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.