REG - Power Metal - Selta Project Update

Power Metal ResourcesAnnouncement

15/02/2022 07:00

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RNS Number : 6552B  Power Metal Resources PLC  15 February 2022

15 February 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Selta Rare Earth Element and Uranium Project - Project Update

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")
prospective for Rare Earth Element ("REE") and Uranium ("U") mineralisation
located in the Northern Territory, Australia.

A map showing the location of the Selta Project 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/)

HIGHLIGHTS

-   URE Metals Pty Limited ("URE") has received notification from the
Northern Territory Government's Delegate for the Minister for Mining and
Industry of their intention to imminently grant all Selta Project Mineral
Exploration Licences EL 32737, EL 32738 and EL 32755 (see below for further
information).

-   First Development Resources Limited ("FDR") have commenced an in-depth
review of all available geological, geophysical and geochemical data
associated with the Selta Project and adjacent ground. The objective of the
review is to identify priority targets for further investigation.

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

"The profile of REE and uranium exploration has increased significantly of
late as the demand for critical minerals to support technological advancements
in electric vehicle and alternative energy sources continues to grow.

Power Metal acquired the Selta Project to secure a strategic positioning in
this highly prospective REE and uranium area in the Northern Territory of
Australia.  As you will see below, this acquisition looks very much to be in
the right place and timely."

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

"In parallel with the finalisation of the licence grant process we have now
initiated an in-depth review of all relevant historical data associated with
the Selta Project and the region as a whole, with the aim of identifying
prospective areas of interest for further investigation.

The central Northern Territory region remains of particular interest to
explorers looking to capitalise on the increase in global demand for REEs and
uranium as evidenced by our listed neighbours MegaWatt Lithium and Battery
Metals Corp (CSE:MEGA); who recently announced they were set to commence
exploration at  their nearby properties(1). We look forward to updating the
market on the findings of our in-depth data review as the study progresses."

BACKGROUND

Selta is held within URE Metals Pty Limited, an Australian private company and
wholly owned subsidiary of First Development Resources Limited which is
planning to list on the London capital markets in Q2 2022. Power Metal
currently holds a 96.15% interest in 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)
 

LICENCE GRANT PROCESS

URE has received notification from the Delegate of the Minister for Mining and
Industry, as provided by section 78(2) of the Mineral Titles Act 2010 of their
intention to grant Mineral Exploration Licences EL 32737, EL 32738 and EL32755
which together make up the Selta Rare Earth Element and Uranium Project in the
Northern Territory, Australia.

The grant will be effective from the date of payment of the rent for the first
operational year which totals AU$19,190. Arrangements have been made for
immediate payment and FDR expects to receive final grant notification in the
coming days.

FDR through URE has commenced an in-depth review of all historical geological,
geophysical and geochemical data associated with the Selta Project. The
objective of the review is to identify targets for follow up investigation.

SELTA PROJECT IN-DEPTH DATA REVIEW

FDR have partnered with Mr Matthew Stephens of Luksam Consultants based in
Queensland, Australia, to complete 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 I 43-101
reports and tenement appraisals.

In addition to compiling a review of all historical data, the desktop study
will provide a comprehensive appraisal of the regional setting of Selta
Project access, infrastructure and a prioritised list of exploration target
areas.

SELTA PROJECT - BACKGROUND

The Selta Project, considered to be prospective for uranium and rare-earth
elements, is located in Australia's Northern Territory 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 Project comprises three exploration licence applications covering a total
land area of 1,574.92 km(2) including EL 32737 - 780.85km(2), EL 32738 -
312.17 km(2) and EL 32755 - 481.90 km(2).

The Northern Territory hosts some of Australia's best known and high-grade
uranium deposits and has a long history of uranium mining. In addition,
the Aileron Province is a major exploration target for base metals including
nickel ("Ni") and copper ("Cu"), REEs and orogenic gold ("Au") with numerous
companies actively exploring within the region.

The Selta Project borders Prodigy Gold NL (ASX:PRX), IGO Ltd (ASX:IGO) and
Canadian listed Megawatt Lithium and Battery Metals Corp (CSE:MEGA)
("Megawatt"); and is less than 70 km northwest of Arafura Resources' (ASX:ARU)
high-grade, world-class Nolans Bore REE deposit.

The Nolans Bore REE-phosphate-uranium-thorium deposit is one of the largest
deposits of its kind in the world with a JORC (2012) compliant Mineral
Resource of 56 million tonnes at an average grade of 2.6% total rare-earth
oxides and 11% phosphate (P(2)O(5)). Commercial production is targeted for
late 2024, with the Feasibility Study considering a 4,440 tonne per annum
neodymium ("Nd") - praseodymium ("Pr") oxide producing open pit mining
operation with a 38 year mine-life and an NPV(8%) of US$1.011B.(2)

The Selta Project's southern claim boundary abuts the Megawatt landholding.
Promising surface samples collected within the Megawatt property coupled with
a known radiometric trend is currently postulated by the Company to link the
Megawatt property with Arafura's ground to the south-east.

MegaWatt recently announced exploration for REEs and uranium was set to
commence at their adjacent Arctic Fox Project, located immediately south of
Selta, and their Isbjorn Project also within the Central Northern Territory
region.

The Selta Project area is currently located along strike to the northwest of
the radiometric trend and future work will seek to extend that trend within
the Selta Project. The underlying geology within the Selta Project is
interpreted by the Company to be comparable to the Nolans Bore deposit with
REE and U mineralisation at Nolans Bore being hosted within G6 granites which
are postulated by the Company to be compositionally similar to the G5 granite
prevalent across the Selta Project.

Notably, within 5km of the Selta Project's eastern boundary are three REE
occurrences with results up to 543ppm Nd and 148ppm praeseodymium hosted
within the G5 granite. Selta's exploration potential has been enhanced by
encouraging historical surface sampling results(3) of up to 3.8 ppm U in soil
samples, 27.2 ppm U in stream sediment samples and up to 244 ppm U in rock
chip samples, all of which led to a study by The Australian Mineral
Development Laboratories(3) stating:

 "…the amount of uranium moved by solution or erosion is large enough for
there to be several potentially economic orebodies."

In addition to uranium the Company believe that the Selta project has
significant potential for Cu, Au and silver (Ag) mineralisation.

Prodigy Gold's Reynold Range Gold Copper Project, which borders the Selta
Project's lease area, has delivered encouraging results  across four
prospects for Cu, Au and Ag with reverse circulation drilling intercepts
yielding 29m @ 2.32g/t Au (Falchion Prospect) and 17m @ 3.93g/t Au  (Sabre
Prospect) and surface samples of up to 7.5g/t Au, 783g/t Ag and 19.3% Cu
(Scimitar Prospect) and 0.55g/t Au, 271g/t Ag and 20.3% Cu at the Reward
Prospect.(4)

REFERENCES

1.    Megawatt Exploration for REEs & Uranium within Central Northern
Territory Properties Set to Commence and Marketing Agreement. Available at
Megawatt Lithium and Battery Metals Exploration for REEs & Uranium within
Central Northern Territory Properties Set to Commence ... - MegaWatt
(megawattmetals.com)
(https://megawattmetals.com/megawatt-lithium-and-battery-metals-exploration-for-rees-uranium-within-central-northern-territory-properties-set-to-commence/)

 

2.    Arafura Resources Limited Annual General Meeting
Presentation, 21/10/2021. Available
at: https://wcsecure.weblink.com.au/pdf/ARU/02438942.pdf
(https://wcsecure.weblink.com.au/pdf/ARU/02438942.pdf)

3.    The Australia Mineral Development Laboratories (CR 74/19) Sixth
Progress Report MP 4976/73 Geochemical Survey, Arunta Area Amdel (December
1973)

4.    PRX ASX Release - 20 May 2021. Available at:
https://wcsecure.weblink.com.au/pdf/PRX/02376469.pdf
(https://wcsecure.weblink.com.au/pdf/PRX/02376469.pdf)

 

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 (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.
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Interpretation of laboratory assay results of samples collected.
 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%              Diamon drill programme underway                                               Results from field programme including drill programme underway
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(B)        Passive seismic and 2D seismic processing work programme completed.           Results awaited

                                                         Ground reconnaissance work underway.

( )

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

(B) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors

 

 

 

 

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