PVW Resources report positive initial results from its maiden Reverse Circulation (RC) drilling program at the Tanami Heavy Rare Earth and Gold Project in Western Australia. The current RC program has tested extensions to the historic gold mineralisation, which is now considered partly coincident with the REE anomalism. Following the anomalous pXRF geochemistry intersected in RC drilling at Watts Rise, the Company's exploration team has prioritised evaluation of the areas located immediately east and west of Watts Rise with AC drilling.

There is a break in yttrium anomalism intersected in the east of the RC drill coverage, which either represents a structural offset of the prospective stratigraphy or a change in the stratigraphy. The AC rig was utilised to test along the buried prospective interpreted east-west structure for the location of the unconformity to the east, or for the major structures that potentially offset the unconformity. The wide-spaced (640m spaced drill lines) AC drilling has already yielded very encouraging yttrium-phosphorous-strontium anomalism approximately 3.4km north-west from Watts Rise and also 800m east of Watts Rise within unconformity and structural targets.

The RC results returned to date further validate the Regional REE Target, and the focus of PVW's ongoing exploration in the Tanami for REE's. Anomalous results have been returned at all prospects tested during the current drilling program associated with the Pargee Sandstone/Killi Killi Formation unconformity. Importantly, there are also significant results within Pargee Sandstone, located stratigraphically above the unconformity, and there are anomalous REE results in breccias immediately below the unconformity and at depth well beneath the unconformity within the Killi Killi Formation. The geochemical knowledge (from both pXRF and assay results) gained from the drilling will provide a huge geochemical dataset that will be essential to the development or other exploration targets.

The consistency of the anomalism at Watts Rise confirms the targeting model has the correct elements - being stratigraphy, mineralisation and structure. The thickness and extent of the anomalism at Watts Rise also gives the confidence to utilise other exploration techniques that could uncover buried mineralisation within the 18km trend of prospective strike. Airborne magnetics and radiometrics have been extensively and successfully utilised to develop the regional geological interpretation, and the effectiveness of ground radiometric surveys has also been tested and proven.

The next step is to test the response of the prospects' stratigraphy to gravity, providing a deeper look into the stratigraphy, testing the response and difference (based on density) between structures, the unconformity and alteration haloes potentially related to mineralisation. The regional-scale unconformity extending over a strike length of 18km is considered prospective for hydrothermal unconformity-related REE mineralisation, examples of which occur across a large part of the Birrindudu Basin (eg. Browns Range, Boulder Ridge).

The two main prospect areas, Castella and Watts Rise, are located 12km apart and both lie close to the contact between the Pargee Sandstone and the Killi Killi Formation. PVW Resources' ongoing exploration program will target faults and structures that transect the regional unconformity and potentially act as conduits for mineralising fluids. Deposits of the hydrothermal unconformity-related style can typically have a small areal footprint (<200m), which requires detailed geological mapping and close-spaced drilling to pin down.

As part of the ongoing drilling, regional targets along the unconformity between Watts Rise and Castella will also be tested. The use of a pXRF has allowed the exploration team to prioritise the collection of samples for REE analysis. The understanding of the mineralisation in surface samples - the focus of exploration in 2021 - has resulted in the recognition of a pathfinder suite that, when utilised correctly, can steer sample selection for REE assay.

Elements that are associated with the unconformity /hydrothermal REE mineralisation in the region include Y, P, and Sr. These are not only the preferred pathfinders because of the association with REE mineralisation, but also because they are measured to sufficient accuracy with the pXRF. Levels of Y, P and Sr have been assessed as anomalous based on the background levels of each element in the Pargee Sandstone and the Killi Killi Formation. At this stage, there are no ratios of these three pathfinders that are considered significant and therefore they are taken as absolute values and any or all of the individual elements have the same significance in justifying whether a sample should be collected for REE analysis.