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Power Metal Resources #POW – FDR Selta Lithium Exploration & Company Update
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 lithium focussed fieldwork at the Selta Project (“Selta” or the “Project”), located in Australia’s Northern Territory. Selta is held through its subsidiary First Development Resources PLC (“First Development Resources” or “FDR”) which is seeking a planned listing in the London capital markets (Power Metal holds 62.12% of FDR and 58.59% after transaction outlined below).
HIGHLIGHTS:
Phase II Lithium Focused Exploration Programme
· Lithium focussed Phase II follow-up fieldwork now underway to further examine the zonation of a prospective pegmatite system present at FDR’s 100% owned Selta Project. Pegmatites are the target lithology which have the potential to host lithium mineralisation.
· Approximately 700 potential outcropping pegmatites have been identified by desktop analysis, within a target area of circa 180km2 (see Fig.1 below). Given the size of the prospective area and the number of targets generated, the planned fieldwork will initially focus on a 30km2 area in the southeast of the Project (see Figure 1).
· The Phase II fieldwork follows on from the successful findings of the Phase I field reconnaissance programme in June 2022, which confirmed the presence of pegmatite geology over a small area within the south of the Project, with lithogeochemical analysis of 17 samples suggesting potential for a zoned pegmatite system originating from the nearby granites 1.
· A desktop analysis of lithium specific publicly available datasets, satellite imagery and purpose commissioned hyperspectral analysis previously outlined the presence of potentially pervasive outcropping pegmatites 2, 3 which are the subject of the current fieldwork campaign.
· Further information in respect of the lithium work programme is provided below.
Company Update
· FDR continues to advance preparations for its planned listing and is very close to completion of all material work streams.
· To further enhance FDR’s position in advance of the planned listing and in light of the positive progress across the exploration programmes at all projects, the net smelter return (“NSR”) royalties retained by the original vendors of FDR’s projects have been purchased by FDR.
· The two NSRs were originally announced on the acquisition of First Development Resources Pty Limited (“FDR Australia”)(RNS: 29.10.2021 4) and URE Metals Pty Ltd (“URE Metals”)(RNS: 19.11.2021 5) and were each a 2% NSR, with a 1% buyout right for A$1,000,000. The NSRs were held by the original shareholders of FDR Australia and URE Metals whose shareholdings were previously acquired, as outlined in the above dated announcements.
· Each NSR has been purchased for £150,000, payable through the issue of 1,875,000 new FDR ordinary shares of 1.0p (“New FDR Shares”) at an issue price of 8p per share, for a total consideration of £300,000 through the issue of 3,750,000 New FDR Shares. The price of 8p per New FDR Share is specific to this NSR purchase transaction only and should not be taken as established pricing in relation to an IPO financing for the planned listing of FDR in the London capital markets.
· As a result, FDR holds a 100% interest in all projects and there are now no NSRs over any of its properties.
· Following the issue of the New FDR Shares, the total FDR issued share capital will amount to 65,894,076 shares of which Power Metal holds 38,605,697 shares representing 58.59% of FDR issued share capital.
Tristan Pottas, Chief Executive Officer of First Development Resources commented:
“Much of the recent focus has been on preparing for FDR’s planned UK listing, however, the team has also remained committed to advancing the project portfolio for the ongoing benefit of FDR shareholders.
Over the past several months the FDR team has worked hard to develop strong relationships with the key stakeholders at Selta to facilitate the efficient deployment of field teams to site to complete value enhancing work.
The technical analysis of the outcropping pegmatites will significantly improve our understanding of the system present at Selta and will help inform future work programmes with the intention of identifying zones within the Project with the potential to host lithium mineralisation.”
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The search for economic deposits of lithium continues to be the focus of many exploration companies globally as they look to capitalise on the strong market conditions which continue to reflect the lack of supply for the ever-growing demand for battery metals including lithium.
Importantly, with our readiness for diamond drilling at Wallal and the ongoing work programme at Selta, we are seeking to ensure FDR is a vibrant exploration business when listed.
The buyout of all project royalties by FDR was an important step, simplifying the structure of the planned listing interests and reflecting the value of FDR’s project portfolio which has been significantly enhanced since their original acquisition.”
Figure 1 : Selta Project showing lithium pegmatite and rare earth element prospective areas of interest and target area for current Phase II pegmatite focussed fieldwork
BACKGROUND – SELTA PROJECT LITHIUM REVIEW
The in-depth review of all publicly available geological, geophysical and geochemical data for the Selta Project identified multiple uranium and rare-earth element (“REE”) targets within the Selta Project area and highlighted the potential for lithium, gold and base-metal mineralisation. The potential for lithium presented an additional opportunity for a mineral discovery within the Selta Project area, an opportunity which had previously been unknown. To gain a better understanding of the potential for lithium-caesium-tantalum (“LCT”) type pegmatites, the Company immediately commenced a lithium review of all publicly available data to help refine target areas for further investigation and deployed a team to Selta to confirm the presence of pegmatite geology.
The announcement in respect of this lithium review and subsequent reconnaissance may be viewed through the following link:
During the reconnaissance the site team was able to confirm the presence of pegmatite geology and collect samples to determine mineralogy.
The results of the sampling and subsequent geochemical testing of pegmatites on the property indicated that the pegmatites analysed on the southwest of the property are part of zoned pegmatite system, most likely originating from the nearby granite. The initial sampling campaign programme covered only a very small portion of the property but provided valuable information for future exploration programmes.
SELTA PEGMATITE SAMPLING PROGRAMME
The mineral deposit model for LCT pegmatites is well defined by the United States Geological Survey and suggests LCT pegmatites tend to show a regional mineralogical and geochemical zoning pattern with respect to the inferred parental granite, with the greatest enrichment in the more distal pegmatites. FDR’s initial analysis of data acquired during the Selta lithium review supports this model.
FDR now plans to expand on this initial interpretation and conduct further exploration over a broader area. Using the data acquired from previous desktop analysis and reconnaissance, a field team led by FDR’s exploration manager will conduct a targeted pegmatite mapping and sampling programme to acquire representative geochemical and geological data in the south of the Selta Project, where previous work has proven the presence of a pegmatite system.
This work aims to constrain the zonation believed to be present in the pegmatite system. The field work will include the systematic mapping of the surface expression of pegmatites along with the collection of representative rock chip samples, which will then be sent for geochemical analysis. This field work will feed into FDR’s technical understanding of pegmatites at Selta, to provide targets and inform future work programmes.
QUALIFIED 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 Qualified 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.
REFERENCE NOTES
1 Company announcement, First Development Resources – Company Update, 29 July 2022
( https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865 )
2 Company announcement, First Development Resources – Selta Lithium Update, 13 June 2022
( https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241 )
3 Company announcement, Selta Project – Multiple Target Areas Identified, 16 March 2022
( https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081 )
4 Company announcement, Power Metal Acquires 100% of FDR Australia, 29 October 2021
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w04g16x )
5 Company announcement, Acquisition of Uranium & Rare-Earth Element Project – Australia, 19 November 2021
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w1ye76w )
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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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.
Exploration Work Overview
Power Metal has multiple internal exploration programmes completed or underway, with results awaited. The status for each of the Company’s priority exploration projects is outlined in the table below.
|
Project |
Location |
Current POW % |
Work Completed or Underway |
Results Awaited |
|
Athabasca Uranium |
Canada |
100% |
Preliminary planning for work in Spring/Summer 2023 is ongoing. |
Work programmes for Spring/Summer 2023. |
|
Molopo Farms |
Botswana |
87.71% |
Diamond drill programme underway. MLEM surveys planned over additional AEM targets identified. |
Drill programme updates and findings from further MLEM survey work. |
|
Tati Project |
Botswana |
100% |
RC drilling and sampling of mine dumps complete. |
Mine dumps processing and project commercial and exploration next steps. |
Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required. These interests are summarised in the table below:
|
Company |
Status/Operations |
Link |
|
First Class Metals PLC |
Investment – POW 27.91% Exploration in the Schreiber-Hemlo region of Ontario, Canada |
|
|
Kavango Resources PLC |
Investment – POW 9.85% Exploration in Botswana |
|
|
First Development Resources PLC |
Planned IPO – POW 62.12%* (58.59% post NSR buyout) Exploration in Western Australia and the Northern Territory of Australia |
www.firstdevelopmentresources.com
|
|
Golden Metal Resources PLC |
Planned IPO – POW 83.13% Exploration and development in Nevada, USA |
|
|
New Ballarat Gold PLC |
Planned IPO – POW 49.9% Exploration in the Victoria Goldfields of Australia |
A new website is currently in development which will be found atwww.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .
|
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Uranium Energy Exploration PLC |
Planned IPO – POW on listing estimated 50-55% Uranium exploration in the Athabasca region of Canada |
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:
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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|
|
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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|
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Power Metal Resources #POW – Selta Rare Earth Element and Uranium Project – Project Update
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/
HIGHLIGHTS
– URE Metals Pty Limited (“URE”) has received notification from the Northern Territory Government’s Delegate for the Minister for Mining and Industry of their intention to imminently grant all Selta Project Mineral Exploration Licences EL 32737, EL 32738 and EL 32755 (see below for further information).
– First Development Resources Limited (“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.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The profile of REE and uranium exploration has increased significantly of late as the demand for critical minerals to support technological advancements in electric vehicle and alternative energy sources continues to grow.
Power Metal acquired the Selta Project to secure a strategic positioning in this highly prospective REE and uranium area in the Northern Territory of Australia. As you will see below, this acquisition looks very much to be in the right place and timely.”
Tristan Pottas Chief Executive Officer of First Development Resources Ltd commented:
“In parallel with the finalisation of the licence grant process we have now initiated an in-depth review of all relevant historical data associated with the Selta Project and the region as a whole, with the aim of identifying prospective areas of interest for further investigation.
The central Northern Territory region remains of particular interest to explorers looking to capitalise on the increase in global demand for REEs and uranium as evidenced by our listed neighbours MegaWatt Lithium and Battery Metals Corp (CSE:MEGA); who recently announced they were set to commence exploration at their nearby properties1. We look forward to updating the market on the findings of our in-depth data review as the study progresses.”
BACKGROUND
Selta is held within URE Metals Pty Limited, an Australian private company and wholly owned subsidiary of First Development Resources Limited which is planning to list on the London capital markets in Q2 2022. Power Metal currently holds a 96.15% 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:
LICENCE GRANT PROCESS
URE has received notification from the Delegate of the Minister for Mining and Industry, as provided by section 78(2) of the Mineral Titles Act 2010 of their intention to grant Mineral Exploration Licences EL 32737, EL 32738 and EL32755 which together make up the Selta Rare Earth Element and Uranium Project in the Northern Territory, Australia.
The grant will be effective from the date of payment of the rent for the first operational year which totals AU$19,190. Arrangements have been made for immediate payment and FDR expects to receive final grant notification in the coming days.
FDR through URE has commenced an in-depth review of all historical geological, geophysical and geochemical data associated with the Selta Project. The objective of the review is to identify targets for follow up investigation.
SELTA PROJECT IN-DEPTH DATA REVIEW
FDR have partnered with Mr Matthew Stephens of Luksam Consultants based in Queensland, Australia, to complete 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 I 43-101 reports and tenement appraisals.
In addition to compiling a review of all historical data, the desktop study will provide a comprehensive appraisal of the regional setting of Selta Project access, infrastructure and a prioritised list of exploration target areas.
SELTA PROJECT – BACKGROUND
The Selta Project, considered to be prospective for uranium and rare-earth elements, 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 exploration licence applications covering a total land area of 1,574.92 km2 including EL 32737 – 780.85km2, EL 32738 – 312.17 km2 and EL 32755 – 481.90 km2.
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 (P2O5). 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 NPV8% of US$1.011B.2
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.
The Selta Project area is currently located along strike to the northwest of the 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 results3 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 Laboratories3 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. 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)
2. Arafura Resources Limited Annual General Meeting Presentation, 21/10/2021. Available at: https://wcsecure.weblink.com.au/pdf/ARU/02438942.pdf
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
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
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|
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 |
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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 |
Interpretation of laboratory assay results of samples collected. |
|
Ditau Project |
Botswana |
50% |
Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals
|
Field programme findings and defined drill targets for near term drilling. |
|
Kalahari Copper Belt |
Botswana |
50% |
Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas |
Field programme findings and defined drill targets for near term drilling |
|
Molopo Farms |
Botswana |
53%A |
Kavango Option to acquire an interest in local project holding company. Option fee payable through defined work programme |
Results from various work activities underway as part of the Kavango Option |
|
Tati Gold/Nickel |
Botswana |
100% |
Reverse circulation drill programme completed |
Laboratory assay results awaited |
|
Haneti Project |
Tanzania |
35% |
Diamon drill programme underway |
Results from field programme including drill programme underway |
|
Victoria Goldfields |
Australia |
49.9% |
Ongoing exploration across 848km2 of granted exploration licences
|
Results from field programme including drill programme underway |
|
Wallal Gold/Copper Project |
Australia |
83.33%B |
Passive seismic and 2D seismic processing work programme completed. Ground reconnaissance work underway. |
Results awaited |