TIDMPOW
RNS Number : 9986X
Power Metal Resources PLC
11 January 2022
11 January 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
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:
https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001
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:
https://www.londonstockexchange.com/news-article/POW/fdr-australia-paterson-region-exploration-update/15132674
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:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
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 Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field and assay
Project to 75% test pits and mapping results from on-site
& sampling. work programme.
---------- ---------- ------------------------ ----------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- ---------- ------------------------ ----------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- ---------- ------------------------ ----------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- ---------- ------------------------ ----------------------
Molopo Farms Botswana 53%(1) Kavango Option Results from various
to acquire an interest work activities
in local project underway as part
holding company. of the Kavango
Option fee payable Option
through defined
work programme
---------- ---------- ------------------------ ----------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- ---------- ------------------------ ----------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across 848km(2) programme including
of granted exploration drill programme
licences underway
---------- ---------- ------------------------ ----------------------
Wallal Gold/Copper Australia 83.33%(2) Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- ---------- ------------------------ ----------------------
(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
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