Power Metal Resources #POW – Selta Project – Multiple Target Areas Identified

Selta Project – Uranium and Rare Earth Element Target Areas Identified with Additional Tin and Lithium Proceptivity 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/  

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  

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 km²), EL 32738 (312 km²) and EL 32755 (481 km²) which cover a total land area of 1,574 km² 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/ or contact: