Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update from Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest.
Key points
· RRAL has applied for an additional license application comprising 148 sq km of ground (EL007540) that forms a close-fitting inner ring around the Ballarat mine and which became available on Monday.
· The new license application covers ground surrounded on all sides by RRAL’s existing licence applications.
· Three other parties have also applied for licenses covering the ground demonstrating the strategic significance of this area (*).
· In total RRAL now has c 2,336 sq km of ground under license applications in the Victoria Gold Fields.
· RRAL has received several approaches from third parties to acquire interests in, joint venture or earn-in to the RRAL license package, in whole or part. Alongside the intention to list some or all of RRAL on a North American stock exchange RRAL is working with potential partners to assess external proposals.
· RRAL continues work on equipping and staffing its headquarters office in Ballarat, and on technical planning for anticipated exploration and drilling programmes. In addition, RRAL is planning to appoint an experienced Chief Executive Officer dedicated to the development of the business in the near future.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The work continues at pace with the developing Australia gold JV and whilst awaiting license grants to come through RRAL have completed project technical reports across the land package and finalised a NI 43-101 technical report across 8 projects.
We have also moved to equip and staff RRAL headquarters in Ballarat and to further advance our technical planning for proactive exploration. That preparatory work will continue to position RRAL for early commencement of field exploration upon license grants.
There is an intense level of activity around RRAL demonstrating a commitment to building a rapidly growing Australian gold company focused on the Victoria Gold Fields.”
* 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.
FURTHER JOINT VENTURE INFORMATION:
Joint Venture Company – RRAL
RRAL is a joint venture company 49.9% owned by POW and 50.1% by Red Rock Resources plc (LON:RRR). Paul Johnson, CEO of POW and Andrew Bell, Chairman of RRR and POW, are directors of RRAL.
RRAL has lodged applications for thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:
| Licence Application Number | Project Name | Report Name(See reports link below) | Area (km2) |
| EL007271 | Blue Whale | South Ballarat | 133 |
| EL007281 | Blue Chip | Ross Creek | 74 |
| EL007282 | Blue Sky | Dunnstown – Yandoit | 489 |
| EL007285 | Blue Ribbon | Ballarat North | 8 |
| EL007294 | Red Queen | Talbot | 130 |
| EL007301 | Mt Bute | Pitfield | 85 |
| EL007327 | Blue Stocking | Dereel | 60 |
| EL007328 | Blue Yonder | Elaine | 168 |
| EL007329 | Evergreen | Kilmore | 486 |
| EL007330 | Blue Angel | Daylesford | 202 |
| EL007385 | Sardinia | 4 | |
| EL007460 | Kilmore West | Lancefield | 349 |
| EL007540(3 competing applications)(*) | Outer Ballarat | 148 | |
| State land within EL007271 EL007505EL007506EL007507 | (9)(9)(8) | ||
| Total | 2,336 |
* 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.
Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia
In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101
CONTACT INFORMATION
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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.