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Power Metal Resources #POW – Australian Gold Joint Venture – Ground Exploration Advances at Pace With Initial Drill Targets Identified and Listing Plans Now Focused on the London Market
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a corporate and exploration update in respect to its Australian gold joint venture, Red Rock Australiasia Pty Ltd.
Power Metal owns 49.9% of RRAL, with the other 50.1% being owned by Red Rock Resources plc.
RRAL holds extensive gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields, Australia.
The most recent update in regards to RRAL was provided by the company on 29 April 2021 and can be found at the link below.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Joint Venture’s technical team have gathered extensive evidence of gold mineralisation including several high-tenor kilometre-scale anomalies along strike and to the south of the Ballarat Gold Mine 1.
Three exciting targets within the portfolio have now been designated for drilling, with more expected in the near term. The Company plans to commence inaugaral diamond drilling operations in late 2021.
The Joint Venture controls a substantial licence footprint in the Victorian Goldfields and we are intending to cover all areas held with systematic exploration. We believe there is good potential for major new gold discoveries within areas which have historic gold mines and known gold occurrences but which remain untested using modern exploration technologies.
Our work in respect of seeking a public listing for the core interests of RRAL continues, and after further consultation and review, we are now focusing on a planned primary RRAL listing in London, with a proposed trading facility in North America as a secondary step.
There are a number of advantages to a primary UK listing, including for Power Metal the increased ease of a potential distribution of shares in the listed vehicle, something we have indicated previously was under consideration. In addition, timing, established relationships, familiarity with the processes, short lines of communications at a time of restricted travel, and the existence of suitable comparators were all factors in this decision.
Preparatory work in relation to the listing process is underway and notably, we have the technical Competent Person’s Report (“CPR”) ready, an important constituent part of the listing process.
Further updates to the market in respect of ongoing exploration and corporate developments are expected to flow more frequently going forward, as we now have momentum running across all areas of the Joint Venture.”
Highlights:
· Dedicated Victoria-based technical team in place which is led by exploration manager Dave Holden with over 30 years of project management experience across Australia. Mr. Holden was an integral part of the exploration teams that were credited with the gold discoveries of Nimary and Jundee in Western Australia, as well as Mt. Todd and Brocks Creek in the Northern Territory.
· Ongoing historical data compilation has led to the discovery of multiple overlooked historic mines, located within various granted tenements within the package, which are now designated for follow up ground-based reconnaisance and prospecting programmes.
· A number of ground-based programmes across the tenement package are in progress, including a extensive soil sampling programme targeting the possible southern extension of the Ballarat Mines. The soil sampling programme, uitilised a portable X-ray fluorescence spectrometer (“pXRF”) to focus on arsenic distribution as this is a previously identified path finder to gold mineralisation at Ballarat. The results have produced several high-tenor kilometre-scale anomalies which trend along strike, south of the Ballarat Mines.
· Historical research, modelling of old mines, and confirmation from soil sampling data has enabled RRAL to identify three drill ready targets (outlined below at Figure 1), with more expected within the coming months. Drill proposals are at various stages of finalisation in anticipation of carrying out up to three drill programmes later In the year.
· After consulting with various parties, and a review of the optimal outcome for what the Company considers to be a highly valuable business interest, it has been decided that the best commercial path forward for RRAL is to obtain a London-based listing. This process has now been started and the Company will provide updates to the market periodically with regard to the listing process in the coming months.
Figure 1 highlights the location of the various project areas and areas of Interest discussed below and may be viewed through the following link on the Company’s website:
https://www.powermetalresources.com/rral-project-area-locations/
Project Specific Updates:
DeReel Prospect
Re-evaluation of historical data at DeReel (EL007327) has led to the discovery of the Golden Reef line of mineralisation which was actively mined at the turn of the last century. The mining (identified primarily as the DeReel Mine) exploited a high-grade lode gold system. Mining followed the gold bearing quartz veins (or “reef”) down to approximately 80 metres vertical depth and extended along strike for roughly 300 metres.
Initial investigations suggest the geology is similar to other typical geologies around the Ballarat and Bendigo mining centres. A well-defined anticline to the west and the major steeply west dipping Pinchgut fault cross-cutting the anticline has produced quartz saddle reefs in the fold hinge with associated flat lying quartz spurs.
A similar second structure west of the main reef may be an upper bounding structure and offers an opportunity for a second line of reef not previously exploited with the possibility of further mineralisation developing between the two structures.
Ambiguities over early production suggest some of the gold may be fine and associated with sulphides and may not have been recoverable by original mining efforts.
An initial diamond drill programme is planned for late 2021 of up to 1,200m of drilling looking for the along strike and down plunge extensions of the historic mines operating along the Golden Reef line.
Mt Bute Prospect
Re-evaluation of historical data at Mt Bute (EL007301) has identified a linear arsenic geochemical soil anomaly with associated elevated gold values centred on a small cluster of historical shafts south of Linton, Victoria. The prospect is part of a much longer zone informally referred to as the Linton trend which may extend many kilometres.
Metex Resources in the 1990’s enhanced the prospectivity of the Mt Bute prospect by conducting a limited shallow reverse circulation drilling through the centre of the arsenic anomaly. Metex’s mandate was to search for suitable oxide material at or near surface with a view to high-tonnage low-grade open pit recovery, which did not focus on the structural or mineralogical elements that diamond drilling may have identified. RRAL believes that high-grade narrow quartz reef mining is more likely suitable at the Linton trend based upon other known deposits in the area and anticipates more coherent and elevated grade to occur below the surficial weathering.
Three dimentional modelling of the geology, drill results and other data sets currently available are providing a valuable visual support to drill planning. RRAL is working towards a maiden diamond drill programme at the prospect before the end of the current year comprising at least 600 metres.
In addition, RRAL is looking to extend its regional pXRF programme to the north and east of Mt Bute to cover folded and faulted Ordovician age rocks to the east and along strike from the known Mt Bute prospect.
In the centre of the tenement, another previously overlooked historical mine has presented further opportunities for advanced exploration. The Gribbles/Linton mine extends down to approximately 65 metres and produced gold from both quartz reefs and ‘flat makes’ (shallow dipping quartz veins). Further ground-based work is planned.
O’Laughlins Prospect
Preliminary results from the recently completed pXRF soil geochemical survey has produced well-defined arsenic anomalies in areas south of the main Ballarat and Scotsburn lines of gold mineralisation. One advanced target, which has been confirmed by the recent geochemical sampling, marks the southern end of the Scotsburn line of gold workings. The elevated arsenic values returned coincide well with historical workings, structural trends and a potassic anomaly identified from airborne radiometric data from the late 1980s.
The planning and permitting process is under way for the inagural drilling campaign on the prospect planned for late 2021. Further mapping and sampling is also being undertaken in advance of drilling to develop a more detailed picture of the Scotsburn line of mineralisation.
Of immediate focus for drilling is the western side of the O’Laughlins Prospect where numerous workings are identified as the historic Enfield reef. Little historical literature exists for these workings other than a single reference to a reef where processing of gold was associated with sulphide in quartz. There are clear structural targets for mineralisation in this area where regional structural trends align north-northeast and steeply dip to the west .
Variations to the traditional Ballarat geological model at Enfield Reef are now considered possible where east -west striking flatter-lying quartz veins and steeply dipping east-west striking dykes have been mentioned at the turn of last century in other writings on the regional geology.
Figure 2 shows arsenic soil sample results and may be viewed through the following link on the Company’s website:
https://www.powermetalresources.com/rral-arsenic-soil-sample-results/
Kilmore Prospect
RRAL has also commenced work on the easternmost tenement immediately north of Melbourne. Within this tenement, strong structural folding and faulting identified by historical mapping appear to correlate well with strong antimony anomalism identified in regional ASTER2 remote sensing data.
In addition, first pass historical research has uncovered the Donnybrook gold field, where production from the identified mine was from narrow (sub 0.25m) veins which reportedly returned very high grades of about 4 ounces a ton (approx. 120g/t gold).
Further work by the in-country operations team on this prospect is ongoing with a view to determining if the structures develop at depth and along strike. Drilling is anticipated early in the new year pending the outcomes of the ongoing geological reconnaissance investigations.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal. Paul Johnson, CEO of Power Metal and Andrew Bell Chairman of Power Metal are directors of RRAL.
Granted Licences
RRAL has a seven granted exploration licences as listed below. These licences cover high priority areas where RRAL has early drill targets and in which exploration has already started.
|
Licence Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Dereel |
60 |
|
EL007385 |
Sardinia |
4 |
|
EL007329 |
Kilmore |
484 |
|
EL007301 |
Pitfield/Mt Bute |
85 |
|
Total |
|
848 |
Applications
RRAL has applications in process for nine gold exploration licence areas covering approximately 1,458km2 in the Victoria Goldfields of Australia as follows:
|
Licence Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007328 |
Blue Yonder |
164 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
325 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 1,458 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
The following applications have been made in Western Australia. The two where there is another applicant will be subject to a ballot.
|
Licence Application Number |
Project Area |
Area (km2) |
|
EL45/5859 (One competing application) |
Paterson |
227 |
|
EL45/5885 |
Pilbara/Paterson |
70 |
|
EL45/5881 (One competing application) |
Pilbara/Paterson |
33 |
COMPETENT PERSON STATEMENT
The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Director of RRAL.
References & Notes
1 The Ballarat Gold mIne is a modern underground mine operated below the city of Ballarat by Golden Point Group PTY Ltd (see https://ballaratgoldmine.com.au ). For a history of gold mining in and around Ballarat in Victoria also see https://earthresources.vic.gov.au/geology-exploration/minerals/metals/gold/gold-mining-in-victoria
2 ASTER: Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) is a satellite bourne intrument. ASTER data is used for a range of applications, including mapping alteration patterns or specific mineral assemblages known to be associated with mineral systems and the generation of digital elevation models.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious and base metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Resources #POW – RRAL Australia Gold Joint Venture – Exploration Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (“Red Rock”)(LON:RRR) holding a 50.1% interest.
Highlights:
- Further to the Company’s announcement of 3 February 2021 announcing the commencement of exploration on recently granted exploration licences a sampling and mapping programme has been undertaken.
- The programme objectives were to identify potential southern extensions to the main lode systems of Ballarat East through looking for low level gold anomalism and pathfinder elements and to evaluate the relative effectiveness of X-ray Fluorescence (“XRF”) and Mobile Metal Irons (“MMI”) testing in the region, as part of a programme of work to constrain the areas to be drill tested later in the year.
- A total of 1,024 soil and rock chip samples were collected in EL007271 and EL007281 in the old Monmouth/Enfield and O’Laughlin/Scotsburn mining areas for XRF and MMI testing as follows:
- 142 soil samples have been collected to date in EL007281 with rock chip sampling, mapping and sampling of road cuttings continuing at present.
- 882 soil samples have been collected in EL007271 of which 84 have been sent for MMI analysis.
- Sample analysis results are expected to be received in the coming weeks.
- Preparation of work plan and stakeholder engagement for trenching around Monmouth.
RRAL Director Dave Holden comments: “Increasing evidence from previously unknown workings of east-west lines of mineralization at Monmouth, in an area where the main geological trend runs north-south, has been an interesting outcome of our work to date, and is being actively followed up.
As early as 1903 it was recognised that this mineralisation may be different to the main Ballarat system, with reference to a pyrite lode and “gold shale”. The numerous reefs along both the Happy Thought line and at the Monmouth Mine were considered at the time to be strongly reminiscent of the Jubilee Mine project (mined 1887 – 1913). That mine produced approximately 130,000 ounces of gold at a recovered grade of around 12 g/t*, showing the potential importance of east-west structures in this environment.
The programme is going well and besides working on our technical presentations we continue to intensify our community engagement and to prepare our environmental programme including flora and fauna surveys. The pace of activity is intensifying as more of our licence applications start to be granted.”
*ref: Navarre Minerals Ltd website
Background Information on Current Programme
Prospects
The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature. It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area.** Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin.
** One map reference to the Glasgow and Enfield reefs 1859 and a single newspaper article refer to mining on the Glasgow reef in 1865. These reefs lie central to this project area.
The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat). The Devonshire reef system just east of Buninyong township and extending down through the Scotsburn target area was actively mined in numerous shafts during the late 1890s.
The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.
Programme
RRAL has initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping.
The sampling is using both traditional MMI low level analytical methods as well as evaluating the efficacy of portable XRF analyser as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results.
In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration could lead to confirmation that significant mineralisation is present and will allow planning to start for a drill programme later in the year.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc. Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal and Red Rock, are directors of RRAL.
Granted Licences
RRAL has five granted licences over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a licence further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).
These licences cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007385 |
Sardinia |
4 |
|
Total |
|
279 |
Applications
RRAL has licence applications in process for eleven other new gold exploration licence areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:
|
Licence Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,057 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Australia Gold Joint Venture – Further License Grants & Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Highlights:
- RRAL has received formal license grants for a further two of its license applications as follows:
- The 60 sq km “Blue Stocking” license to the south west of Ballarat (EL007327)
- The 4 sq km “Sardinia” license to the north of Daylesford (EL007385)
- Both licenses are granted for a period of five years .
- Further information in respect of RRAL’s exploration programme covering the new granted licenses will be announced shortly.
- To date RRAL has now received five granted licenses covering 279 km2 with further license grants awaited.
- Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist.
Paul Johnson Chief Executive Victoria Officer of Power Metal Resources plc commented:
“It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.
As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.
RRAL’s exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance. As part of this scale up we welcome David Holden, RRAL’s Exploration Manager, as a new Director on the board of RRAL. Dave’s work to date has been key to our rapid business development so far. We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist.
As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets.”
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.
Granted Licenses
RRAL has been granted licenses over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a license further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).
These licenses cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271
|
Blue Whale |
133 |
|
EL007281
|
Blue Chip |
74 |
|
EL007285
|
Blue Ribbon |
8 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007385 |
Sardinia |
4 |
|
Total |
|
279 |
Applications
RRAL has license applications in process for eleven other new gold exploration license areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007282
|
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505
|
|
[9 |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,057 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
The following application has been made in Western Australia:
|
EL45/5859 (One competing application) |
Pilbara |
227 km2 |
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Australia Gold Joint Venture – Exploration Commences
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“As promised with the grant of licenses as announced yesterday RRAL have moved quickly to launch ground exploration with further information on the initial programmes outlined below.
Given over 12 million ounces of mined gold in the Ballarat West and Ballarat East mining camp, we are particularly eager to expedite exploration as RRAL targets a major gold discovery in the Victoria Goldfields, Australia.”
Background
RRAL announced on 2 February 2021 the grant of three of its exploration licence applications in Central Victoria, Australia – EL007271, EL7281 and EL7285.
The granted tenements comprise approximately 215km2 and form a key part of RRAL’s central to south Ballarat project group. These tenements (along with current applications) surround and overlie the existing Ballarat West and Ballarat East mineralized lode systems – a mining camp reported to have produced over 12 million ounces. Modern production continues today at the Ballarat East mine.
RRAL is beginning work immediately on evaluating previously identified areas of interest within all tenements. A map showing the granted licenses and providing the location of prospects named below may be viewed on the POW website through the following link:
https://www.powermetalresources.com/p/238/exploration-map-1
INITIAL TARGETED EXPLORATION PROGRAMME
Granted License EL007271
Coincident geochemical and radiometric anomalies from early work along with historical reconnaissance mapping and sampling has already identified three strong prospects in EL 007271 to the south of Ballarat. These prospects are considered as possible southern extensions to the main lode systems of Ballarat. All three (O’Laughlin, Scotsburn and Enfield) are a high priority for immediate work.
The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature. It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area. Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin.
The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat).
The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.
RRAL has already initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping. The sampling is using both traditional MMI (mobile metal ion) low level analytical methods as well as evaluating the efficacy of portable XRF as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results. In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration, if successful, will lead to confirmation that significant mineralization is present and will allow drilling to commence later in the year.
Granted License EL 007285
To the north EL007285 is considered to hold the northern extension of the Ballarat West lode system and further work on compiling historical data into a 3D model to facilitate drill planning is under way.
Satellite Data Analysis
A further exploration tool in use is satellite data from the Aster and Sentinel-2 satellites, where using machine learning, our consultants have trained five statistical classifiers, called Linear Discrimination Functions (LDFs), on the Au occurrences to recognize gold mineralization from 16 spectral abundances unmixed from the Aster mosaic, and have similarly created a classifier from the ten reflective bands (unmixed into 16 spectral abundances) from the Sentinel data.
This satellite thermal and high spatial resolution VNIR/SWIR (visible and near-infrared/short-wave infrared) imagery may be used to extrapolate gold occurrence information out to the rest of the project area. Identification of minerals in the scene from spectral unmixing may also inform geological understanding of the area.
This extra exploration layer, continuously refined, along with geophysics, geochemistry and geological interpretation may improve drill targeting and the odds of discovery in a brownfields environment such as the Ballarat Gold Fields
THE BALLARAT PROJECT AREA
Geology
In general terms, the geology of the Ballarat South project comprises a thick sequence of Ordovician turbidite sediments. The sediments have been folded and subsequently faulted under east/west compression. During the compressional phase, some brittle deformation occurred, resulting in the development of several reverse faults.
These reserve faults as well as bedding plane slip within shales have acted as conduits for fluid flow from within the metamorphosed sedimentary pile. Gold hosted quartz veins formed as a result, often in complex arrays of orientations within a broadly mineralized envelope.
Overlying the sediments in part is extensive flows of Tertiary age volcanism.
Previous Exploration
The Ballarat region has seen exploration activity since the initial discovery of gold in the 1850s with mining progressing from surface alluvial mining to deep lead mining to some hard rock mining over a period of 80 years. From the 1980s onwards interest in the area renewed as explorers completed first phase surveys including broad airborne geophysical surveys, soil sampling, and mapping.
Their work included minor exploration drilling focused largely upon the Ballarat East and West lodes. Whilst they did identify numerous other targets, limited technology for evaluating mineralisation beneath the cover particularly the lava flows restricted much of the exploration. This coupled with a fluctuating gold price has left much of the region surprisingly underexplored.
As a result, RRAL can now capitalize on the positive results reported in the previous literature and continuously learn from the progress of current exploration in the region, and is fast tracking exploration efforts with an initial focus on already identified prospects.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.
Applications
RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007271 (granted) |
Blue Whale |
133 |
|
EL007281 (granted) |
Blue Chip |
74 |
|
EL007282
|
Blue Sky |
489 |
|
EL007285 (granted) |
Blue Ribbon |
8 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007385 |
Sardinia |
4 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,336 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
The technical information relating to planned exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Australia Gold Joint Venture with Red Rock Resources #RRR receives first license grants
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.
Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.
Paul Johnson Chief Executive Victoria Officer of Power Metal Resources plc commented:
“The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licenses in the Victoria Goldfields, centred on the historic mining centre of Ballarat.
We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months and utilising the RRAL Ballarat headquarters as the centre of the operational work.
In addition we continue to work on corporate activities surrounding the RRAL business, which given the level of interest shown in the Victoria Goldfields and now with the grant of the three licenses, becomes all the more relevant.
Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”
Highlights:
- RRAL has received formal license grants for three of its license applications as follows:
- The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271)
- The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281)
- The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285)
- All three licenses are granted for a period of five years
- RRAL is to launch an expeditious exploration programme further details of which will be announced shortly.
FURTHER INFORMATION
Joint Venture Company – RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal are directors of RRAL.
Granted Licenses
RRAL has received notice that its applications for the three licenses where applications had been expedited have been successful, and that it has now been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”).
These licenses cover 215 sq km forming an outer ring around Ballarat, along the Ballarat trend and covering high priority areas where RRAL has early drill targets that it is developing.
RRAL Applications
RRAL is also one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine which forms a close-fitting inner ring around the Ballarat Mine. The EL007540 ground is surrounded by RRAL’s now granted tenements and if granted to RRAL would link them.
In total RRAL has now lodged applications for an additional 13 new gold exploration license areas covering approximately 2,121 km2 in the Victoria Goldfields of Australia as follows:
|
License Application Number |
Project Name |
Area (km2) |
|
EL007282 |
Blue Sky |
489 |
|
EL007294 |
Red Queen |
130 |
|
EL007301 |
Mt Bute |
85 |
|
EL007327 |
Blue Stocking |
60 |
|
EL007328 |
Blue Yonder |
168 |
|
EL007329 |
Evergreen |
486 |
|
EL007330 |
Blue Angel |
202 |
|
EL007385 |
Sardinia |
4 |
|
EL007460 |
Kilmore West |
349 |
|
State land within EL007271
EL007505 EL007506 EL007507
|
|
(9) (9) (8) |
|
EL007540* (3 competing applications)
|
Outer Ballarat |
148 |
|
Total |
|
c 2,121 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Seven Further License Applications Accepted at Australia Gold Joint Venture
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update from Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest. RRAL has gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria, Australia.
Key points
· RRAL has been notified that a further seven of its license applications have been accepted and have been given highest ranking, following the notification in respect of the first three applications received in early July.
· RRAL will now advertise the seven applications in newspapers with statewide and local circulation, and after a three-week exposure period, the Department of Jobs, Precincts and Regions of the State of Victoria will begin the application assessment process.
· Applications EL007282, EL007294, EL007301, EL007327, EL007328, EL007329, and EL007385 RRAL are those now being advertised.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“I am pleased to announce further progress from RRAL with regard to the license application progress and notably that a further 7 license applications have been formally accepted and given the highest ranking.
RRAL is making great progress in the application process and is investing now in building its technical and managerial team, local to Ballarat, in readiness for an investment in field exploration work when licenses are granted allowing ground operations to commence in earnest.
The greatest return on exploration spend is through effective preparation and RRAL has built a considerable data bank allowing increasingly refined exploration planning with a focus on utilising local team members to undertake exploration programmes.“
FURTHER JOINT VENTURE INFORMATION:
Joint Venture Company – RRAL
RRAL is a joint venture company 49.9% owned by POW and 50.1% by Red Rock Resources plc (LON:RRR). Paul Johnson, CEO of POW and Andrew Bell, Chairman of RRR and POW, are directors of RRAL.
RRAL has lodged applications for thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:
|
Licence Application Number |
Project Name |
Report Name (See reports link below) |
Area (km2) |
|
EL007271 |
Blue Whale |
South Ballarat |
133 |
|
EL007281 |
Blue Chip |
Ross Creek |
74 |
|
EL007282 |
Blue Sky |
Dunnstown – Yandoit |
489 |
|
EL007285 |
Blue Ribbon |
Ballarat North |
8 |
|
EL007294 |
Red Queen |
Talbot |
130 |
|
EL007301 |
Mt Bute |
Pitfield |
85 |
|
EL007327 |
Blue Stocking |
Dereel |
60 |
|
EL007328 |
Blue Yonder |
Elaine |
168 |
|
EL007329 |
Evergreen |
Kilmore |
486 |
|
EL007330 |
Blue Angel |
Daylesford |
202 |
|
EL007385 |
Sardinia |
|
4 |
|
EL007460 |
Kilmore West |
Lancefield |
349 |
|
EL007540 (3 competing applications)(*)
|
Outer Ballarat |
|
148 |
|
State land within EL007271
EL007505 EL007506 EL007507
|
|
|
(9) (9) (8) |
|
|
|
|
|
|
Total |
|
|
2,336 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia
In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101
CONTACT INFORMATION
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Australia Gold Joint Venture Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update from Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest.
Key points
· RRAL has applied for an additional license application comprising 148 sq km of ground (EL007540) that forms a close-fitting inner ring around the Ballarat mine and which became available on Monday.
· The new license application covers ground surrounded on all sides by RRAL’s existing licence applications.
· Three other parties have also applied for licenses covering the ground demonstrating the strategic significance of this area (*).
· In total RRAL now has c 2,336 sq km of ground under license applications in the Victoria Gold Fields.
· RRAL has received several approaches from third parties to acquire interests in, joint venture or earn-in to the RRAL license package, in whole or part. Alongside the intention to list some or all of RRAL on a North American stock exchange RRAL is working with potential partners to assess external proposals.
· RRAL continues work on equipping and staffing its headquarters office in Ballarat, and on technical planning for anticipated exploration and drilling programmes. In addition, RRAL is planning to appoint an experienced Chief Executive Officer dedicated to the development of the business in the near future.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The work continues at pace with the developing Australia gold JV and whilst awaiting license grants to come through RRAL have completed project technical reports across the land package and finalised a NI 43-101 technical report across 8 projects.
We have also moved to equip and staff RRAL headquarters in Ballarat and to further advance our technical planning for proactive exploration. That preparatory work will continue to position RRAL for early commencement of field exploration upon license grants.
There is an intense level of activity around RRAL demonstrating a commitment to building a rapidly growing Australian gold company focused on the Victoria Gold Fields.”
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
FURTHER JOINT VENTURE INFORMATION:
Joint Venture Company – RRAL
RRAL is a joint venture company 49.9% owned by POW and 50.1% by Red Rock Resources plc (LON:RRR). Paul Johnson, CEO of POW and Andrew Bell, Chairman of RRR and POW, are directors of RRAL.
RRAL has lodged applications for thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:
| Licence Application Number | Project Name | Report Name(See reports link below) | Area (km2) |
| EL007271 | Blue Whale | South Ballarat | 133 |
| EL007281 | Blue Chip | Ross Creek | 74 |
| EL007282 | Blue Sky | Dunnstown – Yandoit | 489 |
| EL007285 | Blue Ribbon | Ballarat North | 8 |
| EL007294 | Red Queen | Talbot | 130 |
| EL007301 | Mt Bute | Pitfield | 85 |
| EL007327 | Blue Stocking | Dereel | 60 |
| EL007328 | Blue Yonder | Elaine | 168 |
| EL007329 | Evergreen | Kilmore | 486 |
| EL007330 | Blue Angel | Daylesford | 202 |
| EL007385 | Sardinia | 4 | |
| EL007460 | Kilmore West | Lancefield | 349 |
| EL007540(3 competing applications)(*) | Outer Ballarat | 148 | |
| State land within EL007271 EL007505EL007506EL007507 | (9)(9)(8) | ||
| Total | 2,336 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia
In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint
The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101
CONTACT INFORMATION
For further information please visit https://www.powermetalresources.com/ or contact:
| Power Metal Resources plc | |
| Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
| SP Angel Corporate Finance (Nomad and Joint Broker) | |
| Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
| SI Capital Limited (Joint Broker) | |
| Nick Emerson | +44 (0) 1483 413 500 |
| First Equity Limited (Joint Broker) | |
| David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
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.