The AIM-listed junior is in the process of acquiring First Development Resources, which owns the three licences Wallal, Braeside and Ripon Hills, and intends to then list FDR in London.
Groundwork at Wallai has identified a new magnetic bullseye type anomaly of the type that led to the recent gold discovery at Havieron, said Power Metal.
A Phase I work programme is currently being finalised which will include reprocessing of three historic 2D-seismic lines, as well as a passive seismic survey centered over the Eastern and Border anomalies.
Paul Johnson, Power Metal’s chief executive, said: “Technical work has continued in the background as we await licence grants, and notably the grant of the Wallal licence which will trigger completion of the conditional acquisition.
“The identification of a further geophysical anomaly is another material step forward as we continue our work to define drill targets in the highly prospective Paterson Province.
“Deep targets under cover certainly represent high-risk exploration, but as we have seen with Greatland Gold’s discovery at their Havieron project, the Paterson offers great upside potential should a discovery be achieved.”