Power Metal Resources #POW – Strategic Uranium Opportunity
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the acquisition by claim staking of four 100% owned uranium exploration properties (the “Properties”) comprising 7 licences surrounding the Athabasca Basin, located in northern Province of Saskatchewan, Canada.
The claim staking was completed through Power Metal’s wholly-owned Canadian subsidiary, Power Metal Resources Canada Inc (“Power Canada”).
The Properties
The four 100% owned Properties cover a combined 10,869-hectares (109km2) giving Power Canada a strong foothold in the prolific Athabasca Basin (for property details see table 1 below).
The properties include the Clearwater Uranium Property (“Clearwater”); Tait Hill Uranium Property (“Tait Hill”); Thibaut Lake Uranium Property (“Thibaut Lake”); and the Soaring Bay Uranium Property (“Soaring Bay”).
The Location
All four Properties are surrounding the prolific Athabasca Basin, in northern Saskatchewan, Canada which is home to some of the world’s largest and highest grade uranium mines including Cameco Corporation’s Cigar Lake and McArthur River Uranium Mines.
Saskatchewan was recently ranked the 3rd best mining jurisdiction in the world in Fraser Institute’s 2020 rankings.
The Staking Process
The Properties were staked after detailed analysis of several provincial geological databases including airborne magnetics, government bedrock mapping, as well as publically available assessment report files and the mineral deposits index (a database of 6143 unique localities throughout the province with known mineral occurrences, separated by commodity).
The claims have been registered with the Mineral Administration Registry Saskatchewan and the total cost of claim staking was C$6,521. The claims are valid for 2 years and there is no minimum spend commitment required.
As the Properties were acquired through staking, Power Canada will have a 100% interest with no outstanding royalties or encumbrances.
Power Canada Rationale
The acquisition of the uranium exploration interests announced today continues to build upon Power Canada’s strategic energy metal business which is currently highlighted with our Authier North project comprising a strategic land holding immediately north of Sayona Mining Limited’s Authier Lithium project located in Quebec, Canada.
A further update is expected shortly from our Authier North property with respect to the commencement of an inaugural ground exploration programme.
The Commodity
Uranium is an important global commodity as it plays a crucial role in nuclear power generation, widely considered to be a efficient ultra low-carbon alternative to traditional thermal coal power generation, and there has for some time been a building supply/demand dynamic in the uranium commodity market, meaning a diversified natural resource business such as Power Metal, should consider participation.
Recent tightening of the spot U308 futures market has led to a significant increase in spot price up to a high of 44.9$/lb USD, representing a greater than 40% increase compared to mid-August 2021.1
The recent accelerated interest in the sector caused Power Metal, through Power Canada, to act quickly to secure its strategic position.
1 https://markets.businessinsider.com/commodities/uranium-price
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“Power Metal has been reviewing uranium opportunities across three different continents for some time, and today we make our first important public step into the uranium commodity space.
The Properties have been selected after careful review and are strategically located where there is material evidence of uranium prospectivity as demonstrated by historic exploration reports as well as through various uranium focused government databases.
The acquistion of these uranium properties through staking represents an important building block in Power Canada’s growing strategic energy metal business.”
PROJECTS OVERVIEW
Figure 1, which highlights the location of Power Canada’s uranium portfolio including the Clearwater Uranium Property, Tait Hill Uranium Property, Thibaut Lake Uranium Property, and the Soaring Bay Uranium Property can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/power-canada-uranium-property-map/
Clearwater Uranium Property Overview
· The Clearwater Uranium Property is located approximately 10km northwest of Uranium City, Saskatchewan, near the northwestern border of the prolific Athabasca Basin; it shares an extended claim border with Australian listed 92 Energy Ltd (ASX: 92E).
· Clearwater covers 4,864-hectares (c. 49km2) and is centred around 13 uranium mineral deposit index points which are located along a roughly 20km strike-length of uranium rich mineralistion hosted within uranium (U) – thorium (Th) – molybdenum (Mo) – rare earth element (REE) – rich pegmatites
· Several uranium-rich occurrences have been discovered within Clearwater including channel sampling that averaged 0.34% U3O8 over 7.9m, grab samples including 0.55% U3O8, as well as several other occurrences that returned very-high scintillometer readings in excess of 15,000 counts per second (CPS) – which is a measure of the radioactivity of a rock.
Tait Hill Uranium Property Overview
· The Tait Hill Uranium Property is located approxiatetly 40km northwest of Stony Rapids, Saskatchewan, near the northern border of the prolific Athabasca Basin.
· Tait Hill covers 2544-hectares (c. 25km2) and is centered around 13 uranium mineral deposit index points which are hosted within U-Th-Mo-REE-rich pegmatites.
· A highlight rock sample from Tait Hill include CH158 which returned 0.78% U3O8, 895ppm Thorium (Th), 9,235ppb Zirconium (Zr); a soil sampling programme returned exceptionally high results for uranium and zinc which included samples ranging from 460 – 13,200ppb (1.3%) U, and up to 22,700ppb (2.3%) Zinc (Zn).
· Prospecting and ground-scintillometer surveys outlined two main targets at Tait Hill including, 1) low-grade, high-tonnage uraniferous pegmatites, 2) localised high-grade zones with uranium-enrichment located along a contact zone between pegmatites and a biotite-gneiss unit.
Thibaut Lake Uranium Property Overview
· The Thibaut Lake Uranium Property is located approximately 35km northwest of Uranium City, Saskatchewan, near the northwestern border of the prolific Athabasca Basin.
· Thibaut Lake covers 2,206-hectares (c. 22km2) and is centered around 8 uranium mineral deposit index points which are located along a roughly 6km strike-length of uranium-rich mineralisation hosted within pitchblende-rich (uranium-oxide mineral, chemical symbol:U02) porphyritic granites.
· Several trenches and rock samples have returned high-grade uranium-rich mineralisation including:
o A 10.7m long trench returned individual assays up to 7.95% U308, with an average of 1.09% U308 along its extent
o Highlight samples obtained across the showings include assays up to 3.4% U308, 3.85% U308, and 2.44% U308.
Soaring Bay Uranium Property Overview
· The Soaring Bay Uranium Property is located approximately 17km west of highway 914, immediately south of the prolific Athabasca Basin.
· Soaring Bay covers 1,255-hectares (c. 13km2) and is centered around 1 uranium, and 2 base-metal mineral deposit index points which cover a 4km strike-length of uranium mineralisation concentrated along a geological contact zone between a pegmatite unit and granite gneiss.
· Several highlight grab samples returned significant uranium mineralisation including 0.57% U308, 0.55% U308, 1.34% U308, as well as copper and thorium enrichment up to 0.46% Cu and 0.46% Th respectively.
NEXT STEPS
The Company is preparing all available historic data on Properties for publication, and will make an announcement with further details in the coming weeks, which will also include the company’s next steps with the newly acquired Properties.
Table 1: Power Metal Canada Inc. Athabasca Basin Property Holdings
|
Project |
Licence ID |
Size – Hectare |
Granted |
|
Clearwater Uranium Property |
MC00015079 |
1,110 |
Yes |
|
MC00015083 |
563 |
Yes |
|
|
MC00015082 |
3,191 |
Yes |
|
|
Tait Hill Uranium Property |
MC00015078 |
1,576 |
Yes |
|
MC00015081 |
968 |
Yes |
|
|
Thibaut Lake Uranium Property |
MC00015077 |
2,206 |
Yes |
|
Soaring Bay Uranium Property |
MC00015080 |
1,255 |
Yes |
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, 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.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Alan Green talks about Mirriad Advertising, Power Metal Resources & Kavango Resources on latest Vox Podcast
Alan Green talks about Mirriad Advertising, Power Metal Resources & Kavango Resources on latest Vox Podcast:
https://www.voxmarkets.co.uk/articles/alan-green-talks-about-mirriad-advertising-power-metal-resources-kavango-resources-7829737
Kavango Resources #KAV – Drilling Update
Kavango Resour
ces plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that Kavango’s senior geologist on site has reported that diamond drilling on Hole TA2DD002 intersected what appears to be sulphide and chromite mineralisation in pyroxenite at 651m from surface.
Hole TA2DD002 is currently being drilled in the northern (Hukuntsi) section of the Company’s project in the Kalahari Suture Zone (“KSZ”).
Highlights
Ø The geological diamond drill Hole TA2DD002 was designed to intersect the Proterozoic (Tshane Complex) mafic/ultramafic intrusion that lies beneath Karoo sediments intruded by gabbros to obtain supplementary geophysical and geological data
Ø Kavango previously estimated that the Proterozoic rocks would be intersected at between 600m and 700m
Ø The principal objectives of the hole were to collect physical data from the Karoo and Proterozoic intrusives to support and refine Kavango’s 3D geophysical model of the KSZ in the Hukuntsi Section
Ø At 651.78 the drill passed from Karoo tillites (glacial sediments) through an unconformable contact into fresh Proterozoic pyroxenite (ultramafic magmatic rock)
Ø Visual inspection of core has been carried out by the Company’s senior geologist at the drill site
Ø The very coarse (pegmatitic) pyroxenite appears, on visual inspection, to contain disseminated chalcopyrite (copper sulphide) and chromite, as well as section of coarse anorthosite
Ø Hole TA2DD002 is currently at 701m and remains in Proterozoic ultramafic magmatic rocks
Ø On completion of the hole, core samples will be cut and samples sent to an internationally accredited laboratory in South Africa for a suite of relevant assays.
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“We made immediate contact with ultramafic magmatic rocks and visible sulphides, as the Proterozoic was intersected at 651m . The presence of chalcopyrite (copper sulphide) is an indicator of further potential mineralisation in the system, though quantities and grades are yet to be determined.
While this is an encouraging development in our efforts to prove the concept of the Kalahari Suture Zone, important steps remain for us to evaluate thoroughly what we have discovered.
We expect to continue drilling Hole TA2DD002 further into the Proterozoic structure and are in discussions with Mindea and Equity Drilling about the further depth that can realistically be achieved. Once drilling is complete on Target Area A we will mobilise the rig to Target Area B. In parallel to this we will send core samples collected from Target A for relevant assays and whole rock analysis.”
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Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For additional information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The information in this press release that relates to “geological and/or geophysical results” for the KSZ Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.
Power Metal Resources #POW – Tati Project – Large Scale Gold Anomaly Confirmed
Powe
r Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the confirmation of a large scale gold-in-soil anomaly at the Tati project located in the Tati Greenstone Belt near Francistown, Botswana (the “Project”).
The gold anomaly was confirmed following receipt of laboratory assay testing results of soil and rock samples collected during the Company’s Phase I exploration programme at the Project, further information in respect of which is provided below.
HIGHLIGHTS:
· The second batch of samples, including 49 rock and 380 soil samples, were collected and sent for laboratory fire assay testing for gold in Perth, Australia.
· Results have confirmed a large scale gold-in-soil anomaly with coincident high-grade rock assay results up to 26.5g/t gold.
· Soil sample assay results returned up to 1,614 parts per billion (“ppb”) gold (“Au”), including 10 soil samples that returned >75ppb gold, representing an extremely high-tenor result.
· Overall, the results encountered confirm a large scale gold-in-soil anomaly further providing support for the company’s accelerated exploration on the Project.
· Phase II exploration, which was launched on August 26 2021, continues at pace and is focused on delineation of targets for drill testing, which is expected to commence by the end of September 2021.
Figure 1, which highlights the soil and rock results analysed by fire assay for gold from the Phase I programme can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/sikukwe-zone-soil-rock-results/
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Tati Project in Botswana continues to deliver, with the multiple large scale nickel and arsenic-in-soil anomalies announced on 19 August 2021, and now followed up with the confirmation of a large scale gold-in-soil anomaly confirmed at the Sikukwe Zone from gold fire assay testing.
The new results, including up to 26.5g/t gold in rock samples, are very encouraging and the team are increasingly thrilled with the findings to date and the exploration potential offered by the Tati Project.
Since Power Metal exercised its option to acquire the Tati Project in July, we have conducted extensive accelerated exploration on the ground and that work continues today, as we vector in on targets for drill testing expected to commence later this month.
Our thanks go to the ground operational teams and those with whom we are working in Botswana for moving the Project to the cusp of potentially high-impact drilling in just two months from option exercise, which is quite a remarkable achievement.”
PROJECT BACKGROUND
Power Metal exercised an option to acquire a 100% interest in the Project on 28 July 2021, through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Ltd. Details of the option exercise can be found below.
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-option-exercised/15075700
PHASE I EXPLORATION – RESULTS
A total of 1,107 soil samples and 49 rock samples were collected across five select areas as part of the Phase I programme at the Project which was orginally announced by the Company on 28 June 2021:
The first batch of results were analysed utilising a portable field X-ray Fluorescence (“XRF”) spectrometer, and from this work multiple large scale nickel and arsenic soil anomalies were announced by the Company on 19 August 2021:
The second batch of results presented herein represent the 380 soil samples from Grid 1 (or the “Sikukwe Zone”), and 49 rock samples which were analysed by fire assay for gold at Intertek Group plc’s laboratory located in Perth, Australia.
· The Sikukwe Zone geochemical results highlight a roughly 2100m long northwest-southeast trending high-tenor gold-in-soil anomaly which ranges in width from 1400m to 800m along its extent. The anomaly remains open in all directions. Of the 380 samples collected from the Sikukwe Zone, 10 returned greater than 75ppb Au. Of particular interest is an individual soil sample which returned 1614ppb Au (1.6g/t). Historic widely spaced soil sampling over the Sikukwe Zone returned a maximum result of 34ppb Au; the results presented herein returned 14 samples (34.8ppb – 1614ppb Au) which were above the previous highest result of 34ppb Au.
· The Sikukwe Zone is mostly overlain by Kalahari sand cover, which made prospecting and rock sampling difficult. One area with limited rock exposure located near the southern portion of the gold-in-soil anomaly was prospected and rock sampled as part of the Phase I programme. Very encouraging results were obtained from the newly discovered Goldsource Zone, where two samples returned high-grade gold including 23.6g/t Au, and 26.5g/t Au. All rock samples were taken from an exposed variable quartz-stockwork veined outcrop over a 35m strike-length.
· Due to extensive Kalahari sand cover, soil sampling within the Tati Greenstone Belt has proven to be an extremely valuable exploration tool historically, as it has led to the discovery of several gold mines within the district. Further analysis of the Sikukwe Zone soil and rock sample results were undertaken by the Company. It was determined that the highest soil result obtained proximal to the newly discovered Goldsource Zone was 78.2ppb Au. As the intensity of gold anomalism generally coorelates with underlying bedrock gold mineralisation, Power Metal is extremely encouraged by the several other areas within the Sikukwe Zone which returned significantly higher Au-in-soil results (including 1614ppb, 265ppb, 235ppb, 164ppb, 131ppb, 120ppb, and 110ppb Au), that are associated with no known rock exposures.
· Prior to Power Metal acquiring PL126/2019, the Sikukwe Zone was subject to minimal historic exploration, despite its proximity to several nearby gold mines within the Tati Greenstone belt, including Map Nora and Golden Eagle, which are located less than 5km away. The Company is extremely pleased with the Phase I results obtained and presented herein. The Sikukwe Zone is proving to be a extremely exciting target for the discovery of greenstone hosted gold mineralisation for the Company. As a result, a Phase III programme that will include at least 1000m of reverse circulation (“RC”) drilling is being planned at pace. The planned drill programme represents the first ever known drilling campaign undertaken within the Sikukwe Zone.
PHASE II EXPLORATION
The phase II geophysics programme is underway and progressing at pace. The results of this programme as well as an update on planned drilling activities across the Tati Project will be released to the market within the coming weeks.
Further information in respect of the Phase II programme is available in the Company’s announcement dated 26 August 2021:
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, 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.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Tertiary Minerals #TYM – Appointment of Managing Director
Tertiary Minerals plc is pleased to announce the appointment of Mr. Patrick Cullen as Managing Director of the Company with immediate effect.
Mr. Cullen is an experienced mineral exploration executive with a strong technical background in geology, geophysics and mining and a proven track record leading multi-disciplinary teams across Southern Africa and Europe.
Commenting today, Executive Chairman Patrick Cheetham said:
“I am delighted that Patrick has agreed to join us. He does so at an interesting time in the development of our exploration projects in the USA and his experience in Zambia will be a valuable asset as we seek to progress our recent initiatives there. The Board and I look forward to working with him on the future success of the Company.”
Most recently, Mr. Cullen was Chief Executive Officer at AIM listed Arkle Resources PLC, exploring for gold and base metals in Ireland. Prior to that, he was Technical Director at Kodal Norway (UK) Limited and he has also held senior positions at Montero Mining & Exploration Ltd and African Energy Resources Ltd, exploring for phosphate and uranium in Africa. Prior to this, he held technical roles with AngloGold Ashanti and Schlumberger.
He holds a degree in Geology from the University of Portsmouth and an MBA from the University of Southern Queensland.
The following information is disclosed pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies in relation to Patrick Brendan Cullen, aged 50:
Current directorships and/or partnerships: Former directorships and/or partnerships (within the last five years):
N/A Arkle Resources PLC Arkle Resources Ltd Oldcastle Zinc Limited
There are no further disclosures required under Schedule 2(g) of the AIM Rules for Companies.
Mr. Cullen’s appointment is for an initial 12 months’ term with a view to the appointment being renewed on an open-ended basis thereafter. Mr. Cullen does not hold any shares in the Company.
For more information please contact:
Tertiary Minerals plc:
Patrick Cheetham, Executive Chairman +44 (0) 1625 838 679
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Richard Morrison +44 (0) 203 470 0470
Caroline Rowe
Peterhouse Capital Limited
Joint Broker
Lucy Williams + 44 (0) 207 469 0930
Duncan Vasey
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”). Upon the publication of this announcement via Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Gold – The Timeless Currency!
Gold retaining value
The price of gold on May 1st 2021 was $1,767/oz which then rose to $1,910 in just one month. However are these changes in price normal? Yes, in the short term the price of gold can rise or fall although in the long term gold has a reputation of being a timeless currency!
For example, according to National Bureau of Economic Research – 2,000 years ago a centurion (roughly equivalent to a captain) received 38.58 ounces of gold per year (equivalent to $46,296 per year @$1,200/oz) while currently a U.S. Army captain receives about 37.11 ounces of gold (equivalent to $44,532 per year @1,200/oz). This is a perfect example of gold holding its value.
What influences the price of gold?
Monetary policies, economic data and demand and supply work hand-in-hand to determine the price of gold and the sustained growth in the gold price is driven by these factors and other small factors like ETF’s.
For example, during the covid-19 pandemic the economic data showed higher unemployment, stagnant GDP and slowdown of the economy. This led to most of the world economies to change their monetary policies to reduce their interest rate to the bare minimum. The interest rate is an opportunity cost to gold for investors as investors will invest where they receive most interest. During a very low interest rate period, investor will buy gold and thus increasing the demand of gold and driving up the prices during the times of slowdowns or recessions.
In order to satisfy this demand, companies listed on AIM and London Stock Exchange like #ECR -ECR Minerals PLC and #POW – Power Metal Resources Ltd are undertaking gold mining projects in gold rich countries like Australia.
Power Metal Resources #POW
Power Metal Resources has a 49.9% in private company Red Rock Australasia Pty Ltd (RRAL). RRAL has a portfolio of five exciting gold projects in the heart of the prolific world-class high-grade Victoria Goldfields which have produced 80+Moz Au historically.
In Western Australia, notably the Paterson Province in the eastern Pilbara Region, Power Metal Resources has a conditional agreement to acquire a 75% strategic interest in (FDR Australia).
FDR Australia holds a portfolio of copper-gold focused exploration interests in the Paterson Province, which is considered highly prospective for gold-copper and base metal mineral systems and is currently of particular focus for resource companies with a significant level of exploration activity underway across the region. Companies such as Rio Tinto are developing the Winu gold project, set to come into production by 2024, while the valuation of Greatland Gold #GGP rocketed from around £25m to highs around £1.3bn following a spectacular gold discovery at its Havieron project. This is now being jointly developed with Newcrest Mining.
ECR Minerals PLC #ECR
ECR Minerals’ Bailieston and Creswick projects are the epicentre of the current gold exploration boom in Victoria.
Bailieston is located approximately 150km north of the Victorian state capital Melbourne, with good road access which hosts successful modern gold mines including the world-class Fosterville gold mine owned by Kirkland Lake Gold.
After announcing the initial results from its first drilling campaign at Bailieston, ECR has continued drilling and exploring across the territory, and has most recently announced the acquisition of a 297 acre land package near to the Cherry Tree project on the Bailieston license area. Here the company plans to develop a mine decline, processing plant and tailings dam
The Creswick project is considered highly prospective for gold mineralisation, hosting the Dimocks Main Shale geological feature, which extends over a 15km trend from the mining centre of Ballarat to the south, through ECR’s exploration licenses and applications.
A raft of drilling and data from the campaign has supplied ECR’s geological team with a much deeper understanding of the prospectivity of the trend across the license areas, and a few weeks back the board to the decision to acquire property at Brewing Lane, Springmount to further advance drilling programmes and to eventually develop a mine decline.
These two companies are among many other’s operating, exploring and discovering new mineral resources in Australia’s exceptionally fertile territories.
How does supply affect gold prices?
Such aggressive drilling programmes and significant level of exploration activity are planned in order to cater the high demand for gold. The higher supply now shifts the supply curve outward hence reaching a new equilibrium. This is shown below:
The outward shift of both, demand from D1 to D2 and supply side for S1 to S2 has resulted in a new increased price equilibrium from P1 to P2.
This increase in price of gold is a win-win for the supplier, stakeholders of the suppliers and the consumers. As the increase in demand is being satisfied by the increase in supply by the suppliers. While for the suppliers, they are receiving a higher price of the commodity for a larger amount sold.
This is what is known as ‘economic welfare’.
All in all, gold is an investment for the long term and factors like monetary policies, economic conditions and demand and supply play a major role to determine the prices. Gold might be a volatile commodity in the short term but it is by far the safest bet over the medium and long term.
And for investors preferring to mitigate risk from direct exposure to the yellow metal, owning shares in gold exploration and production companies can result in less direct volatility, but can potentially deliver much more upside if a gold discovery such as Greatland Gold’s Havieron project is made.
#POW Power Metal Resources – FDR Australia – Paterson Region Exploration Update
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 Wallal Project (the “Project”) located in the prolific Paterson Region of Western Australia.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“It is important to articulate clearly the work completed in the Paterson Region to date and below we provide a summation of our overall exploration rationale, current findings, and future exploration plans. I would encourage shareholders to review this information which demonstrates the reasons for our building excitement.
We have identified geological and geophysical features within our Wallal licence that bear similarities to two major and recently discovered deposits within the Paterson Region at Winu and Havieron, both of which are under development.
Whilst awaiting licence grants at the Wallal Project we have continued to advance our review of all available existing data. We are now moving to the next stage with our own work programmes to generate new data and refine target information purposed specifically for a planned deep drilling programme.
In our view there is increasing potential for a major metal discovery at the Wallal Project, and as one would expect we are pushing ahead with some enthusiasm.”
Exploration Rationale
The Paterson Region is host to major gold-copper deposits including Winu (Rio Tinto) and Havieron (Newcrest Mining – Greatland Gold JV).
To date, Power Metal has undertaken in-depth desktop analyses with the aim of comparing the geological and geophysical features of both Winu and Havieron to those found within the Wallal Project.
Our hypothesis was that if we were able to identify geological and geophysical similarities of areas within the Wallal Project to established large-scale deposits elsewhere in the Paterson Region, it would increase the chance of a discovery and justify more detailed exploration.
Exploration Findings to Date
Important geological similarities to both Winu and Havieron have been found within Wallal Project.
Notably, as detailed in the Company’s announcement on 1 September 2021 three major buried magnetic anomalies have been confirmed within Wallal Project (Western, Eastern and Border anomalies or “Anomalies”). The announcement may be viewed here:
In particular, the Eastern anomaly posseses a similar magnetic amplitude to that found at Havieron, which is approximately 100 nanoTesla (nT) for Wallal Eastern anomaly compared to 80 nT for the magnetic anomaly which led to the discovery of the Havieron deposit.
Importance of Exploration Findings
Greatland Gold’s Havieron deposit discovery is located in basement rocks hidden below roughly 420m of post-mineral sedimentary cover which resulted from the drilling of a distinct magnetic geophysics bullseye target
Review of unprocessed 2D-seismic and ground gravity datasets have provided very rough estimations of the target depth to basement rocks of the three anomalies at Wallal Project. The depths indicated by this analysis indicate that the Eastern and Border anomalies are possibly located at depths more comparable to the Havieron deposit.
Next Steps
The Company’s progress to date has centred around the review and analysis of all publicly available historic exploration and related data at Wallal. We are now moving forward with our own Phase I work programme with the aim of generating new and more targeted information.
The geopohysical anomalies identified at Wallal represent deep targets located under post-mineral cover, therefore our Phase I work programme is focused on the development and refining of these targets prior to a potential deep drilling programme.
Phase I Work Programme
The Phase I programme includes reprocessing of three historic northeast-southwest oriented 2D-seismic lines which broadly cover the Western and Eastern magnetic “bullseye” anomalies.
The Western and Eastern anomalies measure 5km x 5km and 2.5km x 2.5km, respectively.
The reprocessing will be carried out by Velsis Inegrated Seismic Technologies Pty Ltd based out of Darra, Queensland. This desktop component of the work programme is underway.
Following the completion of the seismic reprocessing and subject to appropriate local access arrangements and work approvals, a passive seismic survey will be undertaken centered over the Eastern and newly discovered Border anomalies. The passive seismic survey will be carried out by Atlas Geophysics Pty Ltd out of Morley, Western Australia.
Phase I Expectations
The combined dataset generated by the Phase I work programme will provide critical information, including more precise depth to bedrock measurements over the Eastern and Border “bullseye” anomalies, which will be used for the planning of future work programmes, including a potential deep-diamond drilling campaign aimed at testing the two prospective anomalies.
The passive seismic survey represents the Company’s first ground exploration on the Project and will play an important step in determining various logistical aspects (e.g. access, project infrastructure, location of water sources) which will be critical for future work programmes on the Project.
BACKGROUND
The Paterson projects are held by First Development Resources Pty Ltd (FDR Australia) and include Wallal Project (three licence applications being Wallal-E45/5816, Wallal West 1-E45/5853 and Wallal West 2 – E45/5853), Braeside West Project (one licence application) and the Ripon Hills Project (one granted licence).
On 28 April 2021 Power Metal announced a conditional acquisition of FDR Australia and this may be viewed through the following link:
An updated information presentation covering FDR Australia and the Company’s plans may be viewed through the following link:
https://www.powermetalresources.com/presentation/first-development-resources-pdf/
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, 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.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
ECR Minerals plc #ECR – Property purchase within the Bailieston License Area
ECR Minerals plc (LON: ECR), the gold exploration and development company focused on Australia, is pleased to announce that its 100% owned Australian subsidiary, Mercator Gold Holdings Pty Ltd (“MGH”), has purchased a property at 127 Nagambie-Rushworth Road, subject only to payment of the completion monies. The property is located within the Company’s 100% owned Bailieston license area (“Bailieston”).
It is anticipated that monies will be paid, and completion will occur, on or around 8 October 2021 and further updates will be provided at that time.
Highlights:
- The property is adjacent to the Company’s Cherry Tree Project, located within the Bailieston license area in Victoria, Australia.
- Bailieston neighbours Kirkland Lake Gold’s multi-million-ounce Fosterville gold mine. Newmont Mining have also submitted an application for an exploration license immediately to the north of the Black Cat property within the Bailieston license area.
- The property consists of 297 acres of land (no buildings at this time), within the 24 square kilometre Bailieston license area, with ample exploration opportunity and the future potential for the construction of a mine decline, processing plant and tailings dam.
- The purchase price of the property is A$750,000, which will be settled in two tranches consisting of a A$75,000 deposit, which has already been paid, and the remaining balance which is to be paid 30 days from the date of sale. The purchase will be funded by the Company’s existing cash resources. As at the close of business on 9 September 2021 the Group had £3,874.779.94 (USD equivalent $5,362,695.44) in the bank after paying the A$75,000 deposit.
Craig Brown, Chief Executive Officer commented: “Following the recent highly encouraging early results from the maiden drilling programmes at the Bailieston HR3 and HR4 (Cherry Tree Project), on behalf of the board, I am delighted to announce the purchase of a considerable land package located in close proximity to Cherry Tree. Based on the gold mineralisation, geological findings and data acquired from the Bailieston drilling campaigns to date, our board have taken the decision to proceed with ECR’s second land package acquisition.
“The size and scale of this land package ensures that, equipped with our own drilling rigs we can now ramp up our drilling and exploration activities across the territory, and when appropriate can develop our own mine decline, processing plant and tailings dam.”
“This is an exciting period of evolution for ECR as a company as we grow our presence across the Victoria Goldfields. I look forward to reporting the next developments.”
The property was purchased from a private individual.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals plc |
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Tel: +44 (0) 20 7929 1010 |
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David Tang, Non-Executive Chairman |
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Craig Brown, Director & CEO |
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Website: www.ecrminerals.com |
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WH Ireland Ltd |
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Tel: +44 (0) 161 832 2174 |
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Nominated Adviser |
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SI Capital Ltd |
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Tel: +44 (0) 1483 413500 |
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Broker |
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Nick Emerson |
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Novum Securities Limited |
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Tel: +44 (0) 20 7399 9425 |
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Broker Jon Belliss |
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Blytheweigh |
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Tel: +44 (0) 207 138 3204 |
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Public Relations |
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Tim Blythe |
Andrew Hore – Quoted Micro 13 September 2021
AQUIS STOCK EXCHANGE
VSA Capital Group (VSA) joined Aquis on 9 September and at the same time raised £253,000 at 21p a share. The share price has risen to 23.5p (23p/24p), which values the company at £4.57m. There have been five trades. VSA Capital is a broker and financial adviser. It also has stakes in cryptocurrency and blockchain businesses. It is an Aquis corporate adviser, and this will be a major focus of the business.
Ecotricity says that it has received acceptances equivalent to 1.9% of Good Energy (GOOD) to add to its existing holding of 25.1%.
Arbuthnot Banking (ARBB) has sold 200,000 shares in Secure Trust, raising £2.5m, and reduced its stake to 3.32%.
EPE Special Opportunities (ESO) increased its NAV by 24% to 542.3p a share in the six months to July 2021. Luceco (LUCE) is one of the main factors in that growth of NAV and 4.5 million shares were sold to raise £15m. Another investee company, Pharmacy2U, is moving into profit. At the end of the period, a majority stake in homewares company Rayware was acquired.
Igraine (KING), where Oscillate (MUSH) has a 24.6% stake, says that its investee company Excalibur Medicines has completed the ARCADIA phase 2 trial for AZD1656, a treatment for diabetic patients with Covid-19 (see Cizzle below). The trial covered 153 patients. The treatment has reduced mortality rates and it is safe.
Walls and Futures REIT (WAFR) lost £214,000 in the year to March 2021, while NAV fell 5% to 102p a share. The value of investment properties fell by 1%. Walls has secured lease terms and memorandums of understanding with new partners for provision of housing for autistic people. The new homes are being designed in pods and constructed off site. There is cash available for investment, but the company requires additional funds to complete all the potential new projects. The problem is that the share price is well below NAV.
SulNOx Group (SNOX) says that its direct sales operation has made sales of its diesel additive to 200 clients in just over one month. The products will be sold on the Amazon platform.
Non-fungible tokens (NFTs) investor NFT Investments (NFT) has made an initial investment of $700,000 in Blimp Technologies Inc. In this case it is in the company rather than NFTs. Blimp has developed a platform that rewards home buyers and sellers, as well as advisers, for contributing value to a token network started by the Home Network Foundation. The theory is that this should reduce delays and disappointments and make the process more transparent.
CBD products supplier Voyager Life (VOY) has secured two new stores in Dundee and Edinburgh following the opening of the St Andrews store. Rebranding is complete and new products are being launched. The company’s products are stocked in more than 70 other stores.
Vulcan Industries (VULC) says chief executive John Maxwell is stepping down due to ill health, although he remains on the board. Ian Tordoff becomes executive chairman. Kieran Vaughan has left the board.
Altona Rare Earths (ALR) has raised £1.25m at 14p a share, which was a premium to the market price.
AIM
Building products supplier Alumasc (ALU) increased full year revenues by 19% to £90.5m, while underlying pre-tax profit nearly trebled to £10.5m, helped by cost cuts and improving margins. Net debt was £900,000, while the pension deficit has reduced to £4.5m. The final dividend is 6.25p a share and the total dividend is 9.5p a share. Demand is strong but Alumasc is uncertain when the customer will take the products. That is because shortages of other building products, such as bricks, have held up developments.
Michelmersh Brick (MBH) continues to benefit from strong demand for bricks and reducing stocks and orders stretch into the fourth quarter. Interim revenues were 10% ahead at £29.9m and pre-tax profit jumped from £2m to £5m. Full year figures will be slightly better than previously expected. The interim dividend is being reintroduced.
Concrete levelling equipment supplier Somero Enterprises Inc (SOM) benefited from buoyant North American demand in the first half. Non-residential construction is buoyant in North America and orders are at a high level. In the six months to June 2021, revenues increased from $35.3m to $64.4m, which was much higher than the first half of 2019 prior to Covid-19. Pre-tax profit more than trebled from $7.5m to $23.5m. There was $16m of cash generated from operations. The interim dividend is 9 cents a share. Guidance has been upgraded.
Minds + Machines (MMX) has announced a tender offer of up to £58m at 9.6p a share – equivalent to estimated NAV following the disposal of the operating activities. That would mean that up to 604.1 million shares could be redeemed.
There was 11.6% growth in the Vector Capital (VCAP) loan book to £40.6m. The interim dividend is 0.95p. The main customers are residential property developers that need short-to-medium-term finance. There are additional funds available to further grow the loan book to £46m.
Dekel Agri-Vision (DKL) increased the fresh fruit bunches by one-fifth to 8,469Mt, compared to August the previous year. Crude palm oil production was 6% higher at 1,678Mt, but the amount sold was one-quarter ahead at 1,852Mt. The average crude palm oil price achieved was 76% higher at €947/tonne. Palm kernel production was also much higher.
Parsley Box (MEAL) is investing the proceeds of its recent flotation in developing products, including a range of chilled meals, and increasing marketing. This means that the loss is increasing, but the benefits will show through in the years to come. Interim revenues were £14m, up from £11.1m, and £11m of the latest revenues were from repeat customers. The loss increased from £1m to £5.42m. There is still £6.52m in the bank.
Embedded computer boards developer and manufacturer Concurrent Technologies (CNC) reported flat interim revenues of £9.3m. Lower overheads helped pre-tax profit improve from £1.22m to £1.59m.
MAIN MARKET
LED lighting and wiring accessories supplier Luceco (LUCE) has reiterated its full year guidance following its interims. Group revenues were 51% ahead at £108.2m, while pre-tax profit improved from £8.3m to £18.5m. The comparatives did reflect the initial period of Covid-19 but there is still strong underlying growth. There have been cost pressures, but investment has improved efficiency which has offset this. Overheads grew more slowly than revenues and interim operating margins are double the level in the first half of 2019.
Cizzle Biotechnology (CIZ) expects to sign a deal with charity St George Capital, where it would receive royalty payments of up to £5m for AZD1656, a treatment for diabetic patients with Covid-19, plus payments for a companion diagnostic. St George has undertaken a successful phase II trial for AZD1656 and is seeking a license and funding for further trials.
Andrew Hore
