REG - Power Metal - Selta Uranium REE Project – All Licences Granted

Power Metal ResourcesAnnouncement

23/02/2022 12:00

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RNS Number : 5874C  Power Metal Resources PLC  23 February 2022

23 February 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Selta Uranium and Rare Earth Element Project - All Exploration Licences
Granted

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/)

BACKGROUND

Selta is held within URE Metals Pty Limited ("URE"), an Australian private
company and wholly owned subsidiary of First Development Resources Limited
("FDR") which is planning to list on the London capital markets in Q2 2022.

The formal grant of the Selta Project licences triggers the issue of FDR stock
to the vendors of URE and reflecting this Power Metal currently holds an
83.33% 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 which includes details of the FDR stock
issuance on grant of the Selta licences:

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)
 

HIGHLIGHTS

-      URE has received formal notification from the Northern Territory
Government Department of Industry, Tourism and Trade that all three Selta
Project Mineral Exploration Licences have now been granted for a term of six
years  (16 February 2022 to 15 February 2028).

-      The grant includes Exploration Licence ("EL") 32737 (780.85km(2)),
EL 32738 (312.17km(2)) and EL 32755 (481.9km(2)) (see below for further
information).

-      In total URE now holds 1,574.92km(2) under granted licences with a
key focus on uranium and REE mineralisation.

-      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.

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

"Our work to date in respect of the Selta Project has highlighted considerable
geological potential, notably focused on uranium and Rare Earth Elements.  An
in-depth review of the Project is now underway and this couldn't be more
timely with the announcement today that all licences have been granted.

The team considers the Selta Project to be a key FDR business interest and the
accumulating evidence from fellow licence holders in the vicinity of the
Project supports this proposition, as you will see in the 'Selta Project -
Background' section below.

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

"The grant of the Selta licences provides a real boost to FDR, as the company
seeks a listing in London in the coming months.

Today's news is also a significant step forward for Power Metal, providing our
shareholders with exposure to another uranium exploration opportunity and
complementing the wholly owned uranium projects surrounding the Athabasca
basin in Saskatchewan, Canada.

Power Metal is experiencing considerable interest in its uranium exploration
properties and we see this as an area of real value generation going forward."

SELTA PROJECT - BACKGROUND

The Selta Project, considered by FDR to be prospective for uranium ("U") and
rare-earth elements, ("REEs") 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 granted exploration licences 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.(1)

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.(2)

The Selta Project area is currently located along strike to the northwest of
a 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.   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)

2.    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/)

 

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 - 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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