Victorian Goldfields - Exploration Update

RNS Number : 6860O

Power Metal Resources PLC

13 June 2022

 

13 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Victorian Goldfields - Exploration Update

Discovery of Intrusion Related Gold Mineralisation Confirmed at Mt Bute Prospect in Victoria, Australia

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 vehicle New Ballarat Gold Corporation plc ("NBGC"), which is focused in the prolific Victorian Goldfields of Australia.  NBGC's wholly owned operating subsidiary Red Rock Australasia Pty Limited ("RRAL") has recently completed a diamond drill programme, certain results in respect of which are outlined below.

A total of 860m of drilling was completed within 8 holes during the Phase I diamond drilling programme targeting two prospects, O'Loughlin's (5 holes; assays received for 4 holes, 1 still pending) and Mt Bute (3 holes; assays received for 1 hole, 2 still pending) .

Laboratory results from the first hole drilled (MB22D001) at the Mt. Bute Prospect, one of two targets addressed in recent drilling, have now been received and are considered significant. Preliminary X-ray fluorescence (XRF) analysis of selected Mt. Bute core intervals had returned highly anomalous molybdenum (Mo) and bismuth (Bi) results, suggesting the possibility of intrusive related gold ("IRG) mineralization within the Victorian goldfields.

A total of three holes were drilled at the Mt. Bute Prospect and the results from the second and third holes are still awaited. 

Laboratory assay results, not considered of such significance, have also been received from the drilling completed at the other prospect, O'Loughlins. Additional assays are still pending.

 

HIGHLIGHTS

· Drilling results from MB22D001 have confirmed the existence of IRG mineralisation overprinting orogenic mineralisation at the Mt. Bute Prospect, a significant development within the Victorian Goldfields generally.

· Over 30% of assays from drill hole MB22D001 between 23.1m to 117.7m returned results greater than 0.1 g/t gold (Au).

· Including highlight intervals of 0.4m of 5.13 g/t, 0.5m of 2.5 g/t, 1.8m of 1.43 g/t, and 5.9m of 0.42 g/t Au.

· Additional drilling at the Mt. Bute Prospect is recommended to step out along strike and down dip.

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

"The discovery of intrusion related gold mineralisation at Mt. Bute prospect is exciting for the team locally who have done a great job with the initial drill programme.  It marks a major step on the pathway to, what we hope will be, multiple potential gold discoveries within the ground footprint in the Victoria Goldfields.

Further information to follow in the near term."

FURTHER INFORMATION

2022 Drilling Programme Background

RRAL has been engaged in a multi-phase drill programme addressing two principal targets, O'Loughlins and Mt Bute. This announcement relates to the first drill hole on the second target, Mt Bute.

RRAL has to date completed a total of 860m of drilling during the Phase I diamond drilling programme targeting the O'Loughlin's and Mt Bute Prospects, located 30km and 20km from the town of Ballarat, Australia, respectively. Initial results from the O'Loughlins Prospect were released on 12 April 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/gold-exploration-update-victoria-goldfields/15410039

Further laboratory assay results of lesser significance returned from two additional drill holes at the O'Loughlins Prospect are included in this announcement - further assays are still pending.

Mt. Bute Update

RRAL has received assays from the first of three holes drilled at the Mt. Bute Prospect.

The drilling was intended to resolve complexities in the structural geometry and the first hole, reported on here, has intercepted several zones of IRG-type gold mineralisation. Located in close proximity to the Mt. Bute Granite (large I-type granitoid) the geology within the area is dominated by steeply dipping, folded metasediments within a hornfels alteration aureole. Results of the drilling and the discovery of IRG mineralization now suggest that the target is geologically more complex than previous interpretations - which originally suggested that the small historically mined gold reefs were solely orogenic in origin. 

Whilst minor historical workings exist on the Property, limited previous modern-day exploration has been undertaken.  In the late 1990's, a 14-hole shallow Reverse Circulation (RC) drill programme was carried out by a previous operator which concluded that gold hosted quartz vein reefs were present and possibly continuous, but insufficient in size to support production via an open pit mining operation.  In contrast, RRAL is now exploring with a view to exploiting any narrow vein high-grade reefs via underground  mining methods- as well are investigating the significant development of overprinting IRG-type gold mineralisation.

The reef structures within the area have generally been poorly understood, including any possible relationship to the nearby Mt. Bute granite. In addition, complexity within the regional fault structures as well as the presence of Cambrian age sediments, which are of similar age and lithology to the nearby Stawell Gold mine, precluded meaningful geological understanding of the area. To help resolve this, RRAL completed a short 3-hole diamond drilling programme within an area of limited outcrop. 

RRAL is now encouraged by the likelihood that the Mt. Bute granite may have had a greater influence on gold mineralisation than previously thought and intersecting elevated gold across broad intervals as well as in several mineralised lode structures within the first drill hole was a result above expectation.

While additional gold and multi-element assay results are still pending, the Company's technical team is confident that there is definite continuity to the main mineralised structure and the drilling result has provided increased geological understanding on the potential source of gold mineralising fluids.

Final assays are anticipated before the end of the month and a full and detailed report will be forthcoming once all results have been received and interpreted by the Company.

Mt. Bute Drill Programme Collar Table:

HoleId	Easting	Northing	RL (m)	azimuth	dip	Length	Status
MB22D001	723964	5821996	401.42	280°	-55°	119.2m	Assays received
MB22D002	723964	5821996	401.42	300°	-55°	119.3m	Assays pending
MB22D003	723964	5821996	401.42	250°	-55°	101.5m	Assays pending

Drilled as triple tube HQ core diameter. ½ sample core samples over select intervals chosen by on-site geological staff were prepared and sent to Minanalytical's laboratory located in Perth, Western Australian. Here, the samples underwent multielement analysis using 4-acid digest with a ICP-OES finish. Gold assays were determined using fire-assay with AAS a finish.

The significant intercepts from the drilling of assays above 0.1g/t are tabled below.  All widths are apparent.

Hole MB22D001 Assay Table:

From (m)	To (m)	Interval (m)	Gold (g/t)
23.1	23.4	0.3	0.12
27.6	28.6	1	0.52
30.7	31.2	0.5	0.56
32.7	33.2	0.5	0.29
34.2	34.7	0.5	0.36
35.2	35.7	0.5	0.23
43.8	44.7	0.9	0.11
45.7	47.2	1.5	0.18
47.9	48.9	1	0.21
49.4	55.3	5.9	0.42
59	59.4	0.4	5.13
67.1	67.4	0.3	0.27
67.4	67.9	0.5	2.50
69.6	71.4	1.8	1.43
77.7	80.0	0.3	1.08
79.4	80.4	1	0.14
82.7	83.2	0.5	0.10
88.5	89.5	1	0.16
95.3	95.8	0.5	0.39
97.7	98.2	0.5	0.14
99.7	100.2	0.5	0.26
103.2	103.6	0.4	1.44
111.4	111.9	0.5	0.39
117.45	117.7	0.25	0.14

Diagrams depicting the Mount Bute (Pitfield) drill location and cross section may be viewed through the following link to the Power Metal website:

https://www.powermetalresources.com/drill-results-mt-bute-prospect/

The company now awaits the return of assays from the remaining two holes and is now looking to conduct further drilling at the Mt. Bute Prospect before the end of the year.

O'Loughlin's Update

A total of 5 holes were drilled within the O'Loughlins Prospect as part of the 2022 drilling programme. The results from the first two holes, which included highlight intercepts of 0.4m of 12.34g/t from 75.7m downhole, and 0.5m at 1.44g/t Au from 50.6m downhole were presented in the 12 April 2022 RNS. Drilling results have now been received for an additional 2 holes at the O'Loughlin's Prospect. Results from one final hole, OL22D003, are still outstanding. 

Results have now been received from two further holes (OL22D001 & OL22D002). These holes have successfully intersected a mineralised lode structure, and whilst the tenor of downhole gold grades differs from surface samples collected at the historical workings, the results highlight the continuity of the zone of interest.

The technical team is completing a detailed structural interpretation of the geology derived from the core drilling and surface mapping, and it is anticipated that the results of this work will lead to a future drilling programme at the O'Loughlins Prospect. 

O'Loughlins Drill Programme Collar Table:

HoleID	Length	Azimuth	dip	Easting(m)	Northing(m)	RL (m)	Status
OL21D001	80.2m	280 °	-70 °	755592	5819620	352.8	Assays received
OL21D002	88.7m	278 °	-85 °	755593	5819620	352.8	Assays received
OL22D001	122.1m	88 °	-74 °	755539	5819638	354	Assays received
OL22D002	143.5m	71 °	-60 °	755539	5819638	354	Assays received
OL22D003	91.5m	300 °	-65 °	755623	5819692	349	Assays pending

O'Loughlins Drillhole Assay Table:

HoleID	From (m)	To (m)	Interval (m)	Au (g/t)
OL22D001	51.7	52.2	0.5	0.17
OL22D002	16.1	17.2	1.1	0.76
OL22D002	24	25	1	0.11
OL22D002	113	114.6	1.8	0.16
OL22D002	117.05	118	0.95	0.27
OL22D002	130.5	131.2	0.7	0.72

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and 49.9% by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia Pty Ltd , holder of the  Victorian Tenements.

NBGC holds through its wholly owned subsidiary RRAL a land position comprising 14 granted licences of in total 1,832km² in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

Five licences covering 493km² await grant. The company has assembled its portfolio of properties comprising a broad range from exploration targets to near-term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021, NBGC has already conducted initial exploration of selected targets, including a diamond drill test of two prospects starting in December 2021.

520m of drilling has been carried out at the O'Loughlin's target within EL 007271and 340m has been carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.

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	-	[8]
EL007330	Daylesford (renamed)	202
EL 007294	Talbot (renamed)	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:

Licence 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

COMPETENT PERSON

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.  Mr Holden consents to the inclusion of the technical information in the form and context in which it appears.

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	Current 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.
Victoria Goldfields	Australia	49.9%	Diamond drill programme completed.	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%*	Lithium review underway including desktop and field mapping and sampling.	Findings from lithium review exploration programme.

*   Reducing to 62.12% after issue of FDR shares after completion of the Pre-IPO Financing

# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

 

END

 

 

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