Victoria Goldfields Australia - Drilling Update

RNS Number : 0885T

Power Metal Resources PLC

15 March 2023

 

15 March 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Drilling Update

Drilling Programme Complete; Visible Gold Intersected in 4 of 6 Holes and Significant Quartz Vein Intercept in the Final Hole

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update from the Company's Berringa Gold Mine Project ("Berringa" or the "Project"), which forms part of the Victorian Goldfields joint-venture ("JV") located in Victoria, Australia.

A progress update RNS was announced on 16 February 2023 which announced the completion of three diamond drill holes, with all holes completed thus far encountering visible gold:

https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-update/15840466

BACKGROUND:

-  The diamond drill programme was designed to test three priority targets at Berringa which is a former high-grade producing gold mine in the Victoria Goldfields. The programme began in December 2022 and is now complete.  

-  The programme aimed to test for the down dip and along strike extensions of previously mined gold mineralised zones and to improve the structural understanding of the deposit area.

HIGHLIGHTS:

-  The drilling has now completed, with a total of six diamond drillholes totalling 988 metres.

-  The majority of drill core samples are currently undergoing assay testing at an accredited laboratory in Ballarat. The remaining samples will be delivered to the laboratory within the week with final results expected later this month.

-  Four of the six drill holes completed as part of this programme encountered visible gold. (BED23001, BED23002, BED23003, BED23006). Mineralised intercepts in drillholes BED23001, BED23002 and BED23003 are summarised in the 16 February 2023 release.

-  In the final hole drilled, BED23006, visible gold was encountered at 133.55m within a broader circa 30-metre-wide quartz vein (130.5m - 158m) which is located approximately 100 metres east of the main Berringa line of workings. This represents a significantly large quartz vein intercept, and it indicates the likely existence of the eastern and parallel trend of gold mineralisation.

-  Within the final drill hole, due to ground conditions, drilling was terminated at 158m whilst still in the quartz veining meaning the 30-metre-wide intersection remains open downhole.

Sean Wade, Chief Executive Officer of Power Metal Resources Plc commented:

"I am delighted to confirm that drilling is now complete at Berringa. Importantly, 4 of 6 drill holes encountered visible gold including a significant 30-metre-wide mineralised quartz vein in the final hole completed - which remains open downhole.

It is also worth noting that at both Berringa as well as our 100%-owned Tati gold Project located in Botswana, exploration is centred on extensions of previously producing gold mines.  These therefore are brownfield and not greenfield targets, representing more advanced exploration opportunities than currently being recognised.

I want to personally thank our in-country exploration and drilling teams for their hard work in completing this drilling programme, and we now eagerly await final assay results."

JOINT VENTURE STRUCTURE

The JV is held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources PLC (50.1%) (together the "JV Partners"). 

NBGC has a wholly owned Australian operating subsidiary Red Rock Australasia Pty Ltd ("RRAL") which holds a strong land position comprising seventeen granted exploration licences and one purchased licence for a total area of 1,867km² within the prolific Victorian Goldfields of Victoria, Australia, principally surrounding the mining centre of Ballarat, Australia.

In addition, 2 licences covering 467km² await grant. The JV has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely underexplored by modern explorers.

The JV Partners have the intention of listing the JV company NBGC and will make further announcements as appropriate.

QUALIFIED PERSON STATEMENT

The technical information in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and the Executive Officer and Exploration Manager of RRAL. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, published by AIM.

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
Sean Wade (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 - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

 

END

 

 

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