Power Metal Resources PLC (AIM:POW) has said lithium-focussed Phase II follow-up fieldwork is now underway at the Selta Project in Australia’s northern territory.
Selta is held by Power Metals’ subsidiary, First Development Resources (FDR).
The London-listed exploration company said that further fieldwork will “examine the zonation of a prospective pegmatite system present.” Pegmatites are the target lithology that has the potential to host lithium mineralisation.
Desktop analysis so far has shown roughly 700 potential outcropping pegmatites, the company added, within a target area of 180 square kilometres, with fieldwork initially planned on 30 square kilometres in the southeast of the project.
Phase II work follows on from a successful first stage which took place in June this year and confirmed the presence of pegmatite geology over a small area in the south of the project.
Lithogeochemical analysis of 17 samples suggests the potential for a zoned pegmatite system originating from the nearby granites, Power Metals said.
Additionally, the company noted that FDR continues to advance preparations for its planned listing in London and is very close to the completion of all material work streams.
In order to advance the planned listing, the net smelter return (NSR) royalties held by the original vendors of FDR’s projects have been purchased by FDR.
Two NSRs were purchased by FDR for £150,000 each through the issue of 1,875,000 shares each at 8p per share.
As a result, FDR now owns 100% of all its projects and there is no now NSRs over any of its properties.
Following the issue of new FDR shares, Power Metal holds a 58.59% stake in the company, which amounts to 38,605,697 shares.