REG - Power Metal - New Ballarat – Licence Grant & Drilling Commences

Power Metal ResourcesAnnouncement

15/12/2021 07:00

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RNS Number : 6659V  Power Metal Resources PLC  15 December 2021

15 December 2021

Power Metal Resources plc ("Power Metal" or the "Company")

New Ballarat - Licence Grant and Drilling Commences

New Ballarat Gold Corporation - Local Subsidiary in the Victoria Goldfields
has Additional Licence Granted and  Gold Drill Programme Commences

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update from its joint venture subsidiary New Ballarat Gold
Corporation PLC ("NBGC") which is undertaking gold exploration at its granted
exploration licences in the Victoria Goldfields in Australia.

 

Highlights

 

·    NBGC's first diamond drill programme begins at O'Loughlin's prospect
south of Buninyong

 

·    Grant of new 489 km(2) exploration licence EL007282 (Blue Sky) in
Victoria, Australia, with 9 licences now granted covering 1,501 km(2)

Further information in respect of the granted licences and licence
applications is provided below and for additional information regarding the
above drill programme, now commenced, please review the Company's announcement
dated 7 December 2021 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/business-update-red-rock-resources-australasia/15240196
(https://www.londonstockexchange.com/news-article/POW/business-update-red-rock-resources-australasia/15240196)

Paul Johnson, Chief Executive Officer of Power metal Resources commented:
"Today marks an important point in the life of New Ballarat Gold Corporation
as inaugural gold exploration drilling commences.  We look forward to the
results feeding out from the project.

We also have the welcome news that a further large exploration licence,
EL007282 (Blue Sky), has been granted, taking the total portfolio of granted
licences to over 1,500km(2) for the first time.  To hold such a large land
granted footprint in the Victoria Goldfields is a tremendous positive."

 

Granted Licences

The granted licences cover high priority areas covering 1,501 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         164
 EL007282        Blue Sky            489

                 (Announced today)
 Total                               c 1,501

 

 

Licence Applications

RRAL has applications in process for seven other new gold exploration licence
areas covering approximately 805 km(2) in the Victoria Goldfields of Australia
including:

 

 Licence Application Number   Project Name    Area (km(2))
 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 805

 

 

 

* 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.

 

New Ballarat Gold Corporation PLC

 

NBGC is a privately owned joint venture company owned 50.1% by Red Rock
Resources plc (LON:RRR) and 49.9% by Power Metal.

 

NBGC holds a 100% interest in local operating subsidiary Red Rock Australasia
Pty Limited a private Australian company which holds a 100% interest in all
operating granted licences and licence applications ("RRAL").

 

NBGC holds a strong land position of 2,306km(2) (1,501km(2) granted licences)
in the rich gold fields of Victoria, Australia, principally around the mining
centre of Ballarat, as the result of a focused exploration strategy targeting
high grade quartz hosted gold veins systems in a region where the exploration
models and targets are well understood.

 

NBGC has carefully assembled its portfolio of properties comprising a broad
range of robust exploration targets, all of which remain largely undeveloped
by modern explorers.

 

With the first tenements granted only in 2021 NBGC is already at an advanced
stage of exploration with three promising gold prospects one of which is the
subject of the diamond drilling now underway.

 

Still able to actively operate in the current global pandemic, NBGC has
exploration geologists and field crews active in the field. This is coupled
with a technical team holding an in-depth knowledge of Victorian geology
including extensive underground experience gained from working in currently
operating mines in the area.

 

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 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 1,501km(2) of granted exploration licences         Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(1)        Passive seismic and 2D seismic processing work programme completed            Results awaited

 

(1) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Limited shares to vendors.

 

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