TIDMPOW
RNS Number : 6310Y
Power Metal Resources PLC
05 May 2023
5 May 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Victoria Goldfields Australia - Berringa Drilling Results
Assay Results Return Gold from all Drillholes; Confirms Down-Dip
and Along-Strike Extension of Mineralised Quartz Reefs
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces an exploration update from
the Company's Berringa Gold Mine Project ("Berringa" or the
"Project"), which forms part of the Victorian Goldfields
joint-venture ("JV") located in Victoria, Australia.
On 15 March 2023 the Company issued an update regarding the
completion of the 2022/2023 drilling campaign at Berringa. The link
to this announcement can be found below:
https://www.londonstockexchange.com/news-article/POW/victoria-goldfields-australia-drilling-update/15877022
HIGHLIGHTS:
Programme Highlights Explanation
Drilling Overview The Diamond Drilling programme consisted
of 988 metres in six drillholes, four of
which encountered visible gold mineralisation.
----------------------------------------------------
Extensive Gold Confirmed All drillholes returning gold mineralisation
in laboratory assay test results.
Multiple gold (Au) mineralised intersections
were encountered including drillhole BE23D002
which returned 5.2m at 2.38g/t Au including
0.2m at 34.76g/t Au, and BE23D006 which
returned 3.5m at 5.43g/t Au including 0.7m
at 23.9g/t Au.
----------------------------------------------------
The "Nugget Effect" Variability in grade was experienced due
to "nugget effect" typical of the area,
and this led to changes in the sampling
protocol. Additional drilling will be needed
to determine a representative grade.
----------------------------------------------------
Key Objectives Met Key objectives of this drill programme
have been met with drilling successfully
intersecting the down dip and along strike
extensions of previously mined Berringa
gold mineralised quartz reefs. As the gold
is hosted in the quartz reef the identification
of a larger volumes of quartz reef is a
positive development.
----------------------------------------------------
Extensive Quartz The final drillhole (BE23D006) intersected
Reef Confirmed in a more than 30-metre-wide quartz reef intersection
Final Hole approximately 100 metres east of the main
Berringa line of workings. The hole was
ended while still in mineralisation and
so is open at depth.
----------------------------------------------------
Next Steps The programme has enabled the partners
to gain a better understanding of the structure
of the historic Berringa gold mine and
this work will be further advanced as the
results continue to be analysed and related
to historical data. The partners will then
announce the next phase of exploration.
----------------------------------------------------
Sean Wade, Chief Executive Officer of Power Metal Resources PLC
commented:
"It is very pleasing to be able to report another good set of
drill results, which clearly show us meeting our key objectives. We
have added substantial value to the project through this programme,
in particular a significant improvement in the structural
understanding of Berringa. Nugget gold, whilst extremely exciting,
is hard to establish with limited drilling and an enhanced
programme will be needed to establish a reliable grade. It has long
been our intention to fund such further exploration through an IPO,
and this set of results allows us to set about that intention with
renewed vigour."
FURTHER INFORMATION
Highlight Assay Results
Hole ID Hole Length Interval (Au) Incl.
(m)
BE23D001 431.5 1.4m @ 0.25g/t from 381m
----------- ---------------------------- -----------------
0.3m @ 0.83g/t from 389.45m
----------- ---------------------------- -----------------
0.2m @ 3.61g/t from 421m
----------- ---------------------------- -----------------
BE23D002 107.4 5.2m @ 2.38g/t from 0.25m @ 34.76g/t
88.9m
----------- ---------------------------- -----------------
BE23D003 119.5 1.7m @ 1.89g/t from 105m 0.25m @ 8.74g/t
----------- ---------------------------- -----------------
1.65m @ 0.88g/t from
111m
----------- ---------------------------- -----------------
BE23D004 77.4 0.9m @ 0.86g/t from 2m
----------- ---------------------------- -----------------
1m @ 0.54g/t from 39.4m
----------- ---------------------------- -----------------
BE23D005 94.8 0.4m @ 0.62g/t from 73.6m
----------- ---------------------------- -----------------
BE23D006 158.1 0.7m @ 1.5g/t from 130.4m
----------- ---------------------------- -----------------
3.5m @ 5.43g/t from 0.2m @ 23.9g/t
133m
----------- ---------------------------- -----------------
4.9m @ 1.09g/t from
140m
---------------------------- -----------------
3.9m @ 1.62g/t from 0.7m @ 7.49g/t
153.6m
----------- ---------------------------- -----------------
Programme Overview
Drill programme assay results from the Company's inaugural
diamond drilling campaign at its historical Berringa mine Project
located in Victoria, Australia, have confirmed extensions of gold
mineralised lodes within the main reef systems.
The limited programme was specifically designed to test three
potential sites for further evaluation and has exceeded
expectations with visible gold identified in 4 of the 6 holes
drilled.
All targets tested have proved the mineralised quartz lode
systems are continuous and open down plunge and along strike. All
zones require further diamond drilling to build on the early
success and work towards possible Resource definition.
Gaining access to the mine through an historical adit has also
become a high priority to enable a bulk sampling of the Berringa
syndicate lode for preliminary metallurgical test work. This will
accelerate the process to recommence gold mining at the historical
mine site. This work is ongoing subject to regulatory requirements
and approvals from the State Government regulator.
Geological Interpretations
South Birthday Zone - Drillhole BE23D001
A single long drillhole, BE23D001, was completed targeting a
possible extension of the west-dipping lode in the South Birthday
Zone, and investigating possible similarities with the reef system
currently mined at Ballarat 20km to the east. BE23D001 successfully
intersected a fault structure of approximately 9 metres in width
which extends the west dipping lode over 50 meters further down
plunge from the last known stope.
Geological logging of the core identified predominantly massive
quartz veining with sphalerite, galena, pyrite and minor
arsenopyrite. The quartz reef has a hanging wall contact marked by
a laminated quartz vein and overall the lode closely resembles the
Ballarat mine reef system.
The hole ended in sandstone and not the expected black shale,
and computer modelling based upon detailed lithological core
logging will assist in determining where and at what depth the
historically gold rich intersections typically found within black
shales may sit in the South Birthday Zone.
Berringa Syndicate Zone - Drillholes BE23002 & BE23003
Near the centre of the licence area, located approximately 1.5km
north of BE23D001, drilling at the Berringa Syndicate Zone, which
historically produced at 7-8 g/t, returned positive results
including minor fine visible gold within a well-defined lode
structure.
This unmined zone was identified in the late 1980s from sampling
in underground drives and adits with BE23002 and BE23003 being the
first drillholes to test this zone. Downhole quartz vein
intersections included intervals of 9m and 14m with abundant quartz
near the footwall and hanging wall contact.
Kangaroo Zone - BE23004, BE23005 & BE23006
Located due east of the Berringa Syndicate Zone, the Kangaroo
Zone was tested by drillholes BE23D004,005 and 006. This
underexplored lode system has no surface expression.
Identification of a potential mineralised reef was made from an
old plan map of underground workings. Only a single crosscut pushed
from the historical Kangaroo mine towards the east which
successfully intersected a mineralized structure. It is unclear if
any stoping took place.
BE23004 and BE23005 drill tested the northern extension of the
possible structure with BE23004 potentially intersecting a
cross-course fault which appeared to have offset mineralisation.
BE23005 also pierced the cross course in a different position but
has struck part of a lode structure on the north side of the fault.
It is possible that the estimated location of the underground
workings was not yet exact so that drilling may have passed over
the top of the lode. Further geological work on the lithological
core logging will help to refine the positioning and identify
optimal locations on the east lode for future drilling.
Drillhole BE23006 exceeded expectations, intersecting a broad
(over 30m apparent width) mineralised quartz reef structure that
had not been known containing minor arsenopyrite, galena,
sphalerite. Visible gold was also identified in the hanging wall
contact. Initial interpretation suggests the mineralised zone may
be closer to the west than previously considered, and the drilling
may have intersected a saddle reef not previously mined.
This supports the inference of a second (parallel) line of
mineralization to the east of the main Berringa line and has
substantially increased the prospectivity of the Berringa property
overall.
Next steps
Currently the technical team is completing detailed review of
all new drillhole data including inputting all geological and
structural data into 3D modelling software. Next steps will be
determined in due course and the market will be updated once plans
have been finalised.
JOINT VENTURE STRUCTURE
The JV is held between Power Metal (49.9%) and its partner,
London-listed Red Rock Resources PLC (50.1%) (together the "JV
Partners").
NBGC has a wholly owned Australian operating subsidiary Red Rock
Australasia Pty Ltd ("RRAL") which holds a strong land position
comprising seventeen granted exploration licences and one purchased
licence for a total area of 1,867km(2) within the prolific
Victorian Goldfields of Victoria, Australia, principally
surrounding the mining centre of Ballarat, Australia.
In addition, 2 licences covering 467km(2) await grant. The JV
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 underexplored by modern
explorers.
The JV Partners have the intention of listing the JV company
NBGC and will make further announcements as appropriate.
GLOSSARY
Arsenopyrite: iron arsenic sulphide (FeAsS), a sulphide mineral
found in hydrothermal veins and often an indicator of gold
presence
Fire assay: the industry standard method of obtaining gold data
from high grade ores by heating a sample in a furnace to separate
the gold from other materials present
Galena: the natural mineral form of lead sulphide (PbS)
typically found in hydrothermal veins
KCN bottle roll: an industry standard test for assessing gold
recovery possible by cyanide leaching using potassium cyanide
(KCN)
Lode : a deposit of metalliferous ore that fills or is embedded
in a fissure in a rock formation or a vein of ore that is deposited
or embedded between layers of rock, generally formed by deposition
from hydrothermal solutions
Pyrite : iron disulphide (FeS2), the primary iron sulphide and
most abundant sulphide mineral, generally found in association with
other sulphides and found in hydrothermal quartz veins and other
environments
Sphalerite : the primary zinc sulphide ((Zn, Fe)S) found in
association with other sulphides in a variety of deposit types
QUALIFIED PERSON STATEMENT
The technical information in this report is compiled by David
Holden, BSc, MBA, MEM, who is a member of the Australian Institute
of Geoscientists and the Executive Officer and Exploration Manager
of RRAL. He is a member of a recognised professional organisation
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/ or contact:
Power Metal Resources plc
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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.
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