Victoria Goldfields Australia - Update

RNS Number : 0969M

Power Metal Resources PLC

09 January 2023

 

9 January 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Update

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a corporate and exploration update from the Company's Victoria Goldfields joint-venture ("JV").

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC commented:

"Diamond drilling at the historic Berringa Gold Mine has efficiently recommenced after the Christmas break and the first hole is progressing well.

In other positive news we can announce the grant of 3 further licence applications as well as rock sampling results from the Dereel project which returned extensive gold mineralisation with a highlight result of 229g/t Au.

Work continues at pace in Victoria, Australia, and further updates will follow in due course."

HIGHLIGHTS:

Diamond Drilling - Berringa Gold Mine

On 13^th December 2022, Power Metal announced the commencement of a 5 hole, approximately 1,000m, diamond drilling programme at the historic Berringa Gold Mine ("Berringa"). Drilling of the first hole (BE23D001), into the Birthday South target (see announcement 13.12.22 for further information), paused on 23^rd December 2022, for the holiday season at a downhole depth of 125.7m.

Drilling successfully recommenced on 3^rd January 2023 with BE23D001 at end-of-day 5^th January 2023, at a downhole depth of 167m at which point the HQ (96mm) drill bit was replaced by an NQ (75.7mm) bit. Drilling continues with an expected final target depth of approximately 420m.

Grant of Exploration Licences

A further three exploration licences ("ELs") have now been granted including:

-  EL 7756: a 22km² inlier of Crown land within EL 7271, the prominent EL south of Ballarat gold mine within the Ajax project containing the old Monmouth and Happy Thought mines but where forest cover has limited modern exploration.

-  EL 7799: a 3km² inlier of Crown land originally excluded from licence EL 7327 within the Dereel Project. Investigations have identified the Golden Reef (Dereel) mine as an active high grade mine at the turn of the last century and Crown land will improve access for any future drill programme. The JV has gathered a number of rock chip samples in the area.

-  EL 7826: a 4km² tenement enhancing the land position surrounding Ballarat mine itself and covering potential for southern extension of the main Ballarat lode system known as Ballarat south within the Ajax project.

With the above now granted, seventeen EL grants have now been received from the nineteen original applications. Table 1 below provides a full breakdown.

Rock Sampling Results

A rock chip sampling programme was successfully completed within the Dereel project (EL 7799 & EL7327). The sampling campaign included the collection of 24 rock samples. Gold mineralisation was successfully identified with 16 of the 24 samples returning gold assays >0.1g/t, including a highlight result of 229g/t Au.

Table 2 below provides a breakdown of all rock sampling results.

JOINT VENTURE STRUCTURE

The joint venture ("JV") is held through New Ballarat Gold Corporation PLC ("NBGC"), which is focused on the prolific Victoria Goldfields of Australia. 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 17 granted exploration licences and one purchased licence for a total area of 1,867km² within the gold fields 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, which remain largely under-explored by modern explorers.

The JV Partners have the intention of listing the JV company on a recognised stock exchange and will make further announcements as appropriate.

TABLE 1: LICENCE TABLES

The seventeen granted and one purchased licence (EL005535) cover high priority areas, covering 1,867km² as outlined below.

Licence Number	Project Name	Area (km2)
EL007271	Buninyong (renamed)	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007327	Dereel	60
EL007385	Sardinia	4
EL007329	Kilmore	484
EL007301	Pitfield/Mt. Bute	85
EL007328	Blue Yonder	164
State land within EL007271 EL007505	-	[9]
State land within EL007271 EL007506	-	[9]
State land within EL007271 EL007507	-	[8]
EL007330	Daylesford (renamed)	202
EL 007294	Talbot (renamed)	129
EL 5535	Berringa	9 (228 net ha)
EL007756	Monmouth	22
State land within EL007327 EL007799	Dereel (2)	[3]
EL007826	Ballarat East	4
Total		1,867

Licence Applications:

RRAL has applications in process for two other new gold exploration licence areas, covering 467 km² in the Victoria Goldfields of Australia including:

Licence Application Number	Project Name	Area (km2)
EL007540* (3 competing applications)	Outer Ballarat	142
EL007460	Kilmore West	325
TOTAL		467

*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 applications have also been made in Western Australia.

EL45/5859	Paterson	227
EL45/5885	Pilbara/Paterson	70

Table 2: ROCK CHIP SAMPLING RESULTS

Each sample below represents a 1kg sample which was pulverised and analysed with a aqua regia digest (AAS finish).

Sample ID	Tenement	Easting	Northing	Gold (g/t)
41514	EL007799	743094.1	5809362	229
41562	EL007327	743239.5	5809050	1.67
41513	EL007799	743102.2	5809331	0.79
41515	EL007799	743095.4	5809397	0.39
41560	EL007327	743233.9	5809046	0.33
41564	EL007327	743248.8	5809037	0.3
41561	EL007327	743232.1	5809046	0.28
41563	EL007327	743252.6	5809041	0.15
41565	EL007327	743243.8	5809041	0.15
41511	EL007799	743110.2	5809315	0.08
41516	EL007799	743082.2	5809399	0.04
41512	EL007799	743108.7	5809318	0.02
41566	EL007327	743270.9	5809071	0.01
41510	EL007799	743119.2	5809285	0.01
52525	EL007327	743264.7	5809564	<0.04
58299	EL007327	743259	5809518	0.97
58300	EL007327	743262.8	5809508	0.21
58523	EL007327	743264.7	5809583	0.07
58524	EL007327	743267.8	5809572	0.1
58526	EL007327	743260.3	5809550	0.2
58295B	EL007327	743267.1	5809491	0.13
58296B	EL007327	743267.5	5809496	0.31
58297B	EL007327	743268.8	5809521	0.27
58298B	EL007327	743266.5	5809530	<0.04

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
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 - 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

 

 

UPDBLMMTMTIMBBJ