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Power Metal Resources #POW – CEO Purchases Shares

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified that today Paul Johnson, Chief Executive Officer of the Company, purchased on market 1,000,000 ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) at a price of 1.1275p per Ordinary Share through his Self-Invested Personal Pension.

In addition, Value Generation Limited, a company a company beneficially owned by Paul Johnson, purchased on market 400,000 Ordinary Shares at 1.125p per Ordinary Share.

In total 1,400,000 Ordinary Shares were purchased at average price of 1.12678p for a total amount invested of £15,775.

Following the above purchases Mr Johnson has a beneficial interest in a total of 55,000,000 Ordinary Shares, representing approximately 7.13% of the issued share capital of the Company. 

PDMR Disclosure

The notifications below, made in accordance with the requirements of the EU Market Abuse Regulation, provide further detail on the director’s share dealing.

 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

1.  Paul Johnson

2

Reason for the notification

a)

Position/status

 

1.  Chief Executive Officer

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Power Metal Resources Plc

b)

LEI

213800VNXOUPHTX53686

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

ordinary shares of 0.1p each

Identification code

ISIN: GB00BYWJZ743

b)

Nature of the transaction

1.  Purchase of shares

c)

Price(s) and volume(s)

Price(s)

Volume(s)

1.1275 pence

1,000,000

1.125 pence

400,000

d)

Aggregated information

– Aggregated volume

1,400,000

 

– Price

1.12678p

e)

Date of the transaction

5 August 2020

f)

Place of the transaction

XLON

**Ends**

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Change of Auditor

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that PKF Littlejohn LLP (“PKF”), of 15 Westferry Circus, Canary Wharf, London, E14 4HD, have now been appointed as the Company’s statutory external auditors with immediate effect.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented “I would like to thank BDO for their services to Power Metal in recent years and also welcome PKF as the new auditors to the Company.”

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Alamo Gold Project – Arizona USA – Exploration Commences

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce that exploration work has now commenced at the Alamo Gold Project (the “Project”) in west-central Arizona, USA.

HIGHLIGHTS:

Background. 

The launch follows the successful completion of an agreement to acquire an option (the “Option”) to earn-in up to a 75% interest in the Project which was announced to the market on 22 July 2020.  This announcement may be viewed here:

https://www.powermetalresources.com/n/n221/alamo-gold-project-arizona-usa-agreement-signed

Project

The Alamo gold project is a package of mining claims covering an area of approximately 766 acres and is situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold nuggets (the “Nuggets”) near surface in numerous locations within the Project boundaries.

Exploration Objective

Investigate the source of the nugget gold mineralisation and the potential for a large mineralised gold system.

Initial Work

The Exploration team has engaged including two geologists and a local prospector to undertake a reconnaissance survey (the “Survey”) of the Project footprint.  The Survey is underway and will be completed shortly.

The Survey focus was to review the key areas where the bulk of the gold Nuggets were found in alluvium.

The reconnaissance work undertaken to date has identified further gold Nuggets near surface in the original area examined during the Power Metal site trip in January 2020 and also in an area 1,500 feet west-north-west. All gold was found in the “rotten” Precambrian Signal granite, parallel to the diabase dikes.

In addition, the reconnaissance team are reviewing the Nuggets previously found on the property to build a picture of Nugget composition and distribution, which will further assist follow on exploration. 

Next Steps

Utilise the findings of the Survey to finalise a follow-on exploration programme which is likely to be centred on geochemical sampling and project mapping and further details of which will be announced in the near term.

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented “This is an expeditious start to the exploration work at the Alamo Gold Project and I look forward to the findings of the Survey.  We intend to continue exploration work at pace, but in a disciplined manner.

Our main objective is to identify a large mineralised gold system, and along the way we will be informing shareholders of progress and key developments in what is, significantly, our first gold exploration programme.”

THE PROJECT

In Overview

The Alamo gold project is a package of mining claims covering an area of approximately 766 acres and is situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold nuggets (the “Nuggets”) near surface in numerous locations within the Project boundaries.

The geological environment supports further exploration to investigate the source of the nugget gold and the potential for a large mineralised gold system. In addition, the region in which the Project is situated is prospective for precious and base metals, with regional mines that have produced silver, lead, gold, zinc and copper.

Gold Nugget Discovery and Source Identification

The native gold nuggets at the Project occur in shallow arroyos (a steep-sided gully formed by the action of fast-flowing water in an arid or semi-arid region) and on hill-side occurrences.  The arroyos are generally shallow depressions with sediment fill of up to one metre.

We understand that circa 60 ounces of gold Nuggets have already been found on the Project area, by prospectors using metal detectors, with the largest Nugget weighing in at 5 ounces.

Nuggets have been obtained from the arroyo sediments by metal detecting and by small-scale dry washer mining methods. The composition of the nuggets is of particular geological interest in that both smooth/rounded and crystalline nuggets have been recovered, which suggests some difference in the distance of travel from their bedrock source (rounded nuggets having typically travelled some distance whereas the source of crystalline nuggets would be more proximal) pointing to potential scale and further prospectivity.

There is much debate in geological literature regarding nugget formation and there is work to undertake on the ground in Arizona to build the technical understanding of the Project including nugget identification, distribution and investigation of the bedrock source.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Shares Investor Evening Webinar

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that it will be participating in a Shares Investor Evening Webinar (‘Webinar’) in which Paul Johnson, Chief Executive Officer, will be delivering a presentation and answering questions about the Company.

The Webinar is scheduled for 6pm on Wednesday 5 August 2020 and investors wishing to view this may do so through the following registration link:

https://www.sharesmagazine.co.uk/events/event/shares-investor-evening–webinar-050820

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:

P ower Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Director and Advisor Performance Option Award

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce the grant of options to Executive Directors (“Director Options”) and the creation of an options Pool to incentivise key advisors and consultants to the Company.

The exercise price for the options granted will be 2.0p per ordinary share of 0.1 pence each in the Company (“Ordinary Share”) representing a premium of 122% to the closing mid-market share price on 29 July 2020 of 0.9p.  All options will have a three-year life to expiry from today’s date.

Executive Director Options

The Company’s Executive Directors are to be awarded 20,000,000 options over Ordinary Shares allocated as 12,500,000 to Paul Johnson, Chief Executive Officer and 7,500,000 to Andrew Bell, Chairman (the “Director Options”). The Director Options will vest immediately, and, if possible, the Director Options are to be awarded under an Enterprise Management Incentive (“EMI”) tax protective scheme. 

The Director Options will be subject to a condition that they may only be exercised when Power Metal has traded with a volume weighted average share price of 2.0p or higher for at least 6 months.

Options Pool for Advisors and Consultants to the Company

The Company has also created an Options Pool totalling options over 15,000,000 Ordinary Shares with a life to expiry of three years and an exercise price of 2.0p per Ordinary Share  (the “Advisor Options”) for distribution at the Board’s discretion to business advisors and consultants who are, or may become, key to business growth and development and have been, or may be, important to the strategic and financial positioning of the Company.

Overall Summary of Director Options

Following the above Director Option issues the overall options held by the board are:

Director

Number of Ordinary Shares under option

Terms

Andrew Bell (Chairman)

13,613,929*

7,500,000

1.0p exercise price, 1.5p hurdle before exercise, expiry 15/02/2022

2.0p exercise price, expiry 30/07/2023

Paul Johnson (CEO)

13,613,929*

12,500,000

1.0p exercise price, 1.5p hurdle before exercise, expiry 15/02/2022

2.0p exercise price, expiry 30/07/2023

Scott Richardson Brown

(Non-executive director)

5,000,000*

500,000*

500,000*

1.0p exercise price, 1.5p hurdle before exercise, expiry 19/02/2023

5.0p exercise price, expiry 28/08/2023

5.0p exercise price, expiry 28/08/2023 (vest on 28/08/2020)

Iain Macpherson

(Non-executive director)

5,000,000*

16,667*#

16,667*#

16,666*#

 

1.0p exercise price, 1.5p hurdle before exercise, expiry 19/02/2023

20p exercise price, expiry 13/10/21

30p exercise price, expiry 13/10/21

40p exercise price, expiry 13/10/21

Edmund Shaw

(Non-executive director)

5,000,000*

1.0p exercise price, 1.5p hurdle before exercise, expiry 19/02/2023. Only exercisable after 12 months service.

* Existing options

# Options held by Ongeza Mining, a wholly owned subsidiary of Madini Minerals in which Iain Macpherson has a 75% interest. Mr Macpherson has advised that the disclosure of his interest held through Ongeza should now be presented in this manner.

Total

63,277,858

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

1. Andrew Bell

2

Reason for the notification

a)

Position/status

 

1.  Executive Chairman

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Power Metal Resources Plc

b)

LEI

213800VNXOUPHTX53686

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

options over ordinary shares of 0.1p each

Identification code

ISIN: GB00BYWJZ743

b)

Nature of the transaction

1.  Issue of 7,500,000 Director Options

c)

Price(s) and volume(s)

Price(s)

Volume(s)

2.0 pence

7,500,000

d)

Aggregated information

– Aggregated volume

 7,500,000

 

– Price

2.0p

e)

Date of the transaction

30 July 2020

f)

Place of the transaction

Off market

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

1. Paul Johnson

2

Reason for the notification

a)

Position/status

 

1.  Chief Executive Officer

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Power Metal Resources Plc

b)

LEI

213800VNXOUPHTX53686

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

options over ordinary shares of 0.1p each

Identification code

ISIN: GB00BYWJZ743

b)

Nature of the transaction

1.  Issue of 12,500,000 Director Options

c)

Price(s) and volume(s)

Price(s)

Volume(s)

2.0 pence

12,500,000

d)

Aggregated information

– Aggregated volume

12,500,000

 

– Price

2.0p

e)

Date of the transaction

30 July 2020

f)

Place of the transaction

Off market

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Haneti Project: Nickel Sulphide Drill Programme Finalised

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce details of the planned confirmatory drilling programme targeting nickel sulphides at the Haneti Nickel Project in Tanzania (“Haneti” or the “Project”).

HIGHLIGHTS:

Haneti Project

The Haneti Nickel Project covers an area of approximately 5,000 km2in central Tanzania and comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold.

The main prospective belt of rocks within the Haneti Project is the linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”), which sporadically crops out over a strike length of 80 km.

Exploration Rationale

The JV partners being Power Metal & Katoro Gold Plc (“Katoro”) are to undertake a phased exploration programme to assess the potential for nickel sulphide mineralisation within the HIUC.

Confirmation of targeted geological structures and the discovery of a new nickel sulphide deposit or deposits would generate considerable commercial value for the JV partners.

Exploration work will align with and complement discussions with third parties, who have expressed interest in the Haneti Project.

Drill Programme

First stage exploration programme verifying and drill-testing potential chonolith-type nickel sulphide mineralisation within the HIUC.

A short shallow (100m) rotary air blast drill programme will seek to verify three near-surface targets ahead of a confirmatory deep (300m) diamond drilling programme.

Airborne geophysics over the wider project area will seek to delineate additional deep-seated targets.

Programme Funding

Based on the outlined drill programme the proposed Power Metal contribution is to be funded from existing working capital, and an amount covering this has already been allocated in the Company’s USD account.

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “The Haneti story is one I have been following for many years and it was a great opportunity to take a project interest for Power Metal shareholders in 2019.

We have now moved the Haneti JV forward and prepared a nickel sulphide targeting drill programme, through which we aim to advance our understanding of the geological characteristics of the Project and, potentially, make a new nickel sulphide discovery.

We are being disciplined with a two-stage drill programme using shallow rotary air blast drilling to verify the proposed targets for a follow-on deeper diamond drill programme.

The next step is a practical one, as we make preparations for the launch of the drill programme, and we look forward to announcing mobilisation which will be an exciting point for both JV partners.” 

HANETI PROJECT OWNERSHIP STRUCTURE

Power Metal currently holds a 25% interest in the Project with a 75% interest held by JV partner Katoro Gold plc (LON:KAT).

Power Metal also holds an option to increase its interest in the Project from 25%% to 35% through a payment to Katoro Gold of £25,000 by 31 August 2020.

PROJECT OVERVIEW

The Haneti Nickel Project (“Haneti”) covers an area of approximately 5,000 km2 in central Tanzania approximately 88 km north of the capital city Dodoma. It comprises tenements (prospecting licences, offers and applications) prospective for nickel, platinum-group-elements and gold.

One of the key exploration objectives for the JV partners at the Haneti Project is seeking to delineate the potential for economic nickel mineralisation in central Tanzania.

HANETI GEOLOGY AND NICKEL PROSPECTIVITY

The main prospective belt of rocks within the Haneti Project is the, linear dyke-like, Haneti-Itiso Ultramafic Complex (“HIUC”) which sporadically crops out over a strike length of 80 km and mainly comprises serpentinites (metamorphosed ultrabasic rocks such as dunite and peridotite), with metabasic rocks such as metagabbro and metadolerite.

Geologically the Haneti tenements straddle the boundary between the Archaean Dodoman Craton to the south‐west and gneisses of the Palaeo‐Proterozoic Usagaran Orogenic Complex to the northeast.

Bordering the Haneti block to the west, a new greenstone belt, the Londoni Greenstone Belt has been recognised in recent years within the Archaean Dodoman System. This greenstone geology extends southeast into the Haneti project where work on third party mining claims that occur within the Haneti prospecting licence Offer area, PLA 1162, has reported positive results.

HISTORIC EXPLORATION

The Haneti area was first explored in 1931 by a private prospector who collected a Ni‐rich magnetite sample at Mihanza Hill. Later trenching uncovered a few discontinuous green‐stained veins rich in Ni‐silicates and containing several percent nickel.

In the early 1960s the Geological Survey of Tanzania carried out mapping, pitting, soil sampling, trenching and rock chip sampling of ultramafic outcrops on the Zoani, Mindii and Mihanza hills, within the HIUC belt. 

Further geological mapping and sampling was undertaken in 2006, 2007 and in 2013.

An airborne electromagnetic (“AEM”) geophysics survey was completed over the Mihanza and Mwaka Hill anomalies in 2012 with further geophysics flown in 2015.

A study commissioned with a consultant expert in ultramafic geochemistry in 2015 identified the nickel, copper, platinum, palladium anomaly at Mihanza Hill as a drill ready target. This report suggested that the Itiso‐Haneti Ultramafic body may fit the Chonolith-Type Nickel exploration model which would imply that the main ultramafic belt may have small discrete sulphide bodies associated with it.

In 2019 a number of soil samples, collected during the 2013 exploration programme, were sent for analysis and the results confirmed the existing knowledge base and also identified a new ultramafic subcrop.

PROPOSED EXPLORATION DRILL PROGRAMME

Three preliminary target areas have been selected for exploratory diamond drilling; Milhanza Hill; Mwaka Hill; and Igari Hill, based on the recommendations of the 2012 AEM survey, the detailed field programme undertaken in 2013 and further supplementary exploration findings.

In order to maximise the chances of intersecting mineralisation, the diamond drilling will be preceded by a 20 hole programme of confirmatory rotary air-blast (“RAB”) drilling.  This phase will consist of 2,000 metres of RAB drilling consisting of two drill fences, 10 x 100 metre spaced, 100 metre deep holes.

The RAB drilling will seek to verify the existence of near surface mineralisation whilst increasing the geological understanding such that the orientation and the meterage of the follow-up diamond drill holes can be optimised to confirm the scale of potential massive sulphide mineralisation.

All RAB drill samples will be subject to multi element and base metal analysis on three metre composites with select samples analysed for platinum group elements.

The exact number and meterage of diamond drill holes will be refined by the RAB drill studies however the initial plan is for a minimum of three, 300 metre deep diamond holes.

The diamond holes are planned to provide a full intersection through the ultramafic inclusion and to provide fresh rock samples for detailed geochemical, petrographic and isotope analysis.

The aim is to identify nickel sulphide mineralisation.

In addition, an airborne Versatile Time Domain Electromagnetic (“VTEM”)  geophysics surveywith the capability to generate targets at a depth of several hundred metres, is planned, to provide coverage of a greater proportion of the Haneti Nickel Project.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support. 

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – New Investor Mailing List

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now established an online mailing list.

Investors wishing to receive copies of all market news announcements and related information by email may sign up for this through the following link:

https://www.powermetalresources.com/s/21/contact

In addition any investors wishing to contact the Company may do so by emailing info@powermetalresources.com.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “As Power Metal moves into a period of intense activity as articulated through market news announcements, we are continuing to build our investor engagement through enhanced marketing & communications work.

We consider this to be particularly important as our exploration programmes expand and news flow from our projects intensifies. Investors are invited to engage with the Company and the team at Power Metal will be happy to assist where possible.”

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW signs agreement for an option to earn-in to the Alamo Gold Project, Arizona USA

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce that following the successful completion of project due diligence, Power Metal has agreed terms to acquire an option (the “Option”) to earn-in to the Alamo Gold Project (the “Project”) in west-central Arizona, USA (the “Agreement”).

HIGHLIGHTS:

Transaction

Acquisition of an option to earn-in to the Alamo Gold Project in w est-central Arizona USA. Also, a novated earn-in agreement with the underlying property owners whereby Power Metal can earn a 50%, then 75%, ownership interest in the Project.

Strategic Purpose

Expands Power Metal operations into North American gold exploration supported by a newly formed North American Gold Advisory Committee of highly seasoned US gold professionals.

Cost to Power Metal

Staged consideration to acquire the Option to earn-in and then staged expenditure on the Project through property payments and exploration spend.

Maximum upfront commitment risk is £48,000 on the Option acquisition and year one property payments and exploration spend of circa £119,530.

Full terms outlined below including annual breakdown of costs.

Exploration Objective

Investigate the source of the nugget gold mineralisation and the potential for a large mineralised gold system.

Next Steps

Power Metal and Frisco are now finalising the initial exploration programme which is likely to be centred on geochemical sampling and project mapping and further details of which will be announced in the near term.

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented “This is a major step forward for Power Metal, giving the Company an opportunity to expand its gold project portfolio and starting a journey into North American gold interests just as the gold sector is showing exciting strength around the world.

We will start exploration soon and begin delivering project news to our shareholders in the near term.  We are seeking a major gold discovery and we need to get on with the exploration work as soon as possible.

To take this step into North America would be bold for a junior exploration company out of London, but we are working with enormously experienced partners and with the assurance of their experience captured in the form of a newly created North American Gold Advisory Committee. 

Power Metal advances at pace and we look forward to bringing more updates from the Alamo Gold Project and North America, in the near term.”

BACKGROUND

The original announcement in respect of the transaction was released on 3 December 2019 and can be viewed through the following link:

https://www.powermetalresources.com/n/n169/arizona-usa-alamo-project-opportunity  

Since the above December 2019 announcement Power Metal undertook a site visit in January 2020 and agreed extensions to the original due diligence period to provide the parties more flexibility in the face of the COVID-19 disruption.

The site visit in January was successful with nugget gold being recovered from shallow trenches on site and a fuller understanding of the Project and its potential being secured from on-site inspection and discussions with the operating team members on the ground.

During the visit it was also agreed that additional claims should be pegged to build the Project footprint immediately and ensure sufficient ground was held to cover the potentially mineralised system.  Those claims were pegged and registered with the Bureau of Land Management and County authority.

Following discussions with all parties to the transaction the original terms agreed in December 2019 have been adjusted and the final agreed terms are detailed below. Power Metal is grateful to all parties who have been supportive and commercial at all stages.

THE PROJECT

In Overview

The Alamo gold project is a package of mining claims covering an area of approximately 766 acres and is situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold nuggets (the “Nuggets”) near surface in numerous locations within the Project boundaries.

The geological environment supports further exploration to investigate the source of the nugget gold and the potential for a large mineralised gold system. In addition, the region in which the Project is situated is prospective for precious and base metals, with regional mines that have produced silver, lead, gold, zinc and copper.

Gold Nugget Discovery and Source Identification

The native gold nuggets at the Project occur in shallow arroyos (a steep-sided gully formed by the action of fast-flowing water in an arid or semi-arid region) and on hill-side occurrences.  The arroyos are generally shallow depressions with sediment fill of up to one metre.

We understand that circa 60 ounces of gold Nuggets have already been found on the Project area, by prospectors using metal detectors, with the largest Nugget weighing in at 5 ounces.

Nuggets have been obtained from the arroyo sediments by metal detecting and by small-scale dry washer mining methods. The composition of the nuggets is of particular geological interest in that both smooth/rounded and crystalline nuggets have been recovered, which suggests some difference in the distance of travel from their bedrock source (rounded nuggets having typically travelled some distance whereas the source of crystalline nuggets would be more proximal) pointing to potential scale and further prospectivity.

There is much debate in geological literature regarding nugget formation and there is work to undertake on the ground in Arizona to build the technical understanding of the Project including nugget identification, distribution and investigation of the bedrock source.

OWNERSHIP STRUCTURE – ALAMO GOLD PROJECT

The Project is currently 100% owned by Frisco Gold Corporation, Bullhead City, Arizona, USA (“Frisco”).

Frisco as property owners had agreed an Option over the Project where, in exchange for the coverage of certain annual property payments and costs expended on exploration, the Option holders could earn into a project ownership stake.  This was called a Right to Earn-in (“RTEI”).

The Option holders in this case were Joe Carrabba, a former board director of Newmont Goldcorp and Murray Nye, the CEO of Winston Gold Corp, (together the “Vendors”). 

THE TRANSACTION TERMS

Acquiring the Option to Earn-in

Power Metal will acquire the Option from the Vendors.  The Option provides a right to earn-in to up to a 75% interest in the Project by covering property payments over a four-year period and exploration expenditure over a three year period, (the “Option”) as outlined below.

To acquire the Option Power Metal is to pay the Vendors consideration of £48,000 (circa US$60,132)  (“Initial Consideration”) payable through the issue of 8,000,000 new Ordinary Shares (the “Consideration Shares”) at a price of 0.6p per Ordinary Share and to grant a warrant over 8,000,000 new Ordinary Shares (the “Consideration Warrants”) at an exercise price of 1.0p per Ordinary Share with a three year life to expiry.

The Consideration Shares shall be subject to a period of four months and one day where they may not be sold or transferred without the express written approval of the Company.  Should Power Metal shares trade at a VWAP of 1.5p or more for seven consecutive trading days, the Consideration Shares would become freely tradable.

In addition, upon earning into a 75% ownership (as outlined below) Power Metal will pay the Vendors a further US$200,000 (circa £160,000) in cash or, at the Company’s sole volition, new Ordinary shares at a volume weighted average price (“VWAP”) based on the seven trading days prior to the announcement of a 75% ownership interest (“Final Consideration”).

If Power Metal earn-in to a 75% interest in the Project the total effective cost of the Option acquisition from the Vendors will be the Initial Consideration of £48,000 together with the Final Consideration of £160,000, for a total of £208,000.

Upon acquisition of the Option Power Metal will be the operator of the Project, working in conjunction with a newly appointed North American gold advisory committee (see below) and will seek to form an operating committee with the current Project owners, Frisco.

Earning-in to the Alamo Gold Project

After acquiring the Vendors’ Option, Power Metal can earn-in to up to a 75% interest in the Alamo Gold Project by expending US$250,000 (circa £199,560) on property and final earn-in payments over a four year period and exploration spend of $850,000 (circa £678,504) over a three year period. 

The property payments and exploration spend is detailed below:

Cost Analysis

Property

Exploration

Final 75%

Annual

Payments

Spend

Payment

Total

US$

US$

US$

US$

Year 1

50,000

100,000

150,000

Year 2

50,000

250,000

300,000

Year 3

50,000

500,000

550,000

Year 4

50,000

0

50,000

100,000

Overall Total

200,000

850,000

50,000

1,100,000

 

Power Metal has agreed to guarantee to pay the Year 1 property payments of U$50,000 and first year exploration spend of US$100,000, in total US$150,000 (circa £119,530). After this commitment, Power Metal is not locked-in to any further payments on the Project.

It should be noted that during the due diligence period Power Metal paid costs of approximately US$10,754 to enable additional claims to be pegged and registered and these costs are to be offset against year one exploration spend commitment.

Should Power Metal cover year one and year two property payments and agreed exploration spend totalling US$450,000 (circa £358,392) it will earn-in to a 50% project ownership interest.

Should Power Metal continue with property payments of US$100,000 in total and exploration spend of $500,000 in total in years three and four it will earn-in to a 75% interest in the Project subject to a final earn-in payment of US$50,000.

If either party does not contribute in line with their percentage ownership they will dilute their ownership percentage in line with a standard industry dilution formula.

Overall Transactional Cost Analysis

Assuming a full earn-in to a 75% interest in the Project the following payments, in cash or shares as outlined above, will be as follows:

Cost Analysis

V endor

Option

Property

Exploration

Final 75%

Annual

Payments

Payments

Spend

Payment

Total

US$

US$

US$

US$

US$

Year 1

60,132

50,000

100,000

210,132

Year 2

50,000

250,000

300,000

Year 3

50,000

500,000

550,000

Year 4

200,000

50,000

0

50,000

300,000

Overall Total

260,132

200,000

850,000

50,000

1,360,132

FORMATION OF A NORTH AMERICAN GOLD ADVISORY COMMITTEE

As part of the transaction the Vendors will join a newly formed North American Gold Advisory Committee (“NAGAC”).  The respective experience of the Vendors in both operating and developing mining projects through all phases of the development curve, as outlined below, will prove valuable when assessing how best to augment value in the Alamo Project and the consideration of further new gold opportunities in North America.

In addition, the NAGAC will also be joined by Joe Bardswich, a Professional Engineer, based in Arizona, with extensive experience of all facets of mining.

Background to NAGAC Members:

Joe Carrabba

Mr Carrabba is a seasoned mining executive, who has held senior positions in the industry including as a director of Newmont Goldcorp Corp and as former President and Chief Operating Officer of the largest independent iron ore producer in the U.S., Cliffs Natural Resources Inc. 

Murray Nye  

Mr Nye has extensive experience in international corporate finance and currently serves as the Chief Executive Officer of Winston Gold Corp (CSE: WGC). Prior to Winston, Mr Nye was the former CEO of RX Exploration Inc. (“RX”) where he brought the historic Drumlummon Gold/Silver mine back into production. During Mr Nye’s tenure, the market valuation of RX increased from a base of circa $1.5m to circa $80m

Joe Bardswich

Mr Bardswich is Director and President of Golden Vertex Corporation and is a Professional Engineer in the Province of Ontario, a life member of the Canadian Institute of Mining and Metallurgy (CIM) and is a ” Qualified Person” as defined in NI 43-101 standards for Mineral Disclosure.

OPTIONS AWARD TO ADVISORY COMMITTEE MEMBERS

Power Metal will award warrants over 2,500,000 new Ordinary Shares to Joe Carrabba, Murray Nye and Joe Bardswich respectively (7.5 million “Committee Warrants” in total).

The Committee Warrants will be awarded for advisory committee services for the period ended 31 December 2020 and will be exercisable at 1.0p per new Ordinary Share and have a life to expiry of three years.  The Committee Warrants may however only be exercised if the share price of Power Metal exceeds a VWAP of 1.5p for seven consecutive trading days.

NEXT STEPS

Following the above Agreement Power Metal and Frisco are now finalising the initial exploration programme, which is likely to be centred on geochemical sampling and project mapping and further details of which will be announced in the near term.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 8,000,000 Consideration Shares to be admitted to trading on AIM which is expected to occur on or around 28 July 2020 (“Admission”). Following Admission of Consideration Shares, POW’s ordinary issued share capital will comprise 771,216,542 ordinary shares of 0.1 pence each.

This number will represent the total voting rights in the Company, and following Admission, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Power Metal Resources #POW – Conversion of Kavango Resources Loan Notes

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce that the Company has now converted its loan notes in Kavango Resources plc (“Kavango”)(LON:KAV) into new ordinary shares of 0.1 pence each (the “Kavango Shares”).

BACKGROUND

On 15 April 2020, Power Metal announced a Conditional Acquisition – Botswana, centred around a transaction to acquire a 51% ownership interest in the Ditau Camp project held outright by Kavango.  This announcement may be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/n/n189/conditional-acquisition-botswana

Within the conditional acquisition agreement signed with Kavango, and in parallel, Power Metal subscribed £38,000 to a convertible loan note (“Kavango CLN”) as outlined in the announcement.

CONVERSION NOTICE

Power Metal has today served a notice to convert its entire £38,000 Kavango CLN into 4,750,000 new ordinary Kavango Shares at a conversion price of 0.80p and equating to 2.46% of Kavango’s issued share capital following this conversion.

Power Metal will under the terms of the Kavango CLN agreement be issued with warrants to subscribe for a further 4,750,000 new ordinary Kavango Shares at an exercise price of 1.0p and with a three year life to expiry to 21 April 2023, (the “Kavango Warrants”).

The Kavango Warrants contain an early exercise provision so that should Power Metal exercise any of its Kavango Warrants within one year of 15 April 2020, a replacement warrant will be issued to subscribe for a further new ordinary Kavango Share of 0.1p each at a price of 2.50p, also expiring three years from 21 April 2020.

DITAU CAMP DUE DILIGENCE

Power Metal and its technical team continues to work with Kavango in relation to the conditional acquisition of a 51% ownership interest in the Ditau Camp project in Botswana and further updates will follow as appropriate.

CHIEF EXECUTIVE OFFICER STATEMENT

Paul Johnson, Chief Executive Officer of Power Metal Resources commented: “The share price of Kavango has moved up a little since the April 2020 transaction which is positive, however we remain of the view that the market has yet to fully appreciate the size and potential of their projects in Botswana, which is a superb jurisdiction for resource exploration juniors.

We will continue to watch the wider Kavango story unfold whilst working on Ditau Camp project due diligence.” 

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale discovery of precious or base metals.

The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania.  The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive metals exploration.

Power Metal Resources #POW – Australia Gold JV – Blue Ribbon Project Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the Blue Ribbon project, (“Blue Ribbon”, the “License” or the “Tenement”) one of eleven license applications within its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:  “I am pleased to launch the first report from the review of historical exploration data, in this case in respect of the Blue Ribbon project.

Despite being one of the smaller projects, the historical review has highlighted some significant findings ranging across 70,000 ounces of historical gold production, gold nuggets up to 85 ounces and pre planned drill targets from earlier exploration work conducted by previous license holders.

We are particularly excited by this project, given the information provided below, and the prospect after license grant of the finalisation of drill targets.”

BACKGROUND

RRAL has commissioned historical reports and targeting assessments of its 11 license applications, and the first of these, for the Blue Ribbon license application (EL007285), has been received.  The License is 5km north of the Ballarat East Mine.

In its announcement of 4th May 2020 the Company stated that detailed information and references for the license applications would be set out, once received, on the Company’s website, and the information below will shortly be posted there.

KEY POINTS FROM REPORT

·The historical records show reported historical production of 70,000 ounces of gold over 2km of the Deadhorse Lead within the Blue Ribbon project area, all in 19th century;

· Six gold nuggets between 10 and 85 ounces were recorded from the workings of the Ballarat Extension Company on the Blue Ribbon project area;

· The primary exploration target is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the Tenement;

· Next exploration steps include finalisation of drill targets and implementation of a three hole, 1000m drill program, subject to license grant and local approvals;

· Blue Ribbon is now a priority project for RRAL.

FURTHER INFORMATION

The term “Lead” in the report below refers to a gold-bearing alluvial deposit in a terrace or stream bed; and a “Deep Lead” to ancient alluvial deposits buried below non-gold bearing strata.

The Company is preparing a detailed glossary of exploration terms which will be uploaded to a new Technical Library section on the powermetalresources.com website by the end of July 2020.

The report runs as follows:

“License Application EL007285- North-West of Ballarat

 

Tenement ID

Local ID

Size (km2)

Mapping Sheet (1:100,000)

Municipality

Current Status

EL007285

NW Ballarat

8

Ballarat

Ballarat

Application

1.1.1.  Regional Geology

EL007285 is located within the Bendigo – Ballarat Zone of the Lachlan Fold Belt. The Bendigo Zone has an average width of 100km and extends between the Avoca and Mt William Faults.

The basement stratigraphy of the Tenement area consists of folded N-S striking (result of E-W compression) interbedded turbidite deposits of sandstone and siltstone of the Ordovician Castlemaine Group. (Taylor et al. 1996)1. These sediments carry a pervasive north-south foliation. (Horwood, 2011)2.

1.1.2.  Local Geology

The Ordovician rocks are mostly concealed by Newer Volcanics with minor Pliocene colluvial. The only exposure of Ordovician sediments on the Tenement occurs in the far eastern portion of the Tenement and are typical of those in the Ballarat field. Multiple Cainozoic basalt flows have buried deep leads.

A graphitic slate zone (Black Slate) occurs throughout the Ballarat West line and is essentially the only significant lithological unit that can be extrapolated with confidence across this line. This zone is not observed on the Ballarat East line.

The black slates of Ballarat West is a zone varying in thickness from 22m to 44m, and consists of series of graphitic, dolomitic and pyritic black slates, pyritic mineral seams, laminated quartz lodes, crushed quartz and sandstones.

The lode generally occurs close to the lowest black slate member in the zone, although two parallel lodes have been worked on laminated quartz in several mines including the South Star and New Kohinoor.

Being directly associated with the lode, the black slates have been well recorded in most historical texts and workings and also in recent drill holes where they occur, although in some mines including the Sir Henry Loch, the entire zone has not been fully exposed in development.

1.1.3.  Mineralisation

The northern extension to the Ballarat West Goldfield is projected to occur in the eastern portion of the Tenement.  The mineralisation in this field is characterised by laminated quartz reefs hosted within black slate beds containing bedding parallel shears confined to west dipping fold limbs. The thrust faults controlling this system extend locally across the fold hinges into the east-dipping limbs as dilatant jogs within which quartz-vein stockworks (tension vein arrays) were mined. (Horwood, 2011)

Several west draining deep leads occur in the central area of the Tenement and are typical of those found in the Ballarat field.

1.1.4.  Mining History/Production

The Deadhorse Lead produced 70,000 ounces of gold over 2 km (Chintock, 2008)3 of strike length downstream from the where the lead crosses the projected northerly extension of the Ballarat West goldfield.

Refer to Figure 1 – Ballarat West Goldfield and target position through the following link:

https://www.powermetalresources.com/p/215/ballarat-west

Individual deep lead mine production from the major mines on the Tenement is listed in Table 1. Numerous small mines located on the Tenement are lacking individual production records.

Table 1- Major mine production from EL007285

Mine

Production (Oz)

Ballarat Extension

21,396

Rose Hill GM

17,137

Great Northern Junction

6,233

Nil Desperandum Co

3,595

There is no record of primary gold production on the Tenement.

The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14 grams per tonne. A further 6 million ounces of gold is estimated to have been won from the ancient river channels which cross the field. (D’Auvergne, 1998)4.

1.1.5. Nearby Mining Activity

The Ballarat Gold Mine is currently mining the Ballarat East line, 5 km’s south of the Tenement.

1.1.6. Exploration History

No exploration has been completed on the Tenement since the 19th century short of data collation and target generation.

1.1.7. Exploration Strategy

The primary target on this Tenement is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the Tenement.

This target is only 4 km north of the main Ballarat West field and 2 km north of its northernmost mined quartz reef – the projected Ballarat West field would fall within the Tenement over the zone considered to be the main target area based on palaeoplacer gold occurrences.

In order to define this target, the following processes should be considered:

· Investigate drainage channel directions to narrow the zone where the gold originated from.

· Review and interpret magnetic images to potentially interpret structures masked by the basalt.

Other information to note:

· Six gold nuggets between 10 and 85 ounces were recorded from the workings of the Ballarat Extension Company and are unlikely to have travelled far from their source. (Chintock 2008)

· Quartz veining was been recorded in several palaeoplacer mines on the Tenement.

It is recommended that diamond drilling be used once the base of the basalt has been reached to allow the position within the fold sequence of the Ballarat field to be determined. The lodes of Ballarat West and for some-part Ballarat East are lithologically controlled.

This area remains relatively undeveloped in regard to residential development, allowing the potential to establish multiple drill platforms.

Budget

Drilling- Once target is finalised, a 1000m drill program consisting of 3 individual holes would cost approximately A$150,000 including mobilisation and associated drilling costs.”

Taylor D.H., Whitehead M.L., Olshira A and Leonard J.G. 1996. Ballarat 1:100,000 map geological report 101, Geological Survey of Vistoria

Horwood D.J., 2011. Oroya Mining Ltd EL 4943, Ballarat North Project, Annual Report for the period ending 31 December 2011.

G. Chintock, 2008. Annual Report to Dept of Primary Industries, VIC for EL 4943.

D’Auvergne P, 1996. Ballarat Goldfields Pty Ltd. EL 3018, Ballart Gold Project, Annual Report for the period ending 31 December 1998. 

 

Competent Person Statement

The technical and related information in this report relates to exploration results based on information from third parties and data compiled by David Sharp, BAppSci, MAIG, who is a member of the Australian Institute of Geoscientists.

Mr Sharp has sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Sharp consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Sharp is a Senior Geological Consultant at Oreteck Mining Solutions, Melbourne.

 

FURTHER INFORMATION:

Joint Venture Company – RRAL

RRAL is a joint venture company 49.9% owned by POW and 50.1% by Red Rock Resources plc (LON:RRR). Paul Johnson, CEO of POW and Andrew Bell, Chairman of RRR and POW, are directors of RRAL.

RRAL has lodged applications for eleven new gold exploration license areas covering 1,839 sq km in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (sq km)

EL007271

Blue Whale

133

EL007281

Blue Chip

74

EL007282

Blue Sky

489

EL007285

Blue Ribbon

8

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007385

Sardinia

4

Total

1,839

ONLINE MAP

Readers wishing to view the current application footprint may do so through the following link to the POW website: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 company seeking a large scale discovery of precious or base metals.

The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania.  The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive metals exploration.

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