REG - Power Metal Res. - Initial Exploration completed on Balthaga Project

Power Metal ResourcesAnnouncement

01/07/2024 07:00

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RNS Number : 4796U  Power Metal Resources PLC  01 July 2024

1(st) July 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Initial Exploration programme completed on Balthaga Lithium Project in Saudi
Arabia

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed
exploration company with a global project portfolio, is pleased to announce
that an initial field exploration programme on the Balthaga Lithium Project,
Saudi Arabia ("Balthaga") as per the agreement with RIWAQ Al-Mawarid for
Mining ("RIWAQ"), the industrial and mining company based in Saudi Arabia and
special purpose subsidiary of EV Metals Group plc ("EVM"), to earn a 30%
ownership interest in 15 tenements, 13 of which comprise the Balthaga Project
area (the "Agreement"), announcement dated 26 March 2024, has been
successfully completed.

The Balthaga project located 450km east of Jeddah in the South-East of the
Arabian Shield area consists of 13 contiguous exploration licenses granted in
succession over the last two years covering a total area of 1200km(2), with
the most recent granted only a couple of months ago. A further two licenses
comprise the total Agreement area however these are in different locations and
focus on different commodities. The project area being targeted is prospective
for lithium, a key commodity for RIWAQ and EVM's larger strategy. The focus on
the project area was, and continues to, be on lithium and any associated
minerals including Rare Earth Elements ('REE').

Figure 1: Typical terrain at Balthaga Project, Saudi Arabia, June 2024

 

 

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

"Further to the comprehensive desktop review we conducted using all available
historic data covering the Balthaga Project area, over 40 initial targets were
identified as priority targets to visit. Eager to progress the exploration
programme, we therefore decided to get a team in the field.

"The team covered the whole area of the 13 licenses and visited nearly every
defined target. We are really pleased with the outcome of this initial field
programme and to get the team on the ground giving them a much better
understanding of the geology. I'm glad to report that the majority of the
identified targets proved fruitful with some new targets also discovered.

"The team would have liked longer in the field to carry more detailed work,
however the extreme conditions precluded a longer field programme. I would
like to thank the team for getting out to the area so quickly and undertaking
this work diligently in very difficult conditions.

"We are very pleased to have been able to start the field work to further the
extensive desktop studies  and are encouraged by the number of prospective
target sites found and sampled from the initial programme.

"We look forward to returning to the field after the summer heat to follow up
on this work and explore new targets."

Luke Fitzgerald, CEO of EV Metals Group plc, commented:

"The completion of this initial field exploration programme is an important
step in understanding the mineral potential at Balthaga to support the EVM
strategy of developing a critical raw materials supply chain in the Kingdom of
Saudi Arabia. We are encouraged by the thorough and systematic approach
undertaken by the team, which identified multiple targets and will generate
data to define the next stages of the exploration work. We look forward to the
continued collaboration with Power Metals as we advance the project."

 

Work completed to date

An initial comprehensive desktop study was carried out by Power Metal to
enable targeting within the project area based on geological unites, features
and structural targets.  A total of 44 targets were defined by a combination
of historic sampling and associated results, historic geological reports
discussing target lithologies, geological features such as dykes, veins and
structural traps, and a suite of eight Mineral Occurrence Documentation System
(MODS) extracted from various papers on the area. Figure 2 below shows a
summary of the main target areas and an initial target map generated from this
desktop work.

Figure 2: Summary Exploration Target map, Balthaga Project, Power Metal
Resources, June 2024

 

The field programme was designed to locate the majority of these targets,
visit all priority targets and, where appropriate, take initial rock chip
samples for analysis. A total of 43 in-situ rock chip samples were taken from
the targets visited and new areas were identified during the seven days of
field work possible in the conditions. The team managed to cover the entire
project area, over 1,200 km(2).

Each sample was given a unique number, the outcrop sampled was photographed,
as was the sample itself, with a description of the sample taken to ensure
maximum data was captured at each location. Several locations exhibited
numerous units within an area however, due to the constraints on time, Power
Metals ensured key units were sampled and the location clearly defined for
more detailed follow up work. EVM General Manager Geology and Mining
accompanied the field team for the first two days.

Two Certified Reference Material samples (OREAS 752) for QA/QC purposes were
also submitted as part of the samples submitted to the laboratory.

Figure 3: Pegmatite in vicinity of target T14, Balthaga Project, June 2024

All samples were submitted to ALS Jeddah for analysis. The specified
preparation method is to crush to 70% less than two millimetres, rotary split
off 250 grammes, and pulverise the split to better than 85% passing 75 microns
(ALS code PREP-31Y).

The specified digest and analysis method is sodium peroxide fusion followed by
an Inductively Coupled Plasma - Mass Spectrometry (ICP-MS) finish (ALS code
ME-MS89L). This is a multi-element package comprising of 52 elements.

The preparation stage is to occur at the Jeddah laboratory and the analysis is
likely to occur at the ALS laboratory in Loughrea, Ireland. Results are
expected in Q3 2024.

A further 23 rock samples taken by RIWAQ in 2022 but never submitted for
analysis were also submitted to ALS.

Figure 4: Samples prepared for submission to ALS Jeddah, June 2024

 

Once results are received and a more detailed interpretation of all the newly
acquired data is processed, Power Metal will be in a position to plan the next
stage of exploration to advance the project. The two remaining licenses that
are included in the earn in agreement will be the subject of work once they
become fully granted which is hoped to occur in the coming weeks.

Riwaq Al Mawarid

Riwaq Al Mawarid for Mining ("RIWAQ") is a special purpose subsidiary of EV
Metals Group plc ("EVM") focused on developing the Saudi supply chain through
the production of critical raw materials from exploration, mining, and
processing of minerals and metals in the Kingdom of Saudi Arabia.

RIWAQ is actively engaged in exploring for lithium, nickel sulphides, and
other battery metals in the Arabian Shield, with a focus on the Balthaga
Lithium Project located in an area prospective for lithium pegmatites.

With a well-developed strategy and in conjunction with its joint venture
partners, RIWAQ is seeking to execute field programmes for the rapid
development of critical upstream raw materials.

The exploration activities by RIWAQ complement EVM's midstream plans to
develop its flagship Lithium Chemicals Plant project at Yanbu Industrial City
in the Kingdom of Saudi Arabia, which will produce high-purity lithium
hydroxide monohydrate ("LHM") from spodumene concentrate.  LHM is a crucial
chemical product expected to face significant deficits by 2030 due to
overwhelming global demand for lithium-ion batteries.

EV Metals Group plc

EV Metals Group plc ("EVM") is a global battery chemicals and technology
business committed to a clean energy future.

EVM is focused on the production of high purity chemicals required in
rechargeable batteries for electric vehicles and renewable energy storage. Our
business model is based on the integration of upstream (mining) and midstream
(chemical refining) supply chains for critical raw minerals from
geopolitically aligned sources to produce high purity battery chemicals vital
to the global energy transition.

Through their mine to refine value proposition, EVM will offer transparent and
stable supplies of high purity battery chemicals to growth markets including
the Middle East, Europe and North America.  This will involve upstream mining
and production of intermediate products via participation and ownership of
mining mineral resources, facilitated by joint ventures and long-term offtake
agreements for midstream processing at our planned chemical refining plant in
the Kingdom of Saudi Arabia ("KSA").

Their flagship Lithium Chemicals Plant ("LCP") in Yanbu Industrial City in KSA
is being developed as a midstream hub for diversification and geopolitical
alignment of supply chains for electric vehicle and battery cell
manufacturers. The LCP is set to play a critical role in the Kingdom's
industrial diversification efforts, featuring an initial nameplate capacity to
produce 50,000 tonnes per annum of high purity Lithium Hydroxide Monohydrate
("LHM"), a crucial chemical product expected to face significant deficits by
2030 due to overwhelming global demand.

Incorporated in 2014, EVM is a private company with operations in Western
Australia, the United Kingdom and KSA. For further information on EVM please
visit www.evmetalsgroup.com

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 LLP (Nomad and Joint Broker)
 Ewan Leggat/Caroline Rowe                                                           +44 (0) 20 3470 0470

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

 BlytheRay (PR Advisors)                                                             +44 (0) 20 7138 3204

Tim Blythe/Megan Ray/Alastair Roberts

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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