REG - Power Metal - Victorian Goldfields – Exploration Update

Power Metal ResourcesAnnouncement

13/06/2022 14:30

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RNS Number : 6860O  Power Metal Resources PLC  13 June 2022

13 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Victorian Goldfields - Exploration Update

Discovery of Intrusion Related Gold Mineralisation Confirmed at Mt Bute
Prospect in Victoria, Australia

 

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 vehicle New Ballarat Gold
Corporation plc ("NBGC"), which is focused in the prolific Victorian
Goldfields of Australia.  NBGC's wholly owned operating subsidiary Red Rock
Australasia Pty Limited ("RRAL") has recently completed a diamond drill
programme, certain results in respect of which are outlined below.

A total of 860m of drilling was completed within 8 holes during the Phase I
diamond drilling programme targeting two prospects, O'Loughlin's (5 holes;
assays received for 4 holes, 1 still pending) and Mt Bute (3 holes; assays
received for 1 hole, 2 still pending).

Laboratory results from the first hole drilled (MB22D001) at the Mt. Bute
Prospect, one of two targets addressed in recent drilling, have now been
received and are considered significant. Preliminary X-ray fluorescence (XRF)
analysis of selected Mt. Bute core intervals had returned highly anomalous
molybdenum (Mo) and bismuth (Bi) results, suggesting the possibility of
intrusive related gold ("IRG) mineralization within the Victorian goldfields.

A total of three holes were drilled at the Mt. Bute Prospect and the results
from the second and third holes are still awaited.

Laboratory assay results, not considered of such significance, have also been
received from the drilling completed at the other prospect, O'Loughlins.
Additional assays are still pending.

 
HIGHLIGHTS

 

·    Drilling results from MB22D001 have confirmed the existence of IRG
mineralisation overprinting orogenic mineralisation at the Mt. Bute Prospect,
a significant development within the Victorian Goldfields generally.

·    Over 30% of assays from drill hole MB22D001 between 23.1m to 117.7m
returned results greater than 0.1 g/t gold (Au).

·    Including highlight intervals of 0.4m of 5.13 g/t, 0.5m of 2.5 g/t,
1.8m of 1.43 g/t, and 5.9m of 0.42 g/t Au.

·    Additional drilling at the Mt. Bute Prospect is recommended to step
out along strike and down dip.

 

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

"The discovery of intrusion related gold mineralisation at Mt. Bute prospect
is exciting for the team locally who have done a great job with the initial
drill programme.  It marks a major step on the pathway to, what we hope will
be, multiple potential gold discoveries within the ground footprint in the
Victoria Goldfields.

Further information to follow in the near term."

FURTHER INFORMATION

2022 Drilling Programme Background

RRAL has been engaged in a multi-phase drill programme addressing two
principal targets, O'Loughlins and Mt Bute. This announcement relates to the
first drill hole on the second target, Mt Bute.

RRAL has to date completed a total of 860m of drilling during the Phase I
diamond drilling programme targeting the O'Loughlin's and Mt Bute Prospects,
located 30km and 20km from the town of Ballarat, Australia, respectively.
Initial results from the O'Loughlins Prospect were released on 12 April 2022
and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/gold-exploration-update-victoria-goldfields/15410039
(https://www.londonstockexchange.com/news-article/POW/gold-exploration-update-victoria-goldfields/15410039)

Further laboratory assay results of lesser significance returned from two
additional drill holes at the O'Loughlins Prospect are included in this
announcement - further assays are still pending.

Mt. Bute Update

RRAL has received assays from the first of three holes drilled at the Mt. Bute
Prospect.

The drilling was intended to resolve complexities in the structural geometry
and the first hole, reported on here, has intercepted several zones of
IRG-type gold mineralisation. Located in close proximity to the Mt. Bute
Granite (large I-type granitoid) the geology within the area is dominated by
steeply dipping, folded metasediments within a hornfels alteration aureole.
Results of the drilling and the discovery of IRG mineralization now suggest
that the target is geologically more complex than previous interpretations -
which originally suggested that the small historically mined gold reefs were
solely orogenic in origin.

Whilst minor historical workings exist on the Property, limited previous
modern-day exploration has been undertaken.  In the late 1990's, a 14-hole
shallow Reverse Circulation (RC) drill programme was carried out by a previous
operator which concluded that gold hosted quartz vein reefs were present and
possibly continuous, but insufficient in size to support production via an
open pit mining operation.  In contrast, RRAL is now exploring with a view to
exploiting any narrow vein high-grade reefs via underground  mining methods-
as well are investigating the significant development of overprinting IRG-type
gold mineralisation.

The reef structures within the area have generally been poorly understood,
including any possible relationship to the nearby Mt. Bute granite. In
addition, complexity within the regional fault structures as well as the
presence of Cambrian age sediments, which are of similar age and lithology to
the nearby Stawell Gold mine, precluded meaningful geological understanding of
the area. To help resolve this, RRAL completed a short 3-hole diamond drilling
programme within an area of limited outcrop.

RRAL is now encouraged by the likelihood that the Mt. Bute granite may have
had a greater influence on gold mineralisation than previously thought and
intersecting elevated gold across broad intervals as well as in several
mineralised lode structures within the first drill hole was a result above
expectation.

While additional gold and multi-element assay results are still pending, the
Company's technical team is confident that there is definite continuity to the
main mineralised structure and the drilling result has provided increased
geological understanding on the potential source of gold mineralising fluids.

Final assays are anticipated before the end of the month and a full and
detailed report will be forthcoming once all results have been received and
interpreted by the Company.

Mt. Bute Drill Programme Collar Table:

 HoleId    Easting  Northing  RL (m)  azimuth  dip    Length  Status
 MB22D001  723964   5821996   401.42  280°     -55°   119.2m  Assays received
 MB22D002  723964   5821996   401.42  300°     -55°   119.3m  Assays pending
 MB22D003  723964   5821996   401.42  250°     -55°   101.5m  Assays pending

Drilled as triple tube HQ core diameter. ½ sample core samples over select
intervals chosen by on-site geological staff were prepared and sent to
Minanalytical's laboratory located in Perth, Western Australian. Here, the
samples underwent multielement analysis using 4-acid digest with a ICP-OES
finish. Gold assays were determined using fire-assay with AAS a finish.

The significant intercepts from the drilling of assays above 0.1g/t are tabled
below.  All widths are apparent.

Hole MB22D001 Assay Table:

 From (m)  To (m)  Interval (m)  Gold (g/t)
 23.1      23.4    0.3           0.12
 27.6      28.6    1             0.52
 30.7      31.2    0.5           0.56
 32.7      33.2    0.5           0.29
 34.2      34.7    0.5           0.36
 35.2      35.7    0.5           0.23
 43.8      44.7    0.9           0.11
 45.7      47.2    1.5           0.18
 47.9      48.9    1             0.21
 49.4      55.3    5.9           0.42
 59        59.4    0.4           5.13
 67.1      67.4    0.3           0.27
 67.4      67.9    0.5           2.50
 69.6      71.4    1.8           1.43
 77.7      80.0    0.3           1.08
 79.4      80.4    1             0.14
 82.7      83.2    0.5           0.10
 88.5      89.5    1             0.16
 95.3      95.8    0.5           0.39
 97.7      98.2    0.5           0.14
 99.7      100.2   0.5           0.26
 103.2     103.6   0.4           1.44
 111.4     111.9   0.5           0.39
 117.45    117.7   0.25          0.14

 

Diagrams depicting the Mount Bute (Pitfield) drill location and cross section
may be viewed through the following link to the Power Metal website:

https://www.powermetalresources.com/drill-results-mt-bute-prospect/
(https://www.powermetalresources.com/drill-results-mt-bute-prospect/)

The company now awaits the return of assays from the remaining two holes and
is now looking to conduct further drilling at the Mt. Bute Prospect before the
end of the year.

O'Loughlin's Update

A total of 5 holes were drilled within the O'Loughlins Prospect as part of the
2022 drilling programme. The results from the first two holes, which included
highlight intercepts of 0.4m of 12.34g/t from 75.7m downhole, and 0.5m at
1.44g/t Au from 50.6m downhole were presented in the 12 April 2022 RNS.
Drilling results have now been received for an additional 2 holes at the
O'Loughlin's Prospect. Results from one final hole, OL22D003, are still
outstanding.

Results have now been received from two further holes (OL22D001 &
OL22D002). These holes have successfully intersected a mineralised lode
structure, and whilst the tenor of downhole gold grades differs from surface
samples collected at the historical workings, the results highlight the
continuity of the zone of interest.

The technical team is completing a detailed structural interpretation of the
geology derived from the core drilling and surface mapping, and it is
anticipated that the results of this work will lead to a future drilling
programme at the O'Loughlins Prospect.

O'Loughlins Drill Programme Collar Table:

 HoleID    Length  Azimuth  dip    Easting(m)  Northing(m)  RL (m)  Status
 OL21D001  80.2m   280°     -70°   755592      5819620      352.8   Assays received
 OL21D002  88.7m   278°     -85°   755593      5819620      352.8   Assays received
 OL22D001  122.1m  88°      -74°   755539      5819638      354     Assays received
 OL22D002  143.5m  71°      -60°   755539      5819638      354     Assays received
 OL22D003  91.5m   300°     -65°   755623      5819692      349     Assays pending

 
 

O'Loughlins Drillhole Assay Table:

 HoleID    From (m)  To (m)  Interval (m)  Au (g/t)
 OL22D001  51.7      52.2    0.5           0.17
 OL22D002  16.1      17.2    1.1           0.76
 OL22D002  24        25      1             0.11
 OL22D002  113       114.6   1.8           0.16
 OL22D002  117.05    118     0.95          0.27
 OL22D002  130.5     131.2   0.7           0.72

 

New Ballarat Gold Corporation

NBGC is a joint venture company, owned as to 50.1% by Red Rock and 49.9% by
Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia
Pty Ltd , holder of the  Victorian Tenements.

 

NBGC holds through its wholly owned subsidiary RRAL a land position comprising
14 granted licences of in total 1,832km(2) in the rich gold fields of
Victoria, Australia, principally around the mining centre of Ballarat.

 

Five licences covering 493km(2) await grant. The company has assembled its
portfolio of properties comprising a broad range from exploration targets to
near-term resource potential, all of which remain largely undeveloped by
modern explorers.

 

With the first tenements granted only in 2021, NBGC has already conducted
initial exploration of selected targets, including a diamond drill test of two
prospects starting in December 2021.

 

520m of drilling has been carried out at the O'Loughlin's target within EL
007271and 340m has been carried out at Mt Bute, with samples sent to
MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.

 

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
 EL007330                    Daylesford        202

                             (renamed)

 EL 007294                   Talbot            129

(renamed)

 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:

 

 Licence 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

 

COMPETENT PERSON

 

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. Mr Holden
consents to the inclusion of the technical information in the form and context
in which it appears.

 

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   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 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.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed.                                            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%*          Lithium review underway including desktop and field mapping and sampling.     Findings from lithium review exploration programme.

* Reducing to 62.12% after issue of FDR shares after completion of the
Pre-IPO Financing

# subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

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