Australia Gold JV Update - New License Application

RNS Number : 2662X

Power Metal Resources PLC

27 August 2020

 

27 August 2020

Power Metal Resources plc ("POW" or the "Company")

Australia Gold JV - Update - New License Application

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture ("JV") company Red Rock Australasia Pty Ltd ("RRAL") in which POW has a 49.9% interest.

BACKGROUND

RRAL previously commissioned and has now received historical reports and targeting assessments for its original 11 license applications, which are being used to inform the preparation of a NI 43-101 report and develop exploration programmes. 

To date the Company has set out in announcements the key findings from historical reports in respect of three license areas, namely:

-  EL007285, the Blue Ribbon project;

-  EL007271, the Blue Whale project, and:

-  EL007281, the Blue Chip project .

NEW LICENSE APPLICATION

Following a review of historical information in respect of a fourth license application EL007329, the Evergreen project, and based on additional research, gold targets were identified across the western and southern boundaries of EL007329.  Analysis of the license application area continues but the historical summary prepared for EL007329 ("Evergreen") will be posted shortly on the Company's website and will be accessible through the link provided below.

In addition, geophysical analysis conducted by RRAL has indicated potential new targets situated just outside the Evergreen license application area, and on review the area remained available.

Reflecting this a new additional license application has therefore been submitted for a further tenement, EL007460 ("Kilmore West") covering the new target area. Kilmore West contains numerous former mine workings and mineral occurrences and includes the old Donnybrook goldfield to the south of the license.

The new application has an area of 349 km², giving RRAL a contiguous block in the Kilmore area (including Evergreen) of 835 km².

Overall the RRAL licence application tenement area in the Central Victoria Goldfields will now total 2,188 km², further details of which are provided below.

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

"The RRAL work is being undertaken in an environment where the wider structural understanding of the Victoria Goldfields is developing rapidly and where RRAL's work is revealing new prospective gold target areas. 

Given the material findings from the work at Evergreen, and the significant new gold target areas confirmed, RRAL decided to secure the additional ground under application, and this was executed immediately.

The RRAL JV now has 12 license applications covering some 2,188 km² and a large number of highly gold prospective areas are emerging from the review work undertaken.  We are developing exploration plans for each project as further information is gathered and new targets are revealed.

The opportunities within the JV license application area are extensive and it is an exciting time as we continue to push on from an operational and corporate perspective."

PROJECT REPORTS ONLINE

The project reports will be uploaded shortly to the Australia gold JV page of the Company's website which may be accessed through the following link:

https://www.powermetalresources.com/s/52/australia  

FURTHER JV INFORMATION:

Joint Venture Company - RRAL

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

RRAL has lodged applications for twelve new gold exploration license areas covering 2,188 km² in the Victoria Goldfields of Australia as follows:

License Application Number	Project Name	Area (km2)
EL007271	Blue Whale	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007294	Red Queen	130
EL007301	Mt Bute	85
EL007327	Blue Stocking	60
EL007328	Blue Yonder	168
EL007329	Evergreen	486
EL007330	Blue Angel	202
EL007385	Sardinia	4
EL007329	Kilmore West	349
Total		2,188

ONLINE MAP

Readers wishing to view the current application footprint may do so through the following link to the POW website: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

REGULATORY STATEMENT

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

CONTACT INFORMATION

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

Power 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 metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

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.

 

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