TIDMPOW
RNS Number : 2565U
Power Metal Resources PLC
29 July 2022
29 July 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
First Development Resources - 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 its project portfolio in Western Australia and the
Northern Territory held through its 62.12% subsidiary First
Development Resources Limited ("First Development Resources" or
"FDR") which is seeking a planned listing in the London capital
markets.
HIGHLIGHTS:
-- Wallal Heritage Clearance Survey dates confirmed by Yamatji
Marlpa Aboriginal Corporation. The survey is scheduled to take
place between 16 - 19 August 2022.
-- A drilling contract has been signed with DDH1 Drilling
Limited ("DDH1 Drilling") for the Wallal Phase I diamond drilling
programme. DDH1 Drilling have extensive experience in the Paterson
region and drilled the discovery holes for the Greatland Gold plc
Havieron deposit.
-- The in-depth desktop review for the Ripon Hills and Braeside
West projects is now complete with multiple targets identified for
gold and base-metals associated with deep-seated fault structures
confirmed for further investigation.
-- Selta Project reconnaissance confirms the presence of
pegmatite geology and the litho-geochemical analysis of samples
suggests the area is dominated by a zoned pegmatite system
originating from nearby granites.
-- FDR board and advisor group composition has been finalised.
All key advisors have been engaged and are now working with FDR to
secure its planned UK listing targeted for later this year.
Tristan Pottas, Chief Executive Officer of First Development
Resources Ltd, commented:
"In-depth analysis has now been completed for all projects
within FDR's portfolio and we now have multiple targets identified
for further investigation across all our assets. The excellent work
completed by our in-house geological team and external consultants
has resulted in the development of conceptual targets to a point
where plans are now being made to simultaneously test multiple
priority areas following FDR's planned listing later this year.
Wallal remains our primary focus and we are pleased to confirm
that we now have a date for our Heritage Clearance Survey which,
when complete, will allow us to work with our drilling partner DDH1
Drilling to complete all preparatory work to facilitate
commencement of diamond drilling post targeted completion of FDR's
planned UK listing."
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC, commented:
"The FDR team continue to progress work across its project
portfolio in Australia whilst at the same time advancing the
various workstreams necessary to efficiently complete the planned
UK listing process.
The cumulative findings from our internal work supported by
feedback from FDR's advisor group gives us the confidence to push
ahead aggressively with our work, enhanced particularly by the
ongoing investment into detailed desktop reviews which is
significantly increasing our project knowledge at very modest
cost."
WALLAL HERITAGE CLEARANCE SURVEY
The Heritage Clearance Survey (the "Survey") is a required
precursor to the planned Phase I diamond core drilling programme at
the company's Wallal project located in the Paterson Province of
Western Australia. The Survey is in accordance with Section 18 of
the Aboriginal Heritage Act 1972 and in accordance with the terms
of the Heritage Agreement in place with the Yamatji Marlpa
Aboriginal Corporation ("YMAC") as agent for the Nyangumarta
Warrarn Aboriginal Corporation. A Survey is required where Heritage
sites (archaeological or ethnographic) have been identified, and
disturbance of these sites cannot be avoided by the
development.
The Survey team, appointed by YMAC, will consist of the Heritage
consultant(s) which, if necessary, will comprise both an
anthropologist and an archaeologist; such members of the Common Law
Holders as the Manager Heritage Services advises are necessary to
examine and assist in the Heritage Survey; a Community Liaison
Officer; and representatives from FDR.
The Survey request which included a detailed description of the
Phase I diamond core drilling programme and site-specific maps was
submitted to YMAC by the Company's appointed Exploration Manager on
31 January 2022. The Survey is scheduled to take place between 16 -
19 August 2022 and will cover the proposed drilling locations and
all associated access tracks.
WALLAL PHASE I DIAMOND CORE DRILLING PROGRAMME
FDR's Phase I diamond core drilling programme has been designed
in conjunction with Perth based consultancy Resource Potentials Pty
Ltd ("Resource Potentials"). The programme is targeting the
Proterozoic basement rocks below the Permian Grant Group which are
believed to host the sources of the magnetic bullseye anomalies
identified during the completion of an in-depth review of all
geological and geophysical data associated with the Wallal project
area.
Three magnetic bullseye anomalies were identified in the review,
the Western, Eastern and Border anomalies. The magnetic bullseye
anomalies are of particular interest due to their possible
geological similarities to the regionally significant Havieron
discovery (Greatland Gold - Newcrest Joint venture). The Havieron
deposit is coincident with a magnetic bullseye anomaly detected by
an airborne magnetic survey and has a similar amplitude to Wallal,
approximately 100nanoTesla ("nT") for the Eastern anomaly and 80nT
for Havieron. The Phase I diamond core drilling programme has been
designed to initially test the Eastern anomaly. The Eastern anomaly
is interpreted to consist of two lobes which result in a distinct
target area of approximately 2.5km x 2.5km. An estimate of depth of
the cover sequence has been used to constrain the modelled depth of
approximately 800 metres to the top of the Eastern magnetic source
body.
The Phase I diamond drilling programme will consist of a minimum
of two sub-vertical boreholes totalling approximately 2,720 metres,
which will be drilled using rotary open hole to about 150 metres
and then full core drilling techniques there onwards. Depending on
ground conditions encountered, it is expected that the holes will
be commenced using reverse circulation drilling techniques,
followed by 83mm (PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm
(NQ2) tail to total depth. The parameters for the planned boreholes
are set out in Table 1:
Table 1: Planned Wallal Phase I Drillhole Parameters
Drillhole Easting Northing Azimuth Dip (deg) Nominal depth
ID (deg) (m)
DH1 260325 7780690 90 80 1,220
DH2 259850 7780772 270 80 1,500
WALLAL DRILLING CONTRACT SIGNED
FDR have engaged the services of DDH1 Drilling (ASX:DDH) to
complete the Phase I diamond core drilling programme. Established
in 2006, DDH1 Drilling is a leading provider of technically
innovative drilling services to the Australian mineral exploration
and mining industry. DDH1 Drilling operate Australia's largest
surface fleet of state-of-the-art drilling rigs capable of drilling
and extracting geological core samples from depths of up to 3,000
metres with Industry best practice safety systems supported by a
professional and well-trained workforce. DDH1 have extensive
experience operating in the Paterson region working on notable
projects including Greatland Gold's (LON:GGP) discovery drillholes
at Havieron.
RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW
The in-depth data review for FDR's Braeside West and Ripon Hills
projects is now complete. Resource Potentials have reviewed all
publicly available geological, geophysical and geochemical data and
have identified multiple targets associated with major northwest
trending faults prevalent across the region.
PROJECT BACKGROUND
First Development Resources has the precious and base-metal
rights, excluding manganese and iron, over their Braeside West and
Ripon Hills project tenements, which are located close to each
other in the eastern Pilbara region of Western Australia. These
projects are in the same region as the world class Woodie Woodie
manganese mine, next to recent gold-silver and base metal
discoveries by Rumble Resources Limited at their Braeside Project
(ASX:RTR, "Rumble" or "Rumble Resources"), and located to the west
of gold-copper mines and deposits of the Paterson region, including
Telfer (Newcrest), Havieron (Greatland-Newcrest), Nifty (Cyprium)
and Winu (Rio Tinto).
The FDR project areas are accessible via sealed highway from
Port Hedland via Marble Bar, or unsealed and sealed highway from
Newman via Nullagine, and then unsealed tracks into the project
areas. The Braeside West project is comprised of one granted
exploration licence (E45/5854, 138km(2) ) and is held 100% in the
name of Pardoo Resources Pty Limited, a wholly owned subsidiary of
FDR. The Ripon Hills project is comprised of one granted
exploration licence (E45/5088, 48km(2) ) and is owned 100% by Great
Sandy Pty Ltd. Both project tenements are subject to a split
commodity agreement with Accelerate Resources Limited (ASX listed
under AX8, "Accelerate"), whereby Accelerate holds mineral rights
to manganese and iron while FDR retains rights to all other mineral
commodities.
RIPON HILLS
The Ripon Hills tenement covers part of the western limb of the
Oakover Syncline and contains outcropping Carawine Dolomite of the
Archaean Hamersley Group overlying rocks of the Fortescue Group.
The project is considered to be prospective for base-metal and gold
mineralisation associated with deep seated north to north westerly
trending fault structures. These structures have the potential to
be conduits for various styles of hydrothermal mineralisation as
evidenced by recent exploration conducted by Rumble Resources, some
25km to the east.
Exploration by Rumble over the last 4 years along the eastern
limb of the Oakover Syncline within rocks of the Fortescue Group
has defined a regional scale porphyry to epithermal mineralised
system that extends over 60km in length and 8km in width. They have
defined 45 priority copper-gold-zinc-lead-silver targets and
delineated five deposit types. Similar prospective rock types occur
within the Ripon Hills area which has had very limited past base
metal and gold exploration.
The immediate targets for exploration within the Ripon Hills
tenement are the mapped and interpreted north to north westerly
striking deep seated fault structures which have the potential to
host various styles of hydrothermal base metal and gold
mineralisation.
BRAESIDE WEST
The Braeside West tenement is located approximately 250km east
south-east of Port Hedland on the western edge of the Paterson
Province, Western Australia. The tenement covers approximately
138km(2) and is accessed via the sealed Marble Bar-Woodie Woodie
road and unsealed station tracks. First Development Resources has
the base-metal and gold rights over the tenement while Accelerate
Resources holds the manganese and iron rights. This split-commodity
arrangement will present several beneficial opportunities to FDR
when it comes to exploration in the field.
Past exploration over the Braeside West Project tenement and
surrounding area was focused primarily on the exploration for
manganese within the Carawine Dolomite and overlying Pinjian Chert.
These rock types host the manganese deposits of the Woodie Woodie
Mining centre, one of Australia's major high grade manganese mines.
There is only very minor reported base-metal or gold exploration
over the tenement with work restricted to a regional stream
sediment sampling programme by Carpentaria Exploration 1989-1991.
The tenement area has been held almost continuously since the
1960's by manganese explorers precluding any serious base metal
assessment.
Commencing in 2017, Rumble Resources recognised the potential of
the Braeside area and they became the first modern explorer to
systematically evaluate the base-metal and gold potential of the
region. Through this work they have now defined regional scale
porphyry, epithermal and Volcanogenic Hosted Massive Sulphide
system. Polymetallic exploration is continuing on this extensive,
highly prospective yet under explored region of the Pilbara.
Significantly, the Braeside West tenement which is adjacent to
the Rumble Project contains a considerable strike length of the
unexplored, yet prospective mafic and sedimentary units targeted by
Rumble. These units and the important north northwest trending
regional structures will be the focus for FDR during its initial
exploration campaigns.
EXPLORATION TARGETING AND PROPOSED ACTIVITIES
The main mineral targets in the FDR Braeside West and Ripon
Hills project areas are similar to the
gold-silver-lead-zinc-copper-vanadium mineral deposits and
occurrences within the Rumble Braeside Project located to the east.
Historically, the FDR tenements have been explored for shallow
manganese deposits since the 1960s, with only minor base-metal
exploration. More recent exploration for shallow manganese deposits
by Jupiter Mines and Pilbara Manganese (a subsidiary of
Consolidated Minerals) consisted of detailed geological mapping,
rock chip sampling, small gravity surveys and detailed aerial
geophysical surveys, mainly VTEM and XTEM airborne electromagnetics
to target conductive zones of shallow manganese mineralisation. A
ZTEM airborne audiomagnetotelluric survey was also flown over the
Braeside West tenement. Other government acquired geophysical
datasets over the project areas include regional aeromagnetics and
radiometrics, airborne gravity, and very wide spaced TEMPEST
airborne electromagnetics.
FDR has obtained copies of all these historical exploration
datasets and intends to re-process and interpret these datasets to
focus targeting for base metal sulphide style deposits in older
outcropping geological units to the side or below the Carawine
Dolomite - Pinjian Chert Breccia formations. Accelerate have also
recently carried out drone-based LiDAR digital elevation and aerial
photography surveying at Braeside West, which has helped them to
generate manganese drilling targets. FDR will be working closely
with Accelerate to co-explore the project tenements and combine
efforts in the field.
FDR is now working with Resource Potentials to develop the next
phase of exploration at both Braeside West and Ripon Hills.
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 may be viewed
through the following link:
https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241
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 chemical testing of pegmatites
on the property indicates that the pegmatites analysed on the
southwest of the property is part of zoned pegmatite system, most
likely originating from the nearby granite. However, it must be
noted that only seventeen samples were analysed, and pegmatites
typically have variable composition, even over short distances.
Lithogeochemical analysis of Selta continues to support the
lithium and REE prospectivity of the project, and the initial
sampling programme, over a very small proportion of the property
has provided valuable information for future exploration
programmes.
CORPORATE ACTIVITIES
FDR corporate activities are focussed on achieving its planned
listing on the London capital markets later this year. The Company
has appointed an experienced finance director further enhancing
what is already a very experienced management team. In addition to
finalising the board, FDR's full advisor group has now been
assembled. The listing advisory group which includes FDR's legal,
accounting and corporate advisory teams are meeting regularly and
are compiling all the necessary documentation to support the
planned listing process.
An initial draft of FDR's Competent Person Report ("CPR") has
been received from SRK Consulting (Australasia) Pty Ltd. The CPR is
a key document which forms part of the listing documentation and is
produced to provide an independent view of the Company's assets for
potential investors. The CPR incorporates the findings of the
in-depth review of the company's Braeside West and Ripon Hills
projects along with the geochemical data associated with the
lithium specific reconnaissance completed in June at Selta.
Ahead of FDR's planned listing later this year, the board and
senior management will attend a site visit to Australia in August.
The purpose of the visit is to provide the team with site specific
experience prior to engaging with the market ahead of the planned
initial public offering ("IPO").
In addition to visiting all FDR's project sites, the team will
meet with in-country legal and accountancy teams along with key
advisors supporting FDR's proposed listing. FDR is working with its
corporate broker to enable Australia based investors to participate
in the IPO financing and meetings will be scheduled to introduce
them to FDR and the company's plans post listing.
FDR EXPLORATION INTERESTS
FDR holds the following exploration licence interests through
its wholly owned Australian subsidiaries:
Wallal Project (Wallal Main-E45/5816 - 390km (2) - granted),
(Wallal West 1-E45/5853 96km (2) - granted ) and (Wallal West 2 -
E45/5880 - 86km (2) - granted).
A comprehensive geophysical review has identified three magnetic
bullseye anomalies located under Phanerozoic sedimentary cover
which are interpreted to have possible geological similarities
major Au-Cu deposits within the Paterson Province including Winu
(Rio Tinto) and Havieron (Newcrest Mining-Greatland Gold joint
venture).
Braeside West Project (E45/5854 - 137km (2) - one granted
licence)
In-depth desktop analysis of historic exploration data is now
complete on the Braeside West Project. 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 (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 now
complete for the project.
Selta Project (EL 32737, EL 32738, EL 32755 - 1,575km(2) - three granted licences)
The Selta Project is located in an area considered to be
highly-prospective for uranium and rare earth element
mineralisation. FDR recently completed an in-depth review of all
geological, geophysical and geochemical data which also identified
the potential for lithium, gold and base-metal mineralisation as
well as the possibility of tin-tantalum-tungsten rich
pegmatites.
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 - 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 internal exploration programmes completed or
underway, with results awaited, as outlined in the table below.
Exploration work programmes may also be underway within 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:
www.firstclassmetalsplc.com
www.goldenmetalresources.com
www.firstdevelopmentresources.com
Power Metal also holds a material investment in Kavango
Resources plc with exploration updates available through their
regulatory announcements and on their website:
www.kavangoresources.com
Project Location Current Work Completed Results Awaited
POW or Underway
%
Athabasca Canada 100% Hyperspectral Finalise review of data
Uranium data analysis from 3 properties. Prepare
conducted across for summer exploration
7 properties. programme across 4 properties.
Updating to 7
data rooms for
third party review.
---------- --------- ---------------------- --------------------------------
Authier Canada Earn-in Property Evaluation Update covering exploration
North to 100% Report completed. plans for target areas
Lithium identified during the
Evaluation.
---------- --------- ---------------------- --------------------------------
Molopo Botswana 53%(#) Comprehensive Finalise next exploration
Farms data review complete steps and action plan.
and establishment
of data room
for third party
review.
---------- --------- ---------------------- --------------------------------
Tati Botswana 100% Site visit with Exploration planning
Project mapping of gold underway including further
workings and mapping, sampling and
mine dumps. launch of an RC drill
programme.
---------- --------- ---------------------- --------------------------------
Victoria Australia 49.9% Diamond drill Final drill programme
Goldfields programme completed. results analysis and
Review of Ajax resource potential analysis
& Berringa mine from former high-grade
remaining resource producing mines in granted
potential. licences.
---------- --------- ---------------------- --------------------------------
(#) subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
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