TIDMPOW
RNS Number : 8369U
Power Metal Resources PLC
07 December 2021
7 December 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Business Update - Red Rock Resources Australasia
Red Rock Announces Licence Grant, New Geochemical Anomalies and
the Planned Launch of Imminent Diamond Drilling
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio, announces a business update by Red
Rock Resources Australasia Pty Ltd ("RRAL").
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"Exploration on our licences within the Victoria Goldfields has
been successful with recent soil sampling highlighting multiple
high-priority gold targets across granted licences. Certain of
these targets are now at the drill-ready stage and will be the
subject of the planned upcoming drill programmes, showing great
progression from RRAL's ground exploration to date.
We believe there is potential for major gold discoveries in the
granted licences we hold, something which is not surprising given
the geological attractiveness of the region, and multiple
large-scale discoveries made and gold mines built in the state of
Victoria. Therefore the launch of inaugural diamond drilling is an
important step forward and we will be eager to see what this
drilling delivers."
HIGHLIGHTS:
Holding Transfer to Planned London Listing Company
Power Metal previously held a direct 49.9% interest in RRAL
which has a 100% interest in the various licences held within the
state of Victoria and Western Australia, further details of which
are provided below.
A new UK plc has been formed, New Ballarat Gold Corporation PLC
("New Ballarat" or "NBGC"), which is the vehicle for the planned
London listing. New Ballarat now holds a 100% interest in RRAL.
The original shareholders of RRAL have transferred their
holdings up to the vehicle New Ballarat in preparation for the
planned listing. As a result, Power Metal now holds 49.9% of New
Ballarat, and Red Rock Resources plc ("RRRplc") holds the remaining
50.1% interest.
Grant of New Exploration Licence
Exploration licence application EL007328 (164km(2) ) was granted
on November 26, 2021. Following this grant, a total of 8 licences
have now been granted covering a total area of 1,012 km(2) .
Soil Sampling Update - New Anomalies Identified
A total of 1091 soil samples have now been tested by Portable
X-ray Fluorescence ("pXRF") from the ongoing soil sampling
programme.
The interim results have identified several new anomalies as
well as confirming the regional correlation of arsenic anomalism
with historic gold workings and known gold-bearing structures.
Highlights include:
o Buninyong (EL7271): Exciting new 1 km long north-south
oriented arsenic anomaly identified which is coincident with a line
of gold mineralisation extending north of Mt. Buninyong. Regional
structural analysis of this new anomaly reaffirms the concept that
the Scotsburn workings (which extend south-southeast of Buninyong
down to O'Laughlins) is the continuation of the main Ballarat East
line currently being mined underground at the Ballarat Mine (owned
by Shen Yao Holdings). Additional infill soil sampling is planned
within the area of the newly defined anomaly.
o Pitfield (EL7301): Strong anomalism identified surrounding
known gold mineralisation at Mt. Bute. Additionally, strong arsenic
anomalism identified near the west margin of the tenement in an
area previously not explored. Significantly, this new anomaly is
located along a roughly north-south oriented line connecting up
with Mt. Bute mineralisation located over 6km away to the north,
suggesting that mineralisaiton may continue in a broad north-south
orientation throughout the tenement. This new area is presumed to
be in part overlain by recent volcanic rocks and this may be the
first indication that the pXRF sampling technique may assist in
exploring for mineralisation under cover at Pitfield.
o Dereel (EL7327): Soil sampling results highlight an anomalism
along the southern extension of the Golden Reefs/DeReel mine
(subject to final access agreements, drilling down dip and along
strike of these historic mines is planned early in 2022).
Additionally, two other anomalies were identified on the tenement
including a strong anomaly located in the northwest where there is
no known historical information, as well as a strong response in
the far southwest lines which appears to be related to the Long
Thought Of mine workings (inferred southern extension of Berringa
gold fields and remains largely untested). Further infill soil
sampling planned over the various anomalies identified.
Further information in respect of the soil sampling programme,
findings and related maps is available in today's announcement
released by Power Metal partner, RRRplc through the following
link:
https://www.rrrplc.com/investors/regulatory-news/
Diamond Drilling Campaigns
Final preparations underway for multiple near-term diamond
drilling campaigns including:
o Programme south of Buninyong at O'Loughlins targeting a 1km
structure planned for December 2021;
o Programme at Pitfield planned for early 2022, with further
targets now identified for proposed February 2022 drilling.
Currently there are 8 drill pad locations at O'Loughlins and 6
at Pitfield. In theory 2-3 drill holes could be undertaken from
each location in various directions. Some holes may extend to over
100 metres, but the drilling is flexible, in part dependent on the
core review as each drill hole progresses. At this time the
expectation is for circa 600 metres of diamond drilling at
O'Loughlins and 1,400 metres at Pitfield for a total 2,000 metres
of drilling. The specific location meterage is flexible and may be
subject to change depending on results.
Background Information New Ballarat Gold Corporation PLC
NBGC is a privately owned joint venture company owned as to
50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC
(AIM:POW).
NBGC holds a strong land position of granted exploration
licences totalling 1,012 sq km in the gold-rich fields of Victoria,
Australia. The company has carefully assembled its portfolio of
gold properties comprising a broad range from robust 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
advanced three promising gold prospects to the drill-ready stage,
which is slated to take place Q4 2021 & Q1 2022.
Still able to actively operate in the current global pandemic,
the company has exploration geologists and field crews active in
the field. This is coupled with a technical team holding in-depth
knowledge of Victoria's geology including extensive underground
experience gained from working in active gold mines within the
area.
Granted Licences
The granted licences cover high priority areas covering 1,102
km(2) where NBGC has early drill targets and in which exploration
has already started.
Licence Number Project Name Area (km(2)
)
Buninyong
EL007271 (renamed) 133
-------------- --------------------
EL007281 Blue Chip 74
-------------- --------------------
EL007285 Blue Ribbon 8
-------------- --------------------
EL007327 Dereel 60
-------------- --------------------
EL007385 Sardinia 4
-------------- --------------------
EL007329 Kilmore 484
-------------- --------------------
Pitfield/Mt
EL007301 Bute 85
-------------- --------------------
Blue Yonder
(Announced
EL007328 today) 164
-------------- --------------------
Total c 1,012
--------------------
Licence Applications
RRAL has applications in process for eleven other new gold
exploration licence areas covering approximately 1,294km(2) in the
Victoria Goldfields of Australia including:
License Application Project Name Area (km(2)
Number )
EL007282 Blue Sky 489
---------------- ------------
EL007294 Red Queen 130
---------------- ------------
Daylesford
EL007330 (renamed) 202
---------------- ------------
EL007460 Kilmore West 325
---------------- ------------
State land
within EL007271
[EL007505 [9
EL007506 9
EL007507] 8]
---------------- ------------
EL007540*
(3 competing
applications) Outer Ballarat 148
---------------- ------------
Total c 1,294
------------
* 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,
covering largely areas previously held by the Company at the time
of its original listing. The two where there is another applicant
will be subject to a ballot.
EL45/5859 Paterson 227
(One competing application)
EL45/5885 Pilbara/Paterson 70
------------------ ----
EL45/5881 Pilbara/Paterson 33
(One competing application)
----
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.
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 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 Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field results from
Project to 75% test pits and mapping on-site work programme.
& sampling.
---------- --------- -------------------------- -------------------------
Athabasca Canada 100% Phase I field exploration Laboratory assay
Uranium completed results of samples
collected for uranium
and REEs
---------- --------- -------------------------- -------------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- --------- -------------------------- -------------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- --------- -------------------------- -------------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- --------- -------------------------- -------------------------
Molopo Farms Botswana 53% Kavango Option Results from various
to acquire an interest work activities
in local project underway as part
holding company. of the Kavango
Option fee payable Option
through defined
work programme
---------- --------- -------------------------- -------------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- --------- -------------------------- -------------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across 848km(2) programme including
of granted exploration drill targets for
licences near term drilling
---------- --------- -------------------------- -------------------------
Wallal Gold/Copper Australia 83.33% Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- --------- -------------------------- -------------------------
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END
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