2 is prospective for Cyprus-type VMS Cu-Au mineralisation
associated with the inferred boundary of Semail volcanics buried below
obduction related non-mineralised recent sediments, coinciding with magnetic
low geophysical anomaly trends. A programme of ion leach soil geochemical
sampling planned for January 2025 following field outcrop verification and
mapping.

 

·    Target Area 3 was a focus of the November 2024 stream sediments
sampling and mapping. The mantle sequence rocks in this area are considered
prospective Cr-PGE and Cu-Au mineralisation as observed from outcrops with
secondary copper mineralisation.

 

·    Target Areas 4 & 5 are prospective for Cr-PGE within the mantle
sequence rocks with stream sediments completed in December 2024. Assay results
are pending.

Figure 3: Location of five new target areas, Block 8

 

Block 8 North, Geological Reconnaissance, Outcrop Verification and Mapping

Ground traverses, geochemical sampling and geological mapping have been
undertaken in the north and central part of Block 8, in order to identify
areas prospective for ophiolite hosted Cyprus-type VMS Cu-Au mineralisation.
Work focused on areas where the largely under-cover Semail Upper Volcanics
stratigraphy is exposed through windows in the overlying sediments and/or sand
cover.

The detailed geological mapping, description of key outcrops and rock chip
sampling conducted to date has resulted in 263 numbered localities. A total of
13 rock samples have been analysed by ALS Oman using assay methods ICPME-61
and Au-AA25 (Table 1). No QA/QC samples were deemed necessary at this stage.

This ground investigation work has helped with understanding historic
geophysical anomalies and helped to define areas for a planned gravimetric
geophysics ground surveys along with planned mapping of diagnostic alteration
and structural features to further delineate mineralisation potential for Cu,
Au, Cr and platinum group elements ("PGE") in an area, which to date is
largely unexplored.

 

Block 8 South, Geochemical Stream-Sediment Sampling Programme

The stream sediment geochemical sampling programme covers a 65 square km area
of drainage catchment basins defined by digital elevation model analysis.
Stream sediment sampling of drainage basin catchments over prospective mantle
sequence rocks, seeks to identify higher density indicator minerals and Cu,
Au, Cr and PGE concentrations indicative of upstream mineralised host rock and
helps delineate anomalous trends and areas of interest. During the programme
several new occurrences of secondary copper oxide (malachite and chrysocolla)
float and an initial in-situ copper occurrence were discovered near Al Maider
village.

In total, 149 stream sediment samples were collected (Figure 5), including 14
QA/QC samples. The sampling protocol employed sieving a minimum 4kg sample
with a 2mm mesh on site, to ensure a minimum 200g is retrievable at the <
63µm size fraction, for the subsequent laboratory assay. The samples have
been submitted to ALS Oman for laboratory analysis by multi-element low level
detection method AuME-ST44TM, the assay results are pending.

 

Figure 4: Copper bearing mineralisation in outcrop on Target-1 (left) and
Target-3 (right), Block 8

Figure 5: Digital elevation model showing location of stream sediment sampling
sites in south of Block 8

 

Ionic Leach Soil Sampling Orientation Survey

As a precursor to wider scale soil geochemical sampling, in order to gauge the
effectiveness of the ionic leach soil analytical method for the given soil
conditions, a 24 sample orientation grid was conducted over an area of known
copper mineralisation located outside of the Project boundary. Specifically,
the orientation study had the objective of testing the sampling method
suitability for drill target generation in areas of more recent cover, to
determine if it is able to detect mineralisation hidden under later
sedimentary sequences such as exist in the central and northern parts of the
Block 8 concession area.

A total of 24 ionic leach samples (including 2 QAQC samples) were collected
and submitted to ALS Oman for analysis by multi-element low level ionic leach
analytical method MS-ME23. The effectiveness of the ionic leach method for use
on Block 8 will be determined once the pending assay results are received and
interpreted.

Gravimetric Ground Geophysics Survey Planning

To compliment the planned Block 8 ionic leach sampling programme the technical
team have designed a series of ground gravimetric geophysical survey lines
over interpreted prospective geological and structural contacts under cover,
in order to refine prospective lithologies and contact zones and complement
induced polarisation ("IP") and magnetic geophysics targets to generate
geochemical and possible drill targets.

Ten gravimetric survey blocks are planned covering the prospective volcanics
lithological contacts based on a review of the historical World Geoscience
Corporation magnetic geophysics data acquisition and interpretation completed
for the Ministry of Minerals in Oman during 1992, and Alara magnetic,
electromagnetic (VTEM) and IP geophysical survey data. The geophysics
contractor has been sourced and work is planned to take place in February
2025.

Trenching in Al Mansur:

Trenching has commenced over the Al Mansur copper prospect in order to
determine the spatial relationship between mineralisation and crosscutting
regional trends and to aid in optimisation planning for drill targeting as a
next step at Al Mansur.

An initial three trenches have been completed for 150m total length during
Dec, 2024. These have been geologically logged and sampled with 43 samples
submitted to ALS Oman for analysis by laboratory methods ICPME-61 and Au-AA25,
results pending.

Progress Summary

The Company considers that the exploration work conducted to date on Block 8
has progressed extremely well in a short space of time, with the early
identification of significant new copper mineralisation in the southern part
of the concession. The technical team is building an excellent understanding
of the geology and controls to mineralisation, and with the support to date of
five Omani graduate geologists, Power Arabia is building a strong in-country
team.

Assay results for the stream sediment and ionic leach sampling and further
rock chip samples are eagerly awaited. The next phase of exploration fieldwork
is scheduled to commence in the coming days, this will continue to work
towards satisfying the commercial and technical commitments of the Proposed
Agreement.

 

REFERENCES

1:            Company announcement, Non-binding Heads of Terms
signed with Alara Resources & Awtad Copper, dated 25 October 2024

                (
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xpd67mx
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xpd67mx)
).

2:            Company announcement, Agreement with Alara Resources
& Awtad Copper, dated 25 October 2024

(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd8z59w
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd8z59w)
).

3:            Volcanic-associated massive sulphide ("VMS") deposits
range from lens shaped to sheet-like bodies of sulphide-mineral-rich rock
spatially associated with volcanic rocks ranging in composition from basalt to
rhyolite. VMS deposits can be divided into three general categories:
Cyprus-type; Kuroko type; and Besshi-type. Cyprus-type deposits tend to be
small, medium-grade deposits rich in copper and zinc. They are generally lens
or mound shaped accumulations of massive pyrite developed in
ophiolite-related, extrusive basalt sequences. They are typically underlain by
copper-rich "stringer-zones" composed of anastomosing quartz-sulphide mineral
veins in extensively chloritised basalt.

( https://pubs.usgs.gov/of/1995/ofr-95-0831/CHAP16.pdf
(https://pubs.usgs.gov/of/1995/ofr-95-0831/CHAP16.pdf) )

 

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, MAusIMM, FGS), who is a
qualified geologist and acts as the Qualified 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.

 

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 SP Angel Corporate Finance LLP (Nomad and Joint Broker)
 Ewan Leggat/Jen Clarke                                                          +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                                               +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)

 Tim Blythe/Megan Ray/Alastair Roberts                                           +44 (0) 20 7138 3204

 

NOTES TO EDITORS

Power Metal Resources plc (AIM: POW, OTCQB: POWMF) is a London-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, Saudi Arabia 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.

 

 

 

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