TIDMPOW
RNS Number : 1524I
Power Metal Resources PLC
12 April 2022
12 April 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Gold Exploration Update - Victoria Goldfields
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
the ongoing exploration programme being carried out by
joint-venture subsidiary New Ballarat Gold Corporation plc ("NBGC")
focused in the 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").
RRAL Exploration Director Mr David Holden commented:
"After drilling a combined 860m at the O'Loughlin's and Mt Bute
prospects, drilling has now paused in order to allow for the
receipt of outstanding assays results - the results of which will
allow for further geological interpretations to be made prior to
additional drill targeting. At the O'Loughlin's prospect have
already encountered high-grade gold from the initial assays we have
received - with assays from an additional three holes still
pending.
At the Mt Bute prospect the anomalous molybdenum (Mo) and
bismuth (Bi) results initially identified by XRF test work suggests
the possibility of an intrusive-related component to
mineralisation. We believe this implies the potential for larger
and deeper gold-molybdenum-tungsten targets at Mt Bute - which has
been substantiated by rock chips sampled here that returned notable
gold results.
As we plan for a listing of the Victorian Goldfields interests,
these initial drilling results combined with the progress of the
important Daylesford exploration license towards grant, are
important steps that will enable us to list NBGC with immediately
prospective projects that possess the potential grade and scale
that we seek."
Highlights:
-- First phase of diamond drilling at Mt Linton and O'Loughlin's prospects now complete.
-- Initial results received confirm that two gold-bearing lode
structures have been intersected at the O'Loughlin's Prospect,
including 0.4 m at 12.34 g/t Au from 75.7m downhole, and 0.5m at
1.44 g/t Au from 50.6m downhole from hole OL21D002. (Note - As
further explained below: Due to low core recovery across select
areas, up to several meters or core across the main mineralised
zones were not recovered. The core that was captured and available
to be sampled is thought to be highly under-representative of the
nature and width extent of the mineralized zone.)
-- To date, the O'Loughlin's Prospect extends for over 2km along
strike with a width of 500m; a size comparable to the nearby
Ballarat Gold Mine.
-- Investigation of structural and geological complexities from
recent core drilling underway, with additional drilling at the
O'Loughlin's Prospect planned following completion of the
analysis.
-- Preliminary X-Ray Fluorescence (XRF) analysis of Mt Bute
drill core returned anomalous Molybdenum (Mo) and Bismuth (Bi)
which suggest that models incorporating new concepts for larger
targets of intrusive related gold ("IRG") mineralization may be
more applicable to the Victorian gold deposits than first
thought.
-- Extensive soil sampling campaign planned over the remaining
granted tenures throughout NBGC's landholding within the Victorian
Goldfields - with the goal of identifying additional target
zones.
-- The Daylesford exploration licence application (EL7330)
covering the historical Ajax mine is a step closer to grant, having
successfully passed through the objection phase and native title
assessment.
Drilling Overview - O'Loughlin's
NBGC has now completed diamond drilling at two of its advanced
prospects including Mt Bute and O'Loughlin's, which are located
approximately 30km and 20km from the town of Ballarat respectively.
The intention of the drilling was to allow for detailed geological
investigation of various mineralised structures seen within
historical narrow workings which are otherwise not visible at
surface. At both prospects, mineralised quartz reef structures were
successfully intersected.
Whilst assays for the first two holes at the O'Loughlin's
Prospects have been received, the remainder are due back before the
end of Q2 2022. Laboratory delays have been experienced due to a
high demand for analytical work across the region coupled with
staff shortages due to the COVID pandemic. This has resulted in
excessive wait times for the sample assays.
Drilling Summary (to date):
No of Total Lab
HOLEID samples Depth(m) Azimuth dip Easting(m) Northing(m) Elevation(m) status
--------- ---------- -------- ---- ----------- ------------
OL21D001 79 80.2 280 -70 755592 5819620 352.8 returned
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
OL21D002 112 88.7 278 -85 755593 5819620 352.8 returned
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
OL22D001 88 122.1 88 -74 755539 5819638 354 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
OL22D002 77 143.5 71 -60 755539 5819638 354 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
OL22D003 34 91.5 300 -65 755623 5819692 349 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
MB22D001 149 119.2 284 -55 723996 5821769 389 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
MB22D002 187 119.3 300 -55 723996 5821769 389 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
MB22D003 150 101.5 265 -55 723996 5821769 389 In progress
--------- ---------- -------- ---- ----------- ------------ ------------- -------------------------
Note datum is MGA2020 Zone 54 and azimuth is magnetic north
Drilling Results (to date):
HOLEID FROM TO ASSAY NOTES*
------------------- ------------------
OL21D001 30.55m 31.00m 0.45m@0.38g/t core loss 31.0m - 31.8m
(0.8m)
------------------- ------------------ ------------------------------------------------------
OL21D002 50.65m 52.00m 1.35m@0.62g/t incl. 0.5m@1.44g/t core loss
52.0m
- 53.1m (1.1m)
------------------- ------------------ ------------------------------------------------------
OL21D002 70.40m 70.80m 0.4m@0.21g/t. core loss 70.8m - 75.7m
(4.9m)
------------------- ------------------ ------------------------------------------------------
OL21D002 75.70m 76.10m 0.4m@12.32 g/t
------------------- ------------------ ------------------------------------------------------
*All intervals are presented as apparent widths as measured in
the drill core. Where possible, core has been oriented using Boart
Longyear TruShot TM V7R7 downhole orientation tool.
All HQ diameter diamond drilling was completed by Trimac
Drilling out of Buninyong, Victoria. Assaying was competed on
half-core samples which were selected based on geological
observations made by on-site geological staff.
All half-core samples were sent to MinAnalytical Laboratory
Services Australia located in Western Australia. Gold assays were
determined using photon assay within drillhole OL22D001, and
traditional fire-assay for the remaining holes. NBGC has also
requested a 34-element suite assay be completed on all samples
utilising a four-acid digest with an ICP-OES finish which will give
further insights into the geochemical signature of the mineralised
zones intersected.
Comparison of gold results determined using photon assay vs fire
assay will be completed once all assays have been received.
Standards were submitted at a rate of 1 in approximately 30 samples
and duplicate assaying via an alternate laboratory will be done on
selected samples once initial assays are returned to further assist
in the QA/QC validation process.
Given the soft nature of the shale/slate/sandstone wall rock, in
contrast to the hard quartz comprising the veins within the main
mineralized lodes at the O'Loughlin's Prospect, core recovery has
been low; and across select areas up to several meters of the main
mineralised zone were not recovered. The core that was captured and
available to be sampled is thought to be highly underrepresenting
the nature and width extent of the mineralized zone. A link to core
photos highlighting the core loss through select mineralised zones
can be viewed at the link below.
https://www.powermetalresources.com/wp-content/uploads/2022/04/22-04-08-O-Loughlins-Prospect-Select-Core-Photo.pdf
Assays from drillhole OL21D002 confirm that coarse nuggety gold
is present and good continuity of mineralisation within the
structure is present. Discussions with drilling contractors as to
more suitable methods to increase core recovery are in progress
prior to the commencement of any further drilling.
Mt Bute Prospect
At Mt Bute, a similar genesis model to the O'Loughlin's Prospect
was originally targeted, however preliminary XRF results of
selected core intervals returned highly anomalous molybdenum and
bismuth results. The XRF results are subject to assay confirmation
however this suggests a possible relationship to the nearby Mt Bute
I-type granite and opens the possibility for additional types of
mineralisation at the prospect. This includes intrusion related
mineralisation which may be of a more recent age than previously
thought.
Considering the differing geological model now postulated, NBGC
is undergoing further investigations before additional drilling, as
the recent results demonstrate the possibility that a more
substantial target may be present at depth. These include
additional mineralogical studies, as well as reinvestigation of
induced polarisation (IP), aeromagnetic and gravity data over Mt
Bute.
O'Loughlin's Prospect
Drilling at the O'Loughlin's Prospect is targeting
'Ballarat-style' gold hosted quartz veins hosted within high-angle
shear zones. The north-south oriented zone encountered in the
drilling completed there to date has similarities to mineralised
structures observed underground at the nearby Ballarat Gold Mine.
Once all assays are received, NBGC will undertake further
geological interpretations integrating the assay results and
geological core observations, with the intention of identifying
further structurally hosted targets at the prospect.
Daylesford Exploration Licence Application (Ajax Mine) -
EL7330
NBGC recently received confirmation that the exploration licence
application has progressed through the native title assessment and
is back to Earth Resource Regulation Licensing for final approval.
It is expected that this licence will progress by mid-2022. The
progress so far does not guarantee that NBGC will be granted the
license, which remains a decision for the regulator acting in
accordance with the relevant legislation. The Ajax mine is on the
western margin of the extensive Daylesford gold camp and falls
within exploration licence application EL7330.
The Ajax mine comprises numerous shafts and workings found over
a strike of several kms, which was historically mined to over 400m
vertically. Historical production continued up in to the 1930's
producing over 300,000 ounces Au at an average grade of
approximately 12-15 g/t Au. The down dip and along strike
extensions to the main ore zones remains untested. Minor diamond
drilling completed in the 1990s intersected multiple lode
structures with results up to 5.3m of 15.2g/t Au, demonstrating the
continuity in lode structure and associated gold grades. The mine
shaft itself has been backfilled and is currently not
accessible.
Further information in respect of the Ajax mine may be viewed
the project report available on the Power Metal website through the
following link:
https://www.powermetalresources.com/wp-content/uploads/2020/10/2020-09-16-4499-EL007330-Daylesford.pdf
Work is currently under way to digitise the old workings, stope
and geology into a 3D computer model, in advance of a planned
diamond drilling campaign which is expected to commence following
grant of the license application.
New Ballarat Gold Corporation Overview
NBGC holds a strong land position comprising eleven (11) granted
exploration licences for a total area of 1,501 km(2) within the
gold fields of Victoria, Australia, principally around the mining
centre of Ballarat.
Eight (8) licences covering 827 km(2) await grant. The company
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 undeveloped by modern
explorers.
With the first tenements granted only in 2021, NBGC has already
conducted detailed exploration of its initial targets, including a
diamond drill test of two prospects starting in December 2021.
520m of drilling has been carried out at O'Loughlin's and 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 eleven (11) granted licences cover high priority areas
covering 1,501 km(2) as outlined below.
Licence Number Project Name Area (km(2)
)
Buninyong
EL007271 (renamed) 133
-------------- --------------------
EL007281 Blue Chip 74
-------------- --------------------
EL007282 Blue Sky 489
-------------- --------------------
EL007285 Blue Ribbon 8
-------------- --------------------
EL007327 Dereel 60
-------------- --------------------
EL007385 Sardinia 4
-------------- --------------------
EL007329 Kilmore 484
-------------- --------------------
Pitfield/Mt
EL007301 Bute 85
-------------- --------------------
Blue Yonder
(Announced
EL007328 today) 164
-------------- --------------------
State land - [9]
within EL007271
EL007505
-------------- --------------------
State land - [9]
within EL007271
EL007506
-------------- --------------------
Total c 1,501
(Excluding
State land
above including
in EL007271)
--------------------
Licence Applications
RRAL has applications in process for eight other new gold
exploration licence areas covering approximately 827km(2) in the
Victoria Goldfields of Australia including:
License Application Project Name Area (km(2)
Number )
EL007294 Red Queen 129
---------------- ------------
Daylesford
EL007330 (renamed) 202
---------------- ------------
EL007460 Kilmore West 325
---------------- ------------
State land
within EL007271
[8]
EL007507
---------------- ------------
EL007540*
(3 competing
applications) Outer Ballarat 142
---------------- ------------
EL007756 Monmouth 22
---------------- ------------
EL007799 Dereel (2) 3
---------------- ------------
EL007826 Ballarat East 4
---------------- ------------
Total c 827
(Excluding
State land
above including
in EL007271)
------------
* 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.
EL45/5859 Paterson 227
EL45/5885 Pilbara/Paterson 70
------------------ ----
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. Mr Holden consents
to the inclusion of the 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/ 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 Results Awaited
% or Underway
Alamo Gold USA Earn-in Excavation of Field and assay results
Project to 75% multiple test from on-site work programme.
pits and mapping
& sampling.
---------- --------- ------------------------ ------------------------------
Athabasca Canada 100% Data compilation Define next steps of
Uranium across uranium exploration.
properties
---------- --------- ------------------------ ------------------------------
Authier Canada Earn-in Soil & rock sampling Technical Review of
North Lithium to 100% completed exploration results
& define next exploration
steps.
---------- --------- ------------------------ ------------------------------
Ditau Project Botswana 50% Drill programme Field updates and receipt
focused on key & review of laboratory
targets notably assay results.
drilling of potential
carbonatites and
targeting rare-earth
elements.
---------- --------- ------------------------ ------------------------------
Kalahari Botswana 50% Exploration programme Field programme findings
Copper Belt underway across and defined drill targets
the South Ghanzi for near term drilling.
Project and further
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- --------- ------------------------ ------------------------------
Molopo Farms Botswana 53% Review of recent Determine next exploration
exploration findings. steps and action plan.
---------- --------- ------------------------ ------------------------------
Haneti Project Tanzania 35% Diamond drill Receipt & review of
programme completed laboratory assay results.
---------- --------- ------------------------ ------------------------------
Victoria Australia 49.9% Diamond drill Receipt & review of
Goldfields programme Phase laboratory assay results
I complete and target investigation
for next phase of drilling.
---------- --------- ------------------------ ------------------------------
Paterson Australia 83.33% Preparations advanced Findings from multiple
Projects for Heritage Clearance work programmes including
Survey at Wallal final approvals and
Project underway. preparations for planned
(For Phase I drill deep diamond drilling.
programme.)
Review of historical
data and target
generation for
Ripon Hills &
Braeside West
projects.
---------- --------- ------------------------ ------------------------------
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