Power Metal Resources (LSE:POW) has completed its initial US$350,000 earn-in commitment at the Balthaga project in Saudi Arabia, securing a 20% interest and the option to increase its holding by a further 10% through additional near-term expenditure.

The company has also concluded a comprehensive re-evaluation of the project, drawing on newly available geological, geochemical and geophysical datasets from the Saudi Geological Survey, alongside historic exploration results. This data-led review has materially refined the geological model and identified 12 updated exploration targets considered prospective for granite-related rare and critical metals, including lithium, tin, tungsten, niobium, tantalum, beryllium and rare earth elements.

The work confirms that Balthaga sits within a highly evolved and mineralised crustal terrane and highlights the presence of specialised Dahul and Huqban granite intrusions enriched in multiple critical metals. Zones of elevated prospectivity have been delineated through stream sediment and soil geochemistry, including a major fault-controlled corridor within the Huqban area. While ore-grade rock samples have yet to be identified, the technical synthesis—independently reviewed by SRK Consulting—supports plans for further soil sampling, trenching and drilling.

Power Metal said the advancing geological understanding strengthens Balthaga’s role within EV Metals Group’s broader mine-to-refine strategy and aligns with Saudi Arabia’s ambitions under Vision 2030 to develop a domestic critical minerals sector.

From a market perspective, Power Metal’s outlook reflects strong reported revenue growth and a solid balance sheet, partially offset by ongoing operational challenges and negative cash flows. The shares appear undervalued on some measures, although technical indicators suggest caution due to bearish trends.

More about Power Metal Resources Plc

Power Metal Resources PLC is a London-listed mineral exploration and project incubation company with a global portfolio focused on critical and specialty metals. Through its majority-owned subsidiary Power Arabia Ltd, the group is active across the Arabian Shield in Saudi Arabia, partnering with regional stakeholders to advance projects targeting rare earth elements and other high-value battery and technology metals.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.