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Power Metal Resources plc (AIM:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an exploration update for the First Development Resources Plc (“FDR”) Selta Project (“Selta” or the “Project”) located in the Northern Territory of Australia. Power Metal holds a 58.59% interest in FDR.

To develop the Company’s understanding of the Selta Project, FDR commissioned an Australian-based consultancy to complete a high-level geophysical and geographical information system (“GIS”) based desktop study (“the Study”) on the Selta Project’s mineral exploration potential and prospectivity to further develop target areas for follow-up field inspection on completion of the planned FDR initial public offering (“IPO”). The Study has now been received and the findings are reported below.

HIGHLIGHTS:

·    Significant expansion of existing rare-earth element (“REE”) and lithium (“Li”) exploration target area, and generation of new target areas building on previous ground-based exploration and desk-based data reviews carried out by FDR.

·    Following detailed compilation of historical drilling and surface geochemical data into comprehensive datasets, specific mineral exploration target areas were established for orogenic gold (“Au”) and base metals, including inferences on the potential for iron-oxide copper-gold (“IOCG”) and iron-sulphide copper-gold (“ISCG”) mineralisation within the Project area.

·    Specifically, the Study has enhanced FDR’s understanding of the potential within target areas identified for REE mineralisation having a similar geological setting to Arafura Rare Earths Ltd’s (ASX: ARU) nearby Nolans Project, together with lithium-caesium-tantalum (“LCT”) pegmatites relating to the same fractionated granite intrusions sourcing REE, tin and tantalum mineralisation just to the south and east.

·    The outputs from the Study have provided a more geologically focussed summation of the mineral prospectivity within Selta and provide an inventory of prioritised target areas across multiple minerals and metal styles An exploration strategy is now being developed to systematically test the identified targets.

Tristan Pottas, Chief Executive Officer of FDR, commented:

“FDR has continued to work proactively to advance its business interests in advance of the planned IPO which it hopes to resume as soon as Market conditions allow.

With the company’s Wallal Project in Western Australia fully prepared for drilling, our attention has turned to the Selta Project where previous mineral explorers identified a number of high-profile gold and base metal targets and paving the way for FDR to identity REE and LCT pegmatite targets.  Our updated mineral target inventory has been significantly boosted with the findings announced today, including notably gold and base metals in historical drilling, along with the realisation that the province is also prospective for IOCG and ISCG targets.

At Wallal, we are drill ready and eagerly looking to commence deep drilling on high priority gold targets at the earliest opportunity, commencing with the magnetic bullseye Eastern Anomaly target which we believe bears striking geophysical similarity to the Havieron discovery made by Greatland Gold plc in the same Paterson province as Wallal.”

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

“Our intended IPO for FDR is taking longer than anticipated due to stagnant market conditions for capital raisings. To keep the IPO process moving forward, FDR brought forward the study on Selta which was previously planned to be completed post-IPO. Working within the constraints of a tight budget, the team worked closely with experts in Australia to enhance our already compelling exploration case for the Selta Project.

I am confident that FDR’s updated exploration target areas add substantially to the investment case for FDR and will help to take the Company forward for obtaining funding to aggressively explore these target areas.  We look forward to updating the market on FDR’s next steps in due course”.

BACKGROUND:

In preparation for FDR’s planned IPO and admission to the London markets, and to aid in planning focussed fieldwork upon listing, FDR commissioned Perth, Western Australia (“WA”), based consultancy Resource Potentials Pty Ltd (“ResPot”) to complete a geophysical and GIS-based desktop study on the mineral exploration potential of FDR’s Selta Project mineral exploration tenements located in the Central Arunta Region of Australia’s Northern Territory (Figure 1).

The Study undertaken by ResPot compiled publicly available historical exploration datasets to help assess the mineral deposit potential of Selta and generate and prioritise target areas for aggressive exploration post FDR’s IPO and included

–      detailed compilation and review of historical mineral exploration reports and technical data sets;

–      compilation, processing, imaging, digitisation and review of publicly available open-file company and government datasets consisting of drilling, geophysical, geochemical, and geological datasets, and results; and

–      the Study also included establishing comprehensive modern data from historical drilling and surface geochemical sampling to advance the Study and highlight new target areas of interest.

Prior to the Study, FDR identified multiple uranium and REE targets within the Selta Project area and also highlighted the potential for lithium, gold and base-metal mineralisation. Prior fieldwork completed by FDR allowed for limited testing of lithium targets within the southern portion of the Project by identifying and sampling pegmatite outcrops, but the FDR technical team felt that considering the Project’s large size, complex geology and previous exploration history, a further modern and comprehensive data compilation and targeting study was warranted.

The Study has now identified the potential for multiple target minerals, including:

–      REEs geologically similar to the Nolans Project and ionic clay type REE mineralisation in weathered fractionated granite;

–      LCT-pegmatites;

–      Lode gold in Lander Rock meta-sediment-volcanic greenstone belt; and

–      Base metals in a skarn setting, specifically for tungsten, molybdenum tin and silver similar to the Molyhill Project tungsten deposit, held by Thor Energy PLC (ASX / AIM: THR), to the east. 

The study also mentions the potential for IOCG and ISCG mineralisation surrounding intrusive bodies sourcing similar styles of mineralisation within the broader Arunta mineral province.

Figure 1: Selta Project regional setting in relation to existing deposits and known mineral occurrences.

SELTA PROJECT – DATA COMPILATION AND REVIEW

Concurrent with the Study, ResPot liaised with WA based Rock Solid Pty Ltd (“Rock Solid”) to help compile open-file surface and downhole drilling geochemical data from historical exploration reports and Northern Territory Geological Survey (“NTGS”) databases into edited and validated master databases which ResPot then incorporated into the Study. 

A total of 10,622 drillholes were identified and integrated into a GIS database and Leapfrog workspace, of which 2,204 are within the boundaries of the Selta Project mineral exploration licences.  The drillholes vary in depth from small vacuum holes to 178 m deep reverse circulation (“RC”) and diamond core drill holes which were completed by previous exploration companies looking predominantly for uranium, gold and base metals.

The data compilation by ResPot and Rock Solid remains on-going as additional datasets become uncovered and are integrated into FDR’s master databases.

A total of eight target areas have been identified by the Study. FDR’s technical team has identified a ninth target the updated target areas are presented in Figure 2. The exploration target areas have also been priority ranked for prospectivity by ResPot using a simple priority ranking between one (high) to three (low), and these exploration target areas have undergone detailed follow-up analysis by FDR’s in house technical team and given target area names as shown on Figure 2.

PROPOSED EXPLORATION STRATEGY AT SELTA

As part of the Study, the following exploration programmes are proposed:

·    Further detailed interpretation and review to be carried out on the Ingallan LCT and REE target area, including field visits to collect rock samples, grids of soil geochemical surveying, and if results warrant then carry out follow-up RC drilling. In addition, possible Horizontal-to-Vertical Spectral Ratio (“HNSR”) passive seismic surveying over ionic clay REE target zones to test for weathering depth prior to drill testing.

·    The Hawkshead, Spring Creek, Loora Creek and West Nintabrinna lithium and REE target areas in the southwest of the Project are proposed to receive field inspection and geochemical sampling of soils to identify targets for hard rock drill testing.

·    Lander West geochemical soil sampling campaign is proposed to refine current target areas, the Yundurbulu Gold target area is almost wholly unexplored and therefore field teams will be deployed to carry out inspection and prospecting of the geology, with follow-up geochemical testing and then drilling if warranted. 

·    Drill testing on various walk-up targets, including the Vaughan Springs base metal magnetic ring target area, gold targets where shallow Au and pathfinder elements have been identified by shallow drilling but not yet followed up by deeper RC drilling into fresh bedrock, and LCT / REE pegmatite targets in outcrop, is a short to medium term aim of FDR.

·    FDR is currently evaluating exploration possibilities for a roll front uranium target in the northwest of the Project.

Figure 2: Selta Project targets identified for further exploration located within FDR’s mineral exploration tenements (black outline).

FDR CORPORATE ACTIVITY

First Development Resources Plc (58.59% POW) holds strategic exploration projects in Western Australia and the Northern Territory and is fully prepared for an IPO listing at short notice subject to favourable market conditions and final regulatory approvals. 

FDR EXPLORATION INTERESTS

FDR Australia holds the following mineral exploration licence interests:

Wallal Project in WA (Wallal Main – E45/5816 – 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 geological similarities major Au-Cu deposits within the Paterson Province, including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland Gold joint venture).

FDR has secured a c. £110,000 Co-funding grant from the Western Australian government as part of their Exploration Incentive Scheme to be offset against the costs of Wallal drilling, and the Company has received all the necessary local approvals to commence drilling. 

FDR has also agreed to contract DDH1 Drilling Ltd to undertake the phase I diamond drilling drill programme at Wallal, where FDR has already prepared the access and the drill pad locations in readiness for drilling.  Recognising this progress, the early commencement of drilling is being considered alongside the work being undertaken to finalise the IPO listing.

Braeside West Project in WA (E45/5854 – 137km² – one granted licence)

In-depth desktop analysis of historic exploration data is currently underway on the Braeside West Project, located in the northeast Pilbara region. A recent base-metal discovery by neighbouring company Rumble Resources Ltd (ASX: RTR) has enhanced the overall prospectively within the Braeside West Project area as it is hosted within a similar geological environment to that of Rumble Resources discovery.

Ripon Hills Project in WA (E45/5088 – 42km² – one granted licence).

The Ripon Hills Project is also located in the northeast Pilbara Region and is prospective for base-metal and gold mineralisation associated with deep-seated north-south oriented fault structures which run through the Ripon Hills Project area. In-depth desktop analysis of historic exploration data is currently underway over the project.

Selta Project in the NT  (EL 32737, EL 32738 and EL 32755 – 1,575km² – three granted licences)

The Selta Project is located in an emerging mineral province of the Arunta, considered to be highly prospective for uranium and rare-earth element mineralisation, and now niobium (“Nb”) with the discovery of carbonatites on the WA side by WA1 (ASX: WA1). FDR recently completed an in-depth review study of all historical and new geological, geophysical and geochemical data, which also identified the potential for REE, gold and base-metal mineralisation, as well as the possibility of LCT pegmatites.

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