REG - Power Metal - Business Update – Red Rock Resources Australasia

Power Metal ResourcesAnnouncement

07/12/2021 11:00

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RNS Number : 8369U  Power Metal Resources PLC  07 December 2021

7 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Business Update - Red Rock Resources Australasia

Red Rock Announces Licence Grant, New Geochemical Anomalies and the Planned
Launch of Imminent Diamond Drilling

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 (164km(2)) 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 km(2).

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/
(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 km(2) where NBGC
has early drill targets and in which exploration has already started.

 Licence Number  Project Name                   Area (km(2))
 EL007271        Buninyong                      133

                 (renamed)
 EL007281        Blue Chip                      74

 EL007285        Blue Ribbon                    8

 EL007327        Dereel                         60
 EL007385        Sardinia                                          4
 EL007329        Kilmore                        484
 EL007301        Pitfield/Mt Bute               85
 EL007328        Blue Yonder (Announced today)  164
 Total                                          c 1,012

 

Licence Applications

RRAL has applications in process for eleven other new gold exploration licence
areas covering approximately 1,294km(2) in the Victoria Goldfields of
Australia including:

 

 License Application Number   Project Name    Area (km(2))
 EL007282                     Blue Sky        489

 EL007294                     Red Queen       130
 EL007330                     Daylesford      202

                              (renamed)
 EL007460                     Kilmore West    325
 State land within EL007271

 [EL007505

 EL007506                                     [9

 EL007507]                                    9

                                              8]
 EL007540*                    Outer Ballarat  148

 (3 competing applications)

 Total                                        c 1,294

 

* 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.

 EL45/5859                     Paterson          227

 (One competing application)
 EL45/5885                     Pilbara/Paterson  70
 EL45/5881                     Pilbara/Paterson  33

 (One competing application)

 

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/
(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
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, base and strategic
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 Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 Project                     Location   POW %            Work Completed or Underway                                                    Results Awaited

 Alamo Gold Project          USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field results from on-site work programme.
 Athabasca Uranium           Canada     100%             Phase I field exploration completed                                           Laboratory assay results of samples collected for uranium and REEs
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 Ditau Project               Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                         accelerated drilling targeting rare-earth elements and base metals

 Kalahari Copper Belt        Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling
                                                         exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                         licence areas
 Molopo Farms                Botswana   53%              Kavango Option to acquire an interest in local project holding company.       Results from various work activities underway as part of the Kavango Option
                                                         Option fee payable through defined work programme
 Tati Gold/Nickel            Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill targets for near term drilling

 Wallal Gold/Copper Project  Australia  83.33%           Passive seismic and 2D seismic processing work programme completed            Results awaited

 

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