REG - Power Metal - Victoria Goldfields – Berringa Drilling Results

Power Metal ResourcesAnnouncement

05/05/2023 15:45

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RNS Number : 6310Y  Power Metal Resources PLC  05 May 2023

5 May 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Victoria Goldfields Australia - Berringa Drilling Results

Assay Results Return Gold from all Drillholes; Confirms Down-Dip and
Along-Strike Extension of Mineralised Quartz Reefs

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.

On 15 March 2023 the Company issued an update regarding the completion of the
2022/2023 drilling campaign at Berringa. The link to this announcement can be
found below:

https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-drilling-update/15877022
(https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-drilling-update/15877022)

HIGHLIGHTS:

 Programme Highlights                           Explanation

 Drilling Overview                              The Diamond Drilling programme consisted of 988 metres in six drillholes, four
                                                of which encountered visible gold mineralisation.
 Extensive Gold Confirmed                       All drillholes returning gold mineralisation in laboratory assay test results.

                                                Multiple gold (Au) mineralised intersections were encountered including
                                                drillhole BE23D002 which returned 5.2m at 2.38g/t Au including 0.2m at
                                                34.76g/t Au, and BE23D006 which returned 3.5m at 5.43g/t Au including 0.7m at
                                                23.9g/t Au.
 The "Nugget Effect"                            Variability in grade was experienced due to "nugget effect" typical of the
                                                area, and this led to changes in the sampling protocol. Additional drilling
                                                will be needed to determine a representative grade.
 Key Objectives Met                             Key objectives of this drill programme have been met with drilling
                                                successfully intersecting the down dip and along strike extensions of
                                                previously mined Berringa gold mineralised quartz reefs. As the gold is hosted
                                                in the quartz reef the identification of a larger volumes of quartz reef is a
                                                positive development.
 Extensive Quartz Reef Confirmed in Final Hole  The final drillhole (BE23D006) intersected a more than 30-metre-wide quartz
                                                reef intersection approximately 100 metres east of the main Berringa line of
                                                workings. The hole was ended while still in mineralisation and so is open at
                                                depth.
 Next Steps                                     The programme has enabled the partners to gain a better understanding of the
                                                structure of the historic Berringa gold mine and this work will be further
                                                advanced as the results continue to be analysed and related to historical
                                                data. The partners will then announce the next phase of exploration.

 

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

"It is very pleasing to be able to report another good set of drill results,
which clearly show us meeting our key objectives. We have added substantial
value to the project through this programme, in particular a significant
improvement in the structural understanding of Berringa. Nugget gold, whilst
extremely exciting, is hard to establish with limited drilling and an enhanced
programme will be needed to establish a reliable grade. It has long been our
intention to fund such further exploration through an IPO, and this set of
results allows us to set about that intention with renewed vigour."

 

FURTHER INFORMATION

Highlight Assay Results

 Hole ID   Hole Length (m)                Interval (Au)                Incl.
 BE23D001  431.5                          1.4m @ 0.25g/t  from 381m
           0.3m @ 0.83g/t  from 389.45m
           0.2m @ 3.61g/t from 421m
 BE23D002  107.4                          5.2m @ 2.38g/t  from 88.9m   0.25m @ 34.76g/t
 BE23D003  119.5                          1.7m @ 1.89g/t  from 105m    0.25m @ 8.74g/t
           1.65m @ 0.88g/t  from 111m
 BE23D004  77.4                           0.9m @ 0.86g/t  from 2m
           1m @ 0.54g/t  from 39.4m
 BE23D005  94.8                           0.4m @ 0.62g/t  from 73.6m
 BE23D006  158.1                          0.7m @ 1.5g/t  from 130.4m
           3.5m @ 5.43g/t  from 133m                                   0.2m @ 23.9g/t
           4.9m @ 1.09g/t from 140m
           3.9m @ 1.62g/t from 153.6m                                  0.7m @ 7.49g/t

 

Programme Overview

Drill programme assay results from the Company's inaugural diamond drilling
campaign at its historical Berringa mine Project located in Victoria,
Australia, have confirmed extensions of gold mineralised lodes within the main
reef systems.

The limited programme was specifically designed to test three potential sites
for further evaluation and has exceeded expectations with visible gold
identified in 4 of the 6 holes drilled.

All targets tested have proved the mineralised quartz lode systems are
continuous and open down plunge and along strike.  All zones require further
diamond drilling to build on the early success and work towards possible
Resource definition.

Gaining access to the mine through an historical adit has also become a high
priority to enable a bulk sampling of the Berringa syndicate lode for
preliminary metallurgical test work. This will accelerate the process to
recommence gold mining at the historical mine site. This work is ongoing
subject to regulatory requirements and approvals from the State Government
regulator.

Geological Interpretations

South Birthday Zone - Drillhole BE23D001

A single long drillhole, BE23D001, was completed targeting a possible
extension of the west-dipping lode in the South Birthday Zone, and
investigating possible similarities with the reef system currently mined at
Ballarat 20km to the east. BE23D001 successfully intersected a fault structure
of approximately 9 metres in width which extends the west dipping lode over 50
meters further down plunge from the last known stope.

Geological logging of the core identified predominantly massive quartz veining
with sphalerite, galena, pyrite and minor arsenopyrite.  The quartz reef has
a hanging wall contact marked by a laminated quartz vein and overall the lode
closely resembles the Ballarat mine reef system.

The hole ended in sandstone and not the expected black shale, and computer
modelling based upon detailed lithological core logging will assist in
determining where and at what depth the historically gold rich intersections
typically found within black shales may sit in the South Birthday Zone.

Berringa Syndicate Zone - Drillholes BE23002 & BE23003

Near the centre of the licence area, located approximately 1.5km north of
BE23D001, drilling at the Berringa Syndicate Zone, which historically produced
at 7-8 g/t, returned positive results including minor fine visible gold within
a well-defined lode structure.

This unmined zone was identified in the late 1980s from sampling in
underground drives and adits with BE23002 and BE23003 being the first
drillholes to test this zone. Downhole quartz vein intersections included
intervals of 9m and 14m with abundant quartz near the footwall and hanging
wall contact.

Kangaroo Zone - BE23004, BE23005 & BE23006

Located due east of the Berringa Syndicate Zone, the Kangaroo Zone was tested
by drillholes BE23D004,005 and 006. This underexplored lode system has no
surface expression.

Identification of a potential mineralised reef was made from an old plan map
of underground workings. Only a single crosscut pushed from the historical
Kangaroo mine towards the east which successfully intersected a mineralized
structure.  It is unclear if any stoping took place.

BE23004 and BE23005 drill tested the northern extension of the possible
structure with BE23004 potentially intersecting a cross-course fault which
appeared to have offset mineralisation.  BE23005 also pierced the cross
course in a different position but has struck part of a lode structure on the
north side of the fault. It is possible that the estimated location of the
underground workings was not yet exact so that drilling may have passed over
the top of the lode. Further geological work on the lithological core logging
will help to refine the positioning and identify optimal locations on the east
lode for future drilling.

Drillhole BE23006 exceeded expectations, intersecting a broad (over 30m
apparent width) mineralised quartz reef structure that had not been known
containing minor arsenopyrite, galena, sphalerite.  Visible gold was also
identified in the hanging wall contact. Initial interpretation suggests the
mineralised zone may be closer to the west than previously considered, and the
drilling may have intersected a saddle reef not previously mined.

This supports the inference of a second (parallel) line of mineralization to
the east of the main Berringa line and has substantially increased the
prospectivity of the Berringa property overall.

Next steps

Currently the technical team is completing detailed review of all new
drillhole data including inputting all geological and structural data into 3D
modelling software. Next steps will be determined in due course and the market
will be updated once plans have been finalised.

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.

GLOSSARY

Arsenopyrite:    iron arsenic sulphide (FeAsS), a sulphide mineral found in
hydrothermal veins and often an indicator of gold presence

Fire assay:           the industry standard method of obtaining gold
data from high grade ores by heating a sample in a furnace to separate the
gold from other materials present

Galena:                                the
natural mineral form of lead sulphide (PbS) typically found in hydrothermal
veins

KCN bottle roll: an industry standard test for assessing gold recovery
possible by cyanide leaching using potassium cyanide (KCN)

Lode :                    a deposit of metalliferous ore
that fills or is embedded in a fissure in a rock formation or a vein of ore
that is deposited or embedded between layers of rock, generally formed by
deposition from hydrothermal solutions

Pyrite :                  iron disulphide (FeS2), the
primary iron sulphide and most abundant sulphide mineral, generally found in
association with other sulphides and found in hydrothermal quartz veins and
other environments

Sphalerite :         the primary zinc sulphide ((Zn, Fe)S) found in
association with other sulphides in a variety of deposit types

 

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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