TIDMPOW
RNS Number : 0461W
Power Metal Resources PLC
07 December 2023
7 December 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
First Development Resources Plc Selta Project Exploration
Update
Exploration Data Review Identifies Additional Exploration Target
Areas at the Selta Project in Australia's Northern Territory
Power Metal Resources plc (AIM:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio, announces an exploration update for
the First Development Resources Plc ("FDR") Selta Project ("Selta"
or the "Project") located in the Northern Territory of Australia.
Power Metal holds a 58.59% interest in FDR.
To develop the Company's understanding of the Selta Project, FDR
commissioned an Australian-based consultancy to complete a
high-level geophysical and geographical information system ("GIS")
based desktop study ("the Study") on the Selta Project's mineral
exploration potential and prospectivity to further develop target
areas for follow-up field inspection on completion of the planned
FDR initial public offering ("IPO"). The Study has now been
received and the findings are reported below.
HIGHLIGHTS:
-- Significant expansion of existing rare-earth element ("REE")
and lithium ("Li") exploration target area, and generation of new
target areas building on previous ground-based exploration and
desk-based data reviews carried out by FDR.
-- Following detailed compilation of historical drilling and
surface geochemical data into comprehensive datasets, specific
mineral exploration target areas were established for orogenic gold
("Au") and base metals, including inferences on the potential for
iron-oxide copper-gold ("IOCG") and iron-sulphide copper-gold
("ISCG") mineralisation within the Project area.
-- Specifically, the Study has enhanced FDR's understanding of
the potential within target areas identified for REE mineralisation
having a similar geological setting to Arafura Rare Earths Ltd's
(ASX: ARU) nearby Nolans Project, together with
lithium-caesium-tantalum ("LCT") pegmatites relating to the same
fractionated granite intrusions sourcing REE, tin and tantalum
mineralisation just to the south and east.
-- The outputs from the Study have provided a more geologically
focussed summation of the mineral prospectivity within Selta and
provide an inventory of prioritised target areas across multiple
minerals and metal styles An exploration strategy is now being
developed to systematically test the identified targets.
Tristan Pottas, Chief Executive Officer of FDR, commented:
"FDR has continued to work proactively to advance its business
interests in advance of the planned IPO which it hopes to resume as
soon as Market conditions allow.
With the company's Wallal Project in Western Australia fully
prepared for drilling, our attention has turned to the Selta
Project where previous mineral explorers identified a number of
high-profile gold and base metal targets and paving the way for FDR
to identity REE and LCT pegmatite targets. Our updated mineral
target inventory has been significantly boosted with the findings
announced today, including notably gold and base metals in
historical drilling, along with the realisation that the province
is also prospective for IOCG and ISCG targets.
At Wallal, we are drill ready and eagerly looking to commence
deep drilling on high priority gold targets at the earliest
opportunity, commencing with the magnetic bullseye Eastern Anomaly
target which we believe bears striking geophysical similarity to
the Havieron discovery made by Greatland Gold plc in the same
Paterson province as Wallal."
Sean Wade, Chief Executive Officer of Power Metal Resources PLC,
commented:
"Our intended IPO for FDR is taking longer than anticipated due
to stagnant market conditions for capital raisings. To keep the IPO
process moving forward, FDR brought forward the study on Selta
which was previously planned to be completed post-IPO. Working
within the constraints of a tight budget, the team worked closely
with experts in Australia to enhance our already compelling
exploration case for the Selta Project.
I am confident that FDR's updated exploration target areas add
substantially to the investment case for FDR and will help to take
the Company forward for obtaining funding to aggressively explore
these target areas. We look forward to updating the market on FDR's
next steps in due course".
BACKGROUND:
In preparation for FDR's planned IPO and admission to the London
markets, and to aid in planning focussed fieldwork upon listing,
FDR commissioned Perth, Western Australia ("WA"), based consultancy
Resource Potentials Pty Ltd ("ResPot") to complete a geophysical
and GIS-based desktop study on the mineral exploration potential of
FDR's Selta Project mineral exploration tenements located in the
Central Arunta Region of Australia's Northern Territory (Figure
1).
The Study undertaken by ResPot compiled publicly available
historical exploration datasets to help assess the mineral deposit
potential of Selta and generate and prioritise target areas for
aggressive exploration post FDR's IPO and included
- detailed compilation and review of historical mineral
exploration reports and technical data sets;
- compilation, processing, imaging, digitisation and review of
publicly available open-file company and government datasets
consisting of drilling, geophysical, geochemical, and geological
datasets, and results; and
- the Study also included establishing comprehensive modern data
from historical drilling and surface geochemical sampling to
advance the Study and highlight new target areas of interest.
Prior to the Study, FDR identified multiple uranium and REE
targets within the Selta Project area and also highlighted the
potential for lithium, gold and base-metal mineralisation. Prior
fieldwork completed by FDR allowed for limited testing of lithium
targets within the southern portion of the Project by identifying
and sampling pegmatite outcrops, but the FDR technical team felt
that considering the Project's large size, complex geology and
previous exploration history, a further modern and comprehensive
data compilation and targeting study was warranted.
The Study has now identified the potential for multiple target
minerals, including:
- REEs geologically similar to the Nolans Project and ionic clay
type REE mineralisation in weathered fractionated granite;
- LCT-pegmatites;
- Lode gold in Lander Rock meta-sediment-volcanic greenstone belt; and
- Base metals in a skarn setting, specifically for tungsten,
molybdenum tin and silver similar to the Molyhill Project tungsten
deposit, held by Thor Energy PLC (ASX / AIM: THR), to the east.
The study also mentions the potential for IOCG and ISCG
mineralisation surrounding intrusive bodies sourcing similar styles
of mineralisation within the broader Arunta mineral province.
Figure 1 : Selta Project regional setting in relation to
existing deposits and known mineral occurrences.
SELTA PROJECT - DATA COMPILATION AND REVIEW
Concurrent with the Study, ResPot liaised with WA based Rock
Solid Pty Ltd ("Rock Solid") to help compile open-file surface and
downhole drilling geochemical data from historical exploration
reports and Northern Territory Geological Survey ("NTGS") databases
into edited and validated master databases which ResPot then
incorporated into the Study.
A total of 10,622 drillholes were identified and integrated into
a GIS database and Leapfrog workspace, of which 2,204 are within
the boundaries of the Selta Project mineral exploration licences.
The drillholes vary in depth from small vacuum holes to 178 m deep
reverse circulation ("RC") and diamond core drill holes which were
completed by previous exploration companies looking predominantly
for uranium, gold and base metals.
The data compilation by ResPot and Rock Solid remains on-going
as additional datasets become uncovered and are integrated into
FDR's master databases.
A total of eight target areas have been identified by the Study.
FDR's technical team has identified a ninth target the updated
target areas are presented in Figure 2. The exploration target
areas have also been priority ranked for prospectivity by ResPot
using a simple priority ranking between one (high) to three (low),
and these exploration target areas have undergone detailed
follow-up analysis by FDR's in house technical team and given
target area names as shown on Figure 2.
Target Target minerals Ranking Comments
Area
================== ================= ======== ==================================================
Ingallan LCT and REE 1 Located in the extreme east of
the Selta Project area, the Ingallan
LCT and REE target covers outcropping
Ennugan granite which is considered
prospective for allanite-related
REE mineralisation and has a potential
for weathered granite ionic clay
REE mineralisation. The Ennugan
granite is of a similar age to
the phosphate dykes hosting the
nearby Nolans Project REE deposit
mineralisation. To date, no drilling
and very limited ground exploration
has been carried out in this highly
prospective target area.
================== ================= ======== ==================================================
Hawkshead LCT and REE 2 All four of these REE and LCT-pegmatite
target areas are located on and
around the contact zone between
granites of the Yundurbulu suite
and metasedimentary-volcanic rocks
of the Lander Range greenstone
belt. These target areas have been
sparsely tested by historical drilling
and historical drillholes within
the Selta Project were not analysed
for lithium ("Li"), caesium ("Cs"),
tantalum ("Ta") , tin ("Sn"), tungsten
("W"), niobium ("Nb") or REEs.
Previous geochemical sampling by
FDR in 2022 and 2023, plus historical
stream sediment sampling by a former
explorer returned low-level but
anomalous results for key elements
including Li, Cs, Nb, Sn, Ta, cerium
("Ce") and yttrium ("Y") within
these target areas. Of note is
the presence of historical tin
workings to the west and near a
granite contact, suggesting that
the granite in this area may be
fertile for LCT pegmatite and REE
mineralisation.
================== ================= ======== ==================================================
Spring
Creek LCT 3
================== ================= ======== ==================================================
Loora Creek LCT 3
================== ================= ========
West Nintabrinna REE 2
================== ================= ======== ==================================================
Lander Gold ("Au") 1 Centred on a gravity ridge and
West topographic high, which corresponds
to a greenstone belt of metasedimentary-volcanic
rocks of the "the Lander Beds",
which cross the western part of
the project area and is noted to
contain multiple gold and base
metal occurrences to the south
and east of the Project. Historical
exploration in the Lander West
area has yielded drill intercepts
of up to 1.9 g/t gold, alongside
elevated arsenic and base metals.
Previous drilling in this area
has been shallow (42 m on average)
and the area hosts multiple untested
magnetic features and shallow geochemical
anomalism never followed up by
deeper drilling.
================== ================= ======== ==================================================
Yundurbulu Gold ("Au") 2 Located in a similar geological
environment to Lander West, the
Yundurbulu area has been largely
untested by previous explorers,
data has been obtained for 153
historical shallow drillholes however
the vast majority are <10 m deep.
Approximately 500 m from the perimeter
of the Selta Project is the historical
"Black Knight" gold prospect, which
yielded up to 6.58 g/t Au, and
magnetic data suggests a continuation
of the same linear feature hosting
Black Knight to extend into the
Selta exploration licences.
================== ================= ======== ==================================================
Vaughan Base metals 3 Comprising part of the Vaughan
Springs Springs Dome, this target area
is defined by an enigmatic ring-like
magnetic anomaly feature. Very
little surface sampling or effective
drilling has been completed in
this area, however a number of
predominantly shallow vacuum holes
have been drilled to depths < 11
m along with four deeper rotary
air blast holes to depths of up
to 112 m. Some historical drillhole
samples returned elevated assay
results for tungsten ("W"), silver
("Ag"), cobalt ("Co") and zinc
("Zn"). ResPot has proposed a skarn
style mineralisation model for
this target area due to the proximity
of granite, and historically drilled
metasediments. In addition, ResPot
have proposed the Vaughan Springs
Target to be similar to other skarn
style base metal deposits located
to the east, such as the Molyhill
Project.
================== ================= ======== ==================================================
Western Uranium 2 The Study identified that historical
Creek uranium exploration across much
of the Project area had tested
prospective areas, and the potential
for primary hard rock and secondary
soft rock uranium deposits was
low.
FDR's technical team have analysed
historical exploration reports
and located a potential roll front
style uranium target area in the
north of the Project area which
was identified by Toro Uranium
in 2010 and which remains untested.
================== ================= ======== ==================================================
PROPOSED EXPLORATION STRATEGY AT SELTA
As part of the Study, the following exploration programmes are
proposed:
-- Further detailed interpretation and review to be carried out
on the Ingallan LCT and REE target area, including field visits to
collect rock samples, grids of soil geochemical surveying, and if
results warrant then carry out follow-up RC drilling. In addition,
possible Horizontal-to-Vertical Spectral Ratio ("HNSR") passive
seismic surveying over ionic clay REE target zones to test for
weathering depth prior to drill testing.
-- The Hawkshead, Spring Creek, Loora Creek and West Nintabrinna
lithium and REE target areas in the southwest of the Project are
proposed to receive field inspection and geochemical sampling of
soils to identify targets for hard rock drill testing.
-- Lander West geochemical soil sampling campaign is proposed to
refine current target areas, the Yundurbulu Gold target area is
almost wholly unexplored and therefore field teams will be deployed
to carry out inspection and prospecting of the geology, with
follow-up geochemical testing and then drilling if warranted.
-- Drill testing on various walk-up targets, including the
Vaughan Springs base metal magnetic ring target area, gold targets
where shallow Au and pathfinder elements have been identified by
shallow drilling but not yet followed up by deeper RC drilling into
fresh bedrock, and LCT / REE pegmatite targets in outcrop, is a
short to medium term aim of FDR.
-- FDR is currently evaluating exploration possibilities for a
roll front uranium target in the northwest of the Project.
Figure 2 : Selta Project targets identified for further
exploration located within FDR's mineral exploration tenements
(black outline).
FDR CORPORATE ACTIVITY
First Development Resources Plc (58.59% POW) holds strategic
exploration projects in Western Australia and the Northern
Territory and is fully prepared for an IPO listing at short notice
subject to favourable market conditions and final regulatory
approvals.
FDR EXPLORATION INTERESTS
FDR Australia holds the following mineral exploration licence
interests:
Wallal Project in WA (Wallal Main - E45/5816 - 390km (2) -
granted, Wallal West 1-E45/5853 96km (2) - granted , and Wallal
West 2 - E45/5880 - 86km (2) - granted).
A comprehensive geophysical review has identified three magnetic
bullseye anomalies located under Phanerozoic sedimentary cover
which are interpreted to have geological similarities major Au-Cu
deposits within the Paterson Province, including Winu (Rio Tinto)
and Havieron (Newcrest Mining-Greatland Gold joint venture).
FDR has secured a c. GBP110,000 Co-funding grant from the
Western Australian government as part of their Exploration
Incentive Scheme to be offset against the costs of Wallal drilling,
and the Company has received all the necessary local approvals to
commence drilling.
FDR has also agreed to contract DDH1 Drilling Ltd to undertake
the phase I diamond drilling drill programme at Wallal, where FDR
has already prepared the access and the drill pad locations in
readiness for drilling. Recognising this progress, the early
commencement of drilling is being considered alongside the work
being undertaken to finalise the IPO listing.
Braeside West Project in WA (E45/5854 - 137km (2) - one granted
licence)
In-depth desktop analysis of historic exploration data is
currently underway on the Braeside West Project, located in the
northeast Pilbara region. A recent base-metal discovery by
neighbouring company Rumble Resources Ltd (ASX: RTR) 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 in WA (E45/5088 - 42km (2) - one granted
licence).
The Ripon Hills Project is also located in the northeast Pilbara
Region and is prospective for base-metal and gold mineralisation
associated with deep-seated north-south oriented fault structures
which run through the Ripon Hills Project area. In-depth desktop
analysis of historic exploration data is currently underway over
the project.
Selta Project in the NT (EL 32737, EL 32738 and EL 32755 - 1,575km (2) - three granted licences)
The Selta Project is located in an emerging mineral province of
the Arunta, considered to be highly prospective for uranium and
rare-earth element mineralisation, and now niobium ("Nb") with the
discovery of carbonatites on the WA side by WA1 (ASX: WA1). FDR
recently completed an in-depth review study of all historical and
new geological, geophysical and geochemical data, which also
identified the potential for REE, gold and base-metal
mineralisation, as well as the possibility of LCT pegmatites.
GLOSSARY
Allanite-Related REE Allanite is a mineral that is found in
Mineralisation metamorphosed clay-rich sediments and
granitic rocks as part of its chemical
structure
Base metals A common metal that is not considered
precious, such as copper, tin, or zinc
Diamond core drilling A commonplace method of drilling using
a circular drill bit (with diamonds)
to cut through the rock, and produce
a long 'core' of rock for examination
and testing.
Fractionated Granite As granites, or other rocks which are
formed from a magma cool, certain minerals
crystallise from the melt at higher temperatures
than others, this results in the granitic
magma becoming more and more concentrated
in certain elements over others. Under
these conditions, the granite is 'fractionated'
Geographical Information GIS is a system that creates, manages,
System (GIS) analyses, and maps all types of data,
allowing for the rapid, yet highly detailed
and precise analysis of geographic data.
Greenstone Belt Zones of variably metamorphosed volcanic
sequences with associated sedimentary
rocks that occur within ancient rocks.
Horizontal-to-Vertical The horizontal-to-vertical spectral ratio
Spectral Ratio ("HVSR") (HVSR) passive-seismic method is a geophysical
passive seismic surveying technique that uses seismic noise signals
to estimate properties of unconsolidated,
overburden sediments
Ionic Clay A clay that is greatly enriched in rare-earth
elements, through the absorption of such
elements into the clay's chemical structure
Iron-oxide copper-gold A type of ore deposit that contain valuable
(IOGC) concentrations of copper, gold, and uranium.
They are hosted within iron oxide dominant
gangue assemblages and are often associated
with quartz veining and iron-rich rocks.
Iron-sulphide copper-gold A type of ore deposit that contain valuable
(ISCG) concentrations of copper, gold, and uranium.
They are hosted within sulphide dominant
ore that is present as veins, breccias
(broken rocks) or replaces the original
geology.
lithium-caesium-tantalum A type of pegmatite that contains elevated
(LCT) pegmatite volumes of lithium, caesium and tantalum;
these pegmatites form the majority of
the worlds hard rock lithium resources.
Lode gold Lode gold is a type of gold deposit that
forms as a vein in rock
Meta-Sediment-Volcanic Metamorphosed (heated and squashed over
geological time) rocks that were originally
derived from sedimentary and volcanic
rocks.
Orogenic gold An orogenic gold deposit is a type of
hydrothermal mineral deposit that is
formed during syn- to late metamorphic
stages of orogeny. These deposits are
hosted by shear zones in orogenic belts,
specifically in metamorphosed fore-arc
and back-arc regions, their formation
is strongly related to the structural
geology (faults/shears) of the area,
as hydrothermal fluids migrate through
pre-existing and active discontinuities
(faults, shear zones, lithological boundaries)
generated by tectonic processes
Rare-earth elements Rare-earth elements (REE) are a group
of 17 metallic elements that are found
in the Earth's crust. They include the
15 lanthanides (lanthanum, cerium, praseodymium,
neodymium, promethium, europium, gadolinium,
terbium, dysprosium, holmium, erbium,
thulium, ytterbium, and lutetium) and
scandium and yttrium. These elements
are called "rare" because they are difficult
to extract from the earth's crust and
are not found in large quantities
Reverse circulation (RC) Reverse circulation drilling is a method
drilling of drilling that uses dual wall drill
rods consisting of an outer drill rod
with an inner tube. The hollow inner
tubes allow the drill cuttings to be
transported back to the surface in a
continuous, steady flow. Unlike diamond
drilling, it compiles sample rock cuttings
instead of rock core.
Roll front A roll-front uranium deposit is a type
of uranium ore deposit that occurs in
sandstones downstream from redox fronts
or reduced/oxidized geochemical barriers.
Skarn coarse-grained metamorphic rocks that
form by replacement of carbonate-bearing
rocks (containing calcium oxide), these
can often contain metals such as tin,
tungsten, manganese, copper, gold, zinc,
lead, nickel, molybdenum and iron.
Vacuum drilling A method of drilling through loose sediments,
where material is vacuumed from the base
of the hole for inspection and testing
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.
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
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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 - 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 mineral and 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 and
results.
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.
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