Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has secured an exclusive 60-day option (the “Option”) in respect of a potential new acquisition of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara Region of Western Australia (the “Project”).
The Paterson Province is considered highly prospective for gold-copper and base metal mineral systems and is currently of particular focus for resource companies with a significant level of exploration activity underway across the region. This level of interest follows recent high-profile copper and gold discoveries by Rio Tinto at their Winu property1 and by Greatland Gold plc (LON:GGP) with the Havieron discovery2. Notably, several major groups in search of Tier 1 deposits have entered into joint-venture / farm-in deals with junior explorers to expedite exploratory work.
The area also has developed mine and processing infrastructure due to the presence of established mining operations, including Newcrest Mining’s Telfer Mine3 and the X-Metals Nifty Copper Operation4 (planned as a mine restart).
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “Power Metal is keen to build its exposure to Australian base and precious metals exploration where there is, in our view, the potential for large scale metal discoveries in a secure and stable operating environment.
Through our joint venture in the Victoria Goldfields, and subject to due diligence, through this acquisition, we will have operating interests in two of the major centres for exploration activity in Australia.
The level of interest in the Paterson Province has been somewhat dramatic after the Winu and Havieron discoveries, much as the success of the Fosterville gold mine in the State of Victoria led to a surge in exploration activity in 2020.
Power Metal is positioning itself to develop a diverse and expansive exploration business in Australia, and this is another important step forward.”
FDR and its Business Interests:
Upon Option Exercise:
Wallal Project – E45/5816 – Exploration Licence Application
The Wallal Project comprises a large, well located 390km2 area, in the western quadrant of the Paterson Province. Notably, the Wallal Project has a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC (2012) compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent1.
The tenure covers an area of transported sand cover including linear north west-south east trending aeolian dunes. Furthermore, the Wallal Project is located on an interpreted basin bounding structure known as the Wallal embayment.
Interestingly, the geology on the eastern boundary of the Wallal Project – associated with a ‘gravity ridge’ geophysical anomaly – is similar to the structural setting of Rio Tinto’s Winu discovery (the Anketell Regional Gravity Ridge). Notably, at Wallal there is a 46km strike feature, which is part of a geological structure called the Vines Fault, that is considered highly prospective copper-gold mineralisation.
It is envisaged that potential drilling targets might be identified utilising high precision gravity, seismic and magnetic survey techniques focussing on specific zones within the apparent gravity ridge.
Ripon Hills Project – E45/5088 – Granted Exploration Licence
The Ripon Hills Project (42km2) contains outcropping Carawine Dolomite rocks of the Archaean Hamersley Group overlying rocks of the Fortescue Group. Furthermore, the Ripon Hills Project is considered prospective for base metal-gold mineralisation associated with deep seated north to north west trending fault structures, as they have the potential to be conduits for various styles of hydrothermal mineralisation.
Ripon Hills is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made5. Specifically, this is a regional scale, 60km long, fracture zone containing porphyry to epithermal mineralised systems with 45 priority Cu-Au-Zn-Pb-Ag targets and five deposit types delineated. Encouragingly, this materially enhances the prospectivity of the Ripon Hills Project, which is largely under-explored, as the underlying geology is similar.
Notably, the priority exploration targets within the Ripon Hills Project are interpreted north to north westerly striking deep seated fault structures. Further, these targets have the potential to host various styles of hydrothermal base metal and gold mineralisation, similar to what is apparent in the Braeside Project. Interestingly, mineralisation can occur in the underlying Fortescue Group rocks as well as the Carawine Dolomite.
Having a footprint in the world class Paterson Province in Western Australia has the potential to deliver significant value for shareholders. While the area has excellent mining infrastructure, there are many parts of the region – highly prospective for copper-gold mineralisation – which are under-explored. In turn, this significantly enhances the upside potential as much of the area is masked by surficial cover.
Using an array of modern exploration techniques, comprising reconciling geophysics and geochemical surveys, the exploration would seek to efficiently and cost effectively identify priority test-drill targets.
In the 6 months ended 31 December 2020 FDR made an operating loss of A$18,914 (circa £10,707) and as at 31 December 2020 FDR had net liabilities of A$19,939 (circa £11,287).
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 1,000,000 Option Shares to be admitted to trading on AIM, which is expected to occur on or around 26 January 2021 ("Admission"). The Option Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company's issued share capital will comprise 1,056,218,972 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
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.
19 January 2021