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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.
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Project |
Location |
Current POW % |
Work Completed or Underway |
Results Awaited |
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Athabasca Uranium |
Canada |
100% |
Preliminary planning for work in Spring/Summer 2023 is ongoing. |
Work programmes for Spring/Summer 2023. |
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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. |
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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:
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Company |
Status/Operations |
Link |
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First Class Metals PLC |
Investment – POW 27.91% Exploration in the Schreiber-Hemlo region of Ontario, Canada |
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Kavango Resources PLC |
Investment – POW 9.85% Exploration in Botswana |
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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
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Golden Metal Resources PLC |
Planned IPO – POW 83.13% Exploration and development in Nevada, USA |
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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 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 |
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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 (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:
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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. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Soil & rock sampling completed |
Interpretation of laboratory assay results of samples collected. |
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Ditau Project |
Botswana |
50% |
Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals
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Field programme findings and defined drill targets for near term drilling. |
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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 |
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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 |
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Tati Gold/Nickel |
Botswana |
100% |
Reverse circulation drill programme completed |
Laboratory assay results awaited |
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Haneti Project |
Tanzania |
35% |
Diamon drill programme underway |
Results from field programme including drill programme underway |
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Victoria Goldfields |
Australia |
49.9% |
Ongoing exploration across 848km2 of granted exploration licences
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Results from field programme including drill programme underway |
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Wallal Gold/Copper Project |
Australia |
83.33%B |
Passive seismic and 2D seismic processing work programme completed. Ground reconnaissance work underway. |
Results awaited |
A should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project
B 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
Power Metal Resources #POW – 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:
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:
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/ 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 (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. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Soil & rock sampling completed |
Laboratory assay results of samples collected |
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Ditau Project |
Botswana |
50% |
Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals
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Field programme findings and defined drill targets for near term drilling. |
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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 |
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Molopo Farms |
Botswana |
53%1 |
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 |
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Tati Gold/Nickel |
Botswana |
100% |
Reverse circulation drill programme completed |
Laboratory assay results awaited |
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Victoria Goldfields |
Australia |
49.9% |
Ongoing exploration across 848km2 of granted exploration licences
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Results from field programme including drill programme underway |
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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