Correction: FDR - Paterson Project Exploration Update.

The following amendment has been made to the 'FDR - Paterson Project Exploration Update' announcement released on 18 February 2022 at 15.46 under RNS No. 1825C:

Under the sub-heading 'PASSIVE SEISMIC HVSR SURVEY METHOD AND DATA ACQUISITION' the 'thickness of the cover sequence' formula is now added in linear format to ensure it appears on the published RNS.

All other details remain unchanged.

The full amended text is shown below.

21 February 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Paterson Project Exploration 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 interests in the Paterson Province of Western Australia (the "Paterson Interests" or "Paterson Projects") held through First Development Resources Limited ("FDR").

This update relates specifically to FDR's 100% owned Paterson Projects. The Paterson project package includes the Wallal tenements (E45/5816, E45/5853 and E45/5880), Braeside West Project (E45/5854) and Ripon Hills Project (E45/5088). All exploration licences for the Company's Paterson Projects are granted.

Highlights

·    Comprehensive geophysical desktop study for the Company's flagship Wallal Project is now complete and an estimate of the thickness of Phanerozoic sedimentary cover sitting above the Proterozoic basement rocks hosting the magnetic anomalies of interest has been determined. The Proterozoic basement is interpreted to host the sources of the magnetic bullseye anomalies observed in images generated from airborne magnetic surveying, and these magnetic anomalies have similar geophysical characteristics to the anomalies found over Greatland Gold Plc's Havieron gold-copper ("Au-Cu") deposit located approximately 260 kilometres to the south-southeast of the Wallal Project within the same geological province.

·    A cover-constrained magnetic three dimensional ("3D") model of the Eastern magnetic bullseye anomaly has been refined and suggests that the anomaly is comprised of two lobes. This is supported within higher-order derivative filtered images of the airborne magnetic data, and it results in a well-defined target which will be tested during the planned Phase I diamond core drilling programme.

·    The comprehensive desktop study has estimated the depth of cover above the Eastern anomaly is approximately 800 metres and approximately 330 metres above the Border anomaly. The Phase I diamond core drilling programme has been designed to target the Eastern and Border magnetic bullseye anomalies.

·    A Wallal Project reconnaissance field visit was recently completed, where the site team successfully mapped and surveyed over 100 kilometres of existing tracks linking the Wallal tenements containing the magnetic bullseye anomalies to the Great Northern Highway, showing that existing access is very good, with no significant logistical constraints identified.

·    A Programme of Works ("PoW") application for ground disturbance in preparation of the planned Phase I diamond core drilling programme has been submitted to the Government of Western Australia Department of Mines, Industry Regulation and Safety, and a Heritage Clearance Survey Request has been submitted to the Yamatji Marlpa Aboriginal Corporation traditional owners in anticipation of securing land access in advance of the planned  work anticipated to commence later this year.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

"The completion of the passive seismic survey and geophysical desktop study has provided clarity as to the estimated thickness of sedimentary cover sitting above the Proterozoic aged basement rocks which are interpreted by Power Metals to host the magnetic bullseye anomalies of interest on our Wallal Project. This crucial work provides us with clearer insight as to the depth and geometry of the magnetic anomalies and has enabled us to commence more detailed discussion with potential drilling contractors to drill through the cover sediments and test the source of the magnetic bullseye anomalies.  

With our work at the Wallal Project progressing well we have also now turned our attention to FDR's other mineral interests in the Paterson Province and have initiated an in-depth data review of all available geological, geophysical and geochemical data associated with the Ripon Hills and Braeside West Projects and we look forward to providing updates as this study progresses."

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

"The successful execution of the Wallal Project reconnaissance and geophysical study is an essential step to understanding any limiting factors which could constrain our proposed Phase I diamond core drilling programme. The presence of existing, well-maintained tracks linking the Wallal Project to the Great Northern Highway significantly de-risks certain logistical challenges typical of drilling in such a remote location. This, combined with the findings of the now complete comprehensive passive seismic survey and subsequent geophysical desktop study, have constrained the interpreted depth of our primary drill targets and has allowed us to plan logistics accordingly and engage with capable drilling contractors as we look to secure deep drilling diamond rigs for the next phase of exploration at Wallal."

PATERSON INTERESTS - OWNERSHIP STRUCTURE

The Paterson Interests are held by First Development Resources Limited which holds a 100% interest in local Australian operating company First Development Resources Pty Limited ("FDR Australia").

Power Metal has a current effective interest of 96.15% in FDR and will have an effective interest of 83.33% after the grant of three licences owned by URE Metals Pty Limited ("URE") which was acquired outright by FDR in an all-share purchase announced on 19 November 2021.  Further details of the acquisition of URE and its uranium and rare earths interests may be viewed in the Company's announcement:

https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001

PATERSON PROVINCE - EXPLORATION RATIONALE

The Paterson Province is host to major gold-copper deposits including Winu (Rio Tinto Group), Telfer (Newcrest Mining Limited), and Havieron (Newcrest Mining Limited - Greatland Gold Plc JV).

To date, FDR has undertaken in-depth desktop analyses with the aim of comparing the geological and geophysical features of both Winu and Havieron to those found within the Wallal Project.

The exploration hypothesis is that if FDR is able to identify geological and geophysical similarities of areas within the Wallal Project to established large-scale Au-Cu deposits elsewhere in the Paterson region, these targeting criteria would increase the chance of a discovery and justify more detailed exploration.

A comprehensive desktop study commissioned by FDR over the Wallal Project is now complete and has identified three prospective magnetic bullseye targets at depth. These include the Western, Eastern and Border anomalies which, based on geophysical interpretation and 3D modelling, have estimated dimensions of 5km x 5km, 2.5km x 2.5km and 1km x 1km respectively.

Greatland Gold Plc's Havieron project was discovered by blind drilling a magnetic bullseye anomaly through approximately 420m of post-mineral sedimentary cover before intersecting the Proterozoic basement rocks hosting the source of the magnetic anomaly and Au-Cu mineralisation. The magnetic anomaly identified within the western tenement block is close to the centre of the Wallal Embayment, a Palaeozoic rift graben, and is therefore likely to be in excess of 1,500 metres deep and will not be targeted as part of the Phase I diamond core drilling programme, which will focus on the shallower Eastern and Border magnetic targets located below shallower cover, at approximately 800 metres and 330 metres deep respectively, on the north side of the rift basin.

The latest exploration update focused on the Wallal Project and released by the Company on 11 January 2022 may be viewed through the following link:

Wallal Project Exploration Update - 07:00:07 11 Jan 2022 - POW News article | London Stock Exchange

WALLAL GEOPHYSICAL DESKTOP STUDY

Perth, WA, based consultancy Resource Potentials Pty Ltd ("Resouce Potentials") have recently completed a geophysical desktop study of the Wallal Project, which follows on from an initial brief and high-level study completed during March 2021. The updated study involved the compilation and reprocessing of two dimensional ("2D") reflection seismic data acquired for oil and gas exploration in the deeper parts of the rift basin, and the acquisition and processing of passive seismic horizontal spectral ratio ("HVSR") survey data for FDR. This was followed by the integration and interpretation of these data with magnetic and gravity survey results in order to estimate the depth of Phanerozoic sediment cover sitting above the target Proterozoic basement geology that hosts Au-Cu mineralisation in the Paterson Province. It is the Proterozoic basement rocks which are interpreted to host the sources of the magnetic bullseye anomalies observed in the images generated from airborne magnetic survey data, and the sources of these anomalies have the potential to represent Au-Cu mineralised breccia-style magnetite and / or pyrrhotite-rich bodies similar to those recently discovered at Greatland Gold's Havieron and Rio Tinto's Winu deposits though there can be no assurance of this at such an early stage of exploration.

In addition to the magnetic survey data analysis, three 2D reflection seismic lines were reprocessed by Velsis Integrated Seismic Technologies Pty Ltd, and these results were then provided to Resource Potentials for further image filtering and analysis. Three passive seismic HVSR survey lines were acquired by Atlas Geophysics Pty Ltd and the raw field data were provided to Resource Potentials for data quality control, editing, processing and depth modelling. A review of the data reprocessing is presented below:

2D REFLECTION SEISMIC RE-PROCESSING

FDR commissioned Velsis to reprocess three survey lines of historical 1980's vintage open-file 2D reflection seismic data over the Wallal project area. From north to south, seismic lines 85RH-02, MC88-033 and MC88-344 were analysed.

The historical seismic survey data required reprocessing because the open-file data available were not converted to depth measurements and it was difficult to interpret features within the upper few kilometres from surface. Historical data stored on 9-track tapes were recovered and converted to modern digital files. Velsis then used a modern processing workflow, which took into account the basalt sill intersected in Corbett-1 and focussed on enhancing seismic reflectors in the upper five kilometres from surface in the axis of the rift basin.  This reprocessed and depth-converted 2D reflection seismic data was then used by Resource Potentials to generate georeferenced section images for each survey line to produce a 3D model of sediment cover and rift related faults. Resource Potentials were then able to incorporate the reprocessed 2D reflection seismic data with passive seismic HVSR data results to model the base of the sedimentary cover sequence and the top of the Proterozoic basement surface to help constrain magnetic inversion modelling to the Proterozoic basement rocks.

PASSIVE SEISMIC HVSR SURVEY METHOD AND DATA ACQUISITION

The total thickness of the relatively soft sediments lying above the more resistant basement rock has been estimated to be approximately 800 metres above the Eastern anomaly and 330 metres above the Border anomaly; using a passive seismic HVSR survey method by measuring horizontal (east-west and north-south) and vertical (up-down) components of naturally occurring ground vibrations using a three-component seismometer. The ambient or passive seismic signal is measured in units (mm/second) and typically for a period of 20 minutes. At the resonant frequency of the softer sedimentary cover sequence, the vertical vibrations will be at a minimum, thereby resulting in a peak in the ratio of averaged horizontal components to the vertical component response.

The thickness ("H") of the cover sequence is then related to its resonant frequency ("f0") and an average shear wave velocity ("Vs"), where H is calculated using the following formula:

f0= Vs/4H

As f0 is determined from the passive seismic measurements, Vs is the only other unknown term in this equation which needs to determined in order to calculate the cover thickness H. When there are a sufficient number of existing drillholes that have penetrated the cover sequence to hard "acoustic basement" in a survey area (e.g. 10 or more), then a reasonable estimate of Vs can be made from experience in certain rock types, from single dimension forward modelling of the data, and/or via integration of other geophysical datasets. In this case, the northernmost passive seismic HSVR survey line (85RH-002) has overlap with the 2D reflection seismic survey line MC88-33, and so the 2D reflection seismic has been used to help calibrate the Vs and come up with a reliable thickness of sedimentary cover. The other two passive seismic HVSR survey lines were carried out over the magnetic anomaly targets being considered for drill testing.

Atlas Geophysics Pty Ltd acquired the passive seismic HSVR survey data during September 2021. Passive seismic readings were acquired at 100 metre station spacing along each survey line. The raw field data were supplied to Resource Potentials for data editing and cleaning, modelling and HVSR cross section generation.

Using the data sets available Resource Potentials have been able to estimate the depth of the cover sequence to constrain the modelled depth to the top of the magnetic source bodies for 3D inversion modelling and rill targeting.

EASTERN ANOMALY

The interpreted thickness of cover sequence directly over the top of the Eastern anomaly magnetic source based on the geophysical analysis is approximately 800 metres. Interestingly, the resulting cover-constrained magnetic 3D model of the anomaly has significantly more detail than previous models and suggests that the anomaly is comprised of two distinct lobes. This is supported within higher-order derivative filtered images of the airborne magnetic data and results in a well-defined target which will be tested in the Phase I diamond core drilling programme. A deep borehole has now been designed to intersect the cover constrained magnetic 3D inversion model for the Eastern anomaly magnetic bullseye target.

BORDER ANOMALY

The Border anomaly is situated towards the eastern margin of the Wallal Embayment. Passive seismic HVSR results have enabled Resource Potentials to estimate the thickness of cover over the Border anomaly to be approximately 330 metres. It should be noted the unconstrained magnetic models for the Border anomaly have a significantly lower amplitude than the Eastern anomaly which could be due to its source having a lower magnetic susceptibility, less magnetic mineral concentration or a lower thickness or size.

The estimates of the depth of cover sequence have been used to constrain the modelled depth to the top of the magnetic source bodies. The true depths to the magnetic source bodies of the Eastern and Border anomalies can only be confirmed by analysis of drill cores during the planned diamond drilling programme.

PHASE I DIAMOND CORE DRILLING PROGRAMME

FDR's Phase I diamond core drilling programme has been designed in conjunction with Resource Potentials. A comprehensive desktop study, completed by Resource Potentials, has focused on providing clarity as to the scale, geometry and depth of three magnetic bullseye anomalies identified within the Wallal tenement area. FDR strongly believe there is sufficient exploration data to support further works, which now includes the Phase I diamond core drilling programme designed to test the Eastern and Border bullseye anomalies.  Estimates of depth of the cover sequence have been used to constrain the modelled depth to the top of the Eastern and Border magnetic source bodies. To test these anomalies, FDR's Phase I diamond core drilling programme has been designed to intersect the magnetic model bodies.

The drilling programme, which will consist of a minimum of two near vertical boreholes totalling approximately 2,000 metres, will be drilled using rotary open hole to about 100 metres and then full core drilling techniques there onwards. Depending on ground conditions encountered, it is expected that the boreholes might be constructed using mud rotary or reverse circulation techniques to approximately 150 metres below ground level, followed by 83mm (PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth.

The expected geological conditions have been inferred from the nearby Corbett 1 petroleum borehole. Corbett 1 was a hydrocarbon exploration well which was drilled in 1994 to test a seismic amplitude anomaly located on the crest of a broad anticline at Permian levels. The borehole reached a total depth of 800 metres below ground level and is located some 10 kilometres from Wallal. Based on the data inferred from Corbett 1 the expected lithology is as follows:

·    Unconsolidated superficial Quaternary aeolian sand dunes of variable thickness (circa 0-30 metres)

·    Jurassic Wallal Sandstone, which forms a thick sequence of sandstone with minor claystone and coal (circa 30-325 metres)

·    Permian Liveringa Group comprising of a few metres of claystone on top of a 15 metre thick basalt sill and interbedded claystones and sandstones (circa 325 - 435 metres)

·    Permian Grant Group upper sandstone and lower claystone units (circa 435 - 800 metres)

·    Proterozoic basement (circa >800 metres)

The Phase I diamond core drilling programme is targeting the Proterozoic basement rocks below the Permian Grant Group which are believed to host the sources of the magnetic bullseye anomalies observed in images generated from airborne magnetic survey data. Due to their relative depth, FDR will initially target the Eastern anomaly before relocating to, and drill testing, the Border anomaly. The Western anomaly is not planned to be drill tested in the Phase I diamond core drilling programme due to its modelled depth. The company is currently in advanced discussions with potential drilling contractors to investigate and test the source of the magnetic bullseye anomalies.

WESTERN AUSTRALIAN GOVERNMENT EXPLORATION INCENTIVE SCHEME

In October 2021 Power Metal Resources announced that FDR Australia had submitted an application to the Government of Western Australia Department of Mines, Industry Regulation and Safety ("DMIRS") for government co-funding at the 100% owned Wallal project in the Paterson region of Western Australia. The funding was granted as part of Western Australia's Exploration Incentive Scheme ("EIS"). The EIS is a funding programme which offers up to a 50% refund (capped at AU$150,000 for multi-hole drilling campaigns). FDR's application sought co-funding for the Phase I diamond core drilling programme at Wallal Main licence area, specifically targeting the Eastern and Border magnetic bullseye anomalies identified from the exploration to date. FDR Australia has written confirmation from DMIRS that the application was successful and a co-funded drilling offer for up to AUS$165,000 has been received (including the maximum amount available under the EIS of AUS$150,000 plus up to AUS$15,000 in respect of drill mobilisation). The EIS government co-funding will be used to offset the cost of the Phase I diamond core drilling programme at Wallal.

WALLAL RECONNAISANCE

On Monday 10 January 2022 a field team was deployed to the Wallal project area to undertake site-specific reconnaissance in advance of the proposed Phase I diamond core drilling programme. The objective of the reconnaissance was:

·    to map and conduct a condition survey of all existing access tracks linking the Wallal tenements with the Great Northern Highway, and;

·    to visit the planned Phase I diamond core drill hole locations to assess the logistics of getting the drilling rig to site using existing access tracks.

The site visit was conducted in accordance with the terms of the Heritage Agreement in place with Yamatji Marlpa Aboriginal Corporation ("YMAC") as agent for the Nyangumarta Warrarn Aboriginal Corporation RNTBC ("NWAC").  Ahead of the reconnaissance, notification was submitted to YMAC who are acting as an agent for the traditional owners of the Wallal Tenements, NWAC. YMAC agreed to allow the low-impact preparatory exploration works to go ahead prior to completion of the Heritage Clearance Survey.

The reconnaissance team mapped and completed a condition survey of approximately 100 kilometres of existing tracks. The condition of the tracks was found to be generally very good, the team was able to drive to within 1 kilometre of the proposed Phase I diamond core drill locations. Some maintenance and improvement will be required to enable drilling rig access, however no significant logistical constraints were identified. The Phase I diamond core drilling positions are located in sparely vegetated, relatively flat terrain. The surface topography at Wallal does not include the characteristic dune corridors which are known to create logistical challenges in other areas of the Paterson region.

PROGRAMME OF WORK

The Western Australian Mining Act 1978 requires any explorer or prospector who intends to undertake ground disturbing activities with mechanised equipment on a mining tenement to submit a Programme of Work ("PoW") application for approval prior to proceeding with any ground disturbing works. In accordance with the Western Australian Mining Act 1978 a PoW has been submitted to DMIRS. The PoW, which includes details on FDR's proposed Phase I diamond core drill programme, was lodged by FDR's appointed Exploration Manager, Ian Shackleton, on 20 January 2022. DMIRS advise that PoW applicants should allow at least 30 business days for the proposal to be assessed.

 A summary of the proposed drilling activity is presented below:

HERITAGE CLEARANCE SURVEY REQUEST

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 YMAC as agent for the Nyangumarta Warrarn Aboriginal Corporation RNTBS, a Heritage Clearance Survey Request has been submitted to YMAC. A Heritage Clearance Survey is required where Heritage sites (archaeological or ethnographic) have been identified, and disturbance of these sites cannot be avoided by the development.  If, following assessment by YMAC, a Heritage Clearance Survey is required at the Wallal tenements, a survey team, appointed by YMAC will be assembled. The survey team will consist of the Heritage consultant(s) which, if necessary, will comprise both an anthropologist and an archaeologist; and such members of the Common Law Holders as the Manager Heritage Services advises are necessary to examine and assist in the Heritage Survey, and a Community Liaison Officer. A Heritage Survey Clearance Survey request which included a detailed description of the Phase I diamond core drilling programme of work and site-specific maps and special data was submitted to YMAC by the Company's appointed Exploration Manager on 31 January 2022.

RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW

An in-depth desktop study has been initiated to better understand the prospectivity of the Ripon Hills and Braeside West projects. The study is being led by Brian Richardson, a geologist with over 35 years of Australian and International exploration and mining experience. Mr Richardson has worked in all facets of mineral exploration including the generation, exploration and development of gold, base metal, Platinum Group Metal, uranium, diamonds, lithium and tin-tantalite projects in Western Australia, the Northern Territory, North America and West Africa.  

The objective of the study is to capture and assess all relevant geological, geophysical and geochemical information and data over the Ripon Hills and Braeside West project areas. Upon completion of this exercise, FDR will be able to plan the next phase of exploration over defined target areas. Working with Resource Potentials Pty Ltd and Rock Solid Data Consultancy Pty Ltd, the desktop study will incorporate all Open File geophysical data sets available through DMIRS' database as well as a review of all historical mineral exploration reports stored in the Western Australian mineral exploration reports ("WAMEX") database also available through DMIRS.

The Ripon Hills and Braeside West tenements cover part of the western and eastern limbs of the Oakover Syncline and contains outcropping Carawine Dolomite of the Archaean Hamersley Group overlying rocks of the Fortescue Group. The project is primarily prospective for manganese, similar to the nearby Woodie Woodie manganese mine, as well as base-metal and gold mineralisation associated with deep seated north to north-westerly trending fault structures. These fault structures have the potential to be conduits for various styles of hydrothermal mineralisation as evidenced by recent exploration conducted by ASX listed Rumble Resources Limited  (ASX:RTR) ("Rumble") adjacent to the Braeside West tenement.

Recent exploration by Rumble 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 60 kilometres in strike and 8 kilometres in width. Rumble have defined 45 priority copper-gold-zinc-lead-silver targets and have also delineated five distinct deposit types. Similar prospective rock types occur within the Ripon Hills area which has had very limited past base metal and gold exploration. We look forward to providing updates as the in-depth desktop study progresses.

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.

GLOSSARY:

For further information please visit https://www.powermetalresources.com/ or contact:

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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

^A should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project

^B assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company's announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors