Pivotal quarter for PVW with completion of $9.5M capital raising paving the way for the Company’s maiden drilling program in the Tanami region

PVW Resources’ (ASX: PVW) core focus for the June Quarter was on gaining approvals to commence a pivotal drilling campaign in the Tanami Region.


Highlights

Tanami Gold and Rare Earth Element (REE) Project

  • Heritage approval received for drilling at the Castella REE prospect in June, following COVID- related delays.
  • Site preparation completed to provide access for the Reverse Circulation (RC) drill rig, with PVW’s maiden RC drill campaign in the region commencing late in the reporting period.
  • 66 RC holes completed to date for 4,763m with drilling to continue across the Castella and Watts Rise prospects.
  • Approximately 1,390 samples collected from geological logging and in-field portable-XRF analysis, with samples to be submitted to Perth- based laboratories for REE and gold analysis.
  • Metallurgical testwork continuing on five 20kg samples, with studies progressed to assess possible improvements to concentrate grade.

Corporate

  • $9.5M share placement (23.75M shares at $0.40 per share) completed to institutional and sophisticated investors following the issue of the Tranche 2 shares.
  • This followed approval for both Tranche 1 (18,146,352 shares) and Tranche 2 (5,603,648 shares) from shareholders at the General Meeting held on 12 May. Tranche 1 was issued on 14 April.
  • The heavily oversubscribed placement increased PVW’s cash balance to over $10M, putting it in a strong position to progress the recently commenced exploration program in the Tanami.
  • Executive Director Mr George Bauk visited the US including Washington DC to discuss the Tanami Project with various government agencies.

Following the receipt of these approvals late in the reporting period, exploration drilling is now in progress to systematically test beneath surface mineralisation at Castella, and shallow mineralisation at Watts Rise.

Drilling will also explore along the more regional and largely untested 18km strike length of unconformity which hosts both the Castella and Watts Rise prospects.

While exploration activities were primarily focused on the Tanami Project, planning was also undertaken for exploration programs in the Kalgoorlie, Leonora and Ballinue regions for later in 2022.

Tanami Project

Previous exploration and mineralogical studies have confirmed several styles of mineralisation in both the Pargee Sandstone and the Killi Killi Formation.

The ongoing work indicates a significant mineral system hydrothermally altering the Meso/ Paleoproterozoic unconformity, with evidence for multi-generational fluid flow and xenotime precipitation. Following a successful 2021 field season, exploration highlights from the previous quarter include:

  • Five metallurgical samples, each weighing 20kg, demonstrate strong surface mineralisation with up to 8.43% Total Rare Earth Oxides (TREO).
  • Average Heavy Rare Earth Oxides (HREO) percentage of 80%, including an average of 2,990ppm dysprosium oxide and up to 5,795ppm dysprosium oxide.
  • Ore Sorting obtained a TREO grade of 7.16% at a recovery of 87.3%.
  • Magnetic separation obtained an 81.2% recovery and 50.8% mass rejection.
  • Collection of quantitative and qualitative geochemical data at high resolution (micron- scale) paired with manual mineral interpretation to confirm minerals identified using AMICS spectra analysis and to establish mineral abundance and confirmation using SEM EDS/ XRD analysis, details of which were provided in the ASX announcement dated 7 December 2021 titled “Mineralogy confirms Heavy Rare Earths at Tanami are Xenotime”.

The significance of the brecciation and mineralogy within the Killi Killi Formation potentially provides a range of additional exploration opportunities away from the immediate unconformity targets.

Drilling will be undertaken to test the immediate unconformity targets and explore for REE and gold mineralisation along strike.

Figure 1: Areas of drilling proposed for 2022 field season. Includes the detailed geological interpretation and magnetic image. Drilling has commenced at the Castella Prospect.


Click here for the full ASX Release

This article includes content from PVW Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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