Business Update

Power Metal Resources PLC

25 October 2023

 

25 October 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Business Update

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company, provides a Business Update for shareholders following completion of the Company's financial year on 30 September 2023.

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

"I am pleased to provide this update for shareholders summarising the status of Power Metal's extensive business interests and our key business objectives for the near term.

The team are working intensively and concurrently on significant exploration and corporate initiatives, details of which are outlined below.

We expect various news updates in the near term, informing shareholders of the outcomes of current exploration programmes, the launch of new exploration activities and the results of our corporate activities seeking value crystallisation and streamlining of the Company.

I am well aware that our long-term shareholders have been extremely patient in what are close to unprecedented market conditions. I am very confident that the actions we are taking, coupled with the positive macro backdrop for commodity prices, will translate into significant returns for shareholders over time."

KEY BUSINESS OBJECTIVES

Power Metal's key business objectives in the short term are as follows:

-      Complete transactions with third parties looking to acquire business interests, enter into project joint ventures, or otherwise engage in our various ongoing activities;

-      Focus on major metal discoveries from our retained in-house portfolio through cost-effective exploration including drilling, utilising our strong financial position and cash generated from future project disposals;

-      Expand the ownership of Power Metal shares into new investor groups, a process that started with the May 2023 £2.7m financing corner-stoned by Term Oil Inc, a Company controlled by internationally recognised resources specialist Rick Rule;

-      Identify new territories for future business opportunities and incoming project level investment, including notably Saudi Arabia and Oman, where we recently conducted in-country meetings and site visits;

-      Focus on demonstrable value growth in the Power Metal portfolio through exploration and value crystallisation, to materially increase the Company's market valuation.

KEY OPERATIONAL ACTIVITIES

Note: the information below covers the certain areas of internal operational activities within Power Metal, where the Company is targeting near term value generative outcomes.  It does not cover all the activities within the Company or the Company's investment holdings, where we also note extensive operational activity continues.

EXPLORATION ACTIVITIES

Key Exploration Activities Table:

PROJECT	LOCATION	NEXT STEPS
Athabasca Uranium	Canada	Completion of ongoing 2023 exploration programme and publication of findings targeting significant uranium discoveries.
North Wind Project	Canada	Receipt of assay results from 2023 field exploration targeting a significant lithium discovery.
Molopo Farms Complex	Botswana	Drilling of major conductor targeting nickel/platinum group element discovery.
Tati Gold Project	Botswana	Completion of ongoing 2023 exploration programme and publication of findings.
Wallal Project	Australia	Drilling of major magnetic bullseye target in Paterson Region with geophysical signature similar to Greatland Gold's Havieron Project.

ATHABASCA URANIUM EXPLORATION

Power Metal currently has a 100% interest in 17 uranium properties covering over 1000km² in the Athabasca Region of Saskatchewan, Canada.  This is the largest ground footprint in the Athabasca Region held by a UK listed company.  

Power Metal's technical team selected the Athabasca footprint by painstaking review of historical exploration data from work conducted and paid for by others, applying modern geological knowledge and techniques to identify the best available ground.  The ground was available because other explorers had relinquished their interests during the long-term uranium bear market or because the geological opportunities the Company identified had, at that stage, been noted by others.

2023 has seen the largest Athabasca uranium exploration programme ever undertaken by the Company with some very significant early findings announced recently.

Once completed our 2023 exploration programme will cover approximately 10 properties and to date we have announced major exploration results from across the portfolio, with further updates expected in the near term as our field teams remain active and a range of exploration results are awaited.

AFRICA EXPLORATION

Tati Project (POW 100%)

Exploration work at Tati has continued to validate the gold mineralisation within the previously identified 8km long gold trend.  This work continues with further infill sampling focused on newly discovered target areas of gold mineralisation within the trend which pending analysis of final results, may be followed by reverse circulation and/or diamond drilling which will be targeted towards the highest profile areas.

In the Company's view there is considerable evidence building for a potentially significant, economic gold deposit at Tati. Moreover, that there is potential for rapid project development with a recommencement of historic mining activities, subject to applicable local regulatory approvals.  This is made more feasible if the Company can rapidly demonstrate the extent of gold mineralisation within the project boundaries.  The latter is Power Metal's present focus.

Molopo Farms Complex Project (POW 87.71%)

Extensive exploration to date has confirmed the feeder zone geological model, confirmed the presence of nickel sulphides and platinum group elements ("PGEs") through drilling as announced on 27 April 2023 which includes 2.3m @ 0.56g/t Pt+Pd+Au & 0.17% Ni from DDH1-6B, and by aggregating and analysing the extensive database of historical work has now identified the highest profile conductor drill target to date.

Power Metal sees the potential for a district-scale nickel and PGE discovery at Molopo and is planning the next diamond drill programme with this objective in focus.

NORTH AMERICA EXPLORATION

North Wind (POW 100%)

North Wind is held by ION Battery Resources Limited a 100% owned POW subsidiary.  A lithium focused ground exploration programme conducted earlier this summer led to the identification of several pegmatites.  

The results from assay testing of outcrop rock samples from the identified pegmatites, together with those from extensive soil geochemical sampling at North Wind, are expected in the near term.

CORPORATE DEVELOPMENT ACTIVITIES

The Power Metal model is to advance robust internal exploration programmes to seek major metal discoveries and build underlying project value, whilst also looking in parallel for significant value crystallisation through corporate activity to build the value of the Company.

In some cases, exploration programmes continue across certain projects where there has been incoming third-party interest.  Power Metal's policy is to continue planned exploration notwithstanding discussions that may be occurring in parallel. 

Athabasca Uranium Corporate Activity

Given the resurgence in the uranium sector, Power Metal has seen a considerable increase in the level of interest in our strategic Athabasca holdings.

Power Metal has previously announced the disposal of Reitenbach and E-12 properties into Uranium Energy Exploration ("UEE"). Plans for an IPO of UEE have are advancing and a further market update is expected shortly.

The Company has also received third party interest across our uranium portfolio and further commercial transactions are anticipated however shareholders should note that there can be no certainty of any such transactions being concluded.

Africa Corporate Activity

Both Tati and Molopo Farms Complex projects have received third party interest and the Company continues in discussions to explore complementary, joint venture and other project level partnerships.

Power Metal continues to liaise with our partner to seek a new pathway for advancement of the Haneti Project in Tanzania where the Company holds a 35% interest.

North America Corporate Activity

Power Metal's 100% owned ION Battery Resources Limited ("ION") holds the North Wind project where lithium focused exploration is currently underway, together with the Authier North lithium project and Doerksen Bay graphite project. 

The next corporate steps for ION are to be determined following receipt of assay results from the North Wind summer exploration programme and a further announcement will be made in due course.

The Company's 30% interest in the Silver Peak project remains as previously stated and we are working with our partners on the next commercial steps for this important asset.

Australia Corporate Activity

New Ballarat Gold PLC (49.9% POW) has secured an enviable ground footprint in the Victoria Goldfields of Australia, including two high grade former working gold mines. Power Metal is working with its joint venture partner to create a pathway to expedite the commercial success of this strategic Australian opportunity and hopes to announce an update with progress in the near future.

First Development Resources PLC ("FDR")(58.59% POW) holds strategic exploration projects in Western Australia and the Northern Territory and has been fully prepared for an IPO listing which subject to a return to normalised market conditions and final regulatory approvals can be undertaken at short notice.  In Western Australia FDR holds the Wallal Project which includes the company's primary target - the Eastern Anomaly, a magnetic bullseye target with a geophysical signature similar to Greatland Gold's Havieron discovery in the Paterson Region.

FDR has secured a c. £110,000 Co-funding grant from the Western Australian government as part of the Exploration Incentive Scheme to be set against the costs of Wallal drilling and has received all the necessary local approvals for the drill to be undertaken.  FDR has also agreed a contract with DDH1 Drilling Ltd to undertake the Phase I diamond drilling drill programme and has prepared the access and the drill pad location 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.

Finally, Power Metal holds a 20% interest in New Horizon Metals Pty Ltd, which holds projects in Queensland and South Australia, and is working towards the completion of a listing in the Australian capital markets.

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
Sean Wade (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

BlytheRay (PR Advisors)	[phone]
Tim Blythe
Megan Ray

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.

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 grow the Company, or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

 

END