REG - Power Metal - Victoria Goldfields Australia - Update

Power Metal ResourcesAnnouncement

09/01/2023 11:00

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RNS Number : 0969M  Power Metal Resources PLC  09 January 2023

9 January 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Update

Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a corporate and exploration update from the Company's Victoria
Goldfields joint-venture ("JV").

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC commented:

"Diamond drilling at the historic Berringa Gold Mine has efficiently
recommenced after the Christmas break and the first hole is progressing well.

In other positive news we can announce the grant of 3 further licence
applications as well as rock sampling results from the Dereel project which
returned extensive gold mineralisation with a highlight result of 229g/t Au.

Work continues at pace in Victoria, Australia, and further updates will follow
in due course."

HIGHLIGHTS:

Diamond Drilling - Berringa Gold Mine

On 13(th) December 2022, Power Metal announced the commencement of a 5 hole,
approximately 1,000m, diamond drilling programme at the historic Berringa Gold
Mine ("Berringa"). Drilling of the first hole (BE23D001), into the Birthday
South target (see announcement 13.12.22 for further information), paused on
23(rd) December 2022, for the holiday season at a downhole depth of 125.7m.

Drilling successfully recommenced on 3(rd) January 2023 with BE23D001 at
end-of-day 5(th) January 2023, at a downhole depth of 167m at which point the
HQ (96mm) drill bit was replaced by an NQ (75.7mm) bit. Drilling continues
with an expected final target depth of approximately 420m.

Grant of Exploration Licences

A further three exploration licences ("ELs") have now been granted including:

-      EL 7756: a 22km(2) inlier of Crown land within EL 7271, the
prominent EL south of Ballarat gold mine within the Ajax project containing
the old Monmouth and Happy Thought mines but where forest cover has limited
modern exploration.

-      EL 7799: a 3km(2) inlier of Crown land originally excluded from
licence EL 7327 within the Dereel Project. Investigations have identified the
Golden Reef (Dereel) mine as an active high grade mine at the turn of the last
century and Crown land will improve access for any future drill programme. The
JV has gathered a number of rock chip samples in the area.

-      EL 7826: a 4km(2) tenement enhancing the land position surrounding
Ballarat mine itself and covering potential for southern extension of the main
Ballarat lode system known as Ballarat south within the Ajax project.

With the above now granted, seventeen EL grants have now been received from
the nineteen original applications. Table 1 below provides a full breakdown.

Rock Sampling Results

A rock chip sampling programme was successfully completed within the Dereel
project (EL 7799 & EL7327). The sampling campaign included the collection
of 24 rock samples. Gold mineralisation was successfully identified with 16 of
the 24 samples returning gold assays >0.1g/t, including a highlight result
of 229g/t Au.

Table 2 below provides a breakdown of all rock sampling results.

JOINT VENTURE STRUCTURE

The joint venture ("JV") is held through New Ballarat Gold Corporation PLC
("NBGC"), which is focused on the prolific Victoria 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 17 granted
exploration licences and one purchased licence for a total area of 1,867km(2)
within the gold fields 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, which remain largely
under-explored by modern explorers.

The JV Partners have the intention of listing the JV company on a recognised
stock exchange and will make further announcements as appropriate.

TABLE 1: LICENCE TABLES

The seventeen granted and one purchased licence (EL005535) cover high priority
areas, covering 1,867km(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        164
 State land within EL007271

                             -                   9 

 EL007505
 State land within EL007271

                             -                   9 

 EL007506
 State land within EL007271

                             -                   8 

 EL007507
 EL007330                    Daylesford         202

                             (renamed)

 EL 007294                   Talbot             129

(renamed)

 EL 5535                     Berringa           9

                                                (228 net ha)
 EL007756                    Monmouth           22
 State land within EL007327  Dereel (2)          3 

EL007799
 EL007826                    Ballarat East      4

 Total                                          1,867

 

Licence Applications:

RRAL has applications in process for two other new gold exploration licence
areas, covering 467 km(2) in the Victoria Goldfields of Australia including:

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

 EL007540*                    Outer Ballarat  142

 (3 competing applications)

 EL007460                     Kilmore West    325

 TOTAL                                        467

 

*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 also been made in Western Australia.

 EL45/5859  Paterson          227

 EL45/5885  Pilbara/Paterson  70

 

Table 2: ROCK CHIP SAMPLING RESULTS

Each sample below represents a 1kg sample which was pulverised and analysed
with a aqua regia digest (AAS finish).

 Sample ID  Tenement  Easting   Northing  Gold (g/t)

 41514      EL007799  743094.1  5809362   229
 41562      EL007327  743239.5  5809050   1.67
 41513      EL007799  743102.2  5809331   0.79
 41515      EL007799  743095.4  5809397   0.39
 41560      EL007327  743233.9  5809046   0.33
 41564      EL007327  743248.8  5809037   0.3
 41561      EL007327  743232.1  5809046   0.28
 41563      EL007327  743252.6  5809041   0.15
 41565      EL007327  743243.8  5809041   0.15
 41511      EL007799  743110.2  5809315   0.08
 41516      EL007799  743082.2  5809399   0.04
 41512      EL007799  743108.7  5809318   0.02
 41566      EL007327  743270.9  5809071   0.01
 41510      EL007799  743119.2  5809285   0.01
 52525      EL007327  743264.7  5809564   <0.04
 58299      EL007327  743259    5809518   0.97
 58300      EL007327  743262.8  5809508   0.21
 58523      EL007327  743264.7  5809583   0.07
 58524      EL007327  743267.8  5809572   0.1
 58526      EL007327  743260.3  5809550   0.2
 58295B     EL007327  743267.1  5809491   0.13
 58296B     EL007327  743267.5  5809496   0.31
 58297B     EL007327  743268.8  5809521   0.27
 58298B     EL007327  743266.5  5809530   <0.04

 

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.

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