REG - Power Metal - Drilling Begins at Historic Berringa Gold Mine
13/12/2022 07:00
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RNS Number : 4563J Power Metal Resources PLC 13 December 2022
13 December 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Drill Programme Begins at Historic Berringa Gold Mine
Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a diamond drill programme has commenced at the historic Berringa
Gold Mine ("Berringa" or the "Project") held within the Company's Victoria
Goldfields joint venture ("JV").
HIGHLIGHTS:
§ Diamond drill rig has mobilised to site and drilling has commenced at the
historic Berringa former high-grade producing gold mine in the Victoria
Goldfields.
§ 1,000 metres of diamond drilling planned with an estimated 5 drill holes
into 3 priority targets to test for the extensions of gold mineralisation in
proximity of previously mined areas.
§ Expedited assay testing arrangements in place with batch sampling process
expected to deliver first gold focused assay results in early 2023.
§ A video showing the planned drill programme may be viewed through the
following link:
https://www.youtube.com/watch?v=825WYdDVdyQ
(https://www.youtube.com/watch?v=825WYdDVdyQ)
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
"This is a notable moment for our joint venture focused on the Victoria
Goldfields of Australia with diamond drilling to test three priority targets
at the historic Berringa Gold Mine.
At Berringa there has been 293,250 ounces of historical high grade gold
production and we believe there may be a considerable remaining gold endowment
which this drill programme is designed to partly investigate.
It is common for exploration companies to start from ground up with grassroots
exploration. In our Victoria Goldfields JV, we are far further up the
progress and value curve and are now drilling to test for the along strike and
down dip extensions of previously mined out high-grade mineralised gold
lodes."
BACKGROUND
Acquisition of exploration licence ("EL") EL5535 (the "Acquisition"), covering
the footprint of the Berringa was announced on 22 September 2022 and may be
viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/acquisition-complete-berringa-gold-mine/15640720
(https://www.londonstockexchange.com/news-article/POW/acquisition-complete-berringa-gold-mine/15640720)
The JV is in the process of renewal for licence EL5535 seeking a 5-year
exploration licence period with effect from 16 November 2022.
Background to the Acquisition, including the historical production from
Berringa of 293,250 ounces of gold at 8.3g/t, and conceptual (but unproven)
exploration targets totalling up to 2.91million ounces of gold was included in
the Company's announcement of 6 July 2022 which may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927
(https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927)
A map highlighting the location of Berringa may be seen on the Company's
website through the following link:
https://www.powermetalresources.com/berringa-map-2/
(https://www.powermetalresources.com/berringa-map-2/)
Diagrams, images and videos from the Victoria Goldfields will be available on
the Company's website through the following link:
https://www.powermetalresources.com/investors/gallery/VictoriaGoldfields-australia/
(https://www.powermetalresources.com/investors/gallery/VictoriaGoldfields-australia/)
Further information in respect if the JV and the Victoria Goldfields interests
may be viewed on the Power Metal website through the following link:
https://www.powermetalresources.com/project/victoria-goldfields/
(https://www.powermetalresources.com/project/victoria-goldfields/)
DRILL PROGRAMME FURTHER INFORMATION
Approximately 1,000m of diamond drilling is to be undertaken at Berringa by
the JV drilling contractor, Trimac Drilling Pty Ltd based out of Ballarat,
Victoria.
An estimated 5 drill holes are planned, with an average depth of 200m per hole
which are designed to test three priority gold targets which are outlined
below.
South Birthday:
The South Birthday and Birthday mines at Berringa had the most consistent
mineralisation within what is known as the Birthday Reef. This Reef consists
of a laminated 1-2m quartz lode located within a black shale unit rolling from
the west limb into the east limb of a main anticline. This mineralisation
remains open to the south and planned drilling is designed to test for the
southerly plunge of the Birthday Reef below the historical workings of the
previously mined lode.
Berringa Syndicate:
Targeting a previously identified non-JORC compliant resource at the Southland
mine to confirm the potential grade and tonnage identified by the Berringa
Syndicate in the 1980s. Here, drilling will be targeting the downdip
mineralisation potential of the Kangaroo quartz reef found within the eastern
limb of the main anticline.
Kangaroo East:
Previous mining at the Kangaroo Mine identified a secondary parallel reef
named the Big Reef which is located east of the main Kangaroo shaft. The Big
Reef is a laminated quartz reef hosted within a black shale on the western
limb of the eastern anticline. The drill target will test for the along-strike
extension of the Big Reef. The successful drill testing of this lodes along
strike extension could lead to further exploration opportunities of this lode
throughout the entire Berringa goldfields.
The first drill location has been prepared and the drill rig has mobilised to
site and commenced drilling.
Arrangements have been made with local accredited assay laboratories for gold
focused assay testing with expedited turnaround on a batch sampling basis.
Subject to the pre-Christmas drilling timetable, first assay results are
expected in early 2023.
FURTHER PROJECT WORK
In parallel with drilling, the JV is currently investigating the potential to
excavate and open a buried entrance to Berringa. If deemed to be possible, the
reopened adit would provide access to the Berringa shaft sub-surface.
The JV is in ongoing discussions regarding the possibility of processing ore
at the nearby Ballarat Gold Mine (located approximately 25km away), should the
JV discover and develop an economic gold deposit. This arrangement would
dramatically reduce both the mine build-out time horizons and heavy capital
requirements for building a new standalone processing facility.
JOINT VENTURE STRUCTURE
The joint venture ("JV") is held through New Ballarat Gold Corporation PLC
("NBGC"), which is focused on the prolific Victorian Goldfields of Australia.
The JV is held between Power Metal (49.9%) and its partner, London-listed Red
Rock Resources PLC (50.1%) (together the "JV Partners").
NBGC has a wholly owned Australian operating subsidiary Red Rock Australasia
Pty Ltd ("RRAL") which holds a strong land position comprising 15 granted
exploration licences for a total area of 1,841km(2) within the gold fields of
Victoria, Australia, principally around the mining centre of Ballarat.
In addition, 5 licences covering 493km(2) await grant. The company has
carefully assembled its portfolio of properties comprising a broad range from
robust exploration targets to near term resource potential, all of which
remain largely undeveloped by modern explorers.
The JV Partners retain the intention of listing the JV company NBGC and will
make further announcements as appropriate.
QUALIFIED PERSON STATEMENT
The technical information in this report is compiled by David Holden, BSc,
MBA, MEM, who is a member of the Australian Institute of Geoscientists and the
Executive Officer and Exploration Manager of RRAL. He is a member of a
recognised professional organisation and has sufficient relevant experience to
qualify as a qualified person as defined in the Guidance Note for Mining, Oil
and Gas Companies, published by AIM.
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 - Background
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.
Exploration Work Overview
Power Metal holds a number of priority exploration projects with active
exploration underway currently. The status of each project is outlined in the
table below:
Project Operations POW % Project Status
Athabasca 12 properties covering an area of 842km(2) in the Athabasca Basin region 100% Exploration programmes undertaken across three properties during summer 2022
Canada. and preliminary planning for work in Spring/Summer 2023 is ongoing.
Uranium
Desktop review work ongoing across the existing portfolio and data rooms
established for all the projects, to enable third party review of
opportunities for potential acquisition, joint venture or earn-in.
Ongoing review of new opportunities to further expand the Company's Athabasca
uranium property exposure.
Molopo Farms 3 prospecting licences covering 1,723km(2) in south-west Botswana 87.71% Currently a 2,600m diamond drill programme is underway with a planned 5-6
holes targeting four previously identified magnetic conductors prospective for
Nickel - PGMs Nickel - Platinum Group Metals.
2 drill holes at target conductor T1-6 and one at T1-14 have been completed
and drilling at target T1-3 target is underway currently.
Downhole geophysics completed at DDH1-6A and underway at DDH1-14B.
Further Moving Loop Electro-Magnetic surveys are planned over additional
Airborne Electro-Magnetic targets identified, to develop further drill
targets.
Tati Project Botswana 100% Reverse Circulation drilling and soil sampling has confirmed high-grade and
bonanza grade gold mineralisation across a gold-in-soil anomaly extending for
Gold - Nickel 8km across the Company's prospecting licences.
Next stage exploration plans are currently under development.
Sampling of fines dumps, representing waste material from the Cherished Hope
gold mine on the project has confirmed circa 1g/t gold and suitability of the
fines dumps for processing to extract gold and generate income. Preparations
for the fines dumps processing are advancing.
( )
Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required. These interests are summarised in the table below:
Company Operations Status POW % Further Information Link
First Class Metals PLC Exploration in the Schreiber-Hemlo region of Ontario, Canada Listed Investment 27.91% www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)
Kavango Resources PLC Exploration in Botswana Listed Investment 9.85% www.kavangoresources.com (http://www.kavangoresources.com)
First Development Resources PLC Exploration in Western Australia and the Northern Territory of Australia Planned IPO 62.12%* www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)
Golden Metal Resources PLC Exploration and development in Nevada, USA Planned IPO 83.13% www.goldenmetalresources.com (http://www.goldenmetalresources.com)
New Ballarat Gold PLC Exploration in the Victoria Goldfields of Australia Planned IPO 49.9% New website under development which can be found at
www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
In the interim further information in respect of NBGC can be found at:
https://www.powermetalresources.com/project/victoria-goldfields/
(https://www.powermetalresources.com/project/victoria-goldfields/) .
Uranium Energy Exploration PLC Uranium exploration in the Athabasca region of Canada Planned IPO 50-55%(~) www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)
(*) reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.
(~) subject to completion of disposal of Reitenbach and E-12 properties,
announced on 8.8.22 and 4.11.22, respectively.
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