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REG - Power Metal Res. - First Development Resources Selta Project Update

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RNS Number : 0461W  Power Metal Resources PLC  07 December 2023

7 December 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources Plc Selta Project Exploration Update

Exploration Data Review Identifies Additional Exploration Target Areas at the
Selta Project in Australia's Northern Territory

 

Power Metal Resources plc (AIM:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an exploration update for the First Development Resources Plc
("FDR") Selta Project ("Selta" or the "Project") located in the Northern
Territory of Australia. Power Metal holds a 58.59% interest in FDR.

To develop the Company's understanding of the Selta Project, FDR commissioned
an Australian-based consultancy to complete a high-level geophysical and
geographical information system ("GIS") based desktop study ("the Study") on
the Selta Project's mineral exploration potential and prospectivity to further
develop target areas for follow-up field inspection on completion of the
planned FDR initial public offering ("IPO"). The Study has now been received
and the findings are reported below.

HIGHLIGHTS:

·    Significant expansion of existing rare-earth element ("REE") and
lithium ("Li") exploration target area, and generation of new target areas
building on previous ground-based exploration and desk-based data reviews
carried out by FDR.

 

·    Following detailed compilation of historical drilling and surface
geochemical data into comprehensive datasets, specific mineral exploration
target areas were established for orogenic gold ("Au") and base metals,
including inferences on the potential for iron-oxide copper-gold ("IOCG") and
iron-sulphide copper-gold ("ISCG") mineralisation within the Project area.

 

·    Specifically, the Study has enhanced FDR's understanding of the
potential within target areas identified for REE mineralisation having a
similar geological setting to Arafura Rare Earths Ltd's (ASX: ARU) nearby
Nolans Project, together with lithium-caesium-tantalum ("LCT") pegmatites
relating to the same fractionated granite intrusions sourcing REE, tin and
tantalum mineralisation just to the south and east.

 

·    The outputs from the Study have provided a more geologically focussed
summation of the mineral prospectivity within Selta and provide an inventory
of prioritised target areas across multiple minerals and metal styles An
exploration strategy is now being developed to systematically test the
identified targets.

 

 

Tristan Pottas, Chief Executive Officer of FDR, commented:

"FDR has continued to work proactively to advance its business interests in
advance of the planned IPO which it hopes to resume as soon as Market
conditions allow.

With the company's Wallal Project in Western Australia fully prepared for
drilling, our attention has turned to the Selta Project where previous mineral
explorers identified a number of high-profile gold and base metal targets and
paving the way for FDR to identity REE and LCT pegmatite targets.  Our
updated mineral target inventory has been significantly boosted with the
findings announced today, including notably gold and base metals in historical
drilling, along with the realisation that the province is also prospective for
IOCG and ISCG targets.

At Wallal, we are drill ready and eagerly looking to commence deep drilling on
high priority gold targets at the earliest opportunity, commencing with the
magnetic bullseye Eastern Anomaly target which we believe bears striking
geophysical similarity to the Havieron discovery made by Greatland Gold plc in
the same Paterson province as Wallal."

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

"Our intended IPO for FDR is taking longer than anticipated due to stagnant
market conditions for capital raisings. To keep the IPO process moving
forward, FDR brought forward the study on Selta which was previously planned
to be completed post-IPO. Working within the constraints of a tight budget,
the team worked closely with experts in Australia to enhance our already
compelling exploration case for the Selta Project.

I am confident that FDR's updated exploration target areas add substantially
to the investment case for FDR and will help to take the Company forward for
obtaining funding to aggressively explore these target areas.  We look
forward to updating the market on FDR's next steps in due course".

 

BACKGROUND:

In preparation for FDR's planned IPO and admission to the London markets, and
to aid in planning focussed fieldwork upon listing, FDR commissioned Perth,
Western Australia ("WA"), based consultancy Resource Potentials Pty Ltd
("ResPot") to complete a geophysical and GIS-based desktop study on the
mineral exploration potential of FDR's Selta Project mineral exploration
tenements located in the Central Arunta Region of Australia's Northern
Territory (Figure 1).

The Study undertaken by ResPot compiled publicly available historical
exploration datasets to help assess the mineral deposit potential of Selta and
generate and prioritise target areas for aggressive exploration post FDR's IPO
and included

-      detailed compilation and review of historical mineral exploration
reports and technical data sets;

-      compilation, processing, imaging, digitisation and review of
publicly available open-file company and government datasets consisting of
drilling, geophysical, geochemical, and geological datasets, and results; and

-      the Study also included establishing comprehensive modern data
from historical drilling and surface geochemical sampling to advance the Study
and highlight new target areas of interest.

Prior to the Study, FDR identified multiple uranium and REE targets within the
Selta Project area and also highlighted the potential for lithium, gold and
base-metal mineralisation. Prior fieldwork completed by FDR allowed for
limited testing of lithium targets within the southern portion of the Project
by identifying and sampling pegmatite outcrops, but the FDR technical team
felt that considering the Project's large size, complex geology and previous
exploration history, a further modern and comprehensive data compilation and
targeting study was warranted.

The Study has now identified the potential for multiple target minerals,
including:

-      REEs geologically similar to the Nolans Project and ionic clay
type REE mineralisation in weathered fractionated granite;

-      LCT-pegmatites;

-      Lode gold in Lander Rock meta-sediment-volcanic greenstone belt;
and

-      Base metals in a skarn setting, specifically for tungsten,
molybdenum tin and silver similar to the Molyhill Project tungsten deposit,
held by Thor Energy PLC (ASX / AIM: THR), to the east.

The study also mentions the potential for IOCG and ISCG mineralisation
surrounding intrusive bodies sourcing similar styles of mineralisation within
the broader Arunta mineral province.

Figure 1: Selta Project regional setting in relation to existing deposits and
known mineral occurrences.

SELTA PROJECT - DATA COMPILATION AND REVIEW

Concurrent with the Study, ResPot liaised with WA based Rock Solid Pty Ltd
("Rock Solid") to help compile open-file surface and downhole drilling
geochemical data from historical exploration reports and Northern Territory
Geological Survey ("NTGS") databases into edited and validated master
databases which ResPot then incorporated into the Study.

A total of 10,622 drillholes were identified and integrated into a GIS
database and Leapfrog workspace, of which 2,204 are within the boundaries of
the Selta Project mineral exploration licences.  The drillholes vary in depth
from small vacuum holes to 178 m deep reverse circulation ("RC") and diamond
core drill holes which were completed by previous exploration companies
looking predominantly for uranium, gold and base metals.

The data compilation by ResPot and Rock Solid remains on-going as additional
datasets become uncovered and are integrated into FDR's master databases.

A total of eight target areas have been identified by the Study. FDR's
technical team has identified a ninth target the updated target areas are
presented in Figure 2. The exploration target areas have also been priority
ranked for prospectivity by ResPot using a simple priority ranking between one
(high) to three (low), and these exploration target areas have undergone
detailed follow-up analysis by FDR's in house technical team and given target
area names as shown on Figure 2.

 

 Target Area       Target minerals  Ranking  Comments
 Ingallan          LCT and REE      1        Located in the extreme east of the Selta Project area, the Ingallan LCT and
                                             REE target covers outcropping Ennugan granite which is considered prospective
                                             for allanite-related REE mineralisation and has a potential for weathered
                                             granite ionic clay REE mineralisation. The Ennugan granite is of a similar age
                                             to the phosphate dykes hosting the nearby Nolans Project REE deposit
                                             mineralisation. To date, no drilling and very limited ground exploration has
                                             been carried out in this highly prospective target area.
 Hawkshead         LCT and REE      2        All four of these REE and LCT-pegmatite target areas are located on and around
                                             the contact zone between granites of the Yundurbulu suite and
                                             metasedimentary-volcanic rocks of the Lander Range greenstone belt. These
                                             target areas have been sparsely tested by historical drilling and historical
                                             drillholes within the Selta Project were not analysed for lithium ("Li"),
                                             caesium ("Cs"), tantalum ("Ta"), tin ("Sn"), tungsten ("W"), niobium ("Nb") or
                                             REEs.

                                             Previous geochemical sampling by FDR in 2022 and 2023, plus historical stream
                                             sediment sampling by a former explorer returned low-level but anomalous
                                             results for key elements including Li, Cs, Nb, Sn, Ta, cerium ("Ce") and
                                             yttrium ("Y") within these target areas. Of note is the presence of historical
                                             tin workings to the west and near a granite contact, suggesting that the
                                             granite in this area may be fertile for LCT pegmatite and REE mineralisation.
 Spring Creek      LCT              3
 Loora Creek       LCT              3
 West Nintabrinna  REE              2
 Lander West       Gold ("Au")      1        Centred on a gravity ridge and topographic high, which corresponds to a
                                             greenstone belt of metasedimentary-volcanic rocks of the "the Lander Beds",
                                             which cross the western part of the project area and is noted to contain
                                             multiple gold and base metal occurrences to the south and east of the Project.
                                             Historical exploration in the Lander West area has yielded drill intercepts of
                                             up to 1.9 g/t gold, alongside elevated arsenic and base metals. Previous
                                             drilling in this area has been shallow (42 m on average) and the area hosts
                                             multiple untested magnetic features and shallow geochemical anomalism never
                                             followed up by deeper drilling.
 Yundurbulu        Gold ("Au")      2        Located in a similar geological environment to Lander West, the Yundurbulu
                                             area has been largely untested by previous explorers, data has been obtained
                                             for 153 historical shallow drillholes however the vast majority are <10 m
                                             deep. Approximately 500 m from the perimeter of the Selta Project is the
                                             historical "Black Knight" gold prospect, which yielded up to 6.58 g/t Au, and
                                             magnetic data suggests a continuation of the same linear feature hosting Black
                                             Knight to extend into the Selta exploration licences.
 Vaughan Springs   Base metals      3        Comprising part of the Vaughan Springs Dome, this target area is defined by an
                                             enigmatic ring-like magnetic anomaly feature. Very little surface sampling or
                                             effective drilling has been completed in this area, however a number of
                                             predominantly shallow vacuum holes have been drilled to depths < 11 m along
                                             with four deeper rotary air blast holes to depths of up to 112 m. Some
                                             historical drillhole samples returned elevated assay results for tungsten
                                             ("W"), silver ("Ag"), cobalt ("Co") and zinc ("Zn").  ResPot has proposed a
                                             skarn style mineralisation model for this target area due to the proximity of
                                             granite, and historically drilled metasediments. In addition, ResPot have
                                             proposed the Vaughan Springs Target to be similar to other skarn style base
                                             metal deposits located to the east, such as the Molyhill Project.
 Western Creek     Uranium          2        The Study identified that historical uranium exploration across much of the
                                             Project area had tested prospective areas, and the potential for primary hard
                                             rock and secondary soft rock uranium deposits was low.

                                             FDR's technical team have analysed historical exploration reports and located
                                             a potential roll front style uranium target area in the north of the Project
                                             area which was identified by Toro Uranium in 2010 and which remains untested.

 

PROPOSED EXPLORATION STRATEGY AT SELTA

As part of the Study, the following exploration programmes are proposed:

·    Further detailed interpretation and review to be carried out on the
Ingallan LCT and REE target area, including field visits to collect rock
samples, grids of soil geochemical surveying, and if results warrant then
carry out follow-up RC drilling. In addition, possible Horizontal-to-Vertical
Spectral Ratio ("HNSR") passive seismic surveying over ionic clay REE target
zones to test for weathering depth prior to drill testing.

·    The Hawkshead, Spring Creek, Loora Creek and West Nintabrinna lithium
and REE target areas in the southwest of the Project are proposed to receive
field inspection and geochemical sampling of soils to identify targets for
hard rock drill testing.

·    Lander West geochemical soil sampling campaign is proposed to refine
current target areas, the Yundurbulu Gold target area is almost wholly
unexplored and therefore field teams will be deployed to carry out inspection
and prospecting of the geology, with follow-up geochemical testing and then
drilling if warranted.

·    Drill testing on various walk-up targets, including the Vaughan
Springs base metal magnetic ring target area, gold targets where shallow Au
and pathfinder elements have been identified by shallow drilling but not yet
followed up by deeper RC drilling into fresh bedrock, and LCT / REE pegmatite
targets in outcrop, is a short to medium term aim of FDR.

·    FDR is currently evaluating exploration possibilities for a roll
front uranium target in the northwest of the Project.

Figure 2: Selta Project targets identified for further exploration located
within FDR's mineral exploration tenements (black outline).

FDR CORPORATE ACTIVITY

First Development Resources Plc (58.59% POW) holds strategic exploration
projects in Western Australia and the Northern Territory and is fully
prepared for an IPO listing at short notice subject to favourable market
conditions and final regulatory approvals.

 

FDR EXPLORATION INTERESTS

FDR Australia holds the following mineral exploration licence interests:

Wallal Project in WA (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 geological similarities major Au-Cu deposits within the Paterson
Province, including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland
Gold joint venture).

FDR has secured a c. £110,000 Co-funding grant from the Western Australian
government as part of their Exploration Incentive Scheme to be offset against
the costs of Wallal drilling, and the Company has received all the necessary
local approvals to commence drilling.

FDR has also agreed to contract DDH1 Drilling Ltd to undertake the phase I
diamond drilling drill programme at Wallal, where FDR has already prepared the
access and the drill pad locations in readiness for drilling.  Recognising
this progress, the early commencement of drilling is being considered
alongside the work being undertaken to finalise the IPO listing.

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

In-depth desktop analysis of historic exploration data is currently underway
on the Braeside West Project, located in the northeast Pilbara region. 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 in WA (E45/5088 - 42km(2) - one granted licence).

The Ripon Hills Project is also located in the northeast Pilbara Region and
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 in the NT  (EL 32737, EL 32738 and EL 32755 - 1,575km(2) -
three granted licences)

The Selta Project is located in an emerging mineral province of the Arunta,
considered to be highly prospective for uranium and rare-earth element
mineralisation, and now niobium ("Nb") with the discovery of carbonatites on
the WA side by WA1 (ASX: WA1). FDR recently completed an in-depth review study
of all historical and new geological, geophysical and geochemical data, which
also identified the potential for REE, gold and base-metal mineralisation, as
well as the possibility of LCT pegmatites.

GLOSSARY

 Allanite-Related REE Mineralisation                                       Allanite is a mineral that is found in metamorphosed clay-rich sediments and
                                                                           granitic rocks as part of its chemical structure
 Base metals                                                               A common metal that is not considered precious, such as copper, tin, or zinc
 Diamond core drilling                                                     A commonplace method of drilling using a circular drill bit (with diamonds) to
                                                                           cut through the rock, and produce a long 'core' of rock for examination and
                                                                           testing.
 Fractionated Granite                                                      As granites, or other rocks which are formed from a magma cool, certain
                                                                           minerals crystallise from the melt at higher temperatures than others, this
                                                                           results in the granitic magma becoming more and more concentrated in certain
                                                                           elements over others. Under these conditions, the granite is 'fractionated'
 Geographical Information System (GIS)                                     GIS is a system that creates, manages, analyses, and maps all types of data,
                                                                           allowing for the rapid, yet highly detailed and precise analysis of geographic
                                                                           data.
 Greenstone Belt                                                           Zones of variably metamorphosed volcanic sequences with associated sedimentary
                                                                           rocks that occur within ancient rocks.
 Horizontal-to-Vertical Spectral Ratio ("HVSR") passive seismic surveying  The horizontal-to-vertical spectral ratio (HVSR) passive-seismic method is a
                                                                           geophysical technique that uses seismic noise signals to estimate properties
                                                                           of unconsolidated, overburden sediments
 Ionic Clay                                                                A clay that is greatly enriched in rare-earth elements, through the absorption
                                                                           of such elements into the clay's chemical structure
 Iron-oxide copper-gold (IOGC)                                             A type of ore deposit that contain valuable concentrations of copper, gold,
                                                                           and uranium. They are hosted within iron oxide dominant gangue assemblages and
                                                                           are often associated with quartz veining and iron-rich rocks.
 Iron-sulphide copper-gold (ISCG)                                          A type of ore deposit that contain valuable concentrations of copper, gold,
                                                                           and uranium. They are hosted within sulphide dominant ore that is present as
                                                                           veins, breccias (broken rocks) or replaces the original geology.
 lithium-caesium-tantalum (LCT) pegmatite                                  A type of pegmatite that contains elevated volumes of lithium, caesium and
                                                                           tantalum; these pegmatites form the majority of the worlds hard rock lithium
                                                                           resources.
 Lode gold                                                                 Lode gold is a type of gold deposit that forms as a vein in rock
 Meta-Sediment-Volcanic                                                    Metamorphosed (heated and squashed over geological time) rocks that were
                                                                           originally derived from sedimentary and volcanic rocks.
 Orogenic gold                                                             An orogenic gold deposit is a type of hydrothermal mineral deposit that is
                                                                           formed during syn- to late metamorphic stages of orogeny. These deposits are
                                                                           hosted by shear zones in orogenic belts, specifically in metamorphosed
                                                                           fore-arc and back-arc regions, their formation is strongly related to the
                                                                           structural geology (faults/shears) of the area,  as hydrothermal fluids
                                                                           migrate through pre-existing and active discontinuities (faults, shear zones,
                                                                           lithological boundaries) generated by tectonic processes
 Rare-earth elements                                                       Rare-earth elements (REE) are a group of 17 metallic elements that are
                                                                           found in the Earth's crust. They include the 15 lanthanides (lanthanum,
                                                                           cerium, praseodymium, neodymium, promethium, europium, gadolinium, terbium,
                                                                           dysprosium, holmium, erbium, thulium, ytterbium, and lutetium)
                                                                           and scandium and yttrium. These elements are called "rare" because they
                                                                           are difficult to extract from the earth's crust and are not found in large
                                                                           quantities
 Reverse circulation (RC) drilling                                         Reverse circulation drilling is a method of drilling that uses dual wall
                                                                           drill rods consisting of an outer drill rod with an inner tube. The hollow
                                                                           inner tubes allow the drill cuttings to be transported back to the surface in
                                                                           a continuous, steady flow. Unlike diamond drilling, it compiles sample rock
                                                                           cuttings instead of rock core.
 Roll front                                                                A roll-front uranium deposit is a type of uranium ore deposit that occurs in
                                                                           sandstones downstream from redox fronts or reduced/oxidized geochemical
                                                                           barriers.
 Skarn                                                                     coarse-grained metamorphic rocks that form by replacement of carbonate-bearing
                                                                           rocks (containing calcium oxide), these can often contain metals such as tin,
                                                                           tungsten, manganese, copper, gold, zinc, lead, nickel, molybdenum and iron.
 Vacuum drilling                                                           A method of drilling through loose sediments, where material is vacuumed from
                                                                           the base of the hole for inspection and testing

 

QUALIFIED 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 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.

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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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 mineral and 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 and results.

 

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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