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Clean Energy Metals – Dealing with the Supply Squeeze

#TM1- Technology Minerals

 

Clean Energy Metals – Dealing with the Supply Squeeze

Critical window of opportunity to create a circular ecosystem for battery metals

The failure of national governments to reach a major agreement at the COP27 Summit this year underlined the difficulty and urgency in reaching net zero. The lack of progress from the governmental side means that it falls to the private sector to provide meaningful solutions. Resource efficiency, energy, and mobility transition are crucial strategies to mitigate climate change. The focus is on reducing the consumption of resources, especially energy and raw materials.

While raw materials are the basis of our material world, their excessive consumption over recent decades has also contributed significantly to climate change. However, raw materials, and, in this case, especially metals, play a key enabling role for climate protection technologies, such as electro mobility, the hydrogen economy, and solar and wind power plants, and also for digitalisation. It is now vital to make the use of raw materials much more resource-efficient and to use them as purposefully as possible.

Source: https://link.springer.com/article/10.1007/s13563-022-00319-1

Source: https://www.alliedmarketresearch.com/battery-recycling-market

There is overwhelming evidence to show that advanced circular economy systems and sophisticated recycling technologies can build the backbone for the development of a resource efficient and sustainable society. Closed metal cycles are a key part of this equation, securing relevant parts of the raw material supply for high-tech products and reducing CO2 emissions in their production at the same time.

Many mineral-producing countries that supply critical minerals are politically unstable, making them risky to invest in and to rely on as a source. This underscores the importance of developing sources of domestic supply, which offers greater political stability, greater safety for workers, and can provide a pipeline of young talent. These provide a foundation for the sector to build innovative solutions in response to the demands of the green transition.

The sources of many critical minerals for energy use are much less diversified than for hydrocarbons and sometimes concentrated in geographies that are highly problematic from an environmental and social perspective, such the Congo. The Congo accounts for almost 80% of the global supply of cobalt, much of which comes from so called ‘artisanal mining’ with its attendant exploitative labour conditions and environmental degradation.

 

The Delivery Challenge

To deliver on the green revolution and minimise emissions that contribute to climate change, industries will need access to significant quantities of critical minerals.

If you can’t make it or grow it, you have to mine it, so there will be an inevitable growth in the mining of critical raw materials, such as lithium-containing minerals. Source: https://britishlithium.co.uk/lithium-market/

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

The production of lithium in 2030 will need to be 60 times the market size of 2015, if production of the internal combustion engine becomes a reality within the 2030 to 2035 timescale. Electric vehicles are the primary driver of lithium demand and given lithium’s unique properties of light weight and high energy storage potential, it is highly likely to remain the material of choice in non-stationary batteries, whether in wet electrolyte or solid-state form.

The sustainable supply of the battery metals cobalt, nickel, lithium, manganese, and copper is a decisive factor for the success of electro mobility. Given the current global availability of resources and the imminent tsunamic surge in demand to sustain surging production levels recycling and reuse of batteries represents an increasingly important component of the future raw material supply. An effective circular economy for batteries can only be achieved if—in contrast to the current situation with many consumer goods — spent batteries can be fed into a comprehensive, technically advanced recycling network to re-enter the supply chain.

 

 

Source: https://www.alliedmarketresearch.com/battery-recycling-market

A London listed company Technology Minerals (LON: TM1) is seeking to meet these challenges head on. Billed as the UK’s first stock market listed ‘circular economy’ company, Technology Minerals combines a fast-growing lead acid and lithium-ion battery recycling network through its wholly owned subsidiary Recyclus Group with a series of battery metal mining projects sited strategically around the globe. Technology Minerals Chairman Robin Brundle explains: “The strategy of Technology Minerals is to build out its IP protected battery processing capacity in Europe while evaluating its portfolio of early-stage critical minerals projects. The current European market for Li-ion and lead-acid batteries totals 1.2mte pa of which some 72% are lead-acid and of which the automotive market consumes 70%. Within automotive, Li-ion currently accounts for just 10% but that is set to grow exponentially in line with increased EV penetration.”

The global recycling batteries market size was valued at $11.1 billion in 2020 and is expected to reach to $66.6 billion by 2030.

While EVs don’t emit CO2, lithium-ion batteries are made from raw materials, including lithium, cobalt, and nickel. With the coming supply squeeze, the mining of many of these materials can also raise ethical and environmental concerns.

Currently, there are very few lithium-ion battery recycling centres, due in part to lithium-ion batteries being both costly and difficult to recycle. According to some estimates, the current recycle rate is less than 5%. According to a recent Wired article, “While you can re-use most parts in EVs, the batteries aren’t designed to be recycled or reused.” And if the batteries are disposed into landfill sites, the battery metals can contaminate both water and soil.

Source: https://www.alliedmarketresearch.com/battery-recycling-market

 

The Size of the Problem

  • Global stock of electric vehicles (EVs) could reach 245 million units by 2030, according to the International Energy Agency.
  • While EVs emit less CO2, their batteries are tough to recycle.
  • Ming cobalt, lithium, and nickel can raise ethical and environmental concerns.
  • Creating a circular supply chain by recycling the batteries’ raw materials will be vital in reducing their environmental impact.

Source: https://www.weforum.org/agenda/2021/05/electric-vehicle-battery-recycling-circular-economy/

Lithium-ion batteries are also used for 90% of grid energy storage around the world, especially for wind and solar energy. Initiatives such as the EU’s plan to reduce its dependence on Russian natural gas by two-thirds, which relies in part on accelerated generation of renewable energy, will significantly increase demand for battery storage.

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

The sustainable supply of battery metals such as lithium, cobalt, nickel, manganese, and copper is a decisive factor for the success of electro mobility and clean technologies. The current targets set by governments at home and abroad for the switch to EVs and clean technology leaves recycling and reuse of batteries as the only practical step available to meet demand based on current forecasts for sourcing new battery metal production hubs. This circular economy for batteries can only be realised if—in contrast to the current situation with many consumer goods—there is a global network to collect spent batteries allied to large scale, high-quality recycling facilities.

 

Does the UK offer practical battery metal / clean-tech project opportunities?

Accelerating the shift to zero-emission vehicles is a key element if the 68% reduction in carbon emissions targeted by the Government by 2030 is to be achieved. The UK’s EV market is growing rapidly, with EV registrations increasing by approximately 173% from 2019 to 2020.

Current projections state that approximately 1.4 million EV battery packs will be coming to the end of their “useful life” every year by 2040. This roughly equates to 203,000 tons of batteries for recycling annually (based on a 60% recycling rate) at that point.

The UK currently lacks industrial capacity for lithium-ion battery recycling, resulting in the current costly reliance on mainland Europe when supplying batteries for material recovery after their useful life. With the average value of materials contained in an end-of-life automotive pack in 2018 being £1,200 for Battery Electric Vehicles (BEVs) and £260 for Plug-in Hybrid Electric Vehicles (PHEVs), there is a huge opportunity in the UK to recycle lithium-ion batteries.

Source: https://hvm.catapult.org.uk/news/automotive-battery-recycling-an-opportunity-the-uk-cant-afford-to-miss/#

Technology Minerals Chairman Robin Brundle comments; “The automotive sector is doing its part to pivot to all-electric, but it needs an effective and competitive ecosystem that will be largely self-sustaining, with job creation, skillset expansion and support for COP27 goals, both domestically and abroad, coming to the fore. This way, our automotive industry will continue to advance our extraordinary UK R&D and engineering skillsets so that they are fit for purpose well into the next sustainable decade.  Recycling is forecast to only be able to provide 22% of the supply that’s needed to power the transition. 78% will need to be extracted or brought in from elsewhere and each continent is facing this challenge – with many places creating barriers to export.”

 

Right Under Our Feet?

The UK has a rich history of mining, yet exploration and mine development have been neglected since WWII, with no new metalliferous mine being successfully built for 45 years.

Large-scale mining and modern processing can extract minerals that were not previously economic, safely, and with improved protection of the environment and community. New deposits could be found near old, narrow-veined, high-grade mines or in unexplored areas. Modern environmental controls, surveys, management, and remediation techniques can ensure that mineral production limits environment impact.

Technology Minerals Chairman Robin Brundle points out that the markets are very much aware that recycling alone will not generate sufficient raw materials and believes an ethical mining programme is critical: “We were once a prolific mining nation and those mines are still there – dormant, but in 2022, many appear to be economic once again due to the advancement in technology and commodity prices.”

Some steps have already been taken in this direction. After listing on London’s AIM market, Cornish Lithium #CUSN has assembled a large portfolio of mineral rights in Cornwall and has begun exploration for lithium-rich geothermal fluids.

 

Gigafactory Investment is Coming to the UK

There is progress in at least one area of the electro mobility and clean-tech supply chain: the British government is in talks with several companies to build gigafactories in the UK. Envision AESC has announced a new gigafactory next to its facility in Sunderland, while AMTE Power has also announced plans for a megafactory in Dundee. Further gigafactory and several supply chain announcements are expected in the coming months.
These developments are vital in maintaining a strong and prosperous automotive industry in the UK. On top of the global challenges from the COVID-19 pandemic, the war in Ukraine, and the rising costs of living, the challenges facing the UK automotive industry are very real and specific. 

“We all need not one but several gigafactories in the UK,” said Brundle. “Not having the ability to create batteries at home puts the future of the UK automotive sector in jeopardy—and the 823,000 direct and indirect jobs that go with it.  We need to secure more lithium for the UK and Europe, to create a flexible, sustainable supply chain that could also include developing domestic sources of key battery metals.”

 

How the Macro Backdrop and Supply Squeeze Will Make Recycling Increasingly Important

The Committee for Climate Change has suggested that 50% of new car and van sales would be battery electric or plug-in hybrid by 2035. Bringing forward deadlines for zero emission vehicles means we are now looking at 100% of new cars and vans being zero emission at the tailpipe by 2035.

The supply crunch will not hit immediately. Even though the price of lithium has surged more than tenfold over the past two years, there’s enough capacity to meet anticipated demand until around 2025—and potentially through 2030 if enough recycling operations come online. After that, chronic shortages are expected. Even assuming that all the new lithium-mining projects that the industry currently regards as probable or possible resources go into operation, as well as a significant expansion of lithium-recycling projects, lithium supply in 2030 is expected to fall around 4% short of projected demand, or by around 100,000 metric tons of lithium carbonate equivalent (the processed form of raw lithium). By 2035, that supply gap is projected to be acute—at least 1.1 million metric tons, or 24% less than demand.

 

Source: https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars

It is more vital than ever that metals are recycled responsibly and effectively. This will:

  • Contribute to the conservation of raw materials, complementing the primary supply of important and partially critical metals for our society.
  • Significantly improve supply security, especially for many technology metals which currently are imported from outside Europe. Many metal imports derive from regions with higher geopolitical risks, hence making the European economy vulnerable to supply disruptions. Exploiting the European “urban mine” built from our end-of-life (EoL) products, infrastructure, and other residue streams reduces import dependence, improves the resilience of crucial value chains, and hence supports economic activities and jobs in Europe. The need for more supply chain resilience has become even more obvious in the context of the Covid-19 pandemic and the Ukraine war.
  • Contribute to cushion volatile metal prices as the additional supply of recycled metals can help to overcome demand–supply imbalances and increases the number of metal sources beyond the primary producers.
  • Reduce the CO2 footprint and overall environmental impact of raw materials supply. If taking place in state-of-the-art recycling facilities, in most cases the energy efficiency (per kg of metal) is better and the impact on water, air, soil, and biosphere is considerably lower than in mining operations. The main reason for this is that the metal concentration in most products is much higher than in geological deposits.
  • Be one pillar of responsible sourcing by providing transparent and clean supply chains.
  • Protect the environment as non-recycling or landfilling of end-of-life products, such as batteries, can emit hazardous substances.

 

How the Technology Minerals #TM1 Blueprint for Lithium-ion and Lead-acid Battery Recycling Will Be a Vital Part of the Supply Chain

The battery recycling market is growing at an accelerated rate, driven by automotive and industrial sectors transitioning to more environmentally friendly and sustainable electric solutions. The UK needs industrial-scale battery recycling technologies. There is currently no major UK capability to recycle lithium-ion batteries. Technology Minerals’ plants in Tipton and Wolverhampton aim to provide a national capability to recycle lead-acid and lithium-ion batteries. As a first-mover in the battery recycling sector, the company expects to open 10 plants over the next six years, with its innovative IP in the lithium-ion sector a driving factor in the expansion strategy.

Technology Minerals has developed a unique frontend process that can safely break open Li-ion batteries which are not suitable for repurposing, to recover the battery mineral rich ‘black mass’ they contain as well as other battery components. This is the only process currently capable of handling all five li-ion battery compositions simultaneously on an industrial scale. The solution is also modular and can be easily built on-site at OEMs, minimising transportation costs.Technology Minerals has also developed a significantly improved process to recover the lead from end-of-life lead-acid batteries as well as recovering the acid for re-use as electrolyte or for the manufacture of fertiliser or gypsum, subject to the preferred economics.

 

Conclusion

As the world races to decarbonise, industry needs a secure source of critical minerals to fuel the transition. Brundle said, “The only ways this can be achieved is creating new mines, opening old mines, and building a secondary source of supply through recycling.”

It is necessary to dramatically escalate new production of battery metals to allow industry to make the green switch. This must be coupled with the implementation of a circular ecosystem so that each mineral mined is used to its full potential. The urgency and scale of the transition means that nothing less than a maximal approach will suffice.

On the strategic level, there are two temporal considerations. Brundle explained, “We have a very narrow window of opportunity so there is a necessity to take action to avert the incoming supply crunch in the short-term, but there is also a longer-term need to create a sustainable, circular ecosystem for battery metals.” Urgent action is required to avoid the immediate shortfall of supply, but there is also a wider structural shift to circularity needed to ensure a decarbonised economy can continue to grow sustainably.

 

Power Metal Resources #POW – December interview with CEO Paul Johnson

Alan Green talks to CEO Paul Johnson. We cover the drilling campaign at the Molopo Farms Complex project in Botswana, before Paul covers recent developments at the Tati Gold project, also in Botswana. We then look at developments in Canada, both at the group’s Athabasca Uranium project and the new Lithium project acquisition, before we turn to the upcoming IPO’s including Golden Metal Resources and First Development Resources. Paul looks at what the Christmas period will hold for the POW team and the likely news flow over the Xmas period and into the new year.

Power Metal Resources #POW – FDR Selta Lithium Exploration & 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 lithium focussed fieldwork at the Selta Project (“Selta” or the “Project”), located in Australia’s Northern Territory. Selta is held through its subsidiary  First Development Resources PLC  (“First Development Resources” or “FDR”) which is seeking a planned listing in the  London  capital markets (Power Metal holds 62.12% of FDR and 58.59% after transaction outlined below).

HIGHLIGHTS:

Phase II Lithium Focused Exploration Programme

· Lithium focussed Phase II follow-up fieldwork now underway to further examine the zonation of a prospective pegmatite system present at FDR’s 100% owned Selta Project. Pegmatites are the target lithology which have the potential to host lithium mineralisation.

· Approximately 700 potential outcropping pegmatites have been identified by desktop analysis, within a target area of circa 180km2 (see Fig.1 below). Given the size of the prospective area and the number of targets generated, the planned fieldwork will initially focus on a 30km2 area in the southeast of the Project (see Figure 1).

· The Phase II fieldwork follows on from the successful findings of the Phase I field reconnaissance programme in June 2022, which confirmed the presence of pegmatite geology over a small area within the south of the Project, with lithogeochemical analysis of 17 samples suggesting potential for a zoned pegmatite system originating from the nearby granites 1.

· A desktop analysis of lithium specific publicly available datasets, satellite imagery and purpose commissioned hyperspectral analysis previously outlined the presence of potentially pervasive outcropping pegmatites 2, 3 which are the subject of the current fieldwork campaign.

· Further information in respect of the lithium work programme is provided below.

Company Update

· FDR continues to advance preparations for its planned listing and is very close to completion of all material work streams.

· To further enhance FDR’s position in advance of the planned listing and in light of the positive progress across the exploration programmes at all projects, the net smelter return (“NSR”) royalties retained by the original vendors of FDR’s projects have been purchased by FDR.

· The two NSRs were originally announced on the acquisition of First Development Resources Pty Limited (“FDR Australia”)(RNS: 29.10.2021 4) and URE Metals Pty Ltd (“URE Metals”)(RNS: 19.11.2021 5) and were each a 2% NSR, with a 1% buyout right for A$1,000,000. The NSRs were held by the original shareholders of FDR Australia and URE Metals whose shareholdings were previously acquired, as outlined in the above dated announcements.

· Each NSR has been purchased for £150,000, payable through the issue of 1,875,000 new FDR ordinary shares of 1.0p (“New FDR Shares”) at an issue price of 8p per share, for a total consideration of £300,000 through the issue of 3,750,000 New FDR Shares. The price of 8p per New FDR Share  is specific to this NSR purchase transaction only and should not be taken as established pricing in relation to an IPO financing for the planned listing of FDR in the London capital markets.

· As a result, FDR holds a 100% interest in all projects and there are now no NSRs over any of its properties.

· Following the issue of the New FDR Shares, the total FDR issued share capital will amount to 65,894,076 shares of which Power Metal holds 38,605,697 shares representing 58.59% of FDR issued share capital.

Tristan Pottas, Chief Executive Officer of First Development Resources commented:

“Much of the recent focus has been on preparing for FDR’s planned UK listing, however, the team has also remained committed to advancing the project portfolio for the ongoing benefit of FDR shareholders.

Over the past several months the FDR team has worked hard to develop strong relationships with the key stakeholders at Selta to facilitate the efficient deployment of field teams to site to complete value enhancing work.

The technical analysis of the outcropping pegmatites will significantly improve our understanding of the system present at Selta and will help inform future work programmes with the intention of identifying zones within the Project with the potential to host lithium mineralisation.”

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

“The search for economic deposits of lithium continues to be the focus of many exploration companies globally as they look to capitalise on the strong market conditions which continue to reflect the lack of supply for the ever-growing demand for battery metals including lithium.

Importantly, with our readiness for diamond drilling at Wallal and the ongoing work programme at Selta, we are seeking to ensure FDR is a vibrant exploration business when listed.

The buyout of all project royalties by FDR was an important step, simplifying the structure of the planned listing interests and reflecting the value of FDR’s project portfolio which has been significantly enhanced since their original acquisition.”

Figure 1 : Selta Project showing lithium pegmatite and rare earth element prospective areas of interest and target area for current Phase II pegmatite focussed fieldwork

BACKGROUND – 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 and subsequent reconnaissance may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865

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 subsequent geochemical testing of pegmatites on the property indicated that the pegmatites analysed on the southwest of the property are part of zoned pegmatite system, most likely originating from the nearby granite. The initial sampling campaign programme covered only a very small portion of the property but provided valuable information for future exploration programmes.

SELTA PEGMATITE SAMPLING PROGRAMME

The mineral deposit model for LCT pegmatites is well defined by the United States Geological Survey and suggests LCT pegmatites tend to show a regional mineralogical and geochemical zoning pattern with respect to the inferred parental granite, with the greatest enrichment in the more distal pegmatites. FDR’s initial analysis of data acquired during the Selta lithium review supports this model.

FDR now plans to expand on this initial interpretation and conduct further exploration over a broader area.  Using the data acquired from previous desktop analysis and reconnaissance, a field team led by FDR’s exploration manager will conduct a targeted pegmatite mapping and sampling programme to acquire representative geochemical and geological data in the south of the Selta Project, where previous work has proven the presence of a pegmatite system.

This work aims to constrain the zonation believed to be present in the pegmatite system. The field work will include the systematic mapping of the surface expression of pegmatites along with the collection of representative rock chip samples, which will then be sent for geochemical analysis. This field work will feed into FDR’s technical understanding of pegmatites at Selta, to provide targets and inform future work programmes.

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.

REFERENCE NOTES

Company announcement, First Development Resources – Company Update,  29 July 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865 )

Company announcement, First Development Resources – Selta Lithium Update,  13 June 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241 )

Company announcement, Selta Project – Multiple Target Areas Identified,  16 March 2022
(
https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081 )

Company announcement, Power Metal Acquires 100% of FDR Australia,  29 October 2021
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w04g16x   )

Company announcement, Acquisition of Uranium & Rare-Earth Element Project – Australia,  19 November 2021
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w1ye76w )

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 multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company’s priority exploration projects is outlined in the table below.

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

Preliminary planning for work in Spring/Summer 2023 is ongoing.

Work programmes for Spring/Summer 2023.

Molopo Farms

Botswana

87.71%

Diamond drill programme underway. MLEM surveys planned over additional AEM targets identified.

Drill programme updates and findings from further MLEM survey work.

Tati Project

Botswana

100%

RC drilling and sampling of mine dumps complete.

Mine dumps processing and project commercial and exploration next steps.

 

Exploration work programmes may also be underway within Power Metal investee companies and 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.  These interests are summarised in the table below:

Company

Status/Operations

Link

First Class Metals PLC

Investment – POW 27.91%

Exploration in the Schreiber-Hemlo region of Ontario, Canada

www.firstclassmetalsplc.com

 

Kavango Resources PLC

Investment – POW 9.85%

Exploration in Botswana

www.kavangoresources.com

First Development Resources PLC

Planned IPO – POW 62.12%* (58.59% post NSR buyout)

Exploration in Western Australia and the Northern Territory of Australia

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Planned IPO – POW 83.13%

Exploration and development in Nevada, USA

www.goldenmetalresources.com

 

New Ballarat Gold PLC

Planned IPO – POW 49.9%

Exploration in the Victoria Goldfields of Australia

A new website is currently in development which will be found atwww.newballaratgoldcorp.com .

In the interim further information in respect of NBGC can be found at:

https://www.powermetalresources.com/project/victoria-goldfields/ .

 

Uranium Energy Exploration PLC

Planned IPO – POW on listing estimated 50-55%

Uranium exploration in the Athabasca region of Canada

www.uraniumenergyexploration.com

#POW Power Metal Resources PLC – New Lithium Project – Ontario, Canada

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the acquisition by staking of the 100% owned, North Wind Lithium Project (“North Wind” or the “Project”) located in Ontario, Canada.

The staking was completed through Power Metal’s wholly-owned Canadian subsidiary, Power Metal Resources Canada Inc (“Power Canada”).

HIGHLIGHTS:

· Following a detailed review of several publicly available provincial government geological databases and reports, Power Metal have staked a total of 5,788.5-hectares over a 16km long trend of highly anomalous lithium-in-lake sediment results.

· The North Wind Lithium Project is considered by the Company to be prospective for lithium (Li), caesium (Cs), and tantalum (Ta) (“LCT”) bearing pegmatite occurrences.

· The Project is ideally located less than 25km northwest of the town of Beardmore, Ontario, and is criss-crossed by multiple access roads which connect up to the Trans-Canada Highway located less than 40km away.

· This Project acquisition provides Power Metal Resources with a significant land holding which is prospective for LCT pegmatite occurrences within the stable and supportive mining jurisdiction of Ontario, Canada.

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

“The addition of the North Wind Lithium Project is a significant boost for Power Metal Resources as it provides the Company with a new and potentially high-impact lithium focused opportunity.

We consider that lithium as a commodity has a particularly bright future with high demand and constrained supply.  In fact, the significant move higher in the lithium price has sparked considerable interest in available exploration properties around the world, and particularly those in safe jurisdictions.

It was a great achievement that through painstaking work, the Power Metal technical team have been able to identify this new opportunity and secure it through staking, one of the most cost-effective ways to secure new interests.

Further updates will follow as we advance our knowledge and set out exploration plans for the North Wind Lithium Project.”

ADDITIONAL INFORMATION:

The Project is located within the Onaman-Tashota greenstone belt, where historical exploration has traditionally focused on precious and base-metals – however the geology, in a provincial Open File Report (the “Report”), determined that the belt was prospective for LCT pegmatite occurrences – the main source of ‘hard rock’ lithium worldwide. 1

Other lithium explorers and operators within the region include Imagine Lithium Inc. (TSX.V: ILI) with their Jackpot Lithium Project (with a reported historical non-compliant resource of 2,000,000 tonnes at 1.09% Li2O), located 50km to the south of North Wind and Green Technology Metals (ASX: GT1) with their flagship Seymour Project (which hosts a JORC compliant total Mineral Resource of 9.9Mt at 1.04% Li2O) located approximately 65km to the northwest.

The Project is centred on a granitic intrusion, cut by numerous mapped dykes. Highly anomalous lake sediment results (detailed further below) suggest that a zoned LCT pegmatite system may be present but has never been investigated. North Wind was identified through detailed research and analysis by the Power Metal Resources technical team, utilising over 600,000 individual lake sediment sample points collected by the Ontario Geological Survey (OGS), who also prepared selected recommendations for exploration which were presented in the Report 1. Based on this data as well as information contained within the Report; the area encompassing the North Wind Project was selected for the strategic acquisition by staking.

The highly prospective and anomalous lake sediment data contained within the Project includes:

· Seven instances of >99th percentile (with respect to regional data) Li-in-lake sediment results (ranging from 18.63 to 34.95 ppm Li) with 34.95 ppm representing the 99.95th percentile result.

· Of those seven samples, six are >95th percentile for caesium (1.26 to 2.21 ppm Cs), with three >99th percentile (1.94 to 2.21 ppm Cs).

· The seven samples are also noted to be highly elevated in tantalum with results ranging between 0.6 and 0.9 ppm Ta.

The presence of anomalous, or highly elevated concentrations of lithium, caesium and tantalum from samples collected within the same water body suggest a nearby mineralised source, and therefore the Project represents a highly prospective target for LCT pegmatite occurrences.  Further desktop analysis is currently underway, with a comprehensive Phase I Field Sampling Programme planned in Q1-Q2, 2023.  

STAKING PROCESS:

A total of 278 Mining Claim cells were registered by electronic staking through the Ontario Mining Lands Administration System, covering a total area of 5,788.5-hectares for a total cost to the Company of CAD $13,900 (circa £8,500). The mining cells are 100% owned by Power Canada, a wholly owned subsidiary of Power Metal Resources plc. Each Mining Claim cell covers 20.82-hectares and has an annual exploration spend commitment of CAD$400 from year two onwards.  The Project therefore has a total exploration spend commitment of circa £68,000 by the end of year 2 and then annually onwards, in order to keep all 278 Mining Claim cells in good standing.

 

A map showing the outline of the property, basic geological information and lake sediment results is below:

Fig. 1: Plan Map of the North Wind Lithium Project and Surrounding Area.

 

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

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

 

REFERENCE NOTES;

1: Cundari, R.M., Paju, G.F., Hinz, S.L.K., Tuomi, R.D., Fudge, S.P., Pettigrew, T.K., 2019, Ontario Geological Survey Open File Report 6352, Report of Activities, 2018 Resident Geologist Program.

#SVML Sovereign Metals Ltd – Drilling Indentifies Mineralisation At Depth

KASIYA AIR-CORE DRILLING INDENTIFIES HIGH-GRADE MINERALISATION AT DEPTH

-First drilling results from the Company’s deeper air-core (AC) program confirm rutile mineralisation extends at depth beneath previous drilling in most of the targeted areas

-Results demonstrate the growth potential of Kasiya at depth and confirm that extensive rutile mineralisation remains outside of the current Mineral Resource Estimate (MRE) and pit shells

-Core areas of the previously designed pit shells averaged about 15m depth with new drilling commonly extending mineralisation to between 20m and 30m depth

-The new deeper and thicker rutile intercepts highlight the potential to increase the mineral resource at depth

-Highlights include:

  • 28m @ 1.05% inc. 5m @ 1.78% rutile
  • 25m @ 1.06% inc. 13m @ 1.15% rutile
  • 20m @ 1.26% inc. 16m @ 1.37% rutile
  • 22m @ 1.15% inc. 8m @ 1.51% rutile
  • 20m @ 1.29% inc. 6m @ 1.27% rutile
  • 20m @ 1.29% inc. 6m @ 1.27% rutile

-Identification of high-grade mineralisation at depth is expected to contribute to the MRE update targeted for Q1 2023

-Kasiya’s Pre-Feasibility Study (PFS) and Environmental and Social baseline workstreams are advancing with all major project and consultant teams appointed with a scheduled completion date in Q2 2023

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to report first results from its H1 2022 AC drilling program at the Kasiya Rutile Project (Kasiya), the world’s largest rutile deposit in Malawi.

The results confirm that rutile mineralisation is continuous in many pit areas from surface down to the top of saprock, normally between 20m and 30m from surface. Results reveal the potential for mining pits to be extended at depth to the top of saprock in numerous areas.

Sovereign’s Managing Director Dr Julian Stephens commented: “The early results from this deeper drilling re-asserts the truly remarkable Tier 1 nature of Kasiya in terms of size, grade and mineralisation consistency. We have now answered the question on the potential to deliver additional tonnes for the mineral resource at depth. Kasiya continues to grow and will likely become a multi generational project capable of supplying a reliable and sustainable source of high-purity titanium as natural rutile.”

ENQUIRIES

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)
+61(8) 9322 6322

Sapan Ghai (London)
+44 207 478 3900

 

Nominated Adviser on AIM

RFC Ambrian

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

Matthew Armitt

Jennifer Lee

+44 20 3207 7800

 

Optiva Securities

Daniel Ingram

Mariela Jaho

Christian Dennis

+44 20 3137 1902

To view the announcement in full, including all illustrations and figures, please refer to the announcement at http://sovereignmetals.com.au/announcements/.

KASIYA AIR CORE DRILLING

The 191-hole air-core drilling program at the Kasiya rutile deposit was completed in two phases from May to August 2022 by Thompson Drilling. The program was divided into an initial 32-hole sighter phase with results reported herein, and a second more expansive and targeted 159-hole phase. The drilling was completed on a nominal 200m x 200m grid spacing targeting upgrading of mineralisation into the Indicated category which could convert to Probable Reserves as part of the forthcoming PFS. A total of 32 drill-holes for 814m are reported (Figure 1) with results from the remaining 159 holes for 3,846m pending.

The initial sighter AC drilling program focused on mineralised corridors where high-grade rutile mineralisation was hypothesised to persist at depth, below the limit of the previous drilling. Results show that the mineralisation is pervasive throughout the saprolite zones with many holes showing mineralisation with 20-30m thickness from surface. Further MRE depth extensions are likely where the AC holes have extended known mineralisation beyond the base of the current MRE bound.

Second phase targeted drilling on the planned pit areas considered in the ESS has also been completed with the expectation that these pit designs may be modified if additional rutile mineralisation is encountered at depth.

Coarse flake graphite is present in all AC holes in association with rutile mineralisation. Graphite grades appear to improve with depth averaging +2% TGC in numerous holes.

PRE-FEASIBILITY STUDY PROGRESS

There are numerous technical work packages in progress for the Kasiya PFS including;

·      Further drilling to refine and extend the MRE and then the final PFS mining inventory

·      Preliminary hydrogeological pilot and test boreholes

·      Continued metallurgical test-work focused on the planned first 10 years of mining

·      Site visits throughout September by the principal PFS consultants

·      Updated JORC resource estimate planned for Q1 2023

·      Ongoing product marketing with further offtake MOUs expected to be executed

PERFORMANCE RIGHTS PLAN

The Company will seek shareholder approval to amend the terms of all existing performance rights currently on issue to amend the performance conditions as detailed in the table below (Amendment).

The Amendment is being sought to ensure that management are not disadvantaged by the impacts of COVID and the Company’s decision to complete the Expanded Scoping Study (ESS) which was underpinned by the substantial MRE update as announced in April 2022. The decision to complete the ESS has further enhanced the Kasiya economics but delayed the commencement of the PFS and subsequent Definitive Feasibility Study (DFS).

The Company does not envisage that it will require the full life of each tranche of performance rights to satisfy the relevant performance conditions, but the Amendment provides the Company with maximum flexibility to ensure the highest quality PFS and DFS can be completed whilst also allowing time to consider any funding opportunities or other corporate transactions that may present themselves as the Company approaches the completion of a PFS and DFS. The Company expects to complete the PFS in the June 2023 quarter.

The Board believes that the Amendment is required to ensure that the performance rights currently on issue continue to incentivise and retain existing key management personnel and to ensure continuing alignment between the strategic goals of the Company and the creation of shareholder value.

The Company will seek shareholder approval in November at its 2022 Annual General Meeting to make the Amendment as follows:

TRANCHE

ORIGINAL PERFORMANCE CONDITIONS

ORIGINAL EXPIRY DATE

AMENDED PERFORMANCE CONDITIONS

AMENDED EXPIRY DATE

No. of Performance Rights

2

Feasibility Study Milestone means announcement of a positive Feasibility Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Feasibility Study has the meaning given in the JORC Code.

31 December 2023

Pre-Feasibility Study Milestone means announcement of a positive Pre-Feasibility Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Pre-Feasibility Study has the meaning given in the JORC Code.

30 September 2023

5,120,000

3

Decision to Mine Milestone means announcement of a Decision to Mine for the Malawi Rutile Project.

Decision to Mine means a decision to commence mining operations.

31 October 2025

Feasibility Study Milestone means announcement of a positive Feasibility (DFS) Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Feasibility Study has the meaning given in the JORC Code.

31 October 2025

7,320,0

 

Further, and subject to shareholder approval following his appointment as Chairman, the Company will also issue an additional 240,000 tranche 2 (PFS) performance rights and 120,000 tranche 3 (DFS) performance rights to director, Mr Ben Stoikovich.

Following the change in focus from exploration to development activities and the associated requirement for additional human resources, the Company will also issue, subject to shareholder approval of the Amendment, 1,140,000 tranche 2 (PFS) performance rights and 1,520,000 tranche 3 (DFS) performance rights to existing and incoming staff.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource Estimate is extracted from the announcement dated 5 April 2022. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcement.

Table 1:  Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off

 

 

Mineral Resource Category

Material Tonnes (millions)

Rutile
(%)

Rutile Tonnes (millions)

Total Contained Graphite (TGC)
(%)

TGC Tonnes (millions)

RutEq. Grade*
(%)

Indicated

662

1.05%

6.9

1.43%

9.5

1.76%

Inferred

1,113

0.99%

11.0

1.26%

14.0

1.61%

Total

1,775

1.01%

18.0

1.32%

23.4

1.67%

* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price (US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken from this Study ** Any minor summation inconsistencies are due to rounding

Qualified Person

Data disclosed in this press release have been reviewed and verified by Sovereign’s Qualified Person, Dr Julian Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, for the purposes of the AIM Rules for Companies.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct.  Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

APPENDIX I – DRILL RESULTS

Rutile and graphite drilling results from Kasiya are shown below in Table 2.

Hole ID

Interval Thickness

Rutile %

TGC %

From (m) Downhole

Hole Type

KYAC0001

19.0

0.88

1.8

0.0

AC

incl

6.0

1.23

1.5

0.0

KYAC0002

16.0

0.84

1.3

0.0

AC

incl

5.0

1.12

0.7

0.0

KYAC0003

11.0

0.84

0.8

1.0

AC

incl

3.0

1.27

0.3

1.0

KYAC0004

16.0

1.05

1.9

2.0

AC

incl

13.0

1.10

1.8

2.0

KYAC0005

22.0

1.06

1.5

1.0

AC

incl

15.0

1.16

1.4

1.0

KYAC0006

28.0

1.05

2.0

2.0

AC

incl

5.0

1.78

2.4

10.0

KYAC0007

5.0

1.15

0.2

1.0

AC

incl

3.0

1.36

0.1

1.0

KYAC0008

19.0

0.95

1.5

1.0

AC

incl

3.0

1.24

0.2

1.0

KYAC0009

NSR

AC

KYAC0010

24.0

1.03

1.9

0.0

AC

incl

5.0

1.87

0.3

0.0

KYAC0011

20.0

1.17

2.1

0.0

AC

incl

11.0

1.21

1.7

0.0

KYAC0012

20.0

0.70

1.2

1.0

AC

KYAC0013

20.0

1.03

1.5

1.0

AC

incl

6.0

1.46

1.1

1.0

KYAC0014

7.0

1.64

1.0

0.0

AC

KYAC0015

19.0

0.97

1.7

1.0

AC

incl

10.0

1.12

1.9

3.0

KYAC0016

7.0

1.16

0.5

0.0

AC

KYAC0017

20.0

0.97

1.5

0.0

AC

incl

4.0

1.53

0.4

0.0

KYAC0018

25.0

1.06

2.5

0.0

AC

incl

13.0

1.15

2.5

0.0

KYAC0019

20.0

0.98

1.6

0.0

AC

incl

3.0

1.67

0.3

0.0

KYAC0020

14.0

0.95

2.1

0.0

AC

incl

3.0

1.51

0.0

0.0

KYAC0021

14.0

0.99

2.2

0.0

Twin AC

incl

3.0

1.37

0.0

0.0

KYAC0022

20.0

1.26

2.4

0.0

AC

incl

16.0

1.37

2.4

0.0

KYAC0023

23.0

0.86

2.2

0.0

AC

incl

7.0

1.08

2.9

7.0

KYAC0024

17.0

1.06

1.7

0.0

AC

incl

4.0

1.56

0.6

0.0

KYAC0025

23.0

1.08

2.4

0.0

AC

incl

10.0

1.50

1.9

0.0

KYAC0026

22.0

1.15

3.5

0.0

AC

incl

8.0

1.51

2.3

0.0

KYAC0027

30.0

0.95

2.7

0.0

AC

incl

3.0

2.19

0.2

0.0

KYAC0028

23.0

0.85

1.6

0.0

AC

incl

2.0

2.06

0.3

0.0

KYAC0029

16.0

0.86

1.1

0.0

AC

incl

4.0

1.45

0.1

0.0

KYAC0030

20.0

1.29

1.6

0.0

AC

incl

6.0

1.70

0.5

0.0

KYAC0031

26.0

1.18

2.1

0.0

AC

incl

6.0

1.66

0.4

0.0

KYAC0032

27.0

1.06

1.5

0.0

AC

incl

6.0

1.48

0.5

0.0

APPENDIX II: DRILL HOLE COLLAR DATA – TABLE 3

Hole ID

Easting

Northing

RL

Depth

 

Hole ID

Easting

Northing

RL

Depth

KYAC0001

542200

8480400

1117

23.0

KYAC0017

544200

8471800

1126

20.0

KYAC0002

542399

8480401

1123

18.0

KYAC0018

544400

8471800

1128

27.0

KYAC0003

542601

8480400

1126

25.0

KYAC0019

544600

8471800

1130

23.0

KYAC0004

542800

8480402

1129

21.0

KYAC0020

544800

8471800

1132

27.0

KYAC0005

543001

8480400

1132

26.0

KYAC0021

544801

8471800

1132

27.0

KYAC0006

548200

8478600

1144

32.0

KYAC0022

543599

8468204

1129

22.0

KYAC0007

548399

8478603

1143

33.0

KYAC0023

543800

8468200

1136

25.0

KYAC0008

548600

8478600

1140

24.0

KYAC0024

544000

8468197

1139

36.0

KYAC0009

548800

8478600

1137

18.0

KYAC0025

544200

8468200

1142

25.0

KYAC0010

549000

8478600

1134

26.0

KYAC0026

544401

8468200

1142

24.0

KYAC0011

549180

8478600

1130

21.0

KYAC0027

544600

8468200

1140

33.0

KYAC0012

549400

8478600

1125

23.0

KYAC0028

544798

8468201

1136

27.0

KYAC0013

543400

8471800

1121

23.0

KYAC0029

544998

8465399

1162

30.0

KYAC0014

543600

8471800

1123

21.0

KYAC0030

545196

8465401

1164

21.0

KYAC0015

543800

8471800

1124

21.0

KYAC0031

545399

8465398

1166

27.0

KYAC0016

544000

8471800

1125

29.0

KYAC0032

545600

8465400

1167

36.0

 

APPENDIX III: JORC CODE, 2012 EDITION – TABLE 1

SECTION 1 – SAMPLING TECHNIQUES AND DATA

Criteria

 JORC Code explanation

Commentary

Sampling Techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 

Air-Core samples are composited based on regolith boundaries and sample chemistry, generated by hand-held XRF analysis. Each 1m of sample is dried and riffle-split to generate a total sample weight of 3kg for analysis, generally at 2m intervals. This primary sample is then split again to provide a 1.5kg sample for both rutile and graphite analyses.

 

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 

Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All drill samples are geologically logged by the geologist at the drill site/core yard.

 

Each sample is sun dried and homogenised. Sub-samples are carefully

riffle split to ensure representivity. The 1.5kg composite samples are then processed.

 

An equivalent mass is taken from each sample to make up the composite. A calibration schedule is in place for laboratory scales, sieves and field XRF equipment.

 

Placer Consulting Pty Ltd (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection and processing of drill samples and found them to be fit for purpose. The primary composite sample is considered representative for this style of rutile mineralisation.

 

 

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

 

 

Logged mineralogy percentages, lithology information and TiO2% obtained from handheld XRF are used to determine compositing intervals. Care is taken to ensure that only samples with similar geological characteristics are composited together

Drilling Techniques

Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc).

 

A total of 32 Air-Core holes for 814m are reported here from drilling at the Kasiya Rutile Deposit to obtain samples for quantitative determination of recoverable rutile and Total Graphitic Carbon (TGC).

 

Placer has reviewed SOPs for Air-Core and found them to be fit for purpose and support the resource classifications as applied to the MRE.

 

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

 

Samples are assessed visually for recoveries. The configuration of drilling and nature of materials encountered results in negligible sample loss or contamination.

Air-Core drilling recovery in the top few metres are moderate to good. Extra care is taken to ensure sample is recovered best as possible in these metres. Recoveries are recorded on the rig at the time of drilling by the geologist. Drilling is ceased when recoveries become poor once Sap rock has been encountered.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

 

The Company’s trained geologists supervise drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.

 

Air-core drilling samples are recovered in large plastic bags. The bags are clearly labelled and delivered back to the laydown at the end of shift for processing.

 

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

 

No relationship is believed to exist between grade and sample recovery. The high percentage of silt and absence of hydraulic inflow from groundwater at this deposit results in a sample size that is well within the expected size range.

 

No bias related to preferential loss or gain of different materials is observed.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation mining studies and metallurgical studies.

 

Geologically, data is collected in detail, sufficient to aid in Mineral Resource estimation.

 

All individual 1-metre intervals are geologically logged, recording relevant

data to a set log-chief template using company codes. A small representative sample is collected for each 1-metre interval and placed in appropriately labelled chip trays for future reference.

 

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

 

All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative.

 

The total length and percentage of the relevant intersection logged

 

 

100% of samples are geologically logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

 

 

N/A

 

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Air-Core samples are dried, riffle split and composited. Samples are collected and homogenised prior to splitting to ensure sample representivity. ~1.5kg composite samples are processed.

 

An equivalent mass is taken from each primary sample to make up the composite.

 

The primary composite sample is considered representative for this style of mineralisation and is consistent with industry standard practice.

 

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 

Techniques for sample preparation are detailed on SOP documents verified by Placer Resource Geologists.

 

Sample preparation is recorded on a standard flow sheet and detailed QA/QC is undertaken on all samples. Sample preparation techniques and QA/QC protocols are appropriate for mineral determination.

 

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 

The sampling equipment is cleaned after each sub-sample is taken.

 

Field duplicate, laboratory replicate and standard sample geostatistical analysis is employed to manage sample precision and analysis accuracy.

 

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 

Sample size analysis is completed to verify sampling accuracy. Field duplicates are collected for precision analysis of riffle splitting. SOPs consider sample representivity. Results indicate a sufficient level of precision for the resource classification.

 

Whether sample sizes are appropriate to the grain size of the material being sampled.

 

 

The sample size is considered appropriate for the material sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Rutile

The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where a non-magnetic mineral concentrate (NM) is generated.

 

Final results generated are for recovered rutile i.e, the % mass of the sample that is rutile that can be recovered to the non-magnetic component of a HMC.

 

The HMC is prepared via wet-table, gravity separation at the Lilongwe Laboratory which provides an ideal sample for subsequent magnetic separation and XRF.

 

All samples (incl. QA) included in this announcement received the following workflow undertaken on-site in Malawi;

 Dry sample in oven for 1 hour at 105

 Soak in water and lightly agitate

 Wet screen at 5mm, 600µm and 45µm to remove oversize and slimes material

 Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105

 Pass +45µm -600mm (sand fraction) across wet table to generate a heavy mineral concentrate (HMC)

 Pan HMC to remove retained light minerals

 Dry HMC in oven for 30 minutes at 105

 Magnetic separation of the HMC by Carpco magnet @ 16,800G (2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.

 

Bag NM fraction and send to Perth, Australia for quantitative chemical and mineralogical determination.

 The NM fractions were sent to ALS Metallurgy Perth for quantitative XRF analysis. Samples received XRF_MS.

 

Graphite

All samples are initially checked in and processed to pulp at Intertek-Genalysis Johannesburg.

The pulp samples are then dispatched to Intertek-Genalysis Perth where they undergo TGC assay via method C72/CSA.

A portion of each test sample is dissolved in dilute hydrochloric acid to liberate carbonate carbon. The solution is filtered using a filter paper and the collected residue is the dried to 425°C in a muffle oven to drive off organic carbon. The dried sample is then combusted in a Carbon/ Sulphur analyser to yield total graphitic or elemental carbon (TGC).

 

The graphitic carbon content is determined by eliminating other carbon forms from the total carbon content. The addition of acid to the sample liberates carbon dioxide thus removing carbonate carbon. Soluble organic carbon will also be removed. Insoluble organic carbon is removed by heating the samples at 425°C in an oxidising environment. The “dried” carbon-bearing sample that is analysed in the resistance furnace is considered to contain only graphitic carbon. 

An Eltra CS-800 induction furnace infra-red CS analyser is then used to determine the remaining carbon which is reported as Total Graphitic Carbon (TGC) as a percentage.

 

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 

 

Acceptable levels of accuracy and precision have been established. No handheld XRF methods are used for quantitative determination.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicate, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

 

Sovereign uses internal and externally sourced wet screening reference material inserted into samples batches at a rate of 1 in 20. The externally sourced, certified standard reference material for HM and Slimes assessment is provided by Placer Consulting.

 

Accuracy monitoring is achieved through submission of certified reference materials (CRM’s).

ALS and Intertek both use internal CRMs and duplicates on XRF analyses.

Sovereign also inserts CRMs into the sample batches at a rate of 1 in 20.

 

Three Rutile CRMs used by Sovereign.

Rutile A (AMIS0602) containing TiO2 XRF 90.62%. The CRM is supplied by African Mineral Standards (AMIS), South Africa.

Rutile B containing TiO2 XRF 70.71%. The CRM is supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

Rutile C containing TiO2 XRF 40.76%. The CRM is supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

 

Two Graphite Standards are used by Sovereign.

MPHLG1 containing 3.22% TGC

TCMG1 containing 7.54% TGC

Both these CRMs are supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

 

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative.  Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) may trigger re-assay of the affected batch.

 

Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy.

 

Acceptable levels of accuracy and precision are displayed in geostatistical analyses.

 

Verification of sampling & assaying

The verification of significant intersections by either independent or alternative company personnel.

 

Results are reviewed in cross-section using Micromine software and any spurious results are investigated.  The deposit type and consistency of mineralisation leaves little room for unexplained variance. Extreme high grades are not encountered.

Significant mineralisation intersections.

 

The use of twinned holes.

Twinned holes are drilled across a geographically-dispersed area to determine short-range geological and assay field variability. Twin drilling is applied at a rate of 1 in 20 routine holes.

 

Acceptable levels of precision are displayed in the geostatistical analysis of twin drilling data.

 

No twin holes are reported here.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All data are collected initially on paper logging sheets and codified to the Company’s templates.  This data is hand entered to spreadsheets and validated by Company geologists.  This data is then imported to a Datashed5 and validated automatically and then manually.

 

A transition to electronic field and laboratory data capture is underway.

 

Discuss any adjustment to assay data.

 

QEMSCAN of the NM fraction shows dominantly clean and liberated rutile grains and confirms rutile is the only titanium species in the NM fraction.

 

Recovered rutile is therefore defined and reported here as: TiO2 recovered in the +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e recoverable rutile within the whole sample.

 

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 

A Trimble R2 Differential GPS is used to pick up the Air-Core collars. Daily capture at a registered reference marker ensures equipment remains in calibration.

No downhole surveying of Air-Core holes is completed. Given the vertical nature and shallow depths of the Air-Core holes, drill hole deviation is not considered to significantly affect the downhole location of samples.

 

 

Specification of the grid system used.

WGS84 UTM Zone 36 South.

 

Quality and adequacy of topographic control.

DGPS pickups are considered to be high quality topographic control measures.

 

 

Data spacing & distribution

Data spacing for reporting of Exploration Results.

The Air-Core collars are spaced on a 200m x 200m grid which is deemed to adequately define the mineralisation.

 

 

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The drill spacing and distribution is considered to be sufficient to establish a degree of geological and grade continuity appropriate for further future Mineral Resource estimation.  

 

Whether sample compositing has been applied.

Individual 1m intervals have been composited, based on lithology, at a max 2m sample interval for the 32 air-core holes.

 

 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known considering the deposit type

 

Sample orientation is vertical and approximately perpendicular to the orientation of the mineralisation, which results in true thickness estimates, limited by the sampling interval as applied. Drilling and sampling are carried out on a regular square grid. There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit.

 

 

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

 

 

There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit.

Sample security

The measures taken to ensure sample security

Samples are stored in secure storage from the time of drilling, through gathering, compositing and analysis.  The samples are sealed as soon as site preparation is complete.

 

A reputable international transport company with shipment tracking enables a chain of custody to be maintained while the samples move from Malawi to Australia or Malawi to Johannesburg. Samples are again securely stored once they arrive and are processed at Australian laboratories. A reputable domestic courier company manages the movement of samples within Perth, Australia.

 

At each point of the sample workflow the samples are inspected by a company representative to monitor sample condition. Each laboratory confirms the integrity of the samples upon receipt. 

 

Audits or reviews

The results of any audits or reviews of sampling techniques and data

 

Richard Stockwell (CP) has reviewed and advised on all stages of data collection, sample processing, QA protocol and mineral resource estimation. Methods employed are considered industry best-practice.

 

Malawi Field and Laboratory visits have been completed by Richard Stockwell in May 2022. A high standard of operation, procedure and personnel was observed and reported.

SECTION 2 – REPORTING OF EXPLORATION RESULTS

Criteria

Explanation

Commentary

Mineral tenement & land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environment settings.

The Company owns 100% of the following Exploration Licences (ELs) and Retention Licence (RL) under the Mines and Minerals Act 2019, held in the Company’s wholly-owned, Malawi-registered subsidiaries: EL0609, EL0492, EL0528, EL0545, EL0561, EL0582 and RL0012.

A 5% royalty is payable to the government upon mining and a 2% of net profit royalty is payable to the original project vendor.

No significant native vegetation or reserves exist in the area. The region is intensively cultivated for agricultural crops.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing and no known impediments to exploration or mining exist.

Exploration done by other parties

 

Acknowledgement and appraisal of exploration by other parties.

Sovereign Metals Ltd is a first-mover in the discovery and definition of residual rutile and graphite resources in Malawi. No other parties are involved in exploration.

Geology

Deposit type, geological setting and style of mineralisation

The rutile deposit type is considered a residual placer formed by the intense weathering of rutile-rich basement paragneisses and variable enrichment by elluvial processes.

Rutile occurs in a mostly topographically flat area west of Malawi’s capital, known as the Lilongwe Plain, where a deep tropical weathering profile is preserved. A typical profile from top to base is generally soil (“SOIL” 0-1m) ferruginous pedolith (“FERP”, 1-4m), mottled zone (“MOTT”, 4-7m), pallid saprolite (“PSAP”, 7-9m), saprolite (“SAPL”, 9-25m), saprock (“SAPR”, 25-35m) and fresh rock (“FRESH” >35m).

The low-grade graphite mineralisation occurs as multiple bands of graphite gneisses, hosted within a broader Proterozoic paragneiss package. In the Kasiya areas specifically, the preserved weathering profile hosts significant vertical thicknesses from near surface of graphite mineralisation.

Drill hole information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northings of the drill hole collar; elevation or RL (Reduced Level-elevation above sea level in metres of the drill hole collar); dip and azimuth of the hole; down hole length and interception depth; and hole length

All collar and composite data are provided in the body and appendices of this report.

 

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case

No information has been excluded.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off grades are usually Material and should be stated.

All results reported are of a length-weighted average of in-situ grades. The results reported in the body of the report are on a nominal lower cut-off of 0.5% Rutile and exclude bottom of hole samples where saprock has been geologically logged.

 

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

No data aggregation was required.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values are used in this report.

Relationship between mineralisation widths & intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The mineralisation has been released by weathering of the underlying, layered gneissic bedrock that broadly trends NE-SW. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045°.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

The mineralisation is laterally extensive where the entire weathering profile is preserved and not significantly eroded. Minor removal of the mineralised profile has occurred in alluvial channels. These areas are adequately defined by the drilling pattern and topographical control.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’.

Downhole widths approximate true widths limited to the sample intervals applied. Mineralisation remains open at depth and in areas coincident with high-rutile grade lithologies in basement rocks, is increasing with depth. Graphite results are approximate true width as defined by the sample interval and typically increase with depth.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of the drill collar locations and appropriate sectional views.

Refer to figures in the body of this report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of exploration results.

All results are included in this report.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Rutile has been determined, by QEMSCAN, to be the major TiO2-bearing mineral at and around several rutile prospects within Sovereign’s ground package. The company continues to examine areas within the large tenement package for rutile and graphite by-product mineralisation.

Further work

The nature and scale of planned further work (e.g. test for lateral extensions or depth extensions or large-scale step-out drilling).

Core-drilling and water exploratory drilling is planned and ongoing throughout the remainder for 2022.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to diagrams in the body of this report.

 

#FDR First Development Resources – Brief Overview of FDR visit to Delta

WATCH HERE

#FDR First Development Resources – Brief Overview of FDR visit to Delta

#KDNC Cadence Minerals – Vox Market host an investor presentation and Q&A with Cadence CEO Kiran Morzaria

Kiran talks about:

~ Amapa ironore project, PFS, shipping, stockpiles etc

~ Yangibana rareearths

~ Lithium Technologies / Supplies & Sonora

~ investment returns & markets

Listen to the interview here

#TM1 Technology Minerals – Update on Cameroon Licences/OEL SPA

Further to the announcement on 23 February 2022, Technology Minerals Plc (LSE: TM1), the first UK company focused on creating a sustainable circular economy for battery metals, announces the following update in respect of the OEL Share Purchase Agreement (“OEL SPA”) as referred to in the Company’s Prospectus.

By way of background, at Admission on 17 November 2021, Technology Minerals acquired all the issued shares of Onshore Energy Limited (“OEL”) from its shareholders (“OEL Vendors”). OEL’s wholly-owned subsidiary, Technology Minerals Cameroon Limited (“TMC”), applied for five exploration permits in Cameroon. As these were not granted prior to Admission, the purchase price and accordingly the issue of New Ordinary Shares to OEL Vendors were reduced by 20% until such time as all five permits are granted, provided that the date of grant was no later than 31 December 2021. Accordingly, the Directors reserved 84,000,000 ordinary shares in the Company to issue to the OEL Vendors providing the permits were granted no later than 31 December 2021. 

 

As announced on 23 February 2022, the Company received copies of all permits concerned and instructed independent Cameroon legal counsel to verify the validity of the permits. Legal counsel has now concluded it was not possible for the five permits to be legally granted to TMC under Cameroonian law and therefore the permits are not valid.  As a result of that advice, the Company will not be issuing the 84,000,000 ordinary shares to the OEL Vendors. The Company is now taking steps so that the permits will be valid under Cameroon law.

 

The Directors of the Company accept responsibility for this announcement.

 

For further information please contact:

 

Technology Minerals Limited

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 20 7618 9100

Arden Partners Plc

Ruari McGirr, George Morgan

+44 207 614 5900

Luther Pendragon

Harry Chathli, Alexis Gore, John Bick

+44 20 7618 9100

#TM1 Technology Minerals – Recyclus Receives Battery Testbed System

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce that its 49% owned battery recycling business, Recyclus Group Ltd (“Recyclus”), has received three lithium battery (“LIB”) testbed systems designed to measure a range of different battery chemistries of different sizes at its Wolverhampton site.

 

The LIB testbeds give Recyclus the operational capability to test the effective capacity of battery packs from a range of EV and industrial usages as well as for degradation or damage at the cell level. By charging and discharging batteries to measure capacity and capture stored energy it can also perform a number of other critical performance test criteria. The ability to discharge stored energy unlocks future opportunities to feed energy back into the national grid and for use on-site.

 

This testing capability enables Recyclus to grade batteries and access the reuse market for batteries alongside recycling. The tested battery packs will be sorted into one of three categories: the first are suitable for reuse as they are, the second are defective and need to be recycled, and the third are a split with some cells being retrievable and others not. It creates an opportunity for Recyclus to send suitable batteries back into alternative repurposed applications, depending on their condition and test results.

 

With UK Government estimates suggesting that there could be almost 28 million EVs on the UK’s roads by 2035,1 a substantial number of battery cells are likely to reach end-of-life that are suitable for reuse for different applications, representing a significant market opportunity beyond recycling.

 

Robin Brundle, Chairman of Technology Minerals, said: “This testing capability is another key development for Recyclus designed to create an additional potential new revenue stream by unlocking more of the value-chain in the battery circular economy .

“We are constantly exploring new avenues to expand under our circular economy strategy, and this represents a significant milestone for us in developing our capability for recycling and reuse of batteries, and our ability to harness otherwise wasted energy. Implementing these systems into our process will help to maximise the lifespan of batteries and minimise energy waste.”

Jonathan Regan, Senior Battery Engineer of Recyclus, said: “Developing this function will allow us to work with manufacturers to increase the amount of carbon offset from the batteries’ production by extending their working life through repurposing into alternative applications , supporting the transition to net-zero, and supporting future and current legislative targets.”

Enquiries

Technology Minerals Plc

Robin Brundle, Executive Chairman

Alexander Stanbury, Chief Executive Officer

+44 20 7618 9100

Arden Partners Plc

Ruari McGirr, George Morgan

+44 207 614 5900

Luther Pendragon

Harry Chathli, Alexis Gore, John Bick

+44 20 7618 9100

#POW Power Metal Resources – First Development Resources – Selta Lithium Update

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”).

HIGHLIGHTS:

·    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.”

 

BACKGROUND:

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:

https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081

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:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-project-update/15462581

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:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-pre-ipo-financing/15477133

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:

https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001

 

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)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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