POW Power Metal Resources Plc

30 January 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Block 8 Oman: Exploration Update

Power Metal Resources PLC (AIM: POW, OTCQB: POWMF), the London listed exploration company with a global project portfolio, and its majority held subsidiary Power Arabia Ltd ("Power Arabia"), is pleased to provide an update on exploration progress and the identification of new copper mineralisation on the Block 8 exploration concession in Oman ("Block 8" or the "Project").

Block 8 is the subject of a Proposed Agreement for Power Metal to earn a 12.5% stake in the Project (Figure 1) held by ASX listed Alara Resources Limited ("Alara") and Awtad Copper LLC ("Awtad Copper").

The exploration work led and undertaken by the Power Arabia technical team to date was conducted during October, November and December 2024, and commenced following the signing of a formal and legally binding agreement containing the full terms and conditions of a Proposed Agreement, on 22 October 2024^{1, 2}.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

"I am very pleased to be able to report such meaningful progress at this flagship project for Power Arabia and am very grateful to Bill Brodie Good and his excellent team of geologists on the ground.  We continue to explore multiple avenues for a long-term funding solution for the Power Arabia business and look forward to updating shareholders in due course."

Atmavireshwar Sthapak, Alara Managing Director, said:

"We are very pleased with the excellent progress being made by our partners in exploring the Block 8 exploration licence in Oman. It is truly exciting to see new locations of copper mineralisation being discovered, further enhancing confidence in the previously identified Al Mansur prospect in the Block.

Alara is committed to invest further by intensifying exploration activities in the block and looks forward to continuing our cooperation with Power Metals as they advance this promising endeavour."

Exploration Overview

The exploration fieldwork completed to date includes: two phases of stream sediment sampling; geological outcrop mapping and rock sampling; an ionic leach soil geochemical sampling orientation study; trenching on the Al Mansur target; and the planning of a proposed gravimetric geophysics survey and sourcing of a geophysical contractor.

Recently received assay results from an initial 13 rock and float samples (Table 1) have returned two significant copper results: an in-situ outcrop sample at the Al Maidar prospect returned 4.46% Cu; and a malachite float sample collected during the stream sediment sampling programme from a 500m strike catchment returned 1.75% Cu (Figure 2) from an area within 2km of Al Maidar.

These copper results are considered very significant in a previously unexplored area and provide excellent potential for the discovery of a copper deposit within Block 8, subject to further exploration work which is planned to follow.

Figure 1: Location of Block 8, Oman, September 2024

Figure 2: Location of the significant new copper results and area of recent fieldwork overlain on Magnetic Geophysics Imagery in the Block 8 concession area, Oman

Table 1: Block 8 Rock Chip and Float Sample Assay Results

Note: Coordinates stated in UTM Zone 40 N(WGS84)/EPSG:32640. Samples 530796 and 530800 returned overlimit (>10,000 ppm) copper by ALS method ME-ICP61 so the stated copper results are by ALS method Cu-OG62 (for high grade copper).

The current Power Arabia exploration strategy is focussed on advancing five initial target areas (Figure 3) identified from a review of historical and new data concerning the Al Mansur copper prospect in the southern central area of the Block 8 concession, as well as the findings of the recent fieldwork undertaken in the previously unexplored southern and northern regions of the concession.

Details of the initial work programmes undertaken to date are outlined below.

Historical Data Review

A detailed review of historical technical, geophysical and geological data was carried out both for the Block 8 concession area and the surrounding regional belt. This target generation has delineated an initial five target areas outlined below and in Figure 3, with the review work on-going as more data and further historical reports come to light.

·    Target Area 1 is prospective for Cyprus-type volcanogenic massive sulphide³ ("VMS") Cu-Au mineralisation. The area around the Al Mansur prospect displays coincident magnetic low geophysical anomalies and prospective Semail volcanic rock units, and was the focus of previous exploration work undertaken by Alara, and the recent outcrop verification, mapping and three trenches completed by the Company during December.

·    Target Area 2 is prospective for Cyprus-type VMS Cu-Au mineralisation associated with the inferred boundary of Semail volcanics buried below obduction related non-mineralised recent sediments, coinciding with magnetic low geophysical anomaly trends. A programme of ion leach soil geochemical sampling planned for January 2025 following field outcrop verification and mapping.

·    Target Area 3 was a focus of the November 2024 stream sediments sampling and mapping. The mantle sequence rocks in this area are considered prospective Cr-PGE and Cu-Au mineralisation as observed from outcrops with secondary copper mineralisation.

·    Target Areas 4 & 5 are prospective for Cr-PGE within the mantle sequence rocks with stream sediments completed in December 2024. Assay results are pending.

Figure 3: Location of five new target areas, Block 8

Block 8 North, Geological Reconnaissance, Outcrop Verification and Mapping

Ground traverses, geochemical sampling and geological mapping have been undertaken in the north and central part of Block 8, in order to identify areas prospective for ophiolite hosted Cyprus-type VMS Cu-Au mineralisation. Work focused on areas where the largely under-cover Semail Upper Volcanics stratigraphy is exposed through windows in the overlying sediments and/or sand cover.

The detailed geological mapping, description of key outcrops and rock chip sampling conducted to date has resulted in 263 numbered localities. A total of 13 rock samples have been analysed by ALS Oman using assay methods ICPME-61 and Au-AA25 (Table 1). No QA/QC samples were deemed necessary at this stage.

This ground investigation work has helped with understanding historic geophysical anomalies and helped to define areas for a planned gravimetric geophysics ground surveys along with planned mapping of diagnostic alteration and structural features to further delineate mineralisation potential for Cu, Au, Cr and platinum group elements ("PGE") in an area, which to date is largely unexplored.

Block 8 South, Geochemical Stream-Sediment Sampling Programme

The stream sediment geochemical sampling programme covers a 65 square km area of drainage catchment basins defined by digital elevation model analysis. Stream sediment sampling of drainage basin catchments over prospective mantle sequence rocks, seeks to identify higher density indicator minerals and Cu, Au, Cr and PGE concentrations indicative of upstream mineralised host rock and helps delineate anomalous trends and areas of interest. During the programme several new occurrences of secondary copper oxide (malachite and chrysocolla) float and an initial in-situ copper occurrence were discovered near Al Maider village.

In total, 149 stream sediment samples were collected (Figure 5), including 14 QA/QC samples. The sampling protocol employed sieving a minimum 4kg sample with a 2mm mesh on site, to ensure a minimum 200g is retrievable at the < 63µm size fraction, for the subsequent laboratory assay. The samples have been submitted to ALS Oman for laboratory analysis by multi-element low level detection method AuME-ST44TM, the assay results are pending.

Figure 4: Copper bearing mineralisation in outcrop on Target-1 (left) and Target-3 (right), Block 8

Figure 5: Digital elevation model showing location of stream sediment sampling sites in south of Block 8

Ionic Leach Soil Sampling Orientation Survey

As a precursor to wider scale soil geochemical sampling, in order to gauge the effectiveness of the ionic leach soil analytical method for the given soil conditions, a 24 sample orientation grid was conducted over an area of known copper mineralisation located outside of the Project boundary. Specifically, the orientation study had the objective of testing the sampling method suitability for drill target generation in areas of more recent cover, to determine if it is able to detect mineralisation hidden under later sedimentary sequences such as exist in the central and northern parts of the Block 8 concession area.

A total of 24 ionic leach samples (including 2 QAQC samples) were collected and submitted to ALS Oman for analysis by multi-element low level ionic leach analytical method MS-ME23. The effectiveness of the ionic leach method for use on Block 8 will be determined once the pending assay results are received and interpreted.

Gravimetric Ground Geophysics Survey Planning

To compliment the planned Block 8 ionic leach sampling programme the technical team have designed a series of ground gravimetric geophysical survey lines over interpreted prospective geological and structural contacts under cover, in order to refine prospective lithologies and contact zones and complement induced polarisation ("IP") and magnetic geophysics targets to generate geochemical and possible drill targets.

Ten gravimetric survey blocks are planned covering the prospective volcanics lithological contacts based on a review of the historical World Geoscience Corporation magnetic geophysics data acquisition and interpretation completed for the Ministry of Minerals in Oman during 1992, and Alara magnetic, electromagnetic (VTEM) and IP geophysical survey data. The geophysics contractor has been sourced and work is planned to take place in February 2025.

Trenching in Al Mansur:

Trenching has commenced over the Al Mansur copper prospect in order to determine the spatial relationship between mineralisation and crosscutting regional trends and to aid in optimisation planning for drill targeting as a next step at Al Mansur.

An initial three trenches have been completed for 150m total length during Dec, 2024. These have been geologically logged and sampled with 43 samples submitted to ALS Oman for analysis by laboratory methods ICPME-61 and Au-AA25, results pending.

Progress Summary

The Company considers that the exploration work conducted to date on Block 8 has progressed extremely well in a short space of time, with the early identification of significant new copper mineralisation in the southern part of the concession. The technical team is building an excellent understanding of the geology and controls to mineralisation, and with the support to date of five Omani graduate geologists, Power Arabia is building a strong in-country team.

Assay results for the stream sediment and ionic leach sampling and further rock chip samples are eagerly awaited. The next phase of exploration fieldwork is scheduled to commence in the coming days, this will continue to work towards satisfying the commercial and technical commitments of the Proposed Agreement.

REFERENCES

1:            Company announcement, Non-binding Heads of Terms signed with Alara Resources & Awtad Copper, dated 25 October 2024

                ( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xpd67mx).

2:            Company announcement, Agreement with Alara Resources & Awtad Copper, dated 25 October 2024
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd8z59w ).

3:            Volcanic-associated massive sulphide ("VMS") deposits range from lens shaped to sheet-like bodies of sulphide-mineral-rich rock spatially associated with volcanic rocks ranging in composition from basalt to rhyolite. VMS deposits can be divided into three general categories: Cyprus-type; Kuroko type; and Besshi-type. Cyprus-type deposits tend to be small, medium-grade deposits rich in copper and zinc. They are generally lens or mound shaped accumulations of massive pyrite developed in ophiolite-related, extrusive basalt sequences. They are typically underlain by copper-rich "stringer-zones" composed of anastomosing quartz-sulphide mineral veins in extensively chloritised basalt.
( https://pubs.usgs.gov/of/1995/ofr-95-0831/CHAP16.pdf )

QUALIFIED PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM QMR, 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.

For further information please visit https://www.powermetalresources.com/ or contact:

NOTES TO EDITORS

Power Metal Resources plc (AIM: POW, OTCQB: POWMF) is a London-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, Saudi Arabia 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.