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Power Metal Resources #POW – Australian Gold Joint Venture – Ground Exploration Advances at Pace With Initial Drill Targets Identified and Listing Plans Now Focused on the London Market
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 in respect to its Australian gold joint venture, Red Rock Australiasia Pty Ltd.
Power Metal owns 49.9% of RRAL, with the other 50.1% being owned by Red Rock Resources plc.
RRAL holds extensive gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields, Australia.
The most recent update in regards to RRAL was provided by the company on 29 April 2021 and can be found at the link below.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Joint Venture’s technical team have gathered extensive evidence of gold mineralisation including several high-tenor kilometre-scale anomalies along strike and to the south of the Ballarat Gold Mine 1.
Three exciting targets within the portfolio have now been designated for drilling, with more expected in the near term. The Company plans to commence inaugaral diamond drilling operations in late 2021.
The Joint Venture controls a substantial licence footprint in the Victorian Goldfields and we are intending to cover all areas held with systematic exploration. We believe there is good potential for major new gold discoveries within areas which have historic gold mines and known gold occurrences but which remain untested using modern exploration technologies.
Our work in respect of seeking a public listing for the core interests of RRAL continues, and after further consultation and review, we are now focusing on a planned primary RRAL listing in London, with a proposed trading facility in North America as a secondary step.
There are a number of advantages to a primary UK listing, including for Power Metal the increased ease of a potential distribution of shares in the listed vehicle, something we have indicated previously was under consideration. In addition, timing, established relationships, familiarity with the processes, short lines of communications at a time of restricted travel, and the existence of suitable comparators were all factors in this decision.
Preparatory work in relation to the listing process is underway and notably, we have the technical Competent Person’s Report (“CPR”) ready, an important constituent part of the listing process.
Further updates to the market in respect of ongoing exploration and corporate developments are expected to flow more frequently going forward, as we now have momentum running across all areas of the Joint Venture.”
Highlights:
· Dedicated Victoria-based technical team in place which is led by exploration manager Dave Holden with over 30 years of project management experience across Australia. Mr. Holden was an integral part of the exploration teams that were credited with the gold discoveries of Nimary and Jundee in Western Australia, as well as Mt. Todd and Brocks Creek in the Northern Territory.
· Ongoing historical data compilation has led to the discovery of multiple overlooked historic mines, located within various granted tenements within the package, which are now designated for follow up ground-based reconnaisance and prospecting programmes.
· A number of ground-based programmes across the tenement package are in progress, including a extensive soil sampling programme targeting the possible southern extension of the Ballarat Mines. The soil sampling programme, uitilised a portable X-ray fluorescence spectrometer (“pXRF”) to focus on arsenic distribution as this is a previously identified path finder to gold mineralisation at Ballarat. The results have produced several high-tenor kilometre-scale anomalies which trend along strike, south of the Ballarat Mines.
· Historical research, modelling of old mines, and confirmation from soil sampling data has enabled RRAL to identify three drill ready targets (outlined below at Figure 1), with more expected within the coming months. Drill proposals are at various stages of finalisation in anticipation of carrying out up to three drill programmes later In the year.
· After consulting with various parties, and a review of the optimal outcome for what the Company considers to be a highly valuable business interest, it has been decided that the best commercial path forward for RRAL is to obtain a London-based listing. This process has now been started and the Company will provide updates to the market periodically with regard to the listing process in the coming months.
Figure 1 highlights the location of the various project areas and areas of Interest discussed below and may be viewed through the following link on the Company’s website:
https://www.powermetalresources.com/rral-project-area-locations/
Project Specific Updates:
DeReel Prospect
Re-evaluation of historical data at DeReel (EL007327) has led to the discovery of the Golden Reef line of mineralisation which was actively mined at the turn of the last century. The mining (identified primarily as the DeReel Mine) exploited a high-grade lode gold system. Mining followed the gold bearing quartz veins (or “reef”) down to approximately 80 metres vertical depth and extended along strike for roughly 300 metres.
Initial investigations suggest the geology is similar to other typical geologies around the Ballarat and Bendigo mining centres. A well-defined anticline to the west and the major steeply west dipping Pinchgut fault cross-cutting the anticline has produced quartz saddle reefs in the fold hinge with associated flat lying quartz spurs.
A similar second structure west of the main reef may be an upper bounding structure and offers an opportunity for a second line of reef not previously exploited with the possibility of further mineralisation developing between the two structures.
Ambiguities over early production suggest some of the gold may be fine and associated with sulphides and may not have been recoverable by original mining efforts.
An initial diamond drill programme is planned for late 2021 of up to 1,200m of drilling looking for the along strike and down plunge extensions of the historic mines operating along the Golden Reef line.
Mt Bute Prospect
Re-evaluation of historical data at Mt Bute (EL007301) has identified a linear arsenic geochemical soil anomaly with associated elevated gold values centred on a small cluster of historical shafts south of Linton, Victoria. The prospect is part of a much longer zone informally referred to as the Linton trend which may extend many kilometres.
Metex Resources in the 1990’s enhanced the prospectivity of the Mt Bute prospect by conducting a limited shallow reverse circulation drilling through the centre of the arsenic anomaly. Metex’s mandate was to search for suitable oxide material at or near surface with a view to high-tonnage low-grade open pit recovery, which did not focus on the structural or mineralogical elements that diamond drilling may have identified. RRAL believes that high-grade narrow quartz reef mining is more likely suitable at the Linton trend based upon other known deposits in the area and anticipates more coherent and elevated grade to occur below the surficial weathering.
Three dimentional modelling of the geology, drill results and other data sets currently available are providing a valuable visual support to drill planning. RRAL is working towards a maiden diamond drill programme at the prospect before the end of the current year comprising at least 600 metres.
In addition, RRAL is looking to extend its regional pXRF programme to the north and east of Mt Bute to cover folded and faulted Ordovician age rocks to the east and along strike from the known Mt Bute prospect.
In the centre of the tenement, another previously overlooked historical mine has presented further opportunities for advanced exploration. The Gribbles/Linton mine extends down to approximately 65 metres and produced gold from both quartz reefs and ‘flat makes’ (shallow dipping quartz veins). Further ground-based work is planned.
O’Laughlins Prospect
Preliminary results from the recently completed pXRF soil geochemical survey has produced well-defined arsenic anomalies in areas south of the main Ballarat and Scotsburn lines of gold mineralisation. One advanced target, which has been confirmed by the recent geochemical sampling, marks the southern end of the Scotsburn line of gold workings. The elevated arsenic values returned coincide well with historical workings, structural trends and a potassic anomaly identified from airborne radiometric data from the late 1980s.
The planning and permitting process is under way for the inagural drilling campaign on the prospect planned for late 2021. Further mapping and sampling is also being undertaken in advance of drilling to develop a more detailed picture of the Scotsburn line of mineralisation.
Of immediate focus for drilling is the western side of the O’Laughlins Prospect where numerous workings are identified as the historic Enfield reef. Little historical literature exists for these workings other than a single reference to a reef where processing of gold was associated with sulphide in quartz. There are clear structural targets for mineralisation in this area where regional structural trends align north-northeast and steeply dip to the west .
Variations to the traditional Ballarat geological model at Enfield Reef are now considered possible where east -west striking flatter-lying quartz veins and steeply dipping east-west striking dykes have been mentioned at the turn of last century in other writings on the regional geology.
Figure 2 shows arsenic soil sample results and may be viewed through the following link on the Company’s website:
https://www.powermetalresources.com/rral-arsenic-soil-sample-results/
Kilmore Prospect
RRAL has also commenced work on the easternmost tenement immediately north of Melbourne. Within this tenement, strong structural folding and faulting identified by historical mapping appear to correlate well with strong antimony anomalism identified in regional ASTER2 remote sensing data.
In addition, first pass historical research has uncovered the Donnybrook gold field, where production from the identified mine was from narrow (sub 0.25m) veins which reportedly returned very high grades of about 4 ounces a ton (approx. 120g/t gold).
Further work by the in-country operations team on this prospect is ongoing with a view to determining if the structures develop at depth and along strike. Drilling is anticipated early in the new year pending the outcomes of the ongoing geological reconnaissance investigations.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal. Paul Johnson, CEO of Power Metal and Andrew Bell Chairman of Power Metal are directors of RRAL.
Granted Licences
RRAL has a seven granted exploration licences as listed below. These licences cover high priority areas where RRAL has early drill targets and in which exploration has already started.
|
Licence Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Dereel |
60 |
|
EL007385 |
Sardinia |
4 |
|
EL007329 |
Kilmore |
484 |
|
EL007301 |
Pitfield/Mt Bute |
85 |
|
Total |
|
848 |
Applications
RRAL has applications in process for nine gold exploration licence areas covering approximately 1,458km2 in the Victoria Goldfields of Australia as follows:
|
Licence Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007328 |
Blue Yonder |
164 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
325 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 1,458 |
* 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. The two where there is another applicant will be subject to a ballot.
|
Licence Application Number |
Project Area |
Area (km2) |
|
EL45/5859 (One competing application) |
Paterson |
227 |
|
EL45/5885 |
Pilbara/Paterson |
70 |
|
EL45/5881 (One competing application) |
Pilbara/Paterson |
33 |
COMPETENT PERSON STATEMENT
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. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Director of RRAL.
References & Notes
1 The Ballarat Gold mIne is a modern underground mine operated below the city of Ballarat by Golden Point Group PTY Ltd (see https://ballaratgoldmine.com.au ). For a history of gold mining in and around Ballarat in Victoria also see https://earthresources.vic.gov.au/geology-exploration/minerals/metals/gold/gold-mining-in-victoria
2 ASTER: Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) is a satellite bourne intrument. ASTER data is used for a range of applications, including mapping alteration patterns or specific mineral assemblages known to be associated with mineral systems and the generation of digital elevation models.
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 (LON:POW) is an AIM listed metals exploration and development 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 and base 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 Resources #POW – RRAL Australia Gold Joint Venture – Exploration Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (“Red Rock”)(LON:RRR) holding a 50.1% interest.
Highlights:
- Further to the Company’s announcement of 3 February 2021 announcing the commencement of exploration on recently granted exploration licences a sampling and mapping programme has been undertaken.
- The programme objectives were to identify potential southern extensions to the main lode systems of Ballarat East through looking for low level gold anomalism and pathfinder elements and to evaluate the relative effectiveness of X-ray Fluorescence (“XRF”) and Mobile Metal Irons (“MMI”) testing in the region, as part of a programme of work to constrain the areas to be drill tested later in the year.
- A total of 1,024 soil and rock chip samples were collected in EL007271 and EL007281 in the old Monmouth/Enfield and O’Laughlin/Scotsburn mining areas for XRF and MMI testing as follows:
- 142 soil samples have been collected to date in EL007281 with rock chip sampling, mapping and sampling of road cuttings continuing at present.
- 882 soil samples have been collected in EL007271 of which 84 have been sent for MMI analysis.
- Sample analysis results are expected to be received in the coming weeks.
- Preparation of work plan and stakeholder engagement for trenching around Monmouth.
RRAL Director Dave Holden comments: “Increasing evidence from previously unknown workings of east-west lines of mineralization at Monmouth, in an area where the main geological trend runs north-south, has been an interesting outcome of our work to date, and is being actively followed up.
As early as 1903 it was recognised that this mineralisation may be different to the main Ballarat system, with reference to a pyrite lode and “gold shale”. The numerous reefs along both the Happy Thought line and at the Monmouth Mine were considered at the time to be strongly reminiscent of the Jubilee Mine project (mined 1887 – 1913). That mine produced approximately 130,000 ounces of gold at a recovered grade of around 12 g/t*, showing the potential importance of east-west structures in this environment.
The programme is going well and besides working on our technical presentations we continue to intensify our community engagement and to prepare our environmental programme including flora and fauna surveys. The pace of activity is intensifying as more of our licence applications start to be granted.”
*ref: Navarre Minerals Ltd website
Background Information on Current Programme
Prospects
The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature. It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area.** Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin.
** One map reference to the Glasgow and Enfield reefs 1859 and a single newspaper article refer to mining on the Glasgow reef in 1865. These reefs lie central to this project area.
The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat). The Devonshire reef system just east of Buninyong township and extending down through the Scotsburn target area was actively mined in numerous shafts during the late 1890s.
The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.
Programme
RRAL has initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping.
The sampling is using both traditional MMI low level analytical methods as well as evaluating the efficacy of portable XRF analyser as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results.
In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration could lead to confirmation that significant mineralisation is present and will allow planning to start for a drill programme later in the year.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc. Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal and Red Rock, are directors of RRAL.
Granted Licences
RRAL has five granted licences over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a licence further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).
These licences cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007385 |
Sardinia |
4 |
|
Total |
|
279 |
Applications
RRAL has licence applications in process for eleven other new gold exploration licence areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:
|
Licence Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,057 |
* 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 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. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL.
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 metals exploration in North America and Australia together with base and strategic metal 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.
ECR Minerals #ECR CEO Interview – Alan Green talks to Craig Brown
Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields.
Craig talks about the recent placing to raise a further £2m with Novum Securities at 2.2p, and elaborates on the rationale behind it, before discussing the initial drilling results at the Bailieston Historic Reserve 3 prospect, that led to a fall in the share price despite identifying gold and gold mineralisation.
We look at slides from the current company presentation, and examine the scale of the operations and historic gold grades from the other Bailieston prospects including Blue Moon, Black Cat, HR4 (Cherry Tree, Cherry Tree South) and Yellow & Red Moon.
We move to Creswick and discuss the Dimocks Main Shale geological feature, the historical (2019) grades, license applications and JV implications and the upcoming drilling campaign. Craig then updates on the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher before we discuss the Bendigo HQ operation.
Alan and Craig then summarise by looking at the current company valuation vs. assets and work underway.
Power Metal Resources #POW – Australia Gold Joint Venture – Further License Grants & Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Highlights:
- RRAL has received formal license grants for a further two of its license applications as follows:
- The 60 sq km “Blue Stocking” license to the south west of Ballarat (EL007327)
- The 4 sq km “Sardinia” license to the north of Daylesford (EL007385)
- Both licenses are granted for a period of five years .
- Further information in respect of RRAL’s exploration programme covering the new granted licenses will be announced shortly.
- To date RRAL has now received five granted licenses covering 279 km2 with further license grants awaited.
- Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist.
Paul Johnson Chief Executive Victoria Officer of Power Metal Resources plc commented:
“It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.
As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.
RRAL’s exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance. As part of this scale up we welcome David Holden, RRAL’s Exploration Manager, as a new Director on the board of RRAL. Dave’s work to date has been key to our rapid business development so far. We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist.
As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets.”
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.
Granted Licenses
RRAL has been granted licenses over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a license further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).
These licenses cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007385 |
Sardinia |
4 |
|
Total |
|
279 |
Applications
RRAL has license applications in process for eleven other new gold exploration license areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505
|
|
[9 |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,057 |
* 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 application has been made in Western Australia:
|
EL45/5859 (One competing application) |
Pilbara |
227 km2 |
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 (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 metals exploration in North America and Australia together with base and strategic metal 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.
ECR Minerals #ECR – CEO Craig Brown talks to Alan Green
Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields. Taking slides from the latest company presentation, Craig talks about ECR’s wholly owned drill rig, HQ at Bendigo and the £4m funding and extra cash resources owned by the company. We look at the Creswick Gold project located close to the Ballarat Gold Mine before discussing this year’s production numbers at the Fosterville goldmine and how they might compare to assay results and ore grades currently being drilled at the Bailieston HR3 target. Craig looks at Black Cat, Cherry Tree and other targets at Bailieston, before we move onto the blue sky potential at the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher. We end with some takeaway points for investors.
Power Metal Resources #POW – Australia Gold Joint Venture – Exploration Commences
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“As promised with the grant of licenses as announced yesterday RRAL have moved quickly to launch ground exploration with further information on the initial programmes outlined below.
Given over 12 million ounces of mined gold in the Ballarat West and Ballarat East mining camp, we are particularly eager to expedite exploration as RRAL targets a major gold discovery in the Victoria Goldfields, Australia.”
Background
RRAL announced on 2 February 2021 the grant of three of its exploration licence applications in Central Victoria, Australia – EL007271, EL7281 and EL7285.
The granted tenements comprise approximately 215km2 and form a key part of RRAL’s central to south Ballarat project group. These tenements (along with current applications) surround and overlie the existing Ballarat West and Ballarat East mineralized lode systems – a mining camp reported to have produced over 12 million ounces. Modern production continues today at the Ballarat East mine.
RRAL is beginning work immediately on evaluating previously identified areas of interest within all tenements. A map showing the granted licenses and providing the location of prospects named below may be viewed on the POW website through the following link:
https://www.powermetalresources.com/p/238/exploration-map-1
INITIAL TARGETED EXPLORATION PROGRAMME
Granted License EL007271
Coincident geochemical and radiometric anomalies from early work along with historical reconnaissance mapping and sampling has already identified three strong prospects in EL 007271 to the south of Ballarat. These prospects are considered as possible southern extensions to the main lode systems of Ballarat. All three (O’Laughlin, Scotsburn and Enfield) are a high priority for immediate work.
The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature. It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area. Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin.
The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat).
The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.
RRAL has already initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping. The sampling is using both traditional MMI (mobile metal ion) low level analytical methods as well as evaluating the efficacy of portable XRF as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results. In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration, if successful, will lead to confirmation that significant mineralization is present and will allow drilling to commence later in the year.
Granted License EL 007285
To the north EL007285 is considered to hold the northern extension of the Ballarat West lode system and further work on compiling historical data into a 3D model to facilitate drill planning is under way.
Satellite Data Analysis
A further exploration tool in use is satellite data from the Aster and Sentinel-2 satellites, where using machine learning, our consultants have trained five statistical classifiers, called Linear Discrimination Functions (LDFs), on the Au occurrences to recognize gold mineralization from 16 spectral abundances unmixed from the Aster mosaic, and have similarly created a classifier from the ten reflective bands (unmixed into 16 spectral abundances) from the Sentinel data.
This satellite thermal and high spatial resolution VNIR/SWIR (visible and near-infrared/short-wave infrared) imagery may be used to extrapolate gold occurrence information out to the rest of the project area. Identification of minerals in the scene from spectral unmixing may also inform geological understanding of the area.
This extra exploration layer, continuously refined, along with geophysics, geochemistry and geological interpretation may improve drill targeting and the odds of discovery in a brownfields environment such as the Ballarat Gold Fields
THE BALLARAT PROJECT AREA
Geology
In general terms, the geology of the Ballarat South project comprises a thick sequence of Ordovician turbidite sediments. The sediments have been folded and subsequently faulted under east/west compression. During the compressional phase, some brittle deformation occurred, resulting in the development of several reverse faults.
These reserve faults as well as bedding plane slip within shales have acted as conduits for fluid flow from within the metamorphosed sedimentary pile. Gold hosted quartz veins formed as a result, often in complex arrays of orientations within a broadly mineralized envelope.
Overlying the sediments in part is extensive flows of Tertiary age volcanism.
Previous Exploration
The Ballarat region has seen exploration activity since the initial discovery of gold in the 1850s with mining progressing from surface alluvial mining to deep lead mining to some hard rock mining over a period of 80 years. From the 1980s onwards interest in the area renewed as explorers completed first phase surveys including broad airborne geophysical surveys, soil sampling, and mapping.
Their work included minor exploration drilling focused largely upon the Ballarat East and West lodes. Whilst they did identify numerous other targets, limited technology for evaluating mineralisation beneath the cover particularly the lava flows restricted much of the exploration. This coupled with a fluctuating gold price has left much of the region surprisingly underexplored.
As a result, RRAL can now capitalize on the positive results reported in the previous literature and continuously learn from the progress of current exploration in the region, and is fast tracking exploration efforts with an initial focus on already identified prospects.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.
Applications
RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271 (granted) |
Blue Whale |
133 |
|
EL007281 (granted) |
Blue Chip |
74 |
|
EL007282
|
Blue Sky |
489 |
|
EL007285 (granted) |
Blue Ribbon |
8 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007385 |
Sardinia |
4 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 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.
The technical information relating to planned exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL.
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 (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 metals 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.
Power Metal Resources #POW – Australia Gold Joint Venture with Red Rock Resources #RRR receives first license grants
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Paul Johnson Chief Executive Victoria Officer of Power Metal Resources plc commented:
“The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licenses in the Victoria Goldfields, centred on the historic mining centre of Ballarat.
We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months and utilising the RRAL Ballarat headquarters as the centre of the operational work.
In addition we continue to work on corporate activities surrounding the RRAL business, which given the level of interest shown in the Victoria Goldfields and now with the grant of the three licenses, becomes all the more relevant.
Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”
Highlights:
- RRAL has received formal license grants for three of its license applications as follows:
- The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271)
- The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281)
- The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285)
- All three licenses are granted for a period of five years
- RRAL is to launch an expeditious exploration programme further details of which will be announced shortly.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal are directors of RRAL.
Granted Licenses
RRAL has received notice that its applications for the three licenses where applications had been expedited have been successful, and that it has now been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”).
These licenses cover 215 sq km forming an outer ring around Ballarat, along the Ballarat trend and covering high priority areas where RRAL has early drill targets that it is developing.
RRAL Applications
RRAL is also one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine which forms a close-fitting inner ring around the Ballarat Mine. The EL007540 ground is surrounded by RRAL’s now granted tenements and if granted to RRAL would link them.
In total RRAL has now lodged applications for an additional 13 new gold exploration license areas covering approximately 2,121 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007282 |
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007385 |
Sardinia |
4 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
EL007505 EL007506 EL007507
|
|
(9) (9) (8) |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,121 |
* 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.
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 (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 metals 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.
USD28tn COVID bill keeps the Gold bull case intact for ECR Minerals #ECR and the new Victoria Gold rush.
In October 2020 IMF economic counselor *Gita Gopinath described coronavirus as the worst crisis since the Great Depression, adding that the pandemic would leave deep and enduring scars from job losses, weaker investment and children being deprived of education.
In its flagship world economic outlook, the IMF said stronger than expected Q2 and Q3 performances would see global output fall by 4.4% in 2020 compared with the 5.2% drop forecast during the summer.
The groundbreaking news of a vaccine with high efficacy rates from both Pfizer and Moderna triggered strong rallies in global stock markets, and while this led to a downward correction in the gold price, most market analysts remained bullish on gold over the longer term.
US Investment Group Energy & Capital are of the view that gold remains in a bull market super cycle. Energy & Capital editor, Gold bug, and investment analyst Luke Burgess said “The historic gold run of 2011 actually began in 2001, when gold was trading around $300 per ounce.”
“The same exact gold super-cycle happened in 1971–1980, when gold ran from $50 per ounce to almost $700,” Burgess added. “The value of the U.S. dollar is being weakened every day and there is nothing that the Federal Reserve or politicians can do to stop it. This will continue to have a tremendous effect on gold prices and the gold market in general.”
Energy & Capital are ultra bullish in outlook, with a $6500oz target price for the yellow metal within 2 years. While other commentators are more circumspect, the view on the longer-term trend is clear.**
“It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,” TD Securities said in a note.
“The U.S. Federal Reserve’s continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates.”
Junior Gold Miners Flourish
It has been an extraordinary year for junior gold miners. Despite the recent gold correction to $1860oz, global gold producers are under more pressure than ever to replace their depleting reserves. The major gold producing conglomerates face declines in production, shrinking reserves and a potential increase in production costs, which means it is cheaper (and faster) for these companies to buy developed or developing gold projects.
As a result, there has been a rush to develop and fast track quality assets, which for some junior miners has meant revisiting dormant mining projects. The latest tools, survey techniques and desktop assets available to mining engineers have proved invaluable in the search for precious metals within existing dormant assets and mines around the world.
As gold prospecting continues apace in far flung and remote areas, this year has seen the goldfields in Victoria, South Australia thrust into the limelight once again.
A major mining centre since the 19th century gold rush, modern technology has today has paved the way for another gold rush in the region.
Indeed the Geological Survey of Victoria estimates that some 75 million ounces of high-grade gold is currently awaiting discovery, and with grants available to mining companies operating in the region, it is no exaggeration to say that companies are literally queuing up for licenses.
As an incumbent operator owning some of the most fertile territory in Victoria, London listed ECR Minerals (LSE: ECR) is already at the front of the queue, with its 100% owned Bailieston and Creswick Victoria gold projects, plus the recently acquired Tambo Gold project.
ECR also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses to Fosterville South Exploration Ltd (TSX.V:FSX), raising $500,000 plus $1 for every ounce of gold discovered. ECR also has interests in projects in the Philippines and Argentina.
Creswick
Creswick is situated within the Dimocks Main Shale, a geological feature considered to be highly prospective for gold, and which extends to the Ballarat gold mine centre and further south. ECR’s exploration licenses cover approximately 7km of this region, and along with several other mining companies with licenses in the region, has applied for a further license covering a further 140 sq km between Creswick and Ballarat.
A recent study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the Fosterville mine, (now the largest gold producer in Victoria), underlined the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’. Joint venture / earn-in talks are continuing at Creswick.
Bailieston
Bailieston is also at the centre of the current gold exploration boom in Victoria, sited as it is a few km east of the world class Fosterville mine. Fosterville has delivered spectacular investment returns over recent years for owner Kirkland Lake Gold, not to mention some of it’s now millionaire shareholders.
The Bailieston license areas include a raft of prospects, including HR3, Black Cat, Cherry Tree, Red Moon and Yellow Moon, and with drilling permissions now received, the company reported last Friday that its newly acquired drilling rig will shortly be en route to the HR3 prospect from ECR’s new operational base at Bendigo. Work also continues apace at the Cherry Tree prospect, with soil geochemistry and geological mapping recently completed.
ECR’s Baillieston project also has a high profile neighbour in the form of mining giant Newmont, which has a license application in for ground immediately to the north of ECR’s Black Cat prospect.
Tambo Gold Project – Local Knowledge
One of the key advantages lies in the fact that ECR’s principal geologist Dr Rodney Boucher was born and raised in Bruthen, East Victoria, and therefore has an intimate knowledge of the region. In September 2020, this area knowledge was further employed by ECR when it lodged two new license applications for the new Tambo gold project in eastern Victoria. ECR CEO Craig Brown highlighted Dr Boucher’s knowledge in the stock exchange press release.
“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.”
Brown added “Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”
Untapped Potential
There is a sense that despite the rush of license applications in the region, the current day Victoria gold rush is still very much in its infancy.
As other leading mining companies, including Newmont Corporation (NYSE: NEM), Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR), Fosterville South and a host of other smaller mining groups queue for licenses, their respective CEO’s will no doubt be harbouring ambitions for a Kirkland Gold–esque share price explosion. Indeed, Kirkland’s share price has rocketed over 2,200% in the past few years thanks to its ownership of the Fosterville Gold Mine and a 315% jump in annual gold production between 2014 and 2018 .
Despite movement restrictions in the Victoria region due to Covid-19, the foresight of the ECR board and CEO in securing the key licenses has not been lost on investors.
Following a further £600,000 fundraise in July, and further £400,000 from warrant exercises, ECR took the decision to acquire it’s own diamond drilling rig to press on with exploration Bailieston and Creswick. Investor bulletin boards are agog with anticipation, but despite the share price having nearly trebled between June and September 2020, in November the stock still trades on a ridiculously modest £13m market cap.
If, as all the pundits seem to be saying, we are at the start of a new Victoria Gold rush, then expectations that shares in small, incumbent explorers like ECR will deliver spectacular Kirkland-style increases in value may not be so far fetched after all.
*Source The Guardian: https://www.theguardian.com/business/2020/oct/13/imf-covid-cost-world-economic-outlook
**Source Reuters:
Power Metal Resources #POW – Seven Further License Applications Accepted at Australia Gold Joint Venture
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. RRAL has gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria, Australia.
Key points
· RRAL has been notified that a further seven of its license applications have been accepted and have been given highest ranking, following the notification in respect of the first three applications received in early July.
· RRAL will now advertise the seven applications in newspapers with statewide and local circulation, and after a three-week exposure period, the Department of Jobs, Precincts and Regions of the State of Victoria will begin the application assessment process.
· Applications EL007282, EL007294, EL007301, EL007327, EL007328, EL007329, and EL007385 RRAL are those now being advertised.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“I am pleased to announce further progress from RRAL with regard to the license application progress and notably that a further 7 license applications have been formally accepted and given the highest ranking.
RRAL is making great progress in the application process and is investing now in building its technical and managerial team, local to Ballarat, in readiness for an investment in field exploration work when licenses are granted allowing ground operations to commence in earnest.
The greatest return on exploration spend is through effective preparation and RRAL has built a considerable data bank allowing increasingly refined exploration planning with a focus on utilising local team members to undertake exploration programmes.“
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
EL007505 EL007506 EL007507
|
|
|
(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.
Power Metal Resources #POW – Australia Gold Joint Venture Update
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.