TIDMPOW
RNS Number : 3688K
Power Metal Resources PLC
01 September 2021
1 September 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Australian Copper-Gold Acquisition - New Geophysics Bullseye
Target
Analytical Review of Geophysical Data Confirms a Third Magnetic
Bullseye Target
Power Metal Resources plc (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio, announces an update in respect the
conditional acquisition of Australian Copper-Gold projects (the
"Project") in the Paterson Region ( "Paterson") of Western
Australia.
BACKGROUND
The Paterson projects are held by First Development Resources
Pty Ltd ("FDR Australia") and include the Wallal Project, Braeside
West Project and the Ripon Hills Project (for exploration licence
details see Table 1 below).
On 28 April 2021 Power Metal announced a conditional acquisition
of FDR Australia and this may be viewed through the following
link:
https://www.londonstockexchange.com/news-article/POW/conditional-australia-copper-gold-acquisition/14955517
A map outlining the Wallal licence and the anomalies referred to
in the text below may be viewed on the Company's website through
the following link:
https://www.powermetalresources.com/wallal-anomaly-map/
HIGHLIGHTS
-- Additional magnetic geophysics circular anomaly, presenting
as a distinct "bullseye" target, identified at the eastern border
of the licence (the "Border" anomaly).
-- The new magnetic anomaly measures circa 1km x 1km, with
approximately 70% falling within FDR Australia Wallal licence
application area and 30% within the adjacent Rio Tinto licence
area.
-- Three major magnetic anomalies now identified (Western,
Eastern and Border anomalies), and the review suggests the initial
targets for drilling will be the Eastern and Border anomalies,
which are located closer to the Wallal platform edge at shallower
depths than the Western anomaly.
-- The Greatland Gold Havieron deposit discovery, located in
basement rocks below 420m of post mineral sedimentary cover,
resulted from the drilling of a distinct magnetic geophysics
bullseye target.
-- A Phase I work programme is currently being finalised which
will include reprocessing of three historic 2D-seismic lines, as
well a passive seismic survey centered over the Eastern and Border
anomalies.
-- A Heritage Agreement has been finalised by FDR Australia and
grant of the Wallal licence application is expected within the next
few weeks, allowing the completion of the conditional
acquisition.
-- Preparatory steps continue for listing of planned UK holding
company FDR UK, which will hold 100% of FDR Australia on
completion.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"Technical work has continued in the background as we await
licence grants, and notably the grant of the Wallal licence which
will trigger completion of the conditional acquisition.
The identification of a further geophysical anomaly is another
material step forward as we continue our work to define drill
targets in the highly prospective Paterson Province.
Deep targets under cover certainly represent high-risk
exploration, but as we have seen with Greatland Gold's discovery at
their Havieron project, the Paterson offers great upside potential
should a discovery be achieved.
Work continues corporately and technically, and further updates
will follow in the coming weeks."
TECHNICAL FINDINGS
Analysis of open-file government airborne magnetic geophysics
datasets originally led to the identification of two high-amplitude
'bullseye' shaped strongly magnetic anomalies within the Wallal
Project.
These anomalies were named the Western and Eastern anomalies and
had dimensions of roughly 5km x 5km and 2.5km x 2.5km
respectively.
Additional processing of the geophysical datasets were completed
which has led to the successful identification of a third, highly
prospective, 'bullseye' shaped strongly magnetic anomaly which has
been named the 'Border' anomaly.
This anomaly has dimensions of roughly 1km x 1km and spans the
border between the Wallal Project and a project owned and operated
by Rio Tinto Exploration ("Rio Tinto"), with approximately 70%
located on FDR's licence and the remaining 30% on Rio Tinto's
licence.
In additional to the geophysical processing and inversions
completed on the airborne magnetic datasets, ground-gravity as well
as various unprocessed 2D-seismic datasets were acquired from
various free, open-file sources over the entire Wallal embayment
and platform, providing coverage over the Western, Eastern and
Border anomalies.
These datasets used in conjunction give very rough indications
of the target depth to basement for the various geophysical
anomalies of interest within the Project.
Moving from west to east within the Wallal Project, the datasets
highlighted that the magnetic anomalies were determined to move
from deeper to shallower depths as they approached the Wallal
Embayment sedimentary basin gravity edge feature, which roughly
follows the claim border between the Wallal licence application and
Rio Tinto's exploration licence footprint.
As a result, the two furthest east anomalies (Eastern anomaly
and the Border anomaly) were determined to lie at depths more
comparable to those found at Greatland Gold's Havieron discovery,
nearby within the Paterson Province, which is located below 420m of
post mineral sedimentary cover.
A Phase I work programme is currently being planned which will
include processing of three historic 2D-seismic lines, as well a
passive seismic survey centered over the Eastern and Border
anomalies.
The passive seismic survey which should help build an
understanding of the stratigraphy and the depth to basement, would
represent FDR Australia's first ground exploration at the Project,
and will play an important step in determining various drill
targeting and logistical aspects (e.g. access, project
infrastructure, location of water sources) which will be critical
for future work programmes on the Project.
The Phase I work programme will provide critical information,
including more precise depth to basement measurement of the Eastern
and Border anomalies, which will be used for planning of future
programmes, including a possible deep-diamond drilling
campaign.
PROJECT INFORMATION
Regional Background
-- Paterson Province widely regarded as one of the most
prospective provinces in Australia for the discovery of world class
gold-copper deposits.
-- Paterson Province 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 Au).
Wallal Project
-- The Wallal Project (the "Wallal") is 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 Anomaly
and determined to have many geophysical and structural
similarities.
-- Open-file publicly available airborne magnetic dataset
(TMIRTP(2) 5km High-Pass) has identified three highly prospective
bullseye(3) magnetic targets within the Wallal Project.
-- The Western Anomaly is approximately 5km x 5km; and the
Eastern Anomaly is approximately 2.5km x 2.5km and is located at
the transect of two northwest-southeast trending magnetic linear
anomalies (representing possible major structures). The newly
discovered Border anomaly is approximately 1km x 1km and spans the
border between the Wallal Project and a project owned and operated
by Rio Tinto.
-- Greatland Gold's Havieron discovery is coincident with a
magnetic bullseye anomaly which was detected by an airborne
magnetic survey flown over the region.
-- The Havieron and Wallal Eastern anomaly have similar magnetic
amplitudes; 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 and Border magnetic anomalies.
-- Additional geophysical inversions are ongoing and various
geophysical datasets are being acquired in order to better
determine orientation and depth to bedrock of these compelling
geophysical targets prior to drilling.
Table 1: First Development Resources Pty Ltd Paterson Province
Exploration Licence / Application Holdings
Project Granted Exploration Grant Date Application
Exploration Licence Application Lode Date
Licence
Ripon Hills E45/5088 July 5, 2018
Project
------------- --------------------- ------------- -------------
Wallal Project E45/5816 Oct 6, 2020
E45/5853 Feb 3, 2021
E45/5880 Mar 10,
2021
------------- --------------------- ------------- -------------
Braeside West E45/5854 Feb 3, 2021
Project
------------- --------------------- ------------- -------------
Reference Notes:
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
central target.
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) +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 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 and base 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.
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END
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