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Power Metal Resources #POW – Business Operational Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a Business Operational Update (the “Update”) to shareholders, outlining the current status of operations across the Company’s six existing projects and two projects under due diligence.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Power Metal is an operationally diversified business with precious metal interests in North America and base metal interests in Africa. The Company has multiple live exploration programmes running and significant corporate activity underway.
The summary below outlines where we are across each project, and the anticipated next steps or developments which, where material, will be notified to shareholders through regulatory news announcements.
Power Metal is at a key stage in its development and aided by our strong underlying financial position, we are pushing ahead proactively across the business, seeking to secure a large-scale metal discovery.”
KEY HIGHLIGHTS
· Two significant drill programmes impending, in Botswana and Tanzania, targeting large-scale nickel sulphide targets and with current levels of local regulation allowing the Company to plan to commence drilling in 2020
· Significant advancement made in the Australia JV, with 2,188 km2 of ground under application in the Victoria Goldfields over 12 distinct project areas and a draft of the NI 43-101 technical report under review;
· Due diligence ground exploration programme underway at the Silver Peak project in Canada, where channel sampling for silver is the key focus and where exploration results are expected shortly and within the 30-day option period announced 17 August 2020;
· Reconnaissance survey completed successfully at the Alamo gold project in Arizona, USA reviewing the key areas where the bulk of gold nuggets were found in alluvium on the property. The findings have been received in a project report and are being reviewed currently. A market update will follow including next stage exploration plans;
· Power Metal remains in a strong financial position with working capital comprising cash and listed investments of circa £1.6 million;
· Further specific updates will be provided for each project as material developments occur.
OPERATIONAL UPDATE
Power Metal provides the following overview of its six main projects and two projects under due diligence.
Note: all exploration and corporate work is subject to COVID-19 restrictions which may impact work programmes and timescales. Power Metal and its partners are focused on the safety of operational teams and the conduct of programmes in line with local requirements in relation to COVID-19, and all applicable operational regulatory requirements.
| PROJECT | CURRENT OPERATIONAL STATUS |
| Australia JV – Victoria Goldfields(Gold)(POW holds a 49.9% interest in Australian JV Company Red Rock Australasia Pty Limited “RRAL”) | Twelve licence applications have been submitted by RRAL covering 2,188 km2 in the Victoria Goldfields with three licenses having completed the mandatory 14 day public advertising period. The JV team is working with Earth Resources Victoria to secure early grant of the advertised licenses to enable exploration to commence.Ten detailed historic exploration and target assessment reports now received from local consulting geologists (four reports have been released to the market and six are under review, and will be announced shortly).The NI 43-101 Technical Report covering seven key licenses is in final drafting stage and is expected to be received in final form in the coming week. The findings of this report will be released shortly after receipt and following internal review. Receipt of the Technical Report will also allow the potential listing of some or all of the JV interests to be progressed to the next stage.In addition, liaison with various external parties is underway with a view to further potential corporate transactions, including external joint ventures, in respect of certain license applications. |
| Botswana – Ditau Camp Project(RARE EARTHS)(Under Due Diligence)(Subject to due diligence POW may acquire a 51% project interest) | Power Metal remains in due diligence and related discussions with Kavango Resources plc (LON:KAV), the current 100% project owner, with a view to crystallising a transaction in respect of the Ditau Camp project.For clarity the due diligence period in respect of the Ditau Camp Project ends on 30 September 2020. |
| Botswana – Molopo Farms Complex Project(Nickel Copper PGMs)(POW holds 18.26% of project holding company Kalahari Key and additionally may earn in up to a 40% project interest) | Kalahari Key Mineral Exploration Pty Limited (“Kalahari Key”), the JV partner and current 100% project owner is making considerable progress in respect of planning for drill commencement at the Molopo Farms Complex Project (“MFC Project”).Drilling proposals have now been received from multiple contractors and a review is underway at present leading to contractor selection and thereafter, subject to rig availability, to confirmation of drill rig mobilisation at the earliest opportunity.The drill programme will be focused on high profile nickel sulphide targets within the Chipo area of the MFC project. |
| Cameroon – Cobalt Blue Project(Cobalt – Nickel)(POW holds a 100% project interest) | Power Metal is continuing to review the exploration and corporate options in respect of the Cameroon project interests and will provide a further update as material developments occur. |
| Canada – Silver Peak Project(Silver)(Under Due Diligence)(POW may earn in to a 30% project interest) | As part of the due diligence process Power Metal is funding an initial exploration programme at the Silver Peak project including channel sampling to help determine silver prospectivity.Initial results are expected from this programme in the next week and Power Metal will update the market upon completion of an internal technical review of findings. |
| The DRC – Kisinka Project(Copper – Cobalt)(POW holds a 70% project interest) | The Company is awaiting the receipt of assay results from the pitting and mapping programme conducted earlier this year. The results will help inform next stages of exploration on the ground at the 6.8km copper anomaly discovered within the Kisinka Project.The results so far justify the magnetic ground survey and electromagnetic (“EM”) survey the Company is currently planning in order to increase understanding of structure in the target area defined by the exploration to date.The license renewal was recently underway but the decision has been taken instead to convert the license to a Permis d’Exploitation (production license) with a 25 year life. 50% of the less prospective ground is being surrendered, leaving the Company with 41 carrés miniers (each 84.95 ha), |
| Tanzania – Haneti Project(Nickel – PGMs – Gold – Lithium)(POW holds a 35% project interest) | Power Metal is working with Katoro Gold plc (LON:KAT or Katoro) the JV partner in respect of the Haneti Project in Tanzania.Katoro are in the final stages of planning for drill commencement. Specifically, Katoro are seeking to confirm rig availability and confirmation of a drill mobilisation date.Power Metal and Katoro hope to confirm the launch of the drill programme to the market in the near term. |
| USA Arizona – Alamo Gold Project(Gold)(POW may earn in up to a 75% project interest) | A Reconnaissance Survey (“Survey”) has been completed successfully at the project in Arizona which was focused on a review of the key areas where the bulk of gold nuggets were found in alluvium on the property.The Survey report from the work undertaken has been received and is being reviewed.Power Metal are also working with its local partners to design the next stage exploration programme at the project based on the Survey report findings.Upon completion of our review of the Survey report and confirmation of the next stage exploration programme Power Metal will update the market in full. |
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 drill ready prospects.
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 JV – Update – New License Application
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
BACKGROUND
RRAL previously commissioned and has now received historical reports and targeting assessments for its original 11 license applications, which are being used to inform the preparation of a NI 43-101 report and develop exploration programmes.
To date the Company has set out in announcements the key findings from historical reports in respect of three license areas, namely:
– EL007285, the Blue Ribbon project;
– EL007271, the Blue Whale project, and:
– EL007281, the Blue Chip project .
NEW LICENSE APPLICATION
Following a review of historical information in respect of a fourth license application EL007329, the Evergreen project, and based on additional research, gold targets were identified across the western and southern boundaries of EL007329. Analysis of the license application area continues but the historical summary prepared for EL007329 (“Evergreen”) will be posted shortly on the Company’s website and will be accessible through the link provided below.
In addition, geophysical analysis conducted by RRAL has indicated potential new targets situated just outside the Evergreen license application area, and on review the area remained available.
Reflecting this a new additional license application has therefore been submitted for a further tenement, EL007460 (“Kilmore West”) covering the new target area. Kilmore West contains numerous former mine workings and mineral occurrences and includes the old Donnybrook goldfield to the south of the license.
The new application has an area of 349 km2, giving RRAL a contiguous block in the Kilmore area (including Evergreen) of 835 km2.
Overall the RRAL licence application tenement area in the Central Victoria Goldfields will now total 2,188 km2, further details of which are provided below.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The RRAL work is being undertaken in an environment where the wider structural understanding of the Victoria Goldfields is developing rapidly and where RRAL’s work is revealing new prospective gold target areas.
Given the material findings from the work at Evergreen, and the significant new gold target areas confirmed, RRAL decided to secure the additional ground under application, and this was executed immediately.
The RRAL JV now has 12 license applications covering some 2,188 km2 and a large number of highly gold prospective areas are emerging from the review work undertaken. We are developing exploration plans for each project as further information is gathered and new targets are revealed.
The opportunities within the JV license application area are extensive and it is an exciting time as we continue to push on from an operational and corporate perspective.”
PROJECT REPORTS ONLINE
The project reports will be uploaded shortly to the Australia gold JV page of the Company’s website which may be accessed through the following link:
https://www.powermetalresources.com/s/52/australia
FURTHER JV 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 twelve new gold exploration license areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:
| License Application Number | Project Name | Area (km2) |
| EL007271 | Blue Whale | 133 |
| EL007281 | Blue Chip | 74 |
| EL007282 | Blue Sky | 489 |
| EL007285 | 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 |
| EL007329 | Kilmore West | 349 |
| Total | 2,188 |
ONLINE MAP
Readers wishing to view the current application footprint may do so through the following link to the POW website: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 drill ready prospects.
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 JV – Update – Historical Reports
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
BACKGROUND
RRAL previously commissioned and has now received historical reports and targeting assessments of its 11 license applications, which are being used to inform the preparation of the NI 43-101 report and develop exploration programmes.
In its announcement of 16 July 2020 the Company set out information on one of these license areas, namely EL007285, the Blue Ribbon project.
This announcement provides further information in respect of two more, namely, EL007271 the Blue Whale project (“Blue Whale”) and EL007281 Blue Chip project (“Blue Chip”).
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“In July Power Metal announced impressive data from the Blue Ribbon project, one of the smallest licenses in the 11 license JV portfolio and where some 70,000 ounces of production and gold nuggets up to 85 ounces had been identified within historical records.
“I am pleased to now announce the findings from two more projects where we have further impressive data including recorded production of some 112,085 gold ounces, deep lead former worked mines and the potential for Ballarat style gold targets under cover.
“The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14g/t. A further 6 million ounces of gold is estimated to have been won from the ancient river channels that cross the field.
“We are reviewing the remaining 8 project reports and will provide further updates on findings from those reports in the coming weeks. We are also working with our geological team locally, and external consultants, to finalise the NI 43-101 report, which is expected to complete in the near term.
“The work undertaken thus far has materially advanced our knowledge base and that is being fed into our exploration planning and I look forward to reporting further developments to the market in due course.”
BLUE WHALE PROJECT – EL007271 – 133 km2
Records show historical production of 112,085 oz of gold, of which 102,641 oz is alluvial and 9,444 oz is from primary quartz1 from the EL007271 area, which lies adjacent to tenements containing the producing Ballarat Gold mine and contains the historic mining centres of Buninyong and Durham Lead.
Numerous other operations in EL007271 have no recorded production history.
BLUE CHIP PROJECT – EL007281 – 74 km2
EL007281 has a history of deep lead mining, with recorded mining depths of up to 93m. Production records are not available despite numerous alluvial mines located on the tenement.
EL007281 has had limited exploration due to the lack of bedrock exposure over most of the tenement, although modelling of gravity and a 2006 seismic line that traverses sections of the tenement gives potential for identification of Ballarat style targets under cover.
EXPLORATION RECOMMENDATIONS
Exploration recommended includes mapping, geochemical sampling, interrogation of seismic data, possible additional geophysics, and an initial three hole drilling programme at the Shepherd’s Flat area of Blue Whale Project – EL007271.
LICENCE APPLICATION STATUS
The three licence applications relating to the Blue Whale, Blue Chip and Blue Ribbon projects were considered priority applications by the JV and have completed the required local advertising period and are being processed by Earth Resources Victoria.
NI 43-101 TECHNICAL REPORT
RRAL has commissioned the preparation of a National Instrument 43-101 Technical Report in respect of the JV land package.
Despite local restrictions connected with COVID-19 RRAL geologists and those compiling the NI 43-101 report have been able to visit the license areas for planning and review purposes and a draft of the report is expected to be with the Company shortly.
GLOSSARY
Deep Lead: ancient alluvial deposits covered by non-gold bearing strata.
Lead: a gold-bearing alluvial deposit in a terrace or stream bed.
NOTE:
1 Dugdale, A.L 2010 Navarre Minerals Ltd-Leviathan Resources Ltd EL4996 Ballarat South Project. Joint Annual Technical Report for the period ending 31 December 2010.
PROJECT REPORTS ONLINE
The project reports will be uploaded shortly to the Australia gold JV page of the Company’s website which may be accessed through the following link:
FURTHER JV 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 eleven new gold exploration license areas covering 1,839 sq km in the Victoria Goldfields of Australia as follows:
| License Application Number | Project Name | Area (sq km) |
| EL007271 | Blue Whale | 133 |
| EL007281 | Blue Chip | 74 |
| EL007282 | Blue Sky | 489 |
| EL007285 | 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 |
| Total | 1,839 |
ONLINE MAP
Readers wishing to view the current application footprint may do so through the following link to the POW website: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
COMPETENT PERSON STATEMENT
The technical and related information in this report relates to exploration results based on information from third parties and data compiled by David Sharp, BAppSci, MAIG, who is a member of the Australian Institute of Geoscientists.
Mr Sharp has sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Sharp consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Sharp is a Senior Geological Consultant at Oreteck Mining Solutions, Melbourne.
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 drill ready prospects.
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 JV – Blue Ribbon Project Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the Blue Ribbon project, (“Blue Ribbon”, the “License” or the “Tenement”) one of eleven license applications within its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “I am pleased to launch the first report from the review of historical exploration data, in this case in respect of the Blue Ribbon project.
Despite being one of the smaller projects, the historical review has highlighted some significant findings ranging across 70,000 ounces of historical gold production, gold nuggets up to 85 ounces and pre planned drill targets from earlier exploration work conducted by previous license holders.
We are particularly excited by this project, given the information provided below, and the prospect after license grant of the finalisation of drill targets.”
BACKGROUND
RRAL has commissioned historical reports and targeting assessments of its 11 license applications, and the first of these, for the Blue Ribbon license application (EL007285), has been received. The License is 5km north of the Ballarat East Mine.
In its announcement of 4th May 2020 the Company stated that detailed information and references for the license applications would be set out, once received, on the Company’s website, and the information below will shortly be posted there.
KEY POINTS FROM REPORT
·The historical records show reported historical production of 70,000 ounces of gold over 2km of the Deadhorse Lead within the Blue Ribbon project area, all in 19th century;
· Six gold nuggets between 10 and 85 ounces were recorded from the workings of the Ballarat Extension Company on the Blue Ribbon project area;
· The primary exploration target is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the Tenement;
· Next exploration steps include finalisation of drill targets and implementation of a three hole, 1000m drill program, subject to license grant and local approvals;
· Blue Ribbon is now a priority project for RRAL.
FURTHER INFORMATION
The term “Lead” in the report below refers to a gold-bearing alluvial deposit in a terrace or stream bed; and a “Deep Lead” to ancient alluvial deposits buried below non-gold bearing strata.
The Company is preparing a detailed glossary of exploration terms which will be uploaded to a new Technical Library section on the powermetalresources.com website by the end of July 2020.
The report runs as follows:
“License Application EL007285- North-West of Ballarat
|
Tenement ID |
Local ID |
Size (km2) |
Mapping Sheet (1:100,000) |
Municipality |
Current Status |
|
EL007285 |
NW Ballarat |
8 |
Ballarat |
Ballarat |
Application |
1.1.1. Regional Geology
EL007285 is located within the Bendigo – Ballarat Zone of the Lachlan Fold Belt. The Bendigo Zone has an average width of 100km and extends between the Avoca and Mt William Faults.
The basement stratigraphy of the Tenement area consists of folded N-S striking (result of E-W compression) interbedded turbidite deposits of sandstone and siltstone of the Ordovician Castlemaine Group. (Taylor et al. 1996)1. These sediments carry a pervasive north-south foliation. (Horwood, 2011)2.
1.1.2. Local Geology
The Ordovician rocks are mostly concealed by Newer Volcanics with minor Pliocene colluvial. The only exposure of Ordovician sediments on the Tenement occurs in the far eastern portion of the Tenement and are typical of those in the Ballarat field. Multiple Cainozoic basalt flows have buried deep leads.
A graphitic slate zone (Black Slate) occurs throughout the Ballarat West line and is essentially the only significant lithological unit that can be extrapolated with confidence across this line. This zone is not observed on the Ballarat East line.
The black slates of Ballarat West is a zone varying in thickness from 22m to 44m, and consists of series of graphitic, dolomitic and pyritic black slates, pyritic mineral seams, laminated quartz lodes, crushed quartz and sandstones.
The lode generally occurs close to the lowest black slate member in the zone, although two parallel lodes have been worked on laminated quartz in several mines including the South Star and New Kohinoor.
Being directly associated with the lode, the black slates have been well recorded in most historical texts and workings and also in recent drill holes where they occur, although in some mines including the Sir Henry Loch, the entire zone has not been fully exposed in development.
1.1.3. Mineralisation
The northern extension to the Ballarat West Goldfield is projected to occur in the eastern portion of the Tenement. The mineralisation in this field is characterised by laminated quartz reefs hosted within black slate beds containing bedding parallel shears confined to west dipping fold limbs. The thrust faults controlling this system extend locally across the fold hinges into the east-dipping limbs as dilatant jogs within which quartz-vein stockworks (tension vein arrays) were mined. (Horwood, 2011)
Several west draining deep leads occur in the central area of the Tenement and are typical of those found in the Ballarat field.
1.1.4. Mining History/Production
The Deadhorse Lead produced 70,000 ounces of gold over 2 km (Chintock, 2008)3 of strike length downstream from the where the lead crosses the projected northerly extension of the Ballarat West goldfield.
Refer to Figure 1 – Ballarat West Goldfield and target position through the following link:
https://www.powermetalresources.com/p/215/ballarat-west
Individual deep lead mine production from the major mines on the Tenement is listed in Table 1. Numerous small mines located on the Tenement are lacking individual production records.
Table 1- Major mine production from EL007285
|
Mine |
Production (Oz) |
|
Ballarat Extension |
21,396 |
|
Rose Hill GM |
17,137 |
|
Great Northern Junction |
6,233 |
|
Nil Desperandum Co |
3,595 |
There is no record of primary gold production on the Tenement.
The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14 grams per tonne. A further 6 million ounces of gold is estimated to have been won from the ancient river channels which cross the field. (D’Auvergne, 1998)4.
1.1.5. Nearby Mining Activity
The Ballarat Gold Mine is currently mining the Ballarat East line, 5 km’s south of the Tenement.
1.1.6. Exploration History
No exploration has been completed on the Tenement since the 19th century short of data collation and target generation.
1.1.7. Exploration Strategy
The primary target on this Tenement is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the Tenement.
This target is only 4 km north of the main Ballarat West field and 2 km north of its northernmost mined quartz reef – the projected Ballarat West field would fall within the Tenement over the zone considered to be the main target area based on palaeoplacer gold occurrences.
In order to define this target, the following processes should be considered:
· Investigate drainage channel directions to narrow the zone where the gold originated from.
· Review and interpret magnetic images to potentially interpret structures masked by the basalt.
Other information to note:
· Six gold nuggets between 10 and 85 ounces were recorded from the workings of the Ballarat Extension Company and are unlikely to have travelled far from their source. (Chintock 2008)
· Quartz veining was been recorded in several palaeoplacer mines on the Tenement.
It is recommended that diamond drilling be used once the base of the basalt has been reached to allow the position within the fold sequence of the Ballarat field to be determined. The lodes of Ballarat West and for some-part Ballarat East are lithologically controlled.
This area remains relatively undeveloped in regard to residential development, allowing the potential to establish multiple drill platforms.
Budget
Drilling- Once target is finalised, a 1000m drill program consisting of 3 individual holes would cost approximately A$150,000 including mobilisation and associated drilling costs.”
1 Taylor D.H., Whitehead M.L., Olshira A and Leonard J.G. 1996. Ballarat 1:100,000 map geological report 101, Geological Survey of Vistoria
2 Horwood D.J., 2011. Oroya Mining Ltd EL 4943, Ballarat North Project, Annual Report for the period ending 31 December 2011.
3 G. Chintock, 2008. Annual Report to Dept of Primary Industries, VIC for EL 4943.
4 D’Auvergne P, 1996. Ballarat Goldfields Pty Ltd. EL 3018, Ballart Gold Project, Annual Report for the period ending 31 December 1998.
Competent Person Statement
The technical and related information in this report relates to exploration results based on information from third parties and data compiled by David Sharp, BAppSci, MAIG, who is a member of the Australian Institute of Geoscientists.
Mr Sharp has sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Sharp consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Sharp is a Senior Geological Consultant at Oreteck Mining Solutions, Melbourne.
FURTHER 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 eleven new gold exploration license areas covering 1,839 sq km in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (sq km) |
|
EL007271 |
Blue Whale |
133 |
|
EL007281 |
Blue Chip |
74 |
|
EL007282 |
Blue Sky |
489 |
|
EL007285 |
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 |
|
Total |
1,839 |
ONLINE MAP
Readers wishing to view the current application footprint may do so through the following link to the POW website: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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) |
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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 discovery of precious or base metals.
The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania. The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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 metals exploration.