Australia Gold Joint Venture Update

RNS Number : 4859S

Power Metal Resources PLC

17 March 2021

 

17 March 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Australia Gold Joint Venture - Further License Grants & Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd ("RRAL") a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR)  holding a 50.1% interest.

Highlights:

· RRAL has received formal license grants for a further two of its license applications as follows:

-  The 60 sq km "Blue Stocking" license to the south west of Ballarat (EL007327)

-  The 4 sq km "Sardinia" license to the north of Daylesford (EL007385)

· Both licenses are granted for a period of five years .

· Further information in respect of RRAL's exploration programme covering the new granted licenses will be announced shortly.

· To date RRAL has now received five granted licenses covering 279 km² with further license grants awaited.

· Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist.

Paul Johnson Chief Executive Victoria Officer of Power Metal Resources plc commented:

"It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.

As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.

RRAL's exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance.  As part of this scale up we welcome David Holden, RRAL's Exploration Manager, as a new Director on the board of RRAL. Dave's work to date has been key to our rapid business development so far.  We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist.

As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets."

FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc ("POW"). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Granted Licenses

RRAL has been granted licenses over the three appplications nearest to the regional centre of Ballarat, namely EL007271 ("Blue Whale"), EL007281 ("Blue Chip"), and EL007285 ("Blue Ribbon"), a license further south EL007327 ("Blue Stocking"), and one north of Daylesford EL007385 ("Sardinia").

These licenses cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.

License Application Number	Project Name	Area (km2)
EL007271	Blue Whale	133
EL007281	Blue Chip	74
EL007285	Blue Ribbon	8
EL007327	Blue Stocking	60
EL007385	Sardinia	4
Total		279

Applications

RRAL has license applications in process for eleven other new gold exploration license areas covering approximately 2,057 km² in the Victoria Goldfields of Australia as follows:

License Application Number	Project Name	Area (km2)
EL007282	Blue Sky	489
EL007294	Red Queen	130
EL007301	Mt Bute	85
EL007328	Blue Yonder	168
EL007329	Evergreen	486
EL007330	Blue Angel	202
EL007460	Kilmore West	349
State land within EL007271 [EL007505 EL007506 EL007507]		[9 9 8]
EL007540* (3 competing applications)	Outer Ballarat	148
Total		c 2,057

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following application has been made in Western Australia:

EL45/5859 (One competing application)

Pilbara

227 km2

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

Notes to Editors:

P ower Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

 

END

 

 

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