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Power Metal Resources #POW – Australia Gold JV – David Holden Appointed as Exploration Manager
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to advise that Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest, has appointed David Holden, BSc, MBA, MEM, as Exploration Manager.
David Holden, after experience in underground and surface gold mining in Australia and Africa, and technical advisory work for the New Zealand Government, has had a career focused on project generation and regional exploration, and has been involved in the initial discoveries at Nimary/Jundee, Brocks Creek, Mt Todd (Australia), Ngaka Coal Field (Tanzania), and Big Sandy lithium (USA).
His public company directorships include Prosperity Resources Ltd (ASX), IGC Resources Inc (TSX)(President/CEO), Avonlea Minerals Ltd (ASX), Atomic Resources Ltd (ASX)(Managing Director), and Firestrike Resources Ltd (ASX)(Managing Director).
After taking early retirement to Durham Lead outside Ballarat in 2018, Mr Holden reconnected with hands on geology as a mine geologist at Liongold’s Ballarat gold mine.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“Dave has been integral to the rapid progression of the Australia gold JV, and the extensive work to date collating historical project information, preparing for gold exploration and assisting across JV activities.
We are pleased to have him move into the role of Exploration Manager for RRAL at an important time as we seek to further accelerate activities and continue to build this dynamic and exciting part of the Power Metal gold portfolio .”
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 twelve new gold exploration licence areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:
| Licence Application Number | Project Name | Report Name | 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 |
| Total | 2,188 |
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 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 – NI 43-101 Report Received
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received the Independent National Instrument 43-101 (“NI 43-101”) Technical Report (the “NI 43-101 Report” or “Report”) on the BMV Gold Project held by its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
The BMV Gold Project for the purposes of the Report has been defined as eight exploration licence applications comprising the central block (6 licence applications of which 5 are contiguous) and the eastern block (2 contiguous licence applications) out of the twelve for which the JV has applied, which may be viewed through the following link: https://www.powermetalresources.com/p/225/rral-regional-tenement-map
The NI 43-101 Report has been prepared by Caracle Creek International Consulting Inc. and Kinetic Raw Materials Consulting.
An extract of the Interpretation and Conclusions of the Report is given below. The full report which is posted of the Company’s website and is accessible through the following link: https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The receipt of the NI 43-101 is a key moment where, for the first time, investors can see in this report a detailed review of the geological prospectivity and potential within eight of the RRAL licence applications.
The report accelerates the JV to the next stage of its development, charging RRAL with more detailed exploration plans to implement on licence grants and to assist with corporate negotiations in respect of RRAL interests.
Both Power Metal Resources, and our JV partner Red Rock Resources plc, through RRAL have an interest in one of the largest Victoria goldfields licence application footprints. RRAL is a substantial venture and the Report is the accelerant needed to capture the value opportunity available.
The JV partners have many options through which to create value and are working at pace to move this exciting opportunity forward.”
Notes:
For the purpose of the following extract the following definitions apply:
Project – The BMV Gold Project as defined in the full NI 43-101 Report
Property – The application footprint covered by the BMV Gold Project or parts thereof
Go-public – Terminology for listing on a North American exchange
Issuer – RRAL or other holding company of the BMV Gold Project interests
EXTRACT FROM NI 43-101 REPORT
Interpretations and Conclusions
The objective of this Report was to prepare an independent NI 43-101 Technical Report capturing historical information available for the Project area, evaluate this information with respect to the prospectivity of the Project, and present recommendations for future exploration and development on the Property.
The BMV Gold Project is subdivided into two areas about 45 km apart, with the westernmost tenements referred to as the Ballarat-Yandoit Group (“B-Y Group”), consisting of the Ballarat-Buninyong Gold Property and the Daylesford-Yandoit Gold Property, and to the east, two exploration licences referred to as the Kilmore-Donnybrook Property. The approximate centre of each of these areas is about 88 km northwest (B-Y Group) and 47 km north (Kilmore-Donnybrook Property) of the State capital, Melbourne. The gold project subdivisions are demonstrated in the map (Figure 4.2 of full report) which may be viewed through the following link: https://www.powermetalresources.com/p/224/bmv-gold-project-subdivisons
Interpretation
Based on information and data provided to the Authors and available from public sources such as the Geological Survey of Victoria and government websites of the State of Victoria, there are a number of interpretations that can be made with respect to the exploration licences that comprise the BMV Gold Project.
Ballarat-Buninyong Gold Property
The Ballarat-Buninyong Gold Property comprises exploration licences EL007271, 7281, 7282 (south), and 7285. Exploration licence EL007271 offers excellent opportunity to explore for the southern extensions of the west and east west lines in the Ballarat Goldfield. Numerous historical alluvial and vein-hosted gold locations occur in two approximate north-south lines, about 3.7 km apart, and which trend northward of EL007271 into the Ballarat Goldfield, continuing about 13 km to the Ballarat Gold Mine. In addition, known and interpreted geology that underlies the tenement also supports this interpretation of the two Ballarat lines extending onto EL007271. The hangingwall (west side) of the north-south trending Williamson Creek Fault, which occurs along the eastern part of the tenement, offers an additional exploration target. Structures within the hangingwall of major thrust faults are considered to be excellent targets for gold mineralization. The Williamson Creek Fault is considered to be a major structural feature controlling mineralisation and may in turn parallel the numerous reverse faults that define the Ballarat Goldfield to the west (Holden, 2020).
Exploration licence EL007281 is located about 2 to 3 km west of the southern Ballarat Goldfield. This tenement is prospective for southern extensions of the Ballarat West line and in the southwest part of the exploration licence, the northeast extension of the Enfield Goldfield. Additional opportunity lies within the southeast part of the exploration licence where the potential western extension of the east-west structure that hosts the historical Monmouth Gold Mine, may be found.
The southern portion of exploration licence EL007282 is covered by extensive Tertiary volcanic flows that post-date gold mineralization. Given that historical goldfields that occur east (Gordon, Mount Egerton), south (Mount Doran), and west (Ballarat) of EL007282 are hosted by Ordovician sedimentary units, it follows that Ordovician sedimentary units with potential gold mineralization could extend under the Tertiary volcanic rock cover. This extensive Tertiary cover offers an excellent exploration opportunity as the underlying host rocks have received almost no past exploration. The hangingwall (west side) of the north-south trending Muckleford Fault, which occurs along the eastern part of EL007282, offers an additional exploration target.
Exploration licence EL007285, although limited in size, offers an opportunity to explore for the northern extension of the Ballarat West line, particularly in the eastern part of the licence, where geological evidence suggests the presence of a thick graphitic shale unit with pyritic black slates, pyritic mineral seams, laminated quartz lodes, and crushed quartz (Holden, 2020). Although the target Ordovician sedimentary units are only mapped in the far eastern part of this tenement, it is likely that these target sequences with potential gold mineralized underlie the entire tenement beneath Tertiary volcanic rocks.
Daylesford-Yandoit Gold Property
The Daylesford-Yandoit Gold Property comprises exploration licences, EL007271, 7281, 7282 (north), and 7285. The southern part of the northern portion of EL007282 parallels the southern part of the Daylesford Goldfield to the east. Ordovician sedimentary units, here underlying Tertiary volcanic flows, could host gold mineralization similar to that in the Daylesford field. This tenement is widest in the northern part where it covers a large portion of the Yandoit Goldfield, and along with EL007385 offers a number of excellent “Yandoit-style” exploration opportunities. Exploration licence EL007282 is also located in the hangingwall (west side) of the north-south trending Muckleford Fault, which occurs within the northern part of EL007282, east of the Yandoit Goldfield, and east of the southern part of this tenement.
The southern half of exploration licence EL007330 overlies a substantial portion of the historical Daylesford Goldfield, including the Ajax and Cornish lines (average historical production grade of 10.8 g/t Au). The lines extend for at least 5 kms, offering excellent exploration potential with respect to “Daylesford-style” gold mineralization. The northern half of exploration licence EL007330 extends north into the Newstead Goldfield, offering additional exploration opportunities in this prospective area.
Kilmore-Donnybrook Gold Property
The Kilmore-Donnybrook Gold Property comprises exploration licences EL007329 and EL007460. Located largely within the Melbourne Zone where timing of gold mineralization is considered to be younger than that which occurs in the Bendigo Zone, historical gold mineralization is strongly associated with antimony, suggesting a lower temperature gold deposition. The association of antimony with gold offers the opportunity to use it as a vector element for gold exploration.
Exploration licences EL007329 and EL007460, together cover the historical Kilmore Goldfield and most of the historical Donnybrook Goldfield in the south. Both goldfields offer exploration opportunity within strongly folded and sheared Middle Silurian to Early Devonian sedimentary rocks that have not seen systematic modern-day exploration.
The Heathcote Fault Zone (aka Mt William Fault), the structural boundary between the Bendigo Zone to the west and the Melbourne Zone to the east, cuts through both EL007460 and EL007329. In addition, secondary faults parallel to the Mt William fault have been mapped on both licences, offering numerous exploration opportunities (Sharp, 2020f). Holden (2020) suggests that this exploration licence could host mineralization similar to that found at the historical Heathcote Mine and/or the operating Costerfield gold-antimony Mine about 30 km and 35 km, respectively, to the north of the Kilmore-Donnybrook Property.
Conclusions
Recent positive developments at the Fosterville Gold Mine (Kirkland Lake Gold) and the go-public event (TSX Venture Exchange, 14 April 2020) by Fosterville South Exploration have triggered renewed interest in the historical goldfields of central Victoria. This renewed interest has led to a new way of thinking about the gold potential in the Victorian Goldfields, particularly in areas under cover of overburden or Tertiary volcanic rocks (blind targets), and in mature gold districts where re-interpretation of structural information has provided new models for targeting shallow (<200 m) and deeper (thousands of metres) gold mineralization.
Red Rock Australasia Pty Ltd holds an extensive land position through licence applications in the historical goldfields of Victoria, Australia. The Company has developed a focused exploration strategy targeting high-grade, quartz-hosted gold vein systems in areas that present well understood exploration models and targets. Many of these exploration licence applications have seen limited modern exploration techniques applied to them in the search for gold systems.
The Company’s licence application property portfolio which comprises the BMV Gold Project includes eight exploration licence applications that are the subject of the Report and four additional exploration licence applications which have not been reviewed by the Authors. The recommended exploration focus is on hard rock gold (lode) in the Victorian goldfields and is based upon the following criteria and methodologies:
· folded sandstones, siltstones, and shales of Ordovician to Early Devonian age metamorphosed to lower greenschist facies.
· target reverse faults that are variably conduits to mineralisation formed from the continued east-west compression responsible for the folding of the sedimentary units.
· proximal to and within the hangingwall to major thrust faults and associated fault splays, in particular the low-angle portions of thrust faults which present the highest potential for gold mineralization.
· direct targeting of structural features such as saddle reefs, laminated quartz veins parallel to bedding, and west dipping vein arrays with or without flat lying late stage veining which are regularly gold rich with a strong sphalerite/ galena association.
· identification of structural targets east and parallel to the regional Mount William Fault that is mapped through the southwest area of Kilmore exploration licence EL007329, a similar geological setting to that of the Costerfield Gold-Antimony Mine.
· 3D modelling at the Ajax and Cornish lines (Daylesford area, EL007330), two areas considered high priority targets.
· prioritize testing for gold disseminated in the wall rock to quartz vein hosted systems, similar to the high grade Fosterville Gold Mine and exampled by the mineralogy and potential at the Ajax Mine property (Daylesford, EL007330).
Based on the historical information reviewed to date, the best opportunities for future exploration success and potential development toward mining, are the Ajax and Cornish lines in the Daylesford Goldfield (EL007330), the Ballarat West and East lines that appear to extend south from the Ballarat Gold Mine region into the South Ballarat (EL007271) area, the north and south Yandoit Goldfield region underlying EL007385 and EL007282, and the structural targets identified on the Kilmore-Donnybrook Property (EL007329) to the east.
It is the opinion of the Authors that, after reviewing historical results and other publicly available information and data from the BMV Gold Project, the Project presents an excellent opportunity for the Issuer and is worthy of additional exploration work, targeting high-grade, orogenic gold mineralization in the Bendigo and Melbourne structural zones.
END OF EXTRACT NI 43-101 REPORT
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Scott Jobin-Bevans, P.Geo., a member of the Association of Professional Geoscientists of Ontario and the author of the Report. Mr Jobin-Bevans has authorised the release of this extract from the Report in the form and context in which it appears.
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 twelve new gold exploration licence areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:
| Licence Application Number | Project Name | Report Name | 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 |
| Total | 2,188 |
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
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 – Additional Project 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.
RRAL commissioned and has received final historical reports and targeting assessments (the “Reports”) for all license applications in the Victoria goldfields, with the exception of recently acquired EL007460 (“Kilmore West” project) and EL007385 (“Sardinia” project). The Reports have been used to inform the preparation of a NI 43-101 technical report in respect of eight of the license applications and develop exploration programmes.
To date four Reports have been uploaded to the Power Metal website, namely:
– EL007285, the Blue Ribbon project;
– EL007271, the Blue Whale project, and:
– EL007281, the Blue Chip project
– EL007329, the Evergreen project.
The Company has now uploaded six further Reports to the Power Metal website, namely:
– EL007282, the Blue Sky project
– EL007294, the Red Queen project
– EL007301, the Mt Bute project
– EL007327, the Blue Stocking project
– EL007328, the Blue Yonder project
– EL007330, the Blue Angel project
All the above Reports are available through the following link:
https://www.powermetalresources.com/s/52/australia
An initial summary report in respect of recently acquired license application EL007460 (“Kilmore West”) has also been uploaded to the website and an initial summary report on EL007385 (Sardinia project) which was also recently acquired, will be uploaded when finalised for publication.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“A key priority for RRAL is finalisation of the NI 43-101 technical report, which now provides coverage of the recently acquired Kilmore West license application.
The project Reports provide extensive evidence of gold mineralisation throughout the licence application ground and demonstrates multiple initial targets for exploration work.
RRAL is working with Earth Resources Victoria and RRAL’s land management partners with regard to grant of licenses which will, with appropriate approvals and permits, enable exploration to commence.
RRAL continues to work with advisers with regard to the potential listing of some or all of RRAL interests on a North American stock exchange, and also with third parties seeking to earn-in or joint venture with RRAL with regard to certain of its business interests.”
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 – 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) |
|
|
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.