REG - Power Metal - Selta Project - Multiple Target Areas Identified

Power Metal ResourcesAnnouncement

16/03/2022 13:15

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RNS Number : 0043F  Power Metal Resources PLC  16 March 2022

16 March 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Selta Project - Multiple Target Areas Identified

Selta Project - Uranium and Rare Earth Element Target Areas Identified with
Additional Tin and Lithium Prospectivity Confirmed from in-depth Project
Review

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an update in respect of the Selta Project ("Selta" or the "Project")
held by Power Metal's 83.33%-owned subsidiary First Development Resources
Limited ("FDR").

Selta is situated approximately 230 km northwest of Alice Springs in the
Northern Territory, Australia, a location map may be viewed through the
following link:

https://www.powermetalresources.com/selta-project-overview-map-2/
(https://www.powermetalresources.com/selta-project-overview-map-2/)
 

An in-depth review of all publicly available geological, geophysical and
geochemical data for the Selta Project (the "Review") is now complete.  This
commencement of this Review was announced by the Company on 23 February 2022
and was undertaken by consultants on behalf of FDR.

The objective of the Review was to identify priority targets for further
investigation.

HIGHLIGHTS

-     Based on a review of historical geological, geophysical and
geochemical datasets, four high-priority areas have been identified with the
potential for uranium mineralisation as well as three areas with the potential
for rare earth element ("REE") mineralisation.

-     In addition to uranium and rare-earth element mineralisation, the
Review has identified the potential for lithium, gold, and base-metal
mineralisation as well as the possibility of tin-tantalum-tungsten-rich
pegmatites within the Selta Project. It is noteworthy that hard rock pegmatite
fields elsewhere in Australia represent important sources of lithium.

-    Historical exploration on the Project has in general been limited.
Based on the positive findings within the recently completed Review, FDR is
equipped to be the first company to carry out systematic, Project-wide
exploration focusing on the discovery of several strategically important
metals.

-   Two high-priority target areas will be visited in the coming weeks as
part of FDR's planned reconnaissance site visit to the Project. The objective
of the reconnaissance site visit is to initiate landholder introductions,
assess access and track conditions, review logistics for future work
programmes and take preliminary rock samples where appropriate.

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

"The completion of the in-depth review provides further validation of our view
as to the prospectivity of the Northern Territory Selta Project.

Alongside the anticipated Uranium and REE exploration potential, the Review
has highlighted potential for lithium and tin mineralisation, alongside the
prospect of gold and base metal mineralisation.

FDR are to undertake a planned reconnaissance site visit later this month
which will enable the team to acquire site specific geological data, obtain a
clear understanding of any logistical challenges associated with working at
the Project and also develop working relationships with key stakeholders in
advance of our planned future exploration activities."

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

"Recent volatility in metal prices has highlighted the need to secure future
supply of critical metals which requires the identification and development of
new mineral deposits.

We believe the Selta project is located in a tier one mining jurisdiction in
an area known to contain world-class deposits such as Arafura Resources'
Nolan's Bore REE-phosphate-uranium-thorium deposit.

We look forward to the upcoming reconnaissance site visit by the FDR team and
the results from ongoing exploration work at the Selta Project."

BACKGROUND

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

URE was acquired by FDR in a transaction managed and funded by Power Metal and
the announcement dated 19 November 2021 in respect of 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, in which Power Metal holds an 83.33% interest, is planning to list on the
London capital markets in Q2 2022.

SELTA PROJECT IN-DEPTH DATA REVIEW

Mr Matthew Stephens of Luksam Consultants based in Queensland, Australia, has
completed an in-depth review of all historical geological, geophysical and
geochemical data associated with the Selta Project and the central Northern
Territory region as a whole.

Mr Stephens, who is a Fellow of the Australian Institute of Geoscientists
(FAIG), has over 35 years of continuous industry experience which has included
sound exposure to pre-feasibility, feasibility and due diligence studies as
well as geotechnical reviews, independent geologist reports, National
Instrument 43-101 reports and tenement appraisals.

The Review has considered all publicly available information associated with
the Project's granted exploration licences; EL 32737 (780 km(2)), EL 32738
(312 km(2)) and EL 32755 (481 km(2)) which cover a total land area of 1,574
km(2) and together make up the Selta Project.

The Selta Project is within the prospective, but largely under-explored
central Aileron Province, between the Georgia and Ngalia Basins, in a
region the Northern Territory Government has declared prospective for uranium
mineralisation.

The Review confirmed previous exploration in the district has been limited;
mostly targeting uranium, tin-tantalite, diamonds, base-metals and gold,
however, there has been little methodical exploration for lithium or REE
mineralisation. The broader Project area is therefore considered to have
potential for discovery of new uranium occurrences as well as the need to
follow up on previous exploration findings.

In addition, the Aileron Province is considered a major exploration target
for base metals including nickel (Ni) and copper (Cu), REE and orogenic style
gold mineralisation with numerous companies actively exploring within the
region.

The presence of tin-tantalum bearing pegmatites within the region is a strong
sign that any pegmatites present may be lithium-caesium-tantalum ("LCT")
bearing pegmatites. LCT-type pegmatites are important as they host lithium
mineralisation in hard-rock pegmatite fields elsewhere in Australia. The
potential for lithium mineralisation presents an additional opportunity for a
mineral discovery within the Project which had not previously been known.

Based on the findings of the review four separate areas have been identified
with the potential for uranium mineralisation as well as three separate areas
with the potential for REE mineralisation. All identified targets are within
the Project's granted exploration licences.

In addition to compiling a review of all historical data, the desktop study
has provided a comprehensive appraisal of the regional setting of Selta
Project access and infrastructure.

SELTA RECONNAISSANCE

FDR will conduct an initial reconnaissance site visit to the Selta Project in
March 2022. The objective of the reconnaissance is to initiate landholder
introductions, assess access and track conditions, review logistics for future
exploration work and also undertake low-impact exploration initial field work
including field logging and mapping and sampling of target anomaly areas and,
geological mapping and sampling of any previously recognised anomalous areas.
The site visit will be overseen by Mr Matt Stephens and will be attended by
various members of the FDR team.

 

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.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                                   Location   POW %            Work Completed or Underway                                                       Results Awaited

 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 5 of 7 properties.
 Authier North Lithium                     Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Interpretation of laboratory assay results of samples collected defining next
                                                                                                                                                        exploration steps.
 Ditau Project                             Botswana   50%              Preparatory exploration work underway on target I10 leading to planned           Field programme findings and defined drill targets for near term drilling.
                                                                       accelerated drilling targeting rare-earth elements and base metals

 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%(A)           Kavango Option to acquire an interest in local project holding company.          Results from various work activities underway as part of the Kavango Option.
                                                                       Option fee payable through defined work programme
 Tati Gold/Nickel                          Botswana   100%             Reverse circulation drill programme completed                                    Laboratory assay results awaited.
 Haneti Project                            Tanzania   35%              Diamond drill programme completed                                                Laboratory assay results awaited.
 Selta Uranium Rare Earth Element Project  Australia  83.33%           Geological, geophysical and geochemical review across the project.               Findings of review including confirmation of key targets for next stage
                                                                                                                                                        exploration.
 Victoria Goldfields                       Australia  49.9%            Diamond drill programme underway                                                 Field updates and Laboratory assay results awaited.

 Paterson Projects                         Australia  83.33%           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

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

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