#POW Power Metal Resources PLC – 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 13^th 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 23^rd December 2022, for the holiday season at a downhole depth of 125.7m.

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

RRAL has applications in process for two other new gold exploration licence areas, covering 467 km² in the Victoria Goldfields of Australia including:

*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.

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).

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: