RNS Number : 3752E
Power Metal Resources PLC
07 July 2021
7 July 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Australian Copper-Gold Acquisition - Update
Presentation Released Highlighting Geological Potential of
Acquisition Projects and Specifically Havieron Comparable Bullseye
Magnetic Targets Within the Wallal Project
Power Metal Resources plc (LON:POW), the AIM listed metals
exploration and development company has prepared an information
presentation covering the Australian Copper-Gold projects in the
Paterson Region ( "Paterson") of Western Australia.
This information presentation may be viewed through the
The Paterson projects are held by First Development Resources
Pty Ltd (FDR Australia) and include Wallal Project (three licence
applications being Wallal-E45/5816, Wallal West 1-E45/5853 and
Wallal West 2 - E45/5853), Braeside West Project (one licence
application) and the Ripon Hills Project (one granted licence).
On 28 April 2021 Power Metal announced a conditional acquisition
of FDR Australia and this may be viewed through the following
-- Paterson widely regarded as one of the most prospective
provinces in Australia for the discovery of world class gold-copper
-- Paterson is home to several world class mines and recent
discoveries including the following which host JORC compliant
resources: Winu (Rio Tinto - 503Mt at 0.45% CuEq(1) ), Havieron
(Greatland Gold - 4.2Moz AuEq(1) ), Telfer (Newcrest Mining - 31Moz
-- Wallal Project (the "Wallal") transacted by Highway 1 and is
located less than 200km from Port Hedland, Australia and shares an
extended border with Rio Tinto Exploration licence footprint.
Magnetic Targets Identified at Wallal
-- Major Au-Cu deposits within the Paterson Province, including
Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland Gold JV)
were evaluated in comparison to the Wallal Eastern Magnetic
-- Open-file publicly available airborne magnetic dataset
(TMIRTP(2) 5km High-Pass) identified two highly prospective
bullseye(3) magnetic targets within Wallal.
-- The Western Anomaly is over 5.5km in diameter; and the
Eastern Anomaly is 2.5km in diameter and is located at the transect
of two northwest-southeast trending magnetic linear anomalies
(comprising possible major structures).
-- Greatland Gold's Havieron deposit is coincident with a
magnetic bullseye anomaly which was detected by an airborne
magnetic survey flown over the region.
-- The Havieron and Wallal anomalies have similar amplitude:
approximately 80nT (nanoTesla) for Havieron and 100nT for the
Wallal Eastern Anomaly. The Wallal Eastern Anomaly is slightly
larger than the anomaly over the Havieron deposit.
-- Direct comparisons between Wallal and Havieron (geophysical)/Winu (geological), bode well for prospectivity of the Eastern Magnetic Anomaly bullseye.
-- Additional geophysical inversions are ongoing and various
geophysical datasets are being acquired in order to better
determine orientation and depth of these compelling geophysical
targets prior to drilling.
BACKGROUND TO FDR AUSTRALIA AND PLANNED CORPORATE ACTIVITY
FDR Australia is a private Australian company with 100%
ownership (or the right to acquire 100% ownership) in five
exploration licence interests in the Paterson Province, East
Pilbara, Western Australia. The projects include Wallal (three
licence applications), Braeside West (one licence application) and
Ripon Hills (one granted licence).
Power Metal announced the conditional acquisition of FDR
Australia on 28 April 2021 and is working with its Australian
partners to finalise matters precedent on the acquisition including
the grant of the Wallal licence application.
Good progress is being made with all matters including
finalisation of Heritage Agreements locally which are necessary
prior to formal grant, including the key initial licence at Wallal
where it is anticipated first drill targets will be
On completion of the acquisition FDR Australia will be acquired
outright by a newly formed private UK company First Development
Resources Limited ("FDR UK") in which Power Metal will have a 75%
Following completion of the acquisition above, the intention is
to arrange an initial public offering ("IPO") of FDR UK in the
London capital markets targeting Autumn 2021 and the Company is
taking preparatory steps to enable that proposed listing.
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.
1: CuEq or AuEq: Copper Equivalent grade (CuEq), Gold Equivalent
grade (AuEq): Equivalent grades are often employed where a deposit
is comprised of several different metals which have the potential
to each contribute economic value to the deposit. The equivalent
value of the individual minor metals is converted via a formula to
a single major metal, usually the major metal which is the most
economically dominant in the deposits. The formula used can vary
but often employs metal prices and metal recoveries. ASX-listed
companies are able to report metal equivalent grades provided they
are accompanied by: all individual metal assays; commodity price
assumptions; assumed recoveries; the formula; and confirmation that
there is good potential for all metals to be recovered.
2: TMIRTP : Total magnetic intensity (TMI) reduced to pole (RTP)
relates to the magnetic geophysics data processing methods employed
for interpretation of the raw survey data.
3: Bullseye: A bullseye magnetic target is a distinct
high-intensity anomaly comprising concentric circular bands of high
gradient magnetic intensity surrounding a central point. The
analogy is with a dartboard bullseye which presents a distinct
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 (LON:POW) is an AIM listed metals
exploration and development company seeking large scale metal
The Company has a global portfolio of project interests
including precious, base and strategic metal exploration in North
America, Africa and Australia. Project interests range from early
stage greenfield exploration to later stage exploration prospects
subject to drill programmes.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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July 07, 2021 02:00 ET (06:00 GMT)
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