REG - Power Metal - Wallal Project Exploration Update

Power Metal ResourcesAnnouncement

11/01/2022 07:05

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RNS Number : 9986X  Power Metal Resources PLC  11 January 2022

11 January 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Wallal Project Exploration Update

Ground Reconnaissance Commences at the Wallal Project in the Paterson
Province, Western Australia in Preparation for Phase I Diamond Core Drilling
Programme

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
provides an update to shareholders in respect of its interests in the Paterson
Province of Western Australia (the "Paterson Interests") held through First
Development Resources Limited ("FDR").

This update relates specifically to the Wallal Project ("Wallal" or the
"Project"), one of three Paterson region projects held by FDR and includes the
Wallal Tenements (E45/5816, E45/5853 and E45/5880) (the "Tenements").

Highlights

·    A reconnaissance team has arrived on site at the Wallal Project to
survey and map all existing access tracks and proposed drill hole locations
for a planned Phase I diamond core drilling programme targeting gold-copper
mineralisation.

 

·    The reconnaissance work will inform the extent of the Heritage
Clearance Survey which will be completed under the supervision of the Yamatji
Marlpa Aboriginal Corporation ("YMAC") if required by YMAC and the Nyangumarta
people, prior to drill programme mobilisation.

 

·    FDR has appointed Ian Shackleton of Perth, WA, based Resource
Potentials Pty Ltd ("Resource Potentials") as Exploration Manager and have
opened dialogue with the Department of Mines, Industry Regulation and Safety
ahead of the Company's proposed Phase I diamond core drilling programme.

 

·    Preparations for the FDR initial public offering ("IPO") listing
process planned for Q2 2022 are progressing well, including finalising the
board and advisory team composition.

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

"The First Development Resources opportunity is attracting considerable
interest from prospective investors and we hope this early stage field
reconnaissance will create more interest in what we believe is a very exciting
opportunity.  We intend to publish updates on progress and shareholders are
encouraged to monitor the Company's gallery section on our website where
Project images and videos will be uploaded in the coming days.

The prospectivity of the Paterson Province has been heightened recently
following Greatland Gold's Gold-Copper Havieron discovery and we believe the
team we have assembled and the work which has been completed to date at Wallal
has demonstrated the exploration potential of the area.

I would like to welcome Tristan Pottas the newly appointed FDR Chief Executive
Officer.  Tristan joined in November 2021 and has been working proactively on
the multiple work streams to build relationships in Australia, advance
exploration work and further the FDR listing process.

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

"The initiation of reconnaissance work at FDR's flagship Wallal Project is the
first step on our journey to testing the multiple intriguing bullseye shaped
geophysical anomalies identified during the desktop analysis.

Over the past few months, we have been working with our various consultants
and in country partners to extract the maximum amount of information from the
data available to inform the optimum locations for our Phase I diamond core
drilling programme targeting gold-copper mineralisation.

To this end, we have established a working relationship with the traditional
owners and we look forward to working with them as the exploration programme
progresses."

PATERSON INTERESTS - OWNERSHIP STRUCTURE

The Paterson Interests are held by First Development Resources Limited which
holds a 100% interest in local Australian operating company First Development
Resources Pty Limited ("FDR Australia"). FDR Australia's licence interests are
outlined below.

Power Metal has a current effective interest of 96.15% in FDR and an effective
interest of 83.33% after the grant of three licences owned by URE Metals Pty
Limited ("URE") which was acquired outright by FDR in an all-share purchase
announced on 19 November 2021.  Further details of the acquisition of URE and
its uranium and rare earths interests may be viewed in the Company's
announcement:

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)

PATERSON PROVINCE - EXPLORATION RATIONALE

The Paterson Province is host to major gold-copper deposits including Winu
(Rio Tinto) and Havieron (Newcrest Mining - Greatland Gold JV).

To date, FDR has undertaken in-depth desktop analyses with the aim of
comparing the geological and geophysical features of both Winu and Havieron to
those found within the Wallal Project.

The exploration hypothesis is that if FDR is able to identify geological and
geophysical similarities of areas within the Wallal Project to established
large-scale deposits elsewhere in the Paterson region, it would increase the
chance of a discovery and justify more detailed exploration.

A comprehensive desktop study commissioned by FDR over the Wallal Project is
nearing completion and has identified three prospective magnetic bullseye
targets. These include the Western, Eastern and Border anomalies which, based
on geophysical interpretation, have estimated dimensions of 5km x 5km, 2.5km x
2.5km and 1km x 1km respectively.

Further analysis has determined that the Eastern and Border anomalies are
located at depths similar to Greatland Gold's Havieron discovery. Greatland
Gold's Havieron was discovered by blind drilling a magnetic bullseye anomaly
through circa. 420m of post-mineral sedimentary cover.

The latest exploration update focused on the Wallal Project and released by
the Company on 13 September 2021 may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/fdr-australia-paterson-region-exploration-update/15132674
(https://www.londonstockexchange.com/news-article/POW/fdr-australia-paterson-region-exploration-update/15132674)

WALLAL RECONNAISSANCE

FDR's reconnaissance team have arrived in the Paterson and will spend a week
mapping and completing a condition survey of all existing access tracks
linking the Wallal Tenements with the Great Northern Highway. The team also
plan to visit the planned Phase I diamond core drill hole locations to assess
the logistics of getting the drilling rig to the sites using existing access
tracks.

The drill hole location assessment will inform and constrain the extents of
the Heritage Clearance Survey request which we hope to initiate in the coming
weeks. All reconnaissance will be completed in accordance with the terms of
the Heritage Agreement in place with the YMAC as agent for the Nyangumarta
Warrarn Aboriginal Corporation RNTBC ("NWAC").

Ahead of deployment of the reconnaissance team, notification was submitted to
YMAC who are acting as an agent for the traditional owners of the Wallal
Tenements, NWAC.

YMAC have agreed to allow these low-impact preparatory exploration works to go
ahead prior to completion of the Heritage Clearance Survey.

Phase I diamond core drilling programme

FDR in conjunction with Perth, WA, based consultancy, Resource Potentials Pty
Ltd, are nearing completion of an in-depth desktop analysis of all available
data relating to the Wallal Tenements. The desktop study has focussed on
providing clarity as to the scale, geometry and depth of the three magnetic
"bullseye" anomalies identified within the Wallal tenement area.

The study has included the analysis of open-file government airborne magnetic
geophysical datasets along with the reprocessing of historical seismic and
ground-gravity data. The reprocessing of the legacy seismic data was completed
by Velsis Integrated Seismic Technologies Pty Ltd and has been supplemented by
FDR Australia's own passive seismic survey which was completed by Atlas
Geophysics Pty Ltd.

The passive seismic survey was completed to provide important information
relating to the depth of post-mineral sedimentary cover and critical
information relating to the precise depth to bedrock over the Eastern and
Border "bullseye" anomalies which will be the focus of the Company's phase I
diamond core drilling programme. FDR expects to receive the final findings of
the survey in the coming weeks.

Based on the work completed to date, FDR strongly believe that there is
sufficient exploration data to support further exploration including a Phase I
diamond core drilling programme.

In preparation for the Phase I diamond core drilling programme the Company has
been liaising with all stakeholders including the traditional owners and
exploration partners.

In accordance with section 47(1) of the Western Australian Mines Safety and
Inspection Act 1994, Ian Shackleton of Resource Potentials has been appointed
as the Company's registered exploration manager, in addition, Resource
Potentials has been granted authority to lodge operational reports, Programme
of Works applications and act regarding any other Project Management and
mining related compliance matters with the Department of Mines, Industry
Regulation and Safety ("DMIRS"), Western Australia.

Following completion of the reconnaissance work announced today, Resource
Potentials, on FDR's behalf, will be applying for a Programme of Works from
DMIRS specific to the Phase I diamond core drilling programme and a Heritage
Clearance Survey Request will be issued to YMAC. FDR are targeting
commencement of drilling activities during H1 2022.

CORPORATE DEVELOPMENT

FDR is seeking a listing on the London capital markets.  Preparatory steps
are being taken for the listing, which is targeting Q2 2022, including the
recruitment of a suitable board, senior management team and suite of advisors
to assist with the listing process.

Specifically in respect of the board, Tristan Pottas has been appointed as
Chief Executive Officer of FDR and Craig Moulton as Non-executive
Director.

PATERSON PROJECTS - BACKGROUND

FDR Australia holds the following exploration licence interests:

Wallal Project (Wallal Main-E45/5816 - 390km(2) - granted), (Wallal West
1-E45/5853 96km(2) - granted) and (Wallal West 2 -
E45/5880 86km(2) - granted).

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

In-depth desktop analysis of historic exploration data is currently underway
on the Braeside West Project. A recent base-metal discovery by neighbouring
company Rumble Resources 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 (E45/5088 - 42km(2) - one granted licence).

The Ripon Hills Project 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.

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                                                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%(1)           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
 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%(2)        Passive seismic and 2D seismic processing work programme completed            Results awaited

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

(2) 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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