#POW Power Metal Resources PLC – Drilling Begins at Historic Berringa Gold Mine

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a diamond drill programme has commenced at the historic Berringa Gold Mine (“Berringa” or the “Project”) held within the Company’s Victoria Goldfields joint venture (“JV”).

HIGHLIGHTS:

• Diamond drill rig has mobilised to site and drilling has commenced at the historic Berringa former high-grade producing gold mine in the Victoria Goldfields.

• 1,000 metres of diamond drilling planned with an estimated 5 drill holes into 3 priority targets to test for the extensions of gold mineralisation in proximity of previously mined areas.

•  Expedited assay testing arrangements in place with batch sampling process expected to deliver first gold focused assay results in early 2023.

• A video showing the planned drill programme may be viewed through the following link:

https://www.youtube.com/watch?v=825WYdDVdyQ

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

“This is a notable moment for our joint venture focused on the Victoria Goldfields of Australia with diamond drilling to test three priority targets at the historic Berringa Gold Mine.

At Berringa there has been 293,250 ounces of historical high grade gold production and we believe there may be a considerable remaining gold endowment which this drill programme is designed to partly investigate.

It is common for exploration companies to start from ground up with grassroots exploration.  In our Victoria Goldfields JV, we are far further up the progress and value curve and are now drilling to test for the along strike and down dip extensions of previously mined out high-grade mineralised gold lodes.”

BACKGROUND

Acquisition of exploration licence (“EL”) EL5535 (the “Acquisition”), covering the footprint of the Berringa was announced on 22 September 2022 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/acquisition-complete-berringa-gold-mine/15640720

The JV is in the process of renewal for licence EL5535 seeking a 5-year exploration licence period with effect from 16 November 2022.

Background to the Acquisition, including the historical production from Berringa of 293,250 ounces of gold at 8.3g/t, and conceptual (but unproven) exploration targets totalling up to 2.91million ounces of gold was included in the Company’s announcement of 6 July 2022 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927

A map highlighting the location of Berringa may be seen on the Company’s website through the following link:

https://www.powermetalresources.com/berringa-map-2/

Diagrams, images and videos from the Victoria Goldfields will be available on the Company’s website through the following link:

https://www.powermetalresources.com/investors/gallery/VictoriaGoldfields-australia/  

Further information in respect if the JV and the Victoria Goldfields interests may be viewed on the Power Metal website through the following link:

https://www.powermetalresources.com/project/victoria-goldfields/

DRILL PROGRAMME FURTHER INFORMATION

Approximately 1,000m of diamond drilling is to be undertaken at Berringa by the JV drilling contractor, Trimac Drilling Pty Ltd based out of Ballarat, Victoria.

An estimated 5 drill holes are planned, with an average depth of 200m per hole which are designed to test three priority gold targets which are outlined below.

South Birthday: 

The South Birthday and Birthday mines at Berringa had the most consistent mineralisation within what is known as the Birthday Reef. This Reef consists of a laminated 1-2m quartz lode located within a black shale unit rolling from the west limb into the east limb of a main anticline. This mineralisation remains open to the south and planned drilling is designed to test for the southerly plunge of the Birthday Reef below the historical workings of the previously mined lode.

Berringa Syndicate:  

Targeting a previously identified non-JORC compliant resource at the Southland mine to confirm the potential grade and tonnage identified by the Berringa Syndicate in the 1980s. Here, drilling will be targeting the downdip mineralisation potential of the Kangaroo quartz reef found within the eastern limb of the main anticline.  

Kangaroo East: 

Previous mining at the Kangaroo Mine identified a secondary parallel reef named the Big Reef which is located east of the main Kangaroo shaft.  The Big Reef is a laminated quartz reef hosted within a black shale on the western limb of the eastern anticline. The drill target will test for the along-strike extension of the Big Reef.  The successful drill testing of this lodes along strike extension could lead to further exploration opportunities of this lode throughout the entire Berringa goldfields.

The first drill location has been prepared and the drill rig has mobilised to site and commenced drilling.

Arrangements have been made with local accredited assay laboratories for gold focused assay testing with expedited turnaround on a batch sampling basis.  Subject to the pre-Christmas drilling timetable, first assay results are expected in early 2023.

FURTHER PROJECT WORK

In parallel with drilling, the JV is currently investigating the potential to excavate and open a buried entrance to Berringa. If deemed to be possible, the reopened adit would provide access to the Berringa shaft sub-surface.

The JV is in ongoing discussions regarding the possibility of processing ore at the nearby Ballarat Gold Mine (located approximately 25km away), should the JV discover and develop an economic gold deposit. This arrangement would dramatically reduce both the mine build-out time horizons and heavy capital requirements for building a new standalone processing facility.

JOINT VENTURE STRUCTURE

The joint venture (“JV”) is held through New Ballarat Gold Corporation PLC (“NBGC”), which is focused on the prolific Victorian 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 15 granted exploration licences for a total area of 1,841km² within the gold fields of Victoria, Australia, principally around the mining centre of Ballarat.

In addition, 5 licences covering 493km² await grant. The company 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 retain 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: