TIDMPOW
RNS Number : 9288H
Power Metal Resources PLC
09 August 2021
9 August 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Australian Gold Joint Venture - Corporate & Exploration
Update
Ground Exploration Advances at Pace With Initial Drill Targets
Identified and Listing Plans Now Focused on the London Market
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 in respect to its Australian gold joint venture, Red Rock
Australiasia Pty Ltd ("RRAL" or the "Joint Venture").
Power Metal owns 49.9% of RRAL, with the other 50.1% being owned
by Red Rock Resources plc ("Red Rock").
RRAL holds extensive gold exploration interests near the
historic mining centre of Ballarat in the Victoria Goldfields,
Australia.
The most recent update in regards to RRAL was provided by the
company on 29 April 2021 and can be found at the link below.
Australia Gold Joint Venture - Update - 15:00:01 29 Apr 2021 -
POW News article | London Stock Exchange
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"The Joint Venture's technical team have gathered extensive
evidence of gold mineralisation including several high-tenor
kilometre-scale anomalies along strike and to the south of the
Ballarat Gold Mine (1) .
Three exciting targets within the portfolio have now been
designated for drilling, with more expected in the near term. The
Company plans to commence inaugaral diamond drilling operations in
late 2021.
The Joint Venture controls a substantial licence footprint in
the Victorian Goldfields and we are intending to cover all areas
held with systematic exploration. We believe there is good
potential for major new gold discoveries within areas which have
historic gold mines and known gold occurrences but which remain
untested using modern exploration technologies.
Our work in respect of seeking a public listing for the core
interests of RRAL continues, and after further consultation and
review, we are now focusing on a planned primary RRAL listing in
London, with a proposed trading facility in North America as a
secondary step.
There are a number of advantages to a primary UK listing,
including for Power Metal the increased ease of a potential
distribution of shares in the listed vehicle, something we have
indicated previously was under consideration. In addition, timing,
established relationships, familiarity with the processes, short
lines of communications at a time of restricted travel, and the
existence of suitable comparators were all factors in this
decision.
Preparatory work in relation to the listing process is underway
and notably, we have the technical Competent Person's Report
("CPR") ready, an important constituent part of the listing
process.
Further updates to the market in respect of ongoing exploration
and corporate developments are expected to flow more frequently
going forward, as we now have momentum running across all areas of
the Joint Venture."
Highlights:
-- Dedicated Victoria-based technical team in place which is led
by exploration manager Dave Holden with over 30 years of project
management experience across Australia. Mr. Holden was an integral
part of the exploration teams that were credited with the gold
discoveries of Nimary and Jundee in Western Australia, as well as
Mt. Todd and Brocks Creek in the Northern Territory.
-- Ongoing historical data compilation has led to the discovery
of multiple overlooked historic mines, located within various
granted tenements within the package, which are now designated for
follow up ground-based reconnaisance and prospecting
programmes.
-- A number of ground-based programmes across the tenement
package are in progress, including a extensive soil sampling
programme targeting the possible southern extension of the Ballarat
Mines. The soil sampling programme, uitilised a portable X-ray
fluorescence spectrometer ("pXRF") to focus on arsenic distribution
as this is a previously identified path finder to gold
mineralisation at Ballarat. The results have produced several
high-tenor kilometre-scale anomalies which trend along strike,
south of the Ballarat Mines.
-- Historical research, modelling of old mines, and confirmation
from soil sampling data has enabled RRAL to identify three drill
ready targets (outlined below at Figure 1), with more expected
within the coming months. Drill proposals are at various stages of
finalisation in anticipation of carrying out up to three drill
programmes later In the year.
-- After consulting with various parties, and a review of the
optimal outcome for what the Company considers to be a highly
valuable business interest, it has been decided that the best
commercial path forward for RRAL is to obtain a London-based
listing. This process has now been started and the Company will
provide updates to the market periodically with regard to the
listing process in the coming months.
Figure 1 highlights the location of the various project areas
and areas of Interest discussed below and may be viewed through the
following link on the Company's website:
https://www.powermetalresources.com/rral-project-area-locations/
Project Specific Updates:
DeReel Prospect
Re-evaluation of historical data at DeReel (EL007327) has led to
the discovery of the Golden Reef line of mineralisation which was
actively mined at the turn of the last century. The mining
(identified primarily as the DeReel Mine) exploited a high-grade
lode gold system. Mining followed the gold bearing quartz veins (or
"reef") down to approximately 80 metres vertical depth and extended
along strike for roughly 300 metres.
Initial investigations suggest the geology is similar to other
typical geologies around the Ballarat and Bendigo mining centres. A
well-defined anticline to the west and the major steeply west
dipping Pinchgut fault cross-cutting the anticline has produced
quartz saddle reefs in the fold hinge with associated flat lying
quartz spurs.
A similar second structure west of the main reef may be an upper
bounding structure and offers an opportunity for a second line of
reef not previously exploited with the possibility of further
mineralisation developing between the two structures.
Ambiguities over early production suggest some of the gold may
be fine and associated with sulphides and may not have been
recoverable by original mining efforts.
An initial diamond drill programme is planned for late 2021 of
up to 1,200m of drilling looking for the along strike and down
plunge extensions of the historic mines operating along the Golden
Reef line.
Mt Bute Prospect
Re-evaluation of historical data at Mt Bute (EL007301) has
identified a linear arsenic geochemical soil anomaly with
associated elevated gold values centred on a small cluster of
historical shafts south of Linton, Victoria. The prospect is part
of a much longer zone informally referred to as the Linton trend
which may extend many kilometres.
Metex Resources in the 1990's enhanced the prospectivity of the
Mt Bute prospect by conducting a limited shallow reverse
circulation drilling through the centre of the arsenic anomaly.
Metex's mandate was to search for suitable oxide material at or
near surface with a view to high-tonnage low-grade open pit
recovery, which did not focus on the structural or mineralogical
elements that diamond drilling may have identified. RRAL believes
that high-grade narrow quartz reef mining is more likely suitable
at the Linton trend based upon other known deposits in the area and
anticipates more coherent and elevated grade to occur below the
surficial weathering.
Three dimentional modelling of the geology, drill results and
other data sets currently available are providing a valuable visual
support to drill planning. RRAL is working towards a maiden diamond
drill programme at the prospect before the end of the current year
comprising at least 600 metres.
In addition, RRAL is looking to extend its regional pXRF
programme to the north and east of Mt Bute to cover folded and
faulted Ordovician age rocks to the east and along strike from the
known Mt Bute prospect.
In the centre of the tenement, another previously overlooked
historical mine has presented further opportunities for advanced
exploration. The Gribbles/Linton mine extends down to approximately
65 metres and produced gold from both quartz reefs and 'flat makes'
(shallow dipping quartz veins). Further ground-based work is
planned.
O'Laughlins Prospect
Preliminary results from the recently completed pXRF soil
geochemical survey has produced well-defined arsenic anomalies in
areas south of the main Ballarat and Scotsburn lines of gold
mineralisation. One advanced target, which has been confirmed by
the recent geochemical sampling, marks the southern end of the
Scotsburn line of gold workings. The elevated arsenic values
returned coincide well with historical workings, structural trends
and a potassic anomaly identified from airborne radiometric data
from the late 1980s.
The planning and permitting process is under way for the
inagural drilling campaign on the prospect planned for late 2021.
Further mapping and sampling is also being undertaken in advance of
drilling to develop a more detailed picture of the Scotsburn line
of mineralisation.
Of immediate focus for drilling is the western side of the
O'Laughlins Prospect where numerous workings are identified as the
historic Enfield reef. Little historical literature exists for
these workings other than a single reference to a reef where
processing of gold was associated with sulphide in quartz. There
are clear structural targets for mineralisation in this area where
regional structural trends align north-northeast and steeply dip to
the west .
Variations to the traditional Ballarat geological model at
Enfield Reef are now considered possible where east -west striking
flatter-lying quartz veins and steeply dipping east-west striking
dykes have been mentioned at the turn of last century in other
writings on the regional geology.
Figure 2 shows arsenic soil sample results and may be viewed
through the following link on the Company's website:
https://www.powermetalresources.com/rral-arsenic-soil-sample-results/
Kilmore Prospect
RRAL has also commenced work on the easternmost tenement
immediately north of Melbourne. Within this tenement, strong
structural folding and faulting identified by historical mapping
appear to correlate well with strong antimony anomalism identified
in regional ASTER(2) remote sensing data.
In addition, first pass historical research has uncovered the
Donnybrook gold field, where production from the identified mine
was from narrow (sub 0.25m) veins which reportedly returned very
high grades of about 4 ounces a ton (approx. 120g/t gold).
Further work by the in-country operations team on this prospect
is ongoing with a view to determining if the structures develop at
depth and along strike. Drilling is anticipated early in the new
year pending the outcomes of the ongoing geological reconnaissance
investigations.
FURTHER INFORMATION
Joint Venture Company - RRAL
RRAL is a joint venture company 50.1% owned by Red Rock and
49.9% owned by Power Metal. Paul Johnson, CEO of Power Metal and
Andrew Bell Chairman of Power Metal are directors of RRAL.
Granted Licences
RRAL has a seven granted exploration licences as listed below.
These licences cover high priority areas where RRAL has early drill
targets and in which exploration has already started.
Licence Number Project Name Area (km(2)
)
EL007271 Blue Whale 133
-------------- ------------
EL007281 Blue Chip 74
-------------- ------------
EL007285 Blue Ribbon 8
-------------- ------------
EL007327 Dereel 60
-------------- ------------
EL007385 Sardinia 4
-------------- ------------
EL007329 Kilmore 484
-------------- ------------
Pitfield/Mt
EL007301 Bute 85
-------------- ------------
Total 848
------------
Applications
RRAL has applications in process for nine gold exploration
licence areas covering approximately 1,458km(2) in the Victoria
Goldfields of Australia as follows:
Licence Application Project Name Area (km(2)
Number )
EL007282 Blue Sky 489
---------------- ------------
EL007294 Red Queen 130
---------------- ------------
EL007328 Blue Yonder 164
---------------- ------------
EL007330 Blue Angel 202
---------------- ------------
EL007460 Kilmore West 325
---------------- ------------
State land within
EL007271
[EL007505 [9
EL007506 9
EL007507] 8]
---------------- ------------
EL007540*
(3 competing
applications) Outer Ballarat 148
---------------- ------------
Total c 1,458
------------
* 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.
The two where there is another applicant will be subject to a
ballot.
Licence Application Project Area Area (km(2)
Number )
EL45/5859 Paterson 227
(One competing
application)
------------
EL45/5885 Pilbara/Paterson 70
------------------ ------------
EL45/5881 Pilbara/Paterson 33
(One competing
application)
------------
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. Mr Holden has experience in
the style of mineralisation and type of deposit under
consideration. Mr Holden is the Exploration Director of RRAL.
References & Notes
1 The Ballarat Gold mIne is a modern underground mine operated
below the city of Ballarat by Golden Point Group PTY Ltd (see
https://ballaratgoldmine.com.au ). For a history of gold mining in
and around Ballarat in Victoria also see
https://earthresources.vic.gov.au/geology-exploration/minerals/metals/gold/gold-mining-in-victoria
2 ASTER: Advanced Spaceborne Thermal Emission and Reflection
Radiometer (ASTER) is a satellite bourne intrument. ASTER data is
used for a range of applications, including mapping alteration
patterns or specific mineral assemblages known to be associated
with mineral systems and the generation of digital elevation models
.
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/ 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 (LON:POW) is an AIM listed metals
exploration and development 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 and base 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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