REG - Power Metal - Victorian Gold Fields - Grant of Key Licences

Power Metal ResourcesAnnouncement

24/05/2022 07:00

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RNS Number : 5147M  Power Metal Resources PLC  24 May 2022

24 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Victorian Gold Fields - Grant of Key Licences

 

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 its joint-venture subsidiary New Ballarat
Gold Corporation plc ("NBGC"), which is focused in the prolific 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").

Highlights:

·    Three further exploration licences, EL007330 (202km(2)), EL007294
(325km(2)) and EL007507 (9km(2)), have now been granted, bringing NBGC's
combined footprint in the Victoria Goldfields to 1,832km(2).

·    New license grants include EL007330 located northeast of Ballarat,
Australia. Significantly, this newly granted licence covers the historical
Ajax gold mine which historically produced 312,789oz gold at an average grade
of 14.8g/t Au in the 1920s.(1)

Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:

"The grant of EL007330 is a considerable step forward bringing the historical
Ajax gold mine into the RRAL portfolio. This mine produced 312,789 ounces of
gold at an average grade of nearly half an ounce per tonne.

Whilst the RRAL land footprint is considerable, with over 1,800km(2) of now
granted exploration licences, without question the grant of EL007330 including
Ajax is highly significant.

In our view the RRAL business holds great potential, however, what is
important is what we do to maximise that value through further exploration and
corporate activities.

I expect it will be an interesting few months ahead for this project package
within the Power Metal business."

Highlights: EL007330 - Including Ajax Mine:

The historical Ajax gold mine comprises numerous shafts and workings found
over several kilometres of combined strike length, which was historically
mined to a vertical depth of approximately 400m. The down dip and along strike
extensions of the main ore zones remain virtually untested by drilling.  A
small drilling programme completed in the 1990s by Continent Resources
intersected multiple lode structures with highlight results up to 15.24g/t Au
over 5.2m from 120.9m downhole - demonstrating the continuity of mineralised
lode structure and associated high gold grades.  The main mine shaft itself
has since been backfilled and is currently not accessible.

A more detailed description of the historical Ajax gold mine is contained in
the paper previously published on RRAL's website with the file name: 'Licence
Report: EL007330 - Daylesford (Blue Angel)' found below at:

https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/
(https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/)

Work is currently under way to digitise the old mine workings into a 3D
computer model in advance of a planned diamond drilling campaign which is
expected to commence in late 2022 -targeting the along strike and down dip
extensions of the Ajax mine's main ore zones.

New Ballarat Gold Corporation:

NBGC holds a strong land position comprising fourteen (14) granted exploration
licences for a total of 1,832km(2), located entirely within the prolific gold
fields of Victoria, Australia - principally surrounding the mining centre of
Ballarat, Australia. Five (5) licences for a total of 493km(2) are still in
the application stage.

The company has carefully assembled its property portfolio to comprise a broad
range from robust exploration targets to near term resource potential - all of
which remain largely untested by modern explorers.

 

With the first tenement within the portfolio granted only in 2021, NBGC has
already conducted detailed exploration on multiple targets to date. This
includes diamond drill programmes designed to test the O'Loughlin's (520m) and
Mt. Bute (340m) prospects, which commenced December 2021. The final results
from these drill programmes are still pending.

 

Granted Licences:

 The fourteen granted licences cover high priority areas covering 1,832km(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                    (Announced today)
 EL007330                    Daylesford          202

                             (renamed)

                             (Announced today)
 EL 007294                   Talbot              129

(renamed)

                             (Announced today)

 Total                                           1,832

 

Licence Applications

RRAL has applications in process for five other new gold exploration licence
areas covering 493km(2) in the Victoria Goldfields of Australia including:

 

 License Application Number   Project Name    Area (km(2))
 EL007540*                    Outer Ballarat  142

 (3 competing applications)

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

 EL007799
 EL007826                     Ballarat East   4
 EL007460                     Kilmore West    325

 TOTAL                                        493

 

* 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:

 License Application Number  Project Name      Area (km(2))
 EL45/5859                   Paterson          227

 EL45/5885                   Pilbara/Paterson  70

 

References:

 

(1)Sharp, D. & Sheerin K: OreTech Mining Solutions - Tenement Review and
Exploration Strategy - EL007330 Daylesford. Independent geologist report
prepared for Red Rock Australasia Pty Ltd. (2020).

 

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.

 

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                                    Interpretation results from all Properties complete. Next steps upcoming.
 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 underway                                              Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%           Wallal passive seismic and 2D seismic processing work programme completed.    Findings from multiple work programmes including final approvals and

                                                                             preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills &
                                                    Braeside West projects.

 Selta Project          Australia  82.78%           Field reconnaissance work complete, which included mapping and sampling.      Finalising data review from field programmes.

 

 

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