REG - Power Metal - Victoria Goldfields Australia - Drilling Update

Power Metal ResourcesAnnouncement

15/03/2023 12:15

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RNS Number : 0885T  Power Metal Resources PLC  15 March 2023

15 March 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Drilling Update

Drilling Programme Complete; Visible Gold Intersected in 4 of 6 Holes and
Significant Quartz Vein Intercept in the Final Hole

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an exploration update from the Company's Berringa Gold Mine Project
("Berringa" or the "Project"), which forms part of the Victorian Goldfields
joint-venture ("JV") located in Victoria, Australia.

A progress update RNS was announced on 16 February 2023 which announced the
completion of three diamond drill holes, with all holes completed thus far
encountering visible gold:

https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-update/15840466
(https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-update/15840466)

BACKGROUND:

-      The diamond drill programme was designed to test three priority
targets at Berringa which is a former high-grade producing gold mine in the
Victoria Goldfields. The programme began in December 2022 and is now complete.
 

 

-      The programme aimed to test for the down dip and along strike
extensions of previously mined gold mineralised zones and to improve the
structural understanding of the deposit area.

HIGHLIGHTS:

-      The drilling has now completed, with a total of six diamond
drillholes totalling 988 metres.

 

-      The majority of drill core samples are currently undergoing assay
testing at an accredited laboratory in Ballarat. The remaining samples will be
delivered to the laboratory within the week with final results expected later
this month.

 

-      Four of the six drill holes completed as part of this programme
encountered visible gold. (BED23001, BED23002, BED23003, BED23006).
Mineralised intercepts in drillholes BED23001, BED23002 and BED23003 are
summarised in the 16 February 2023 release.

 

-      In the final hole drilled, BED23006, visible gold was encountered
at 133.55m within a broader circa 30-metre-wide quartz vein (130.5m - 158m)
which is located approximately 100 metres east of the main Berringa line of
workings. This represents a significantly large quartz vein intercept, and it
indicates the likely existence of the eastern and parallel trend of gold
mineralisation.

 

-      Within the final drill hole, due to ground conditions, drilling
was terminated at 158m whilst still in the quartz veining meaning the
30-metre-wide intersection remains open downhole.

 

Sean Wade, Chief Executive Officer of Power Metal Resources Plc commented:

"I am delighted to confirm that drilling is now complete at Berringa.
Importantly, 4 of 6 drill holes encountered visible gold including a
significant 30-metre-wide mineralised quartz vein in the final hole completed
- which remains open downhole.

It is also worth noting that at both Berringa as well as our 100%-owned Tati
gold Project located in Botswana, exploration is centred on extensions of
previously producing gold mines.  These therefore are brownfield and not
greenfield targets, representing more advanced exploration opportunities than
currently being recognised.

I want to personally thank our in-country exploration and drilling teams for
their hard work in completing this drilling programme, and we now eagerly
await final assay results."

JOINT VENTURE STRUCTURE

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 seventeen
granted exploration licences and one purchased licence for a total area of
1,867km(2) within the prolific Victorian Goldfields of Victoria, Australia,
principally surrounding the mining centre of Ballarat, Australia.

In addition, 2 licences covering 467km(2) await grant. The JV 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 underexplored by modern explorers.

The JV Partners have 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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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.

 

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