Victorian Gold Fields - Grant of Key Licences

RNS Number : 5147M

Power Metal Resources PLC

24 May 2022

 

24 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Victorian Gold Fields - Grant of Key Licences

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to its joint-venture subsidiary New Ballarat Gold Corporation plc ("NBGC"), which is focused in the prolific Victorian Goldfields of Australia.

NBGC is a joint-venture held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources plc (50.1%).  NBGC has a 100% interest in Red Rock Australasia Pty Ltd ("RRAL").

Highlights:

· Three further exploration licences, EL007330 (202km²), EL007294 (325km²) and EL007507 (9km²), have now been granted, bringing NBGC's combined footprint in the Victoria Goldfields to 1,832km².

· New license grants include EL007330 located northeast of Ballarat, Australia. Significantly, this newly granted licence covers the historical Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s.¹

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

"The grant of EL007330 is a considerable step forward bringing the historical Ajax gold mine into the RRAL portfolio. This mine produced 312,789 ounces of gold at an average grade of nearly half an ounce per tonne.

Whilst the RRAL land footprint is considerable, with over 1,800k m²of now granted exploration licences, without question the grant of EL007330 including Ajax is highly significant.

In our view the RRAL business holds great potential, however, what is important is what we do to maximise that value through further exploration and corporate activities.

I expect it will be an interesting few months ahead for this project package within the Power Metal business." 

Highlights: EL007330 - Including Ajax Mine:

The historical Ajax gold mine comprises numerous shafts and workings found over several kilometres of combined strike length, which was historically mined to a vertical depth of approximately 400m. The down dip and along strike extensions of the main ore zones remain virtually untested by drilling.  A small drilling programme completed in the 1990s by Continent Resources intersected multiple lode structures with highlight results up to 15.24g/t Au over 5.2m from 120.9m downhole - demonstrating the continuity of mineralised lode structure and associated high gold grades.  The main mine shaft itself has since been backfilled and is currently not accessible. 

A more detailed description of the historical Ajax gold mine is contained in the paper previously published on RRAL's website with the file name: 'Licence Report: EL007330 - Daylesford (Blue Angel)' found below at:

https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/

Work is currently under way to digitise the old mine workings into a 3D computer model in advance of a planned diamond drilling campaign which is expected to commence in late 2022 -targeting the along strike and down dip extensions of the Ajax mine's main ore zones.

New Ballarat Gold Corporation:

NBGC holds a strong land position comprising fourteen (14) granted exploration licences for a total of 1,832km², located entirely within the prolific gold fields of Victoria, Australia - principally surrounding the mining centre of Ballarat, Australia. Five (5) licences for a total of 493km² are still in the application stage.

The company has carefully assembled its property portfolio to comprise a broad range from robust exploration targets to near term resource potential - all of which remain largely untested by modern explorers.

With the first tenement within the portfolio granted only in 2021, NBGC has already conducted detailed exploration on multiple targets to date. This includes diamond drill programmes designed to test the O'Loughlin's (520m) and Mt. Bute (340m) prospects, which commenced December 2021. The final results from these drill programmes are still pending.

Granted Licences:

 The fourteen granted licences cover high priority areas covering 1,832km² 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	- (Announced today)	[8]
EL007330	Daylesford (renamed) (Announced today)	202
EL 007294	Talbot (renamed) (Announced today)	129
Total		1,832

Licence Applications

RRAL has applications in process for five other new gold exploration licence areas covering 493km² in the Victoria Goldfields of Australia including:

License Application Number	Project Name	Area (km2)
EL007540* (3 competing applications)	Outer Ballarat	142
EL007756	Monmouth	22
State land within EL007327 EL007799	Dereel (2)	[3]
EL007826	Ballarat East	4
EL007460	Kilmore West	325
TOTAL		493

* 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 been made in Western Australia:

License Application Number	Project Name	Area (km2)
EL45/5859	Paterson	227
EL45/5885	Pilbara/Paterson	70

References:

¹ Sharp, D. & Sheerin K: OreTech Mining Solutions - Tenement Review and Exploration Strategy - EL007330 Daylesford. Independent geologist report prepared for Red Rock Australasia Pty Ltd. (2020).

COMPETENT PERSON STATEMENT

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and  the Exploration Director of RRAL. He is a member of a recognized professional organization 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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project	Location	POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Excavation of multiple test pits and mapping & sampling.	Field and assay results from on-site work programme.
Athabasca Uranium	Canada	100%	Data compilation across uranium properties	Interpretation results from all Properties complete. Next steps upcoming.
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Technical Review of exploration results & define next exploration steps.
Ditau Project	Botswana	50%	Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.	Field updates and receipt & review of laboratory assay results.
Kalahari Copper Belt	Botswana	50%	Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas	Field programme findings and defined drill targets for near term drilling.
Molopo Farms	Botswana	53%	Review of recent exploration findings.	Determine next exploration steps and action plan.
Haneti Project	Tanzania	35%	Diamond drill programme completed	Receipt & review of laboratory assay results.
Victoria Goldfields	Australia	49.9%	Diamond drill programme underway	Field updates and receipt & review of laboratory assay results.
Paterson Projects	Australia	82.78%	Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.	Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.
Selta Project	Australia	82.78%	Field reconnaissance work complete, which included mapping and sampling.	Finalising data review from field programmes.

 

END

 

 

MSCBRGDUSUDDGDX