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 13th 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 23rd December 2022, for the holiday season at a downhole depth of 125.7m.

Drilling successfully recommenced on 3rd January 2023 with BE23D001 at end-of-day 5th 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)

+44 (0) 7766 465 617



SP Angel Corporate Finance (Nomad and Joint Broker)


Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470



SI Capital Limited (Joint Broker)


Nick Emerson                                                                                                           

+44 (0) 1483 413 500



First Equity Limited (Joint Broker)


David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

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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