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Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a business update by Red Rock Resources Australasia Pty Ltd (“RRAL”).

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:

“Exploration on our licences within the Victoria Goldfields has been successful with recent soil sampling highlighting multiple high-priority gold targets across granted licences. Certain of these targets are now at the drill-ready stage and will be the subject of the planned upcoming drill programmes, showing great progression from RRAL’s ground exploration to date.

We believe there is potential for major gold discoveries in the granted licences we hold, something which is not surprising given the geological attractiveness of the region, and multiple large-scale discoveries made and gold mines built in the state of Victoria. Therefore the launch of inaugural diamond drilling is an important step forward and we will be eager to see what this drilling delivers.”  

HIGHLIGHTS:

Holding Transfer to Planned London Listing Company

Power Metal previously held a direct 49.9% interest in RRAL which has a 100% interest in the various licences held within the state of Victoria and Western Australia, further details of which are provided below.

A new UK plc has been formed, New Ballarat Gold Corporation PLC (“New Ballarat” or “NBGC”), which is the vehicle for the planned London listing.  New Ballarat now holds a 100% interest in RRAL.

The original shareholders of RRAL have transferred their holdings up to the vehicle New Ballarat in preparation for the planned listing. As a result, Power Metal now holds 49.9% of New Ballarat, and Red Rock Resources plc (“RRRplc”) holds the remaining 50.1% interest.

Grant of New Exploration Licence

Exploration licence application EL007328 (164km²) was granted on November 26, 2021. Following this grant, a total of 8 licences have now been granted covering a total area of 1,012 km².

Soil Sampling Update – New Anomalies Identified

A total of 1091 soil samples have now been tested by Portable X-ray Fluorescence (“pXRF”) from the ongoing soil sampling programme.

The interim results have identified several new anomalies as well as confirming the regional correlation of arsenic anomalism with historic gold workings and known gold-bearing structures. Highlights include:

o  Buninyong (EL7271): Exciting new 1 km long north-south oriented arsenic anomaly identified which is coincident with a line of gold mineralisation extending north of Mt. Buninyong. Regional structural analysis of this new anomaly reaffirms the concept that the Scotsburn workings (which extend south-southeast of Buninyong down to O’Laughlins) is the continuation of the main Ballarat East line currently being mined underground at the Ballarat Mine (owned by Shen Yao Holdings). Additional infill soil sampling is planned within the area of the newly defined anomaly.

o  Pitfield (EL7301): Strong anomalism identified surrounding known gold mineralisation at Mt. Bute. Additionally, strong arsenic anomalism identified near the west margin of the tenement in an area previously not explored. Significantly, this new anomaly is located along a roughly north-south oriented line connecting up with Mt. Bute mineralisation located over 6km away to the north, suggesting that mineralisaiton may continue in a broad north-south orientation throughout the tenement. This new area is presumed to be in part overlain by recent volcanic rocks and this may be the first indication that the pXRF sampling technique may assist in exploring for mineralisation under cover at Pitfield.

o  Dereel (EL7327): Soil sampling results highlight an anomalism along the southern extension of the Golden Reefs/DeReel mine (subject to final access agreements, drilling down dip and along strike of these historic mines is planned early in 2022). Additionally, two other anomalies were identified on the tenement including a strong anomaly located in the northwest where there is no known historical information, as well as a strong response in the far southwest lines which appears to be related to the Long Thought Of mine workings (inferred southern extension of Berringa gold fields and remains largely untested). Further infill soil sampling planned over the various anomalies identified.

Further information in respect of the soil sampling programme, findings and related maps is available in today’s announcement released by Power Metal partner, RRRplc through the following link:

https://www.rrrplc.com/investors/regulatory-news/

Diamond Drilling Campaigns

Final preparations underway for multiple near-term diamond drilling campaigns including:

o  Programme south of Buninyong at O’Loughlins targeting a 1km structure planned for December 2021;

o  Programme at Pitfield planned for early 2022, with further targets now identified for proposed February 2022 drilling.

Currently there are 8 drill pad locations at O’Loughlins and 6 at Pitfield. In theory 2-3 drill holes could be undertaken from each location in various directions. Some holes may extend to over 100 metres, but the drilling is flexible, in part dependent on the core review as each drill hole progresses.  At this time the expectation is for circa 600 metres of diamond drilling at O’Loughlins and 1,400 metres at Pitfield for a total 2,000 metres of drilling.  The specific location meterage is flexible and may be subject to change depending on results.

Background Information New Ballarat Gold Corporation PLC

NBGC is a privately owned joint venture company owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW). 

NBGC holds a strong land position of granted exploration licences totalling 1,012 sq km in the gold-rich fields of Victoria, Australia. The company has carefully assembled its portfolio of gold properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021, NBGC has already advanced three promising gold prospects to the drill-ready stage, which is slated to take place Q4 2021 & Q1 2022.

Still able to actively operate in the current global pandemic, the company has exploration geologists and field crews active in the field. This is coupled with a technical team holding in-depth knowledge of Victoria’s geology including extensive underground experience gained from working in active gold mines within the area.

Granted Licences

The granted licences cover high priority areas covering 1,102 km² where NBGC has early drill targets and in which exploration has already started.

Licence Applications

RRAL has applications in process for eleven other new gold exploration licence areas covering approximately 1,294km² in the Victoria Goldfields of Australia including:

* 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, covering largely areas previously held by the Company at the time of its original listing. The two where there is another applicant will be subject to a ballot.

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.

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: