TIDMPOW
RNS Number : 4563J
Power Metal Resources PLC
13 December 2022
13 December 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Drill Programme Begins at Historic Berringa Gold Mine
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces a diamond drill programme
has commenced at the historic Berringa Gold Mine ("Berringa" or the
"Project") held within the Company's Victoria Goldfields joint
venture ("JV").
HIGHLIGHTS:
-- Diamond drill rig has mobilised to site and drilling has
commenced at the historic Berringa former high-grade producing gold
mine in the Victoria Goldfields.
-- 1,000 metres of diamond drilling planned with an estimated 5
drill holes into 3 priority targets to test for the extensions of
gold mineralisation in proximity of previously mined areas.
-- Expedited assay testing arrangements in place with batch
sampling process expected to deliver first gold focused assay
results in early 2023.
-- A video showing the planned drill programme may be viewed
through the following link:
https://www.youtube.com/watch?v=825WYdDVdyQ
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented:
"This is a notable moment for our joint venture focused on the
Victoria Goldfields of Australia with diamond drilling to test
three priority targets at the historic Berringa Gold Mine.
At Berringa there has been 293,250 ounces of historical high
grade gold production and we believe there may be a considerable
remaining gold endowment which this drill programme is designed to
partly investigate.
It is common for exploration companies to start from ground up
with grassroots exploration. In our Victoria Goldfields JV, we are
far further up the progress and value curve and are now drilling to
test for the along strike and down dip extensions of previously
mined out high-grade mineralised gold lodes."
BACKGROUND
Acquisition of exploration licence ("EL") EL5535 (the
"Acquisition"), covering the footprint of the Berringa was
announced on 22 September 2022 and may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/acquisition-complete-berringa-gold-mine/15640720
The JV is in the process of renewal for licence EL5535 seeking a
5-year exploration licence period with effect from 16 November
2022.
Background to the Acquisition, including the historical
production from Berringa of 293,250 ounces of gold at 8.3g/t, and
conceptual (but unproven) exploration targets totalling up to
2.91million ounces of gold was included in the Company's
announcement of 6 July 2022 which may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927
A map highlighting the location of Berringa may be seen on the
Company's website through the following link:
https://www.powermetalresources.com/berringa-map-2/
Diagrams, images and videos from the Victoria Goldfields will be
available on the Company's website through the following link:
https://www.powermetalresources.com/investors/gallery/VictoriaGoldfields-australia/
Further information in respect if the JV and the Victoria
Goldfields interests may be viewed on the Power Metal website
through the following link:
https://www.powermetalresources.com/project/victoria-goldfields/
DRILL PROGRAMME FURTHER INFORMATION
Approximately 1,000m of diamond drilling is to be undertaken at
Berringa by the JV drilling contractor, Trimac Drilling Pty Ltd
based out of Ballarat, Victoria.
An estimated 5 drill holes are planned, with an average depth of
200m per hole which are designed to test three priority gold
targets which are outlined below.
South Birthday:
The South Birthday and Birthday mines at Berringa had the most
consistent mineralisation within what is known as the Birthday
Reef. This Reef consists of a laminated 1-2m quartz lode located
within a black shale unit rolling from the west limb into the east
limb of a main anticline. This mineralisation remains open to the
south and planned drilling is designed to test for the southerly
plunge of the Birthday Reef below the historical workings of the
previously mined lode.
Berringa Syndicate:
Targeting a previously identified non-JORC compliant resource at
the Southland mine to confirm the potential grade and tonnage
identified by the Berringa Syndicate in the 1980s. Here, drilling
will be targeting the downdip mineralisation potential of the
Kangaroo quartz reef found within the eastern limb of the main
anticline.
Kangaroo East:
Previous mining at the Kangaroo Mine identified a secondary
parallel reef named the Big Reef which is located east of the main
Kangaroo shaft. The Big Reef is a laminated quartz reef hosted
within a black shale on the western limb of the eastern anticline.
The drill target will test for the along-strike extension of the
Big Reef. The successful drill testing of this lodes along strike
extension could lead to further exploration opportunities of this
lode throughout the entire Berringa goldfields.
The first drill location has been prepared and the drill rig has
mobilised to site and commenced drilling.
Arrangements have been made with local accredited assay
laboratories for gold focused assay testing with expedited
turnaround on a batch sampling basis. Subject to the pre-Christmas
drilling timetable, first assay results are expected in early
2023.
FURTHER PROJECT WORK
In parallel with drilling, the JV is currently investigating the
potential to excavate and open a buried entrance to Berringa. If
deemed to be possible, the reopened adit would provide access to
the Berringa shaft sub-surface.
The JV is in ongoing discussions regarding the possibility of
processing ore at the nearby Ballarat Gold Mine (located
approximately 25km away), should the JV discover and develop an
economic gold deposit. This arrangement would dramatically reduce
both the mine build-out time horizons and heavy capital
requirements for building a new standalone processing facility.
JOINT VENTURE STRUCTURE
The joint venture ("JV") is held through New Ballarat Gold
Corporation PLC ("NBGC"), which is focused on the prolific
Victorian Goldfields of Australia. 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 15 granted exploration licences for a total area of
1,841km(2) within the gold fields of Victoria, Australia,
principally around the mining centre of Ballarat.
In addition, 5 licences covering 493km(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.
The JV Partners retain the intention of listing the JV company
NBGC and will make further announcements as appropriate.
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
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.
Exploration Work Overview
Power Metal holds a number of priority exploration projects with
active exploration underway currently. The status of each project
is outlined in the table below:
Project Operations POW Project Status
%
Athabasca 12 properties 100% Exploration programmes undertaken
Uranium covering an across three properties during summer
area of 842km(2) 2022 and preliminary planning for
in the Athabasca work in Spring/Summer 2023 is ongoing.
Basin region Desktop review work ongoing across
Canada. the existing portfolio and data rooms
established for all the projects,
to enable third party review of opportunities
for potential acquisition, joint
venture or earn-in.
Ongoing review of new opportunities
to further expand the Company's Athabasca
uranium property exposure.
------------------- ------- -------------------------------------------------
Molopo 3 prospecting 87.71% Currently a 2,600m diamond drill
Farms licences covering programme is underway with a planned
Nickel 1,723km(2) 5-6 holes targeting four previously
- PGMs in south-west identified magnetic conductors prospective
Botswana for Nickel - Platinum Group Metals.
2 drill holes at target conductor
T1-6 and one at T1-14 have been completed
and drilling at target T1-3 target
is underway currently.
Downhole geophysics completed at
DDH1-6A and underway at DDH1-14B.
Further Moving Loop Electro-Magnetic
surveys are planned over additional
Airborne Electro-Magnetic targets
identified, to develop further drill
targets.
------------------- ------- -------------------------------------------------
Tati Botswana 100% Reverse Circulation drilling and
Project soil sampling has confirmed high-grade
Gold - and bonanza grade gold mineralisation
Nickel across a gold-in-soil anomaly extending
for 8km across the Company's prospecting
licences.
Next stage exploration plans are
currently under development.
Sampling of fines dumps, representing
waste material from the Cherished
Hope gold mine on the project has
confirmed circa 1g/t gold and suitability
of the fines dumps for processing
to extract gold and generate income.
Preparations for the fines dumps
processing are advancing.
------------------- ------- -------------------------------------------------
Exploration work programmes may also be underway within Power
Metal investee companies and planned IPO vehicles where Power Metal
has a material interest, the findings from which will be released
on their respective websites, with simultaneous updates through
Power Metal regulatory announcements where required. These
interests are summarised in the table below:
Company Operations Status POW Further Information
% Link
First Exploration Listed 27.91% www.firstclassmetalsplc.com
Class in the Schreiber-Hemlo Investment
Metals region of Ontario,
PLC Canada
------------------------ ------------ ---------- ---------------------------------------------------
Kavango Exploration Listed 9.85% www.kavangoresources.com
Resources in Botswana Investment
PLC
------------------------ ------------ ---------- ---------------------------------------------------
First Exploration Planned 62.12%* www.firstdevelopmentresources.com
Development in Western Australia IPO
Resources and the Northern
PLC Territory of
Australia
------------------------ ------------ ---------- ---------------------------------------------------
Golden Exploration Planned 83.13% www.goldenmetalresources.com
Metal and development IPO
Resources in Nevada, USA
PLC
------------------------ ------------ ---------- ---------------------------------------------------
New Ballarat Exploration Planned 49.9% New website under development
Gold PLC in the Victoria IPO which can be found at
Goldfields of www.newballaratgoldcorp.com
Australia .
In the interim further
information in respect
of NBGC can be found
at:
https://www.powermetalresources.com/project/victor
ia-goldfields/
.
------------------------ ------------ ---------- ---------------------------------------------------
Uranium Uranium exploration Planned 50-55%() www.uraniumenergyexploration.com
Energy in the Athabasca IPO
Exploration region of Canada
PLC
------------------------ ------------ ---------- ---------------------------------------------------
(*) reducing to 58.59% on issue of equity for NSR buyout
announced 5.12.22.
() subject to completion of disposal of Reitenbach and E-12
properties, announced on 8.8.22 and 4.11.22, respectively.
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