Power Metal Resources plc has been granted its first exploration licence, covering 999km2, for a potential iron oxide-copper-gold (IOCG) deposit in the Anna Creek area of South Australia.
GAWLOR CRATON
The company submitted an application for two licences in October 2021.
Licence EL6819 is valid for six years ending 24 August 2028, subject to a minimum exploration spend of A$100,000 (£59,000) before 23 August 2024.
The property, named the Wilan project, also includes licence application ELA 2021-000162, covering 995km2 which lies contiguous and to the northwest of EL6819.
Power Metal said that a desktop technical review had identified an undercover, 4km x 6km coincident magnetic and gravity geophysical anomaly in the southeast of the project.
“The existence of a coincident magnetic/gravity anomaly is considered highly significant given the location of the licence within the Gawler Craton, which constitutes a major IOCG deposit province,” added the company.
“IOCG deposits consist of important and highly valuable concentrations of copper, gold and uranium mineralisation, the most famous example in the Gawler Craton is the Olympic Dam mine.
“Most IOCG deposits were initially discovered through regional magnetic and gravity geophysics targeting.”
The company added that the target was within cratonic basement below 200-300m of younger cover sediments, which had never been drill tested.
Power Metal’s field exploration is expected to include high-resolution gravity and magnetic surveys over the target.
The company said its technical review had identified multiple exploration targets.