REG - Power Metal - Gold Exploration Update - Victoria Goldfields

Power Metal ResourcesAnnouncement

12/04/2022 14:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220412:nRSL1524Ia&default-theme=true

RNS Number : 1524I  Power Metal Resources PLC  12 April 2022

12 April 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Gold Exploration Update - Victoria Goldfields

 

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an update in relation to the ongoing exploration programme being
carried out by joint-venture subsidiary New Ballarat Gold Corporation plc
("NBGC") focused in the Victorian Goldfields of Australia.

NBGC is a joint-venture held between Power Metal (49.9%) and its partner,
London-listed Red Rock Resources plc (50.1%).  NBGC has a 100% interest in
Red Rock Australasia Pty Ltd ("RRAL").

RRAL Exploration Director Mr David Holden commented:

"After drilling a combined 860m at the O'Loughlin's and Mt Bute prospects,
drilling has now paused in order to allow for the receipt of outstanding
assays results - the results of which will allow for further geological
interpretations to be made prior to additional drill targeting. At the
O'Loughlin's prospect have already encountered high-grade gold from the
initial assays we have received - with assays from an additional three holes
still pending.

At the Mt Bute prospect the anomalous molybdenum (Mo) and bismuth (Bi) results
initially identified by XRF test work suggests the possibility of an
intrusive-related component to mineralisation.  We believe this implies the
potential for larger and deeper gold-molybdenum-tungsten targets at Mt Bute -
which has been substantiated by rock chips sampled here that returned notable
gold results.

As we plan for a listing of the Victorian Goldfields interests, these initial
drilling results combined with the progress of the important Daylesford
exploration license towards grant, are important steps that will enable us to
list NBGC with immediately prospective projects that possess the potential
grade and scale that we seek."

Highlights:

·    First phase of diamond drilling at Mt Linton and O'Loughlin's
prospects now complete.

·    Initial results received confirm that two gold-bearing lode
structures have been intersected at the O'Loughlin's Prospect, including 0.4 m
at 12.34 g/t Au from 75.7m downhole, and 0.5m at 1.44 g/t Au from 50.6m
downhole from hole OL21D002.  (Note - As further explained below: Due to low
core recovery across select areas, up to several meters or core across the
main mineralised zones were not recovered. The core that was captured and
available to be sampled is thought to be highly under-representative of the
nature and width extent of the mineralized zone.)

·    To date, the O'Loughlin's Prospect extends for over 2km along strike
with a width of ~500m; a size comparable to the nearby Ballarat Gold Mine.

 

·    Investigation of structural and geological complexities from recent
core drilling underway, with additional drilling at the O'Loughlin's Prospect
planned following completion of the analysis.

 

·    Preliminary X-Ray Fluorescence (XRF) analysis of Mt Bute drill core
returned anomalous Molybdenum (Mo) and Bismuth (Bi) which suggest that models
incorporating new concepts for larger targets of intrusive related gold
("IRG") mineralization may be more applicable to the Victorian gold deposits
than first thought.

·    Extensive soil sampling campaign planned over the remaining granted
tenures throughout NBGC's landholding within the Victorian Goldfields - with
the goal of identifying additional target zones.

·    The Daylesford exploration licence application (EL7330) covering the
historical Ajax mine is a step closer to grant, having successfully passed
through the objection phase and native title assessment.

 

Drilling Overview - O'Loughlin's

NBGC has now completed diamond drilling at two of its advanced prospects
including Mt Bute and O'Loughlin's, which are located approximately 30km and
20km from the town of Ballarat respectively. The intention of the drilling was
to allow for detailed geological investigation of various mineralised
structures seen within historical narrow workings which are otherwise not
visible at surface. At both prospects, mineralised quartz reef structures were
successfully intersected.

Whilst assays for the first two holes at the O'Loughlin's Prospects have been
received, the remainder are due back before the end of Q2 2022.  Laboratory
delays have been experienced due to a high demand for analytical work across
the region coupled with staff shortages due to the COVID pandemic. This has
resulted in excessive wait times for the sample assays.

Drilling Summary (to date):

 HOLEID    No of samples  Total Depth(m)  Azimuth  dip  Easting(m)  Northing(m)  Elevation(m)                  Lab status
 OL21D001  79             80.2            280      -70  755592      5819620      352.8         returned
 OL21D002  112            88.7            278      -85  755593      5819620      352.8         returned
 OL22D001  88             122.1           88       -74  755539      5819638      354           In progress
 OL22D002  77             143.5           71       -60  755539      5819638      354           In progress
 OL22D003  34             91.5            300      -65  755623      5819692      349           In progress
 MB22D001  149            119.2           284      -55  723996      5821769      389           In progress
 MB22D002  187            119.3           300      -55  723996      5821769      389           In progress
 MB22D003  150            101.5           265      -55  723996      5821769      389           In progress

Note datum is MGA2020 Zone 54 and azimuth is magnetic north

 

Drilling Results (to date):

 HOLEID    FROM      TO      ASSAY NOTES*
 OL21D001   30.55m   31.00m  0.45m@0.38g/t
                             core loss 31.0m - 31.8m (0.8m)
 OL21D002  50.65m    52.00m  1.35m@0.62g/t incl.  0.5m@1.44g/t        core loss 52.0m - 53.1m
                             (1.1m)
 OL21D002  70.40m    70.80m  0.4m@0.21g/t.
                             core loss 70.8m - 75.7m (4.9m)
 OL21D002  75.70m    76.10m  0.4m@12.32 g/t

*All intervals are presented as apparent widths as measured in the drill
core.  Where possible, core has been oriented using Boart Longyear TruShot TM
V7R7 downhole orientation tool.

All HQ diameter diamond drilling was completed by Trimac Drilling out of
Buninyong, Victoria.  Assaying was competed on half-core samples which were
selected based on geological observations made by on-site geological staff.

All half-core samples were sent to MinAnalytical Laboratory Services Australia
located in Western Australia.  Gold assays were determined using photon assay
within drillhole OL22D001, and traditional fire-assay for the remaining holes.
NBGC has also requested a 34-element suite assay be completed on all samples
utilising a four-acid digest with an ICP-OES finish which will give further
insights into the geochemical signature of the mineralised zones intersected.

Comparison of gold results determined using photon assay vs fire assay will be
completed once all assays have been received. Standards were submitted at a
rate of 1 in approximately 30 samples and duplicate assaying via an alternate
laboratory will be done on selected samples once initial assays are returned
to further assist in the QA/QC validation process.

Given the soft nature of the shale/slate/sandstone wall rock, in contrast to
the hard quartz comprising the veins within the main mineralized lodes at the
O'Loughlin's Prospect, core recovery has been low; and across select areas up
to several meters of the main mineralised zone were not recovered. The core
that was captured and available to be sampled is thought to be highly
underrepresenting the nature and width extent of the mineralized zone. A link
to core photos highlighting the core loss through select mineralised zones can
be viewed at the link below.

 https://www.powermetalresources.com/wp-content/uploads/2022/04/22-04-08-O-Loughlins-Prospect-Select-Core-Photo.pdf
(https://www.powermetalresources.com/wp-content/uploads/2022/04/22-04-08-O-Loughlins-Prospect-Select-Core-Photo.pdf)

Assays from drillhole OL21D002 confirm that coarse nuggety gold is present and
good continuity of mineralisation within the structure is present.
Discussions with drilling contractors as to more suitable methods to increase
core recovery are in progress prior to the commencement of any further
drilling.

Mt Bute Prospect

At Mt Bute, a similar genesis model to the O'Loughlin's Prospect was
originally targeted, however preliminary XRF results of selected core
intervals returned highly anomalous molybdenum and bismuth results. The XRF
results are subject to assay confirmation however this suggests a possible
relationship to the nearby Mt Bute I-type granite and opens the possibility
for additional types of mineralisation at the prospect. This includes
intrusion related mineralisation which may be of a more recent age than
previously thought.

Considering the differing geological model now postulated, NBGC is undergoing
further investigations before additional drilling, as the recent results
demonstrate the possibility that a more substantial target may be present at
depth. These include additional mineralogical studies, as well as
reinvestigation of induced polarisation (IP), aeromagnetic and gravity data
over Mt Bute.

O'Loughlin's Prospect

Drilling at the O'Loughlin's Prospect is targeting 'Ballarat-style' gold
hosted quartz veins hosted within high-angle shear zones. The north-south
oriented zone encountered in the drilling completed there to date has
similarities to mineralised structures observed underground at the nearby
Ballarat Gold Mine. Once all assays are received, NBGC will undertake further
geological interpretations integrating the assay results and geological core
observations, with the intention of identifying further structurally hosted
targets at the prospect.

Daylesford Exploration Licence Application (Ajax Mine) - EL7330

NBGC recently received confirmation that the exploration licence application
has progressed through the native title assessment and is back to Earth
Resource Regulation Licensing for final approval. It is expected that this
licence will progress by mid-2022. The progress so far does not guarantee that
NBGC will be granted the license, which remains a decision for the regulator
acting in accordance with the relevant legislation.  The Ajax mine is on the
western margin of the extensive Daylesford gold camp and falls within
exploration licence application EL7330.

The Ajax mine comprises numerous shafts and workings found over a strike of
several kms, which was historically mined to over 400m vertically. Historical
production continued up in to the 1930's producing over 300,000 ounces Au at
an average grade of approximately 12-15 g/t Au.  The down dip and along
strike extensions to the main ore zones remains untested.  Minor diamond
drilling completed in the 1990s intersected multiple lode structures with
results up to 5.3m of 15.2g/t Au, demonstrating the continuity in lode
structure and associated gold grades.  The mine shaft itself has been
backfilled and is currently not accessible.

Further information in respect of the Ajax mine may be viewed the project
report available on the Power Metal website through the following link:

https://www.powermetalresources.com/wp-content/uploads/2020/10/2020-09-16-4499-EL007330-Daylesford.pdf
(https://www.powermetalresources.com/wp-content/uploads/2020/10/2020-09-16-4499-EL007330-Daylesford.pdf)

Work is currently under way to digitise the old workings, stope and geology
into a 3D computer model, in advance of a planned diamond drilling campaign
which is expected to commence following grant of the license application.

New Ballarat Gold Corporation Overview

NBGC holds a strong land position comprising eleven (11) granted exploration
licences for a total area of 1,501 km(2) within the gold fields of Victoria,
Australia, principally around the mining centre of Ballarat.

Eight (8) licences covering 827 km(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.

With the first tenements granted only in 2021, NBGC has already conducted
detailed exploration of its initial targets, including a diamond drill test of
two prospects starting in December 2021.

520m of drilling has been carried out at O'Loughlin's and 340m has been
carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services
in Perth, WA, for laboratory assay testing.

Granted Licences

The eleven (11) granted licences cover high priority areas covering 1,501
km(2) as outlined below.

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

                                                      (renamed)
 EL007281                                             Blue Chip                      74

 EL007282                                             Blue Sky                       489

 EL007285                                             Blue Ribbon                    8

 EL007327                                             Dereel                         60
 EL007385                                             Sardinia                                          4
 EL007329                                             Kilmore                        484
 EL007301                                             Pitfield/Mt Bute               85
 EL007328                                             Blue Yonder (Announced today)  164
 State land within EL007271

                                                      -                               9 

 EL007505
 State land within EL007271

                                                      -                               9 

 EL007506

 Total                                                                               c 1,501

 (Excluding State land above including in EL007271)

 

Licence Applications

RRAL has applications in process for eight other new gold exploration licence
areas covering approximately 827km(2) in the Victoria Goldfields of Australia
including:

 

 License Application Number                           Project Name    Area (km(2))
 EL007294                                             Red Queen       129
 EL007330                                             Daylesford      202

                                                      (renamed)
 EL007460                                             Kilmore West    325
 State land within EL007271

 EL007507

                                                                       8 
 EL007540*                                            Outer Ballarat  142

 (3 competing applications)

 EL007756                                             Monmouth        22
 EL007799                                             Dereel (2)      3
 EL007826                                             Ballarat East   4

 Total                                                                c 827

 (Excluding State land above including in EL007271)

 

* 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.

 EL45/5859  Paterson          227
 EL45/5885  Pilbara/Paterson  70

 

 

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 and a director of NBGC, and  the Exploration Director of RRAL.
He is a member of a recognized professional organization 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. Mr Holden
consents to the inclusion of the information in the form and context in which
it appears.

 

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.

 

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 and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                       Define next steps of exploration.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential             Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 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%              Review of recent exploration findings.                                           Determine next exploration steps and action plan.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme Phase I complete                                         Receipt & review of laboratory assay results and target investigation for

                                                                                next phase of drilling.

 Paterson Projects      Australia  83.33%           Preparations advanced for Heritage Clearance Survey at Wallal Project            Findings from multiple work programmes including final approvals and
                                                    underway. (For Phase I drill programme.)                                         preparations for planned deep diamond drilling.

                                                    Review of historical data and target generation for Ripon Hills & Braeside
                                                    West projects.

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLGPUPGCUPPGPP