First Development Resources - Company Update

RNS Number : 2565U

Power Metal Resources PLC

29 July 2022

 

29 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - 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 its project portfolio in Western Australia and the Northern Territory held through its 62.12% subsidiary First Development Resources Limited ("First Development Resources" or "FDR") which is seeking a planned listing in the London capital markets.

HIGHLIGHTS:

· Wallal Heritage Clearance Survey dates confirmed by Yamatji Marlpa Aboriginal Corporation. The survey is scheduled to take place between 16 - 19 August 2022.

· A drilling contract has been signed with DDH1 Drilling Limited ("DDH1 Drilling") for the Wallal Phase I diamond drilling programme. DDH1 Drilling have extensive experience in the Paterson region and drilled the discovery holes for the Greatland Gold plc Havieron deposit.

· The in-depth desktop review for the Ripon Hills and Braeside West projects is now complete with multiple targets identified for gold and base-metals associated with deep-seated fault structures confirmed for further investigation.

· Selta Project reconnaissance confirms the presence of pegmatite geology and the litho-geochemical analysis of samples suggests the area is dominated by a zoned pegmatite system originating from nearby granites.

· FDR board and advisor group composition has been finalised. All key advisors have been engaged and are now working with FDR to secure its planned UK listing targeted for later this year.

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

"In-depth analysis has now been completed for all projects within FDR's portfolio and we now have multiple targets identified for further investigation across all our assets. The excellent work completed by our in-house geological team and external consultants has resulted in the development of conceptual targets to a point where plans are now being made to simultaneously test multiple priority areas following FDR's planned listing later this year.

Wallal remains our primary focus and we are pleased to confirm that we now have a date for our Heritage Clearance Survey which, when complete, will allow us to work with our drilling partner DDH1 Drilling to complete all preparatory work to facilitate commencement of diamond drilling post targeted completion of FDR's planned UK listing."

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

"The FDR team continue to progress work across its project portfolio in Australia whilst at the same time advancing the various workstreams necessary to efficiently complete the planned UK listing process.

The cumulative findings from our internal work supported by feedback from FDR's advisor group gives us the confidence to push ahead aggressively with our work, enhanced particularly by the ongoing investment into detailed desktop reviews which is significantly increasing our project knowledge at very modest cost."

WALLAL HERITAGE CLEARANCE SURVEY

The Heritage Clearance Survey (the "Survey") is a required precursor to the planned Phase I diamond core drilling programme at the company's Wallal project located in the Paterson Province of Western Australia. The Survey is in accordance with Section 18 of the Aboriginal Heritage Act 1972 and in accordance with the terms of the Heritage Agreement in place with the Yamatji Marlpa Aboriginal Corporation ("YMAC") as agent for the Nyangumarta Warrarn Aboriginal Corporation. A Survey is required where Heritage sites (archaeological or ethnographic) have been identified, and disturbance of these sites cannot be avoided by the development.

The Survey team, appointed by YMAC, will consist of the Heritage consultant(s) which, if necessary, will comprise both an anthropologist and an archaeologist; such members of the Common Law Holders as the Manager Heritage Services advises are necessary to examine and assist in the Heritage Survey; a Community Liaison Officer; and representatives from FDR.

The Survey request which included a detailed description of the Phase I diamond core drilling programme and site-specific maps was submitted to YMAC by the Company's appointed Exploration Manager on 31 January 2022. The Survey is scheduled to take place between 16 - 19 August 2022 and will cover the proposed drilling locations and all associated access tracks.

WALLAL PHASE I DIAMOND CORE DRILLING PROGRAMME

FDR's Phase I diamond core drilling programme has been designed in conjunction with Perth based consultancy Resource Potentials Pty Ltd ("Resource Potentials"). The programme is targeting the Proterozoic basement rocks below the Permian Grant Group which are believed to host the sources of the magnetic bullseye anomalies identified during the completion of an in-depth review of all geological and geophysical data associated with the Wallal project area.

Three magnetic bullseye anomalies were identified in the review, the Western, Eastern and Border anomalies. The magnetic bullseye anomalies are of particular interest due to their possible geological similarities to the regionally significant Havieron discovery (Greatland Gold - Newcrest Joint venture). The Havieron deposit is coincident with a magnetic bullseye anomaly detected by an airborne magnetic survey and has a similar amplitude to Wallal, approximately 100nanoTesla ("nT") for the Eastern anomaly and 80nT for Havieron. The Phase I diamond core drilling programme has been designed to initially test the Eastern anomaly. The Eastern anomaly is interpreted to consist of two lobes which result in a distinct target area of approximately 2.5km x 2.5km. An estimate of depth of the cover sequence has been used to constrain the modelled depth of approximately 800 metres to the top of the Eastern magnetic source body.

The Phase I diamond drilling programme will consist of a minimum of two sub-vertical boreholes totalling approximately 2,720 metres, which will be drilled using rotary open hole to about 150 metres and then full core drilling techniques there onwards. Depending on ground conditions encountered, it is expected that the holes will be commenced using reverse circulation drilling techniques, followed by 83mm (PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth. The parameters for the planned boreholes are set out in Table 1:

Table 1: Planned Wallal Phase I Drillhole Parameters

Drillhole ID	Easting	Northing	Azimuth (°)	Dip (°)	Nominal depth (m)
DH1	260325	7780690	90	80	1,220
DH2	259850	7780772	270	80	1,500

WALLAL DRILLING CONTRACT SIGNED

FDR have engaged the services of DDH1 Drilling (ASX:DDH) to complete the Phase I diamond core drilling programme. Established in 2006, DDH1 Drilling is a leading provider of technically innovative drilling services to the Australian mineral exploration and mining industry. DDH1 Drilling operate Australia's largest surface fleet of state-of-the-art drilling rigs capable of drilling and extracting geological core samples from depths of up to 3,000 metres with Industry best practice safety systems supported by a professional and well-trained workforce. DDH1 have extensive experience operating in the Paterson region working on notable projects including Greatland Gold's (LON:GGP) discovery drillholes at Havieron.

RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW

The in-depth data review for FDR's Braeside West and Ripon Hills projects is now complete. Resource Potentials have reviewed all publicly available geological, geophysical and geochemical data and have identified multiple targets associated with major northwest trending faults prevalent across the region.

PROJECT BACKGROUND

First Development Resources has the precious and base-metal rights, excluding manganese and iron, over their Braeside West and Ripon Hills project tenements, which are located close to each other in the eastern Pilbara region of Western Australia.  These projects are in the same region as the world class Woodie Woodie manganese mine, next to recent gold-silver and base metal discoveries by Rumble Resources Limited at their Braeside Project (ASX:RTR, "Rumble" or "Rumble Resources"), and located to the west of gold-copper mines and deposits of the Paterson region, including Telfer (Newcrest), Havieron (Greatland-Newcrest), Nifty (Cyprium) and Winu (Rio Tinto).

The FDR project areas are accessible via sealed highway from Port Hedland via Marble Bar, or unsealed and sealed highway from Newman via Nullagine, and then unsealed tracks into the project areas.  The Braeside West project is comprised of one granted exploration licence (E45/5854, 138km²) and is held 100% in the name of Pardoo Resources Pty Limited, a wholly owned subsidiary of FDR. The Ripon Hills project is comprised of one granted exploration licence (E45/5088, 48km²) and is owned 100% by Great Sandy Pty Ltd.  Both project tenements are subject to a split commodity agreement with Accelerate Resources Limited (ASX listed under AX8, "Accelerate"), whereby Accelerate holds mineral rights to manganese and iron while FDR retains rights to all other mineral commodities.

RIPON HILLS

The Ripon Hills tenement covers part of the western limb of the Oakover Syncline and contains outcropping Carawine Dolomite of the Archaean Hamersley Group overlying rocks of the Fortescue Group. The project is considered to be prospective for base-metal and gold mineralisation associated with deep seated north to north westerly trending fault structures. These structures have the potential to be conduits for various styles of hydrothermal mineralisation as evidenced by recent exploration conducted by Rumble Resources, some 25km to the east.

Exploration by Rumble over the last 4 years along the eastern limb of the Oakover Syncline within rocks of the Fortescue Group has defined a regional scale porphyry to epithermal mineralised system that extends over 60km in length and 8km in width. They have defined 45 priority copper-gold-zinc-lead-silver targets and delineated five deposit types. Similar prospective rock types occur within the Ripon Hills area which has had very limited past base metal and gold exploration.

The immediate targets for exploration within the Ripon Hills tenement are the mapped and interpreted north to north westerly striking deep seated fault structures which have the potential to host various styles of hydrothermal base metal and gold mineralisation.

BRAESIDE WEST

The Braeside West tenement is located approximately 250km east south-east of Port Hedland on the western edge of the Paterson Province, Western Australia. The tenement covers approximately 138km² and is accessed via the sealed Marble Bar-Woodie Woodie road and unsealed station tracks. First Development Resources has the base-metal and gold rights over the tenement while Accelerate Resources holds the manganese and iron rights. This split-commodity arrangement will present several beneficial opportunities to FDR when it comes to exploration in the field.

Past exploration over the Braeside West Project tenement and surrounding area was focused primarily on the exploration for manganese within the Carawine Dolomite and overlying Pinjian Chert. These rock types host the manganese deposits of the Woodie Woodie Mining centre, one of Australia's major high grade manganese mines. There is only very minor reported base-metal or gold exploration over the tenement with work restricted to a regional stream sediment sampling programme by Carpentaria Exploration 1989-1991. The tenement area has been held almost continuously since the 1960's by manganese explorers precluding any serious base metal assessment.

Commencing in 2017, Rumble Resources recognised the potential of the Braeside area and they became the first modern explorer to systematically evaluate the base-metal and gold potential of the region. Through this work they have now defined regional scale porphyry, epithermal and Volcanogenic Hosted Massive Sulphide system. Polymetallic exploration is continuing on this extensive, highly prospective yet under explored region of the Pilbara.

Significantly, the Braeside West tenement which is adjacent to the Rumble Project contains a considerable strike length of the unexplored, yet prospective mafic and sedimentary units targeted by Rumble. These units and the important north northwest trending regional structures will be the focus for FDR during its initial exploration campaigns.

EXPLORATION TARGETING AND PROPOSED ACTIVITIES

The main mineral targets in the FDR Braeside West and Ripon Hills project areas are similar to the gold-silver-lead-zinc-copper-vanadium mineral deposits and occurrences within the Rumble Braeside Project located to the east.  Historically, the FDR tenements have been explored for shallow manganese deposits since the 1960s, with only minor base-metal exploration.  More recent exploration for shallow manganese deposits by Jupiter Mines and Pilbara Manganese (a subsidiary of Consolidated Minerals) consisted of detailed geological mapping, rock chip sampling, small gravity surveys and detailed aerial geophysical surveys, mainly VTEM and XTEM airborne electromagnetics to target conductive zones of shallow manganese mineralisation.  A ZTEM airborne audiomagnetotelluric survey was also flown over the Braeside West tenement.  Other government acquired geophysical datasets over the project areas include regional aeromagnetics and radiometrics, airborne gravity, and very wide spaced TEMPEST airborne electromagnetics.

FDR has obtained copies of all these historical exploration datasets and intends to re-process and interpret these datasets to focus targeting for base metal sulphide style deposits in older outcropping geological units to the side or below the Carawine Dolomite - Pinjian Chert Breccia formations. Accelerate have also recently carried out drone-based LiDAR digital elevation and aerial photography surveying at Braeside West, which has helped them to generate manganese drilling targets.  FDR will be working closely with Accelerate to co-explore the project tenements and combine efforts in the field.

FDR is now working with Resource Potentials to develop the next phase of exploration at both Braeside West and Ripon Hills.

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 may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241

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 chemical testing of pegmatites on the property indicates that the pegmatites analysed on the southwest of the property is part of zoned pegmatite system, most likely originating from the nearby granite. However, it must be noted that only seventeen samples were analysed, and pegmatites typically have variable composition, even over short distances.

Lithogeochemical analysis of Selta continues to support the lithium and REE prospectivity of the project, and the initial sampling programme, over a very small proportion of the property has provided valuable information for future exploration programmes.

CORPORATE ACTIVITIES

FDR corporate activities are focussed on achieving its planned listing on the London capital markets later this year. The Company has appointed an experienced finance director further enhancing what is already a very experienced management team. In addition to finalising the board, FDR's full advisor group has now been assembled. The listing advisory group which includes FDR's legal, accounting and corporate advisory teams are meeting regularly and are compiling all the necessary documentation to support the planned listing process.

An initial draft of FDR's Competent Person Report ("CPR") has been received from SRK Consulting (Australasia) Pty Ltd. The CPR is a key document which forms part of the listing documentation and is produced to provide an independent view of the Company's assets for potential investors. The CPR incorporates the findings of the in-depth review of the company's Braeside West and Ripon Hills projects along with the geochemical data associated with the lithium specific reconnaissance completed in June at Selta.

Ahead of FDR's planned listing later this year, the board and senior management will attend a site visit to Australia in August. The purpose of the visit is to provide the team with site specific experience prior to engaging with the market ahead of the planned initial public offering ("IPO").

In addition to visiting all FDR's project sites, the team will meet with in-country legal and accountancy teams along with key advisors supporting FDR's proposed listing. FDR is working with its corporate broker to enable Australia based investors to participate in the IPO financing and meetings will be scheduled to introduce them to FDR and the company's plans post listing.

FDR EXPLORATION INTERESTS

FDR holds the following exploration licence interests through its wholly owned Australian subsidiaries:

Wallal Project  (Wallal Main-E45/5816 -  390km ²  -  granted), (Wallal West 1-E45/5853  96km ²  - granted ) and (Wallal West 2 - E45/5880 -  86km ²  -  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 -  137km ²  -  one granted licence)

In-depth desktop analysis of historic exploration data is now complete 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 -  42km ²  -  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 now complete for 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.

COMPETENT 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 Competent 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)	[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]

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 internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within 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:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Hyperspectral data analysis conducted across 7 properties. Updating to 7 data rooms for third party review.	Finalise review of data from 3 properties.  Prepare for summer exploration programme across 4 properties.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Comprehensive data review complete and establishment of data room for third party review.	Finalise next exploration steps and action plan.
Tati Project	Botswana	100%	Site visit with mapping of gold workings and mine dumps.	Exploration planning underway including further mapping, sampling and launch of an RC drill programme.
Victoria Goldfields	Australia	49.9%	Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.	Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

 

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