1st July 2024
Power Metal Resources
PLC
("Power Metal" or the
"Company")
Initial Exploration programme completed
on Balthaga Lithium Project in Saudi Arabia
Power Metal Resources PLC
(AIM:POW, OTCQB:POWMF),
the London listed exploration company with a global project
portfolio, is pleased to
announce that an initial field exploration programme on the
Balthaga Lithium Project, Saudi Arabia ("Balthaga") as per the
agreement with RIWAQ Al-Mawarid for Mining ("RIWAQ"), the
industrial and mining company based in Saudi Arabia and special
purpose subsidiary of EV Metals Group plc ("EVM"), to earn a 30%
ownership interest in 15 tenements, 13 of which comprise the
Balthaga Project area (the "Agreement"),
announcement dated 26 March 2024, has been
successfully completed.
The Balthaga project located 450km
east of Jeddah in the South-East of the Arabian Shield area
consists of 13 contiguous exploration licenses granted in
succession over the last two years covering a total area of
1200km2, with the most recent granted only a couple of
months ago. A further two licenses comprise the total Agreement
area however these are in different locations and focus on
different commodities. The project area being targeted is
prospective for lithium, a key commodity for RIWAQ and EVM's larger
strategy. The focus on the project area was, and continues to, be
on lithium and any associated minerals including Rare Earth
Elements ('REE').

Figure 1:
Typical terrain at Balthaga Project, Saudi Arabia, June
2024
Sean Wade, Chief Executive Officer of Power Metal,
commented:
"Further to
the comprehensive desktop review we conducted using all available
historic data covering the Balthaga Project area, over 40 initial
targets were identified as priority targets to visit. Eager to
progress the exploration programme, we therefore decided to get a
team in the field.
"The team
covered the whole area of the 13 licenses and visited nearly every
defined target. We are really pleased with the outcome of this
initial field programme and to get the team on the ground giving
them a much better understanding of the geology. I'm glad to report
that the majority of the identified targets proved fruitful with
some new targets also discovered.
"The team
would have liked longer in the field to carry more detailed work,
however the extreme conditions precluded a longer field programme.
I would like to thank the team for getting out to the area so
quickly and undertaking this work diligently in very difficult
conditions.
"We are very
pleased to have been able to start the field work to further the
extensive desktop studies and are encouraged by the number of
prospective target sites found and sampled from the initial
programme.
"We look
forward to returning to the field after the summer heat to follow
up on this work and explore new targets."
Luke
Fitzgerald, CEO of EV Metals Group plc,
commented:
"The
completion of this initial field exploration programme is an
important step in understanding the mineral potential at Balthaga
to support the EVM strategy of developing a critical raw materials
supply chain in the Kingdom of Saudi Arabia. We are encouraged by
the thorough and systematic approach undertaken by the team, which
identified multiple targets and will generate data to define the
next stages of the exploration work. We look forward to the
continued collaboration with Power Metals as we advance the
project."
Work completed
to date
An initial comprehensive desktop study was
carried out by Power Metal to enable targeting within the project
area based on geological unites, features and structural
targets. A total of 44 targets were defined by a combination
of historic sampling and associated results, historic geological
reports discussing target lithologies, geological features such as
dykes, veins and structural traps, and a suite of eight Mineral
Occurrence Documentation System (MODS) extracted from various
papers on the area. Figure 2 below shows a summary of the main
target areas and an initial target map generated from this desktop
work.

Figure 2: Summary Exploration
Target map, Balthaga Project, Power Metal Resources, June
2024
The field programme was designed to locate the
majority of these targets, visit all priority targets and, where
appropriate, take initial rock chip samples for analysis. A total
of 43 in-situ rock chip samples were taken from the targets visited
and new areas were identified during the seven days of field work
possible in the conditions. The team managed to cover the entire
project area, over 1,200 km2.
Each sample was given a unique number, the
outcrop sampled was photographed, as was the sample itself, with a
description of the sample taken to ensure maximum data was captured
at each location. Several locations exhibited numerous units within
an area however, due to the constraints on time, Power Metals
ensured key units were sampled and the location clearly defined for
more detailed follow up work. EVM General Manager Geology and
Mining accompanied the field team for the first two
days.
Two Certified Reference Material samples (OREAS
752) for QA/QC purposes were also submitted as part of the samples
submitted to the laboratory.

Figure 3: Pegmatite in
vicinity of target T14, Balthaga Project, June
2024
All samples were submitted to ALS Jeddah for
analysis. The specified preparation method is to crush to 70% less
than two millimetres, rotary split off 250 grammes, and pulverise
the split to better than 85% passing 75 microns (ALS code
PREP-31Y).
The specified digest and analysis method is
sodium peroxide fusion followed by an Inductively Coupled Plasma -
Mass Spectrometry (ICP-MS) finish (ALS code ME-MS89L). This is a
multi-element package comprising of 52 elements.
The preparation stage is to occur at the Jeddah
laboratory and the analysis is likely to occur at the ALS
laboratory in Loughrea, Ireland. Results are expected in Q3
2024.
A further 23 rock samples taken by RIWAQ in
2022 but never submitted for analysis were also submitted to
ALS.

Figure 4: Samples prepared
for submission to ALS Jeddah, June 2024
Once results are received and a more detailed
interpretation of all the newly acquired data is processed, Power
Metal will be in a position to plan the next stage of exploration
to advance the project. The two remaining licenses that are
included in the earn in agreement will be the subject of work once
they become fully granted which is hoped to occur in the coming
weeks.
Riwaq Al
Mawarid
Riwaq Al Mawarid for Mining ("RIWAQ") is a
special purpose subsidiary of EV Metals Group plc ("EVM") focused
on developing the Saudi supply chain through the production of
critical raw materials from exploration, mining, and processing of
minerals and metals in the Kingdom of Saudi Arabia.
RIWAQ is actively engaged in exploring for
lithium, nickel sulphides, and other battery metals in the Arabian
Shield, with a focus on the Balthaga Lithium Project located in an
area prospective for lithium pegmatites.
With a well-developed strategy and in
conjunction with its joint venture partners, RIWAQ is seeking to
execute field programmes for the rapid development of critical
upstream raw materials.
The exploration activities by RIWAQ complement
EVM's midstream plans to develop its flagship Lithium Chemicals
Plant project at Yanbu Industrial City in the Kingdom of Saudi
Arabia, which will produce high-purity lithium hydroxide
monohydrate ("LHM") from spodumene concentrate. LHM is a
crucial chemical product expected to face significant deficits by
2030 due to overwhelming global demand for lithium-ion
batteries.
EV Metals
Group plc
EV Metals Group plc ("EVM") is a global battery
chemicals and technology business committed to a clean energy
future.
EVM is focused on the production of high purity
chemicals required in rechargeable batteries for electric vehicles
and renewable energy storage. Our business model is based on the
integration of upstream (mining) and midstream (chemical refining)
supply chains for critical raw minerals from geopolitically aligned
sources to produce high purity battery chemicals vital to the
global energy transition.
Through their mine to refine value proposition,
EVM will offer transparent and stable supplies of high purity
battery chemicals to growth markets including the Middle East,
Europe and North America. This will involve upstream mining
and production of intermediate products via participation and
ownership of mining mineral resources, facilitated by joint
ventures and long-term offtake agreements for midstream processing
at our planned chemical refining plant in the Kingdom of Saudi
Arabia ("KSA").
Their flagship Lithium Chemicals Plant ("LCP")
in Yanbu Industrial City in KSA is being developed as a midstream
hub for diversification and geopolitical alignment of supply chains
for electric vehicle and battery cell manufacturers. The LCP is set
to play a critical role in the Kingdom's industrial diversification
efforts, featuring an initial nameplate capacity to produce 50,000
tonnes per annum of high purity Lithium Hydroxide Monohydrate
("LHM"), a crucial chemical product expected to face significant
deficits by 2030 due to overwhelming global demand.
Incorporated in 2014, EVM is a private company
with operations in Western Australia, the United Kingdom and KSA.
For further information on EVM please visit
www.evmetalsgroup.com
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
|
|
Sean Wade (Chief Executive
Officer)
|
+44 (0) 20 3778 1396
|
|
|
SP Angel Corporate Finance LLP
(Nomad and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe
|
+44 (0) 20 3470 0470
|
|
|
Tamesis Partners LLP (Joint
Broker)
|
|
Richard Greenfield/Charlie Bendon
|
+44 (0) 20 3882 2868
|
|
|
|
|
BlytheRay (PR Advisors)
Tim Blythe/Megan Ray/Alastair Roberts
|
+44 (0) 20 7138 3204
|
|
|
|
|
|
| |
NOTES TO EDITORS
Power Metal Resources
plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.