Victoria Goldfields Australia - Update

RNS Number : 1555Q

Power Metal Resources PLC

16 February 2023

 

16 February 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Berringa Gold Mine Drilling/Corporate 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 Berringa Gold Mine Project ("Berringa" or the "Project"), which forms part of the Victorian Goldfields joint-venture ("JV") located in Victoria, Australia.

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

"Successful renewal of the exploration licence covering the historic Berringa gold mine, where we are currently undertaking a diamond drill programme, is a notable event for our Victoria Goldfields JV.

The drilling is progressing well with three drill holes completed to date and with visible gold encountered in all three holes as detailed further below.  This is very encouraging, and we look forward to receipt of detailed assay data as soon as possible.

Geologically, all drillholes completed thus far have successfully intersected the down dip and along strike extensions of the target mineralised zones.

We believe our JV in the Victoria Goldfields grows more compelling and valuable as we progress with exploration work."

HIGHLIGHTS:

-  The Company's inaugural drilling programme, designed to test for the downdip and along strike extensions of the historical Berringa Gold Mine, is progressing well with three holes now completed totalling 655.9m of the originally planned 1000m. Drilling of the programme's fourth hole, BED23004, is expected to start shortly.

-  All holes which have been drilled and logged to date have successfully intersected target geological formations and demonstrated visible gold within extensions of the Berringa mineralised lode's including:

o  Drillhole BED23001 (targeting South Birthday Zone): Successfully intersected a 9m wide mineralised* quartz vein from 380.5 - 389.5m downhole as well as another 0.20m mineralised* quartz vein from 421 - 421.2m downhole including minor visible gold mineralisation.

o  Drillhole BED23002 (targeting Berringa Syndicate Zone): Successfully intersected a 9.6m wide mineralised* structure from 89.2 - 98.8m which included minor visible gold mineralisation. Drillhole ED23002 also intersected abundant mineralised* quartz veining from 89.2m - 94.1m and 96.5m - 98.8m downhole.

o  Drillhole BED23033 (targeting Berringa Syndicate Zone): Detailed core logging underway, preliminary observations have identified visible gold within the core.

*sulphide mineralisation including sphalerite, galena, arsenopyrite and pyrite.

-  The JV's Berringa exploration licence ("EL") 5535 has successfully been renewed for a five-year term expiring November 2027. 

-  Assay test results for the first two drillholes are pending and will be released to the market once received, checked and compiled by JV geologists. The assay testing method will use both traditional fire assay, and bottle roll testing, to ensure the results capture course fraction gold as demonstrated by the visible gold on the drill core surface in all holes completed to date.

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, all of which remain largely undeveloped 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
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.

 

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