Power Metal Resources #POW – FDR Australia – Government Co-Funded Drilling

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update from the Wallal Project (the “Project”) located in the prolific Paterson Region of Western Australia where the Company is targeting major gold-copper discoveries.

The Wallal Project is wholly owned by First Development Resources Pty Ltd (FDR Australia). Power Metal announced a conditional acquisition of FDR Australia on 28.04.21, further details of which are provided below. Power Metal is currently working to complete this acquisition and a further announcement in respect of this is expected in the near term.

An application was submitted by FDR Australia to the Government of Western Australia Department of Mines, Industry Regulation and Safety (“DMIRS”) for government co-funded exploration drilling at the FDR Australia’s wholly owned Wallal Project (the “Application”). The funding is granted as part of Western Australia’s Exploration Incentive Scheme (“EIS”). The EIS  is a funding programme which offers up to a 50% refund (capped at A$150,000 for multi-hole drilling campaigns) for innovative exploration drilling projects undertaken within Western Australia.

The Wallal Project (the “Project”) covers 572km² and includes three licence areas as follows:

–  E45/5816 – Wallal Main (390km² granted licence)

–  E45/5853 – Wallal West 1 (96km² application)

–  E45/5880 – Wallal West 2 (86km² granted licence)

The Application submitted sought co-funding for deep drilling at the Wallal Main licence area, specifically targeting the Eastern  and Border anomalies identified from exploration to date. The Eastern and Border anomalies were originally identified following in-depth historical desktop analyses carried out by Power Metal over the entire Wallal Project. In particular, government airborne magnetic datasets identified multiple prospective concentric magnetic anomalies, including the Eastern and Border anomlies located within the Project.  

The Havieron deposit discovery, also located within the Paterson Region was originally discovered in basement rocks hidden below roughly 420m of post-mineral sedimentary cover, which resulted from the drilling of a buried magnetic geophysical anomaly. Further analysis of the Eastern and Border anomalies highlighted several similarities between the various magnetic targets. Specifically, the size and magnetic amplitudes of the Eastern and Havieron anomalies are ~2.5 x 2.5km (100 nanotesla) and  ~2 x 2km (80 nanotesla) respectively. Additionally, the Eastern, Border and Havieron anomalies were determind to lie under similar amounts of sedimentary cover.

FDR Australia has received written confirmation today that the Application has been successful and a co-funded drilling offer for up to A$165,000 has been received (including the maximum amount available under the EIS of A$150,000, plus up to A$15,000 in respect of drill mobilisation).

Work is nearing completion in respect of 2D seismic processing and passive seismic surveys undertaken at the Wallal Project and a further update to the market will follow with the findings of that work, which is focused on the refinement of current drill targets in readiness for the deep drilling campaign.

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

“In 2021 we have applied resources to build our knowledge of the Wallal Project and refine our understanding of the three large scale magnetic bullseye anomalies.  That work has continuously yielded positive outcomes and we are particularly excited at the discovery potential the Wallal Project offers.

Securing government co-funding for the Project further enhances our confidence.  Aside from the benefit of co-funding to mitigate financial outlay, the co-funding further demonstrates the validity of our exploration plans in respect of this potentially company transforming opportunity.”

BACKGROUND

The Paterson projects are held by First Development Resources Pty Ltd (FDR Australia) and include Wallal Project (Wallal Main-E45/5816 (granted), Wallal West 1-E45/5853 (application) and Wallal West 2 – E45/5880 (granted), Braeside West Project (one licence application) and the Ripon Hills Project (one granted licence).

On 28 April 2021 Power Metal announced a conditional acquisition of FDR Australia and this may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/conditional-australia-copper-gold-acquisition/14955517

The latest exploration update 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

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/ or contact: