Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a lithium focused exploration update for the Selta Project (“Selta” or the “Project”) located in the Northern Territory, Australia, and held by the Power Metal’s 82.78%-owned subsidiary First Development Resources Ltd (“FDR”).
· Following on from a recent in-depth data review covering Selta, FDR have undertaken a lithium specific review based initially on further desktop analysis.
· The review specifically focussed on the potential for pegmatite geology across the Selta Project and its capacity to host lithium mineralisation.
· The desktop work included a review of lithium specific publicly available data, along with a review of satellite imagery and hyperspectral analysis to identify high-priority targets for further field investigation.
· The multi-layered approach to the target definition process has identified several hundred coincident anomalies potentially indicative of pegmatite geology and 65 initial primary and secondary targets have been selected for further investigation
· FDR have mobilised a field investigation team which will arrive on site in the coming days to conduct mapping and surface sampling of the prospective targets identified.
Tristan Pottas, Chief Executive Officer of First Development Resources Ltd, commented:
“During our recent site visit to the Northern Territory, pegmatite style outcrop was observed within the Selta Project area, further adding weight to the findings from the original in-depth review of the Project.
Given the potential for lithium mineralisation, we commissioned a remote sensing study to look at the pegmatite specific potential and following the identification of 65 prospective targets we have expedited a field-based work programme to test whether the identified targets host lithium bearing mineralisation.”
Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:
“The recent £1,125,000 Pre-IPO financing undertaken by FDR demonstrated the level of investor interest in the business proposition. This capital is being deployed into the planning and listing process, as well as enabling expedited exploration within the FDR project portfolio.
Our confidence in the prospectivity of Selta has grown considerably in recent months, from uranium, rare earth and now lithium potential. Therefore, as the largest shareholder in FDR, Power Metal is eager to see the results from the field exploration programme which is now commencing.”
A recently completed 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 also highlighted the potential for lithium, gold and base-metal mineralisation.
The announcement in respect of this in-depth review may be viewed through the following link:
The above review identified the possibility of tin-tantalum-tungsten rich pegmatites within the Selta Project. It is noteworthy that pegmatite fields elsewhere in Australia represent important sources of lithium.
Following consideration of the findings, the Company initiated a follow up lithium specific desktop and remote sensing review over the Selta Project.
SELTA PROJECT – LITHIUM REVIEW
The potential for lithium presents 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 has undertaken a review of all publicly available data to help refine target areas for further investigation. The datasets included in the review have included satellite imagery, known mineral occurrence data recorded on the Northern Territory Government STRIKE database, hyperspectral analysis using Sentinal-2 visible / near infrared and shortwave infrared imagery and historic stream sediment sampling data acquired by Crossland Uranium between 2014-16. The announcement dated 20 May 2022 in respect of the Crossland Uranium stream sediment data may be viewed through the following link:
By applying a multi-layered approach to the target definition process, several coincident anomalies have been identified and a number of primary and secondary targets have been selected for further investigation.
The priority lithium targets selected are primarily associated with surface anomalies which have been identified on satellite imagery and are coincident with a spectral response relating to the spectral fingerprint of identified spectral endmembers. The interpretation of the spectral endmembers has been determined by comparing them to a library of 481 mineral spectra compiled by the United States Geological Survey. The endmembers of interest at Selta include neodymium (Nd) and lepidolite. Neodymium is a rare-earth element which based on our hyperspectral review, is prevalent across Selta and the adjacent licence areas. Lepidolite can be associated with lithium-bearing minerals like spodumene (LiAl(SiO3)2), in pegmatite bodies.
A field team will be deployed immediately to Selta to conduct site-specific reconnaissance and to collect samples for analysis from multiple high-priority lithium and REE targets. The initial target area will focus on 65 primary and secondary targets identified across two areas. One group of targets covers an area of approximately 3km x 2km and a second area covering approximately 4km x 3km. These two groupings are part of a larger area covering approximately 100km2 within which, several hundred similar surface anomalies have been identified
SELTA PROJECT OWNERSHIP
Selta is held within URE Metals Pty Limited (“URE”), an Australian private company and wholly owned subsidiary of FDR .
Power Metal has an 82.78% interest in FDR (62.12% on completion of the recently announced Pre-IPO financing).
The announcement dated 01 June 2022 in respect of the Pre-IPO Financing may be viewed through the following link:
FDR is planning to list on the London capital markets in Q3 2022 (the “IPO”) and is focussed on district scale exploration opportunities in Australia.
URE was acquired by FDR in the transaction managed and funded by Power Metal and the announcement dated 19 November 2021 in respect to this transaction may be viewed through the following link:
FDR EXPLORATION INTERESTS
FDR Australia holds the following exploration licence interests:
Wallal Project (Wallal Main-E45/5816 – 390km2 – granted), (Wallal West 1-E45/5853 96km2 – granted) and (Wallal West 2 – E45/5880 – 86km2 – 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 – 137km2 – 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 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 – 42km2 – 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.
Selta Project (EL 32737, EL 32738, EL 32755 – 1,575km2 – 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.
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)
+44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson
+44 (0) 20 7330 1883