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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 83.33% owned First Development Resources Limited (“FDR”).

FDR is planning to list on the London capital markets in Q3 2022 (the “IPO”) and is focussed on district scale exploration opportunities in Australia.

This update summarises the findings from the recent FDR management site visit to projects in Australia which included reconnaissance at the Wallal and Braeside West Projects in the Paterson Province of Western Australia (“WA”) and the Selta Project in the Northern Territory (“NT”).

Highlights

· FDR management visited and conducted reconnaissance at the FDR’s Wallal and Braeside West projects in the Paterson Province of Western Australia and the Selta project located in the Northern Territory. The reconnaissance team was able to access all granted licences using established, well-maintained tracks with direct links to sealed highways.

· Whilst on site the team was able to make high-level observations and document, where possible, the underlying geology and the structural setting at each project. Plans are now being made to determine the most effective way to develop the target areas identified in the recently completed desktop studies.

· The comprehensive geophysical desktop study for the flagship Wallal Project is now complete. The geometry and depth to the main Eastern Magnetic Bullseye anomaly has been constrained and work is progressing to facilitate the commencement of a planned Phase I diamond drilling programme.

· The in-depth data review for the Selta project has identified multiple separate uranium and rare-earth element targets along with the potential for lithium, gold and base-metal mineralisation as well as the possibility of tin-tantalum-tungsten rich pegmatites. Significant outcrop is accessible across the project area and the next phase of exploration to delineate prospective targets is progressing.

· The in-depth review of all historical geological, geophysical and geochemical data associated with the Ripon Hills and Braeside West Projects is nearing completion. The objective of the review is to identify potentially prospective targets associated with the deep-seated north to northwest trending fault structures prevalent throughout the area. The surface expression of these structures were easily observed during the recent site visit to Braeside West.

· As part of the visit the FDR management team had a number of positive meetings with various parties, including;

o  Several prospective investors based in Perth, WA. It was encouraging to note the level of interest in the FDR business proposition;

o  FDR’s Australia based non-executive directors and key advisors including local legal and accounting teams along with the vendor group; and

o  The Government of Western Australian Department of Mines, Industry Regulation and Safety (“DMIRS”) and the Northern Territory Geological Survey (“NTGS”). DMIRS and the NTGS are the custodians of knowledge and data of their respective geology and resources. Both government departments are supportive of FDR and will be a valuable source of data as FDR’s exploration progresses.

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

“The recent management visit to FDR’s projects in Western Australia and the Northern Territory was a great success. The main objective of the visit was to gain a better understanding of the nature of our interests in Australia from a geological and logistical perspective and crucially, to meet and spend time with the in-country teams working to realise our aim of making major mineral discoveries.

What was particularly positive was the level of engagement and commitment clearly evident across the advisor and consultancy teams along with a high-level of interest from prospective investors.”

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

“The rate at which work is progressing across the FDR portfolio is encouraging. What started out as number of promising conceptual targets now includes a drill-ready target at Wallal and several defined areas for further investigation at the Selta Project.

The broader understanding of the projects gained by spending time on the ground with the teams working with FDR, was important as we enter a key stage in FDR’s development.”

PROJECT UPDATE – WALLAL

The geophysical desktop study for FDR’s flagship Wallal project is now complete. Three magnetic bullseye anomalies including the Western , Eastern and Border anomalies, representing Havieron and Winu style Au-Cu base metal targets have been identified within the Wallal project area. The sources of these magnetic highs are expected to occur within the Proterozoic basement rocks underlying thick Phanerozoic cover sediment sequences. A cover-constrained magnetic three dimensional model of the Eastern magnetic bullseye anomaly has been refined and suggests that the anomaly is comprised of two lobes located at approximately 800 metres below surface. This is supported within higher-order derivative filtered images of the airborne magnetic data, and it results in a well-defined drill target which will be tested during the planned Phase I diamond core drilling programme.

A Programme of Works application for ground disturbance in preparation for the planned Phase I diamond core drilling programme, initially targeting the Eastern anomaly, has been approved by the DMIRS. Additionally, in accordance with Section 18 of the Aboriginal Heritage Act 1972 and in accordance with the terms of the Heritage Agreement in place with the Yamatji Marlpa Aboriginal Corporation (“YAMC”) as agent for the Nyangumarta Warrarn Aboriginal Corporation RNTBS, a Heritage Clearance Survey Request which covers the Eastern and Border anomalies and all associated access tracks has been submitted to YMAC. FDR expect to receive confirmation of the commencement date of the Heritage Survey in the coming weeks.

The Wallal project area was recently visited by the FDR management team as part of a broader visit which incorporated all of FDR’s project locations in Australia. The relative ease of access to the Wallal licence area from the Great Northern highway was noted along with the absence of significant dune corridors which are characteristic within other areas of the Paterson region. Both points are particularly encouraging when considering the logistical challenges typically associated with operating in remote areas.

PROJECT UPDATE – BRAESIDE WEST AND RIPON HILLS

FDR’s Braeside West and Ripon Hill licence areas are located approximately 260 kilometres southeast of Port Hedland on the western edge of the Paterson Province in Western Australia. The projects are located on the western and eastern limbs of the Oakover Syncline. The area is believed by FDR to be primarily prospective for manganese similar to the nearby Woodie Woodie manganese mine, as well as base-metal and gold mineralisation associated with deep-seated north to north-westerly trending fault structures. FDR believe these fault structures have the potential to be conduits for various styles of hydrothermal mineralisation as evidenced by recent exploration conducted by ASX listed Rumble Resources Limited (“Rumble”) on land adjacent to the Braeside West tenement.

Recent exploration by Rumble along the eastern limb of the Oakover Syncline has defined a regional scale porphyry, epithermal and volcanogenic massive sulphide (“VMS”) mineralised system that extends over 60 kilometres in strike length and 8 kilometres in width within which they have identified over 40 priority Cu-Au-Zn-Pb-Ag targets. Similar prospective rock types occur within the Ripon Hills project which has had very limited past base-metal and gold exploration.

An in-depth desktop study has been initiated to better understand the prospectivity of the Ripon Hills and Braeside West projects. The objective of the study is to capture and assess all relevant geological, geophysical and geochemical data over the Ripon Hills and Braeside West project areas. Upon completion of this exercise, FDR will be able to plan the next phase of exploration over defined target areas.

The FDR management team visited Braeside West in March 2021. Encouragingly, the team was able to travel the entire length of the western margin of the tenement along existing access tracks. Whilst on site the team was able to observe outcropping geology and evidence of structural deformation potentially associated with the aforementioned north-westerly trending fault structures. FDR expect to receive the results of the in-depth desktop study which will include defined targets in the coming weeks.

PROJECT UPDATE – SELTA

The in-depth review of all publicly available geological, geophysical and geochemical data for the Selta Project is now complete.   Based on a review of historical 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 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 Selta 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.

During the site visit the FDR management team was accompanied by Matt Stephens, the author of the in-depth review over the Selta Project. The key takeaway from the site visit was the accessibility of the project area along existing, exceptionally maintained access tracks. The Selta project covers an area of almost 1,600km², the ability to access all three granted licences easily is of particular significance, especially when planning the next phase of exploration. Additionally, the amount of accessible outcrop was encouraging. Prior to the site visit it was hoped the Selta licence area would be underpinned by granites similar to those prevalent across the nearby Arafura Nolan’s Bore deposit. Felsic granitic intrusions were observed across the project area and, although further work is required to determine the minerology of the local geology, the presence of potentially comparable outcrop presents an intriguing target for the next phase of investigation.

IPO AND LISTING PROCESS

FDR is seeking a listing on the London capital markets and is working with advisors in this regard and is targeting a listing on the London capital markets in Q3 2022.

FDR EXPLORATION INTERESTS

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).

A comprehensive geophysical review has identified three magnetic bullseye anomalies located under Phanerozoic sedimentary cover which are interpreted to have possible geological similarities major Au-Cu deposits within the Paterson Province including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland Gold JV)

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.

Selta Project (EL 32737, EL 32738, EL 32755-1,575km²-three granted licences)

The Selta Project is located in an area considered to be highly-prospective for uranium and rare earth element mineralisation. FDR recently completed an in-depth review of all geological, geophysical and geochemical data which also identified the potential for lithium, gold and base-metal mineralisation as well as the possibility of tin-tantalum-tungsten rich pegmatites.

For further information please visit  https://www.powermetalresources.com/  or contact: