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Alan Green talks markets, Eddie Stobart #ESL, Arkle Resources #ARK & BrandShield #BRSD on the UK Investor Magazine podcast

Are stock markets correctly pricing COVID-19 economic devastation?

Alan Green joins the UK Investor Magazine Podcast shortly after news the Pfizer vaccine will be rolled out in the UK over the next week. Market reaction was muted and we explore whether stocks have already priced in all the good news related to the economic reopening. We also discuss Arkle Resources (LON:ARK), Brand Shield (LON:BRSD) and Eddie Stobart (LON:ESL)

Power Metal Resources #POW – Company Q&A

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide the questions and answers to a number of investor queries received recently by the Company. Where possible the question below is that presented to us, however where multiple questions involve similar themes, we have consolidated into a single question to avoid duplication.

Power Metal also notes that investors wishing to understand the current position of the Company may refer to the recently uploaded Investor Presentation which is available on the Company’s website and may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

COMPANY Q & A

Power Metal Resources has received numerous investor queries recently and we are pleased with the increasing interest shown in our activities.  Where possible questions have been grouped into categories as outlined below.

Project Operations – Exploration and Corporate Activities

QUESTION

RESPONSE

Botswana – Molopo Farms Complex

 

Regarding drill #1 – why was the drill stopped when the anomaly identified via geophysics indicated an anomaly stronger with depth? 

 

The hole was angled at 60 degrees and was over 500m in length and passed between harder and softer rock as it descended.

The possibility of some deviation as we drilled makes it possible that we have missed by a few metres a steeply dipping target identified by geophysics.

The mudstones encountered could be generating a conductive anomaly but are likely to cover a greater areal extent as they are a known horizon in the Molopo Farms Complex of rocks, so this would be inconsistent with the areally restricted conductive anomaly identified from our geophysical work.

One possibility is that the geophysics took a gently dipping anomaly and a steeply dipping anomaly, the latter being our target, and modelled the two as being one.

It was more logical given the above to stop the hole at the target depth and move on to drill the next hole while analysing the core and doing down-hole geophysics.  If we had carried on drilling, we could have possibly drilled right past our target.

With the downhole geophysics we can look around and below the hole for 300m in each direction and so get a more accurate 3-D geophysical model and interpret the dip and orientation of the strata encountered in the drill core.

Unless results do not justify it, we will return to the hole and if necessary, deviate from it or drill deeper to test the assumed target.  

 

Botswana – Molopo Farms Complex

Is the geological model for the Molopo Farm Complex looking for geology similar to the Bushveld Igneous Complex, the Great Dyke in Zimbabwe or some other large ultramafic complexes?

 

 

Each ultramafic complex has its own characteristics depending on the conditions that produced it. We are drilling a satellite ultramafic intrusive which is part of, and of similar age to, the Large Bushveld Igneous Province, as described on this page of the KKME website: https://www.kalaharikey.co.uk/mopo-farms-project/geology-of-the-molopo-farms-complex/ .

Australia – Victoria Goldfields

What is the status of the Australia gold JV and will shareholders receive a distribution from Power Metal if the Australian Joint Venture Company is listed on a North American stock exchange?

 

 

 

We have various work streams underway in respect of the Australia gold joint venture and it is a very proactive period for this important part of the Power Metal business.

 

Our immediate focus is the advancement of the technical project information and exploration planning in preparation for the launch of efficient and targeted ground exploration which can only commence on the grant of licence applications.

 

In parallel we continue to work on the potential listing of some or all of the interests on a North American stock exchange as announced to shareholders.

 

In all discussions our focus is rapid advancement of exploration and significant commitment by any potential partners to ground exploration where we believe considerable value can be added through proactive implementation of exploration programmes.

 

The potential listing could generate an asset of considerable value given the strategic nature of the ground under application in Victoria.  That valuation would increase, perhaps significantly, with the grant of licences and the ability to launch ground exploration to validate our geological propositions. There is clear evidence of significant gold mineralisation across the licence application footprint.

 

The question of whether we would specifically seek to distribute any listed activity gains from the Australia JV, or indeed from any other corporate transaction undertaken by Power Metal or its partners, is a little early to definitively answer at this stage.

 

It is fair to say that we are attracted to the distribution model, which allows shareholders to see a return from their investment in Power Metal in addition to the appreciation in Power Metal share value that commercialisation of our interests could provide.

 

There are many elements to consider in this including what is best to advance the projects, the approach of any partners to transactional structuring, positioning Power Metal to enable distributions and considering the taxation elements to seek distribution efficiency from a tax planning perspective.

 

There are many work streams to complete if Power Metal were to consider distributions, but they can be run concurrently, and they could include seeking the approval of shareholders at a General Meeting.

 

 

Australia – Victoria Goldfields

How does Power Metal value its interests in the Australian Joint Venture Company and particularly its licences?

 

 

 

This is a complicated exercise as valuation depends on many factors including inherent geological and commercial potential, market conditions, granted or application status, historic and future spend and perhaps significantly the strategic significance of the JV interests.

 

We are developing valuation metrics, however for a real sense of valuation in the current market we can only look at recent transactions for similar interests and gain a feel for what might be achievable.

 

As stated previously a major factor for us is the commitment to significant ground exploration and financial investment to support that exploration work. We believe that proactive exploration stands a very good chance of identifying gold mineralisation and that will be a major uplift to any project valuation.

 

As you can see we are working with so many variables, but we know that having identified and built such an important and strategic land package in Victoria, we now have a duty to manage this professionally and seek the highest returns reasonably achievable from this unique opportunity.

 

Australia – Victoria Goldfields

Will Power Metal be seeking an income stream from any commercial transactions in respect of the Australian interests?

 

 

 

The main objective is the pursuit of exploration and corporate transactions that will maximise the capital return from the opportunity.  Income wise, we will likely focus on royalty income streams from interests as and when we involve third parties in a project or projects.

 

Australia – Victoria Goldfields

There is a lot of interest being shown in Victoria gold projects including ECR Minerals plc one of your neighbours.  Is this something you are also experiencing for the gold JV in Victoria?

 

 

 

It is increasingly clear that the Victoria Goldfields is a particularly attractive destination for gold exploration. 

 

The strategic nature of our Australia gold JV, with the size of land package assembled and the extent of prospectivity that’s evident from our published technical work, means that there will be interest and we have stated this previously.

 

Australia – Victoria Goldfields

Are there plans to re-process mine dumps in the Victoria Gold Fields in Australia once appropriate licences are granted?

 

 

This is not something we have looked at so far, but as licenses are granted, we will investigate the evidence at surface where there has been previous mining activity, which may include small gold-bearing dumps or tailings.

USA – Alamo Gold Project

Do you expect to be able to mine nuggets of gold from near the surface at the Alamo gold project in Arizona?

 

As announced by the Company via RNS on 20 November 2020, the plan is to undertake mini-bulk sampling alongside other exploration techniques in December 2020.  That should tell us more about project mineralisation including the prospectivity for gold nuggets near surface.

We are also looking at the potential for other mineralisation and the potential bedrock source of the gold mineralisation that, as we have clearly established to date, exists near-surface.  The latter was also demonstrated during our January 2020 due diligence field trip where we identified gold nuggets during the digging and metal detecting of shallow pits at the project.

This is early stage exploration and the prospect of mining, although ultimately our principal objective, is something we must build towards with exploration.  If successful, that exploration will confirm gold mineralisation of a magnitude to support permit applications and associated studies that would be the precursor steps to the launch of mining operations.

 

Tanzania – Haneti Project

You have announced that mobilisation is underway but when will drilling actually commence at the first drill location?

 

Power Metal has a communications approach that articulates through regulatory news announcements the status and progress on all of our material project interests.  This includes Haneti which is a very material opportunity for the Company.

Power Metal, with our partners Katoro Gold plc have announced pre-mobilisation, mobilisation of drilling and intend to announce an update on full drill commencement as appropriate, including if possible images on our website photo gallery showing the drill in action at the drill location.

 

Tanzania – Haneti Project

Why has Haneti not been drilled before if it is such an important strategic opportunity?

 

On a general level the junior resource sector has been experiencing challenging conditions for some time and in many cases, there has not been the financial capital around to pursue project acquisitions or impactful exploration activities.

Many great discoveries have, in our view, been made in scenarios where projects have not been able to attract sufficient project capital to enable progression of exploration.

Haneti is however a project that has received exploration capital over many years and has built to a position where the next stage is drilling.

Importantly Haneti now has two public companies working together to operate and finance drilling. 

Given the level of interest shown in the project, and in nickel sulphide exploration opportunities generally, it makes commercial sense all round to crack on with drill programmes which is what is happening at Haneti.

 

Canada – Silver Peak

When do you expect to receive assay results from the work undertaken recently?

 

As with all our projects we push for the receipt of assay data as soon as possible.  With the Covid-19 restrictions around the world in 2020 the Company has not been in a position to accurately confirm timescales around the receipt of assay data from third parties. As soon as assay results are received and interpreted by the Company, an announcement will be made to shareholders.

 

Canada – Silver Peak

Given we are now in winter season, how do you expect to take Silver Peak project forward?

 

We generated highly positive exploration findings from the summer due diligence sampling work including bonanza grade silver and significant copper and lead.  We await the assays from limited follow up drilling and sampling we were able to undertake in the short programme that we recently announced was curtailed by poor weather conditions.

Using the above and the historic exploration data available to us, we will, with our partners, determine the next exploration and corporate steps for the Silver Peak project.

We believe the Silver Peak project has great potential and now must identify the appropriate pathways for its development.

 

Canada – Silver Peak

Were you disappointed with the weather disruption at Silver Peak and what can you do to get the project back on track?

 

Absolutely. Power Metal is keen to push each project as hard as possible and we put a lot of work into drill programme design and implementation.  The weather hit us twice with storms damaging access and meaning our original programme with a larger rig could not go ahead.  Then the snow brought our man-portable rig operation to an abrupt and early conclusion.

We believe shareholders prefer a proactive approach to exploration and clearly, we pushed hard to get the Silver Peak drilling done whilst ensuring safety of operations at the site in the more challenging conditions.

 

DRC – Kisinka

Is it possible to extract value from the Kisinka project in the DRC and are you not concerned that money invested may be locked in?

 

We have operations around the globe in different jurisdictions and the DRC is one country that we believe investors perhaps do not fully understand or appreciate.  We think that will change.

The Company’s experience to date has been very positive however and suggests to us that there is real value to be created in the DRC, not least because of the immense metal prospectivity across the country.

Power Metal is pursuing a potential new copper-cobalt district at Kisinka which is situated near to Lubumbashi in the south-east of the country.

The quality of technical reports that we receive from operations at Kisinka is extremely good demonstrating the professionalism of our partners. 

Also, based on our experience the ability to secure licences and permits for operations is in many respects more straightforward than many jurisdictions where the process is more complex and takes longer.

Added to all this there are many international companies that are operating producing mines in the DRC including Ivanhoe’s Kamoa-Kakula under development now and which is expected to become one of the largest global producing mines.

 

DRC – Kisinka

When do you expect to complete the geophysics and start drilling?

 

The high-grade copper and cobalt from assays recently announced means that Kisinka is a key project interest and we are looking to commence follow on exploration as soon as possible. 

As announced 20 November 2020 the Company is working on setting up a ground magnetic survey and a ground electromagnetic survey, to detect both low magnetic and chargeable lithologies and indicate structures and faulting and areas of carbonate rocks, in order to generate precise drill targets with our in-country partners. 

The Company will make a further announcements to the market as appropriate in respect of the proposed programme at Kisinka.

 

Botswana – Kavango Resources JV

When will we hear more about the exploration work from the Kalahari Copper Belt?

 

As announced in the Company’s ‘Project Portfolio Update’ on 5 October 2020 the Company is awaiting the results of a soil sampling programme.  An update on that programme, its findings and the next steps will be released to the market once results have been received and interpreted.

 

Botswana – Kavango Resources JV

Have you refined your plans for a listing of the JV on a Canadian or UK stock exchange?

 

Plans remain on track and we have been putting in place the steps to achieve our listing objective.

We will provide an update on this to the market as appropriate.

 

General – Project Valuations

Do you have anything you could provide to investors with valuation indications on the projects, such as project NPVs?

 

We have a portfolio of early stage project interests, albeit some are in a more advanced stage with drill programmes running.  It is more difficult to ascribe valuations to earlier stage projects.

A similar situation exists on discovery, where the full extent of a project’s valuation will only be developed as projects are progressed and more is understood about the scale and type of mineralisation.

To a certain extent the involvement of third parties on project earn-in or joint ventures can assist with an assessment of likely value also.

In addition, project spinouts especially involving compensation in marketable assets such as listed equity will also help the developing value assessment.

As soon as we can start to attribute specific values to project interests and investments we will seek to do so.

 

General – New Opportunities

Are you still looking for new opportunities and are you limited in the regions you would operate in and the commodities you would explore for?

 

The Company actively assesses any new opportunities it is presented with although it has to be said we have already noted a rise in vendor expectations regarding project valuations. 

We are of the belief that we would not have been able to assemble our current portfolio of projects on the same terms today given the stronger natural resources environment.

We were given a tremendous opportunity by the difficult market conditions of 2019/2020 and now shareholders have the advantage of a portfolio constructed in challenging markets, as those same markets move into what we believe will be a stronger phase.

We want to develop the Company around clear themes, demonstrating consistency and clear strategic rationale.  Therefore, we think it’s wise to follow the overall business structure of precious metals in North America and Australia and base metals in Africa. 

 

 

Business Management

QUESTION

RESPONSE

How is the Company able to manage 9 projects and commit adequate management time to each?

 

Whilst the management of a number of projects is a challenge, the Company ensures that it is adequate staff and management time available for each project as appropriate. The Company is also enhancing management oversight to ensure regular engagement of London plc with the project management and operational teams running each of our interests.

 

We also have support with back office including financial accounting and compliance through an external provider.  In addition, we have assistance to manage and coordinate our extensive external communications.

 

We will bring in further bespoke managerial resources as our business expands and our working capital grows. 

 

 

Should Power Metal spin out interests will there be a continuing involvement in management and if so how will that be possible given the management requirements of the core business?

 

It depends on the nature and type of transaction undertaken.  Where needed we will of course apply our management time and other resources to assist. 

 

However, our focus is on ensuring any spin outs or similar are into wrappers or deal structures that come with experienced management able to deal holistically with the commercial challenges without relying too heavily on Power Metal central resources.

 

What measures do you have in place to ensure your management and operations team have due regard for environmental protection and the protection of local communities?

 

This is absolutely vital especially as our business expands its active operations in the field. We already have a keen focus on health and safety, environmental and community protection and that will continue.

 

We seek to follow best practice across the above areas and generally from a corporate governance perspective reflective of the resources available to a smaller company. 

 

To add further weight to this we are currently reviewing a number of trade associations from whom we can secure further support on best practice. 

 

We expect to join trade associations in the near term to further demonstrate our desire to remain proactive in this area.

 

By way of example our Australian JV has just employed a community relations and environment officer as its second employee showing the high priority we give to these matters.

 

 

Financing Strategy

QUESTION

RESPONSE

You have disclosed your working capital position and appear confident you are in a strong financial position, however how reasonable is this given the large spread of projects and work being undertaken on them?

 

The answer revolves around more than just the absolute amount of working capital we hold and also includes how we spend our money, the level of fixed financial commitments and our access to additional working capital sources.  The latter point we deal with in the next question so for now we will focus on the matters of spending and financial commitments.

 

We are quite keen on the control of spending and have our main areas of spend under control.  Much of a junior resource company spend falls into central overhead and exploration spend. When corporately acquisitive, then acquisition costs can also be material.

 

For central overheads the direct costs in relation to the exchange listing and advisors surrounding that are largely fixed and need to be budgeted for. We pay our central costs promptly and carry almost no trade creditors for any material periods.  We have no material debt.

 

Much central cost in junior resource companies relates to director salaries and expenses.  At Power Metal, we believe against our peers in the sector we are modestly paid and have very little outlay for director personal expenses.

 

The aim for us (as holders beneficially interested in approximately 14% of the Company’s issued share capital) is to see money invested in the ground to make exploration and commercial progress including major metal discoveries. 

 

If we do that our shareholdings may rise considerably in value and the financial returns from that would be way more beneficial to directors than excessive board salaries in the early stages of the Company’s development.

 

Turning to exploration spending, for the vast majority of our project spend, our exploration outgoings are flexible and generally entirely at our volition.  This means we can spend if we wish to, but curtail exploration spend across our business if we wish to, for whatever reason.  That spend control is important.

 

Equally for new acquisitions we have always been controlled and not overly exposed ourselves with heavy acquisition terms.  We have used cash as part of acquisition terms but only modestly as cash is king in our sector. 

 

Generally, where possible we have also used our shares for new acquisition vendor payments.  So far that model has worked well to preserve cash and acquire opportunities on reasonable terms (with shared upside for vendors who hold interests in Power Metal stock and benefit as the shares increase in value).

 

Where do you feel most additional working capital will be generated; from financings, warrant exercises or asset disposals?

 

It’s difficult to be precise on future working capital sources but we do have some degree of expectation subject of course to market conditions and buoyancy in the junior resource sector.

 

Power Metal could undertake financings and the Board are confident that money could be raised as required.  This has been amply demonstrated by the £2.7m raised in financings since February 2019 and, save for the initial restructuring in February 2019, Power Metal financings in December 2019 and July 2020 were conducted at the then market price. 

 

Discounted financings are not what Power Metal seeks to undertake as that we consider that potentially damaging for shareholder value and confidence in general.

 

Ideally, we are seeking to build our working capital to become financially self-sustaining.  This would mean that we would not need to undertake financings unless we chose to do so on strong terms or to value-adding institutional investors.

 

Warrant exercises have provided a considerable amount of additional working capital.  The amount raised through warrant exercises since August 2020 has enabled the company to be aggressive with its exploration and corporate plans.  In essence each warrant exercise provides us with funds to accelerate our operational activities.

 

Alongside the above we have a strategic investment portfolio that is growing in value and should that continue, it would provide a source of further working capital should this be needed for operations.

 

The area where we feel considerable working capital could be generated is from spinouts or other similar commercial transactions where we exchange some of our direct ownership of an interest for mainly cash or shares in other entities. 

 

If those entities are liquid listed vehicles, then the effect is to have an asset easily translatable into cash when and if needed to fund our own operations.

 

Can you explain the warrant exercise process, its impact on shareholder dilution and whether there are any restrictions on the warrants?

 

Power Metal receives an exercise form from a warrant holder and checks the validity of this to an underlying warrant register. If acceptable this exercise is reconciled to a receipt of cash into the Company’s bank account.

 

For all valid exercises we secure board approval to issue equity, prepare a market announcement and an AIM admission form for the new equity to be admitted to trading on AIM.

 

The end result is a market announcement confirming the warrant exercises and cash received.

 

The new shares are generated by the registrar and admitted to trading on AIM thereafter. 

 

The warrant exercises increase the issued share capital with such information provided in the requisite market announcement at the time and the increased amount of shares is updated to the Company’s website AIM Rule 26 page on the Investors’ section of the site accordingly.

 

 

Can you provide further information on all outstanding warrants and options to give a better understanding of potential dilution?

 

Details of all warrants issued by the Company can be found in regulatory announcements released by the Company and within the Company’s Financial Report and Accounts.

 

Additionally, the Company will be adding to its new website in due course a full schedule of all financial instruments including all warrants and options held generally by investors and also those held by the board of directors. 

 

This schedule will include all final exercise dates and any special terms including accelerators whereby the company can elect to expedite the use of warrants by holders and if not used, cancel the remainder warrants although, as noted above, all such information can be found within the relevant announcements made by the Company.

 

What amount of revenue do you expect to generate from your projects and how will that revenue be derived?

 

Power Metal is generally seeking capital returns where an increase in the value of projects is secured through exploration or corporate structuring.

 

In some cases that value may be crystallised through a disposal of some or all of a project interest for cash or shares in an acquiring company.

 

In respect of any disposals we are also keen on longer term consideration that could be described as “revenue” including royalties from interests disposed where Power Metal would receive payments should an interest enter production. 

 

Royalties can be a highly valuable source of income or revenue over the longer term so potentially could become a valuable part of our business asset base.

 

In addition, royalty income streams can be sold for material cash sums, providing optionality to Power Metal on how value should be crystallised.

 

When do you anticipate institutional investors will be interested in Power Metal?

 

There are of course institutions of all shapes and sizes, with varying business rationales and many are not suitable partners for our company.

 

We are open to reputable and recognised institutional investment but are also comfortable without it. 

 

Well regarded institutional finance can increase investor confidence in Power Metal, however we are well funded presently and are entirely comfortable with our access to future working capital as outlined in some detail above.

 

 

 

Marketing and Communications

QUESTION

RESPONSE

Can you produce company level and project specific factsheets to help investors understand the business and its constituent elements?

 

The Company intends to undertake this exercise once the website update has been completed.  

Will you be having updated analyst reports prepared for Power Metal?

 

Yes, we expect our brokers will provide updated research to the market as they deem appropriate.

 

 

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 – Total Voting Rights

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that as at today’s date it has 867,859,942  ordinary shares of 0.1 pence each in issue, none of which are held in treasury. Therefore, the total number of voting rights in the Company is 867,859,942 .

The above figure of 867,859,942  may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 – Botswana Molopo Farms Complex drilling update – first & second holes have potential to host nickel and PGMs

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drilling update for the second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

  • The second exploration drill hole KKME 1-6 commenced on 19 November 2020 and intersected serpentinised ultramafic rocks at about 27m immediately beneath Kalahari Group sediments.
  • By end of day on 27 November 2020, the drill hole had reached a depth of about 286m and has continuously intersected ultramafic rocks comprising mostly serpentinite after dunite or harzburgite.  The rock is very altered to about 115m and generally quite sheared and fractured throughout, however the drilling team have been able to maintain near 100% core recovery.
  • Preliminary inspection of the core from the lower part of the hole shows indications of possible cyclic layering within the intrusive ultramafic rocks.
  • Geological logging of the core indicates a shear/feeder zone setting and samples including from the prospective layering features will be analysed for both nickel and PGMs.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Further significant progress has been achieved with the geological model of the feeder zone being demonstrated through the core from the first and second holes.

The first hole produced 167 metres of ultramafic rock and this second hole has already produced about 260 metres of ultramafic rock, which has potential to host nickel and PGMs, and will be subject to assay testing.

After a short weekend break the drilling team will now continue the hole down to target depth of circa 500 metres.” 

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure in 2020, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

The original Earn-in period was to 31.12.20 however Power Metal and Kalahari Key have mutually agreed to extend this to 31.1.21 as some drill programme activities and invoices relating thereto and requiring payment may not be received until early in 2021.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.

This second drill collar is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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.

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 – Marketing and Communications Update

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce  a marketing and communications update for shareholders.

New Corporate Presentation

Power Metal Resources has developed a new corporate presentation and this may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

New Corporate Website

The Company is close to finalising its new website and a further update will be provided when the new site has been uploaded. 

Shares Magazine Investor Evening

The Company’s Chief Executive Officer Paul Johnson will be delivering a presentation and answering investor questions at the forthcoming Shares Magazine Investor Evening on 15 December 2020 (starting at 6pm).  Investors wishing to attend this online event may register through the following link:

https://www.sharesmagazine.co.uk/events/event/shares-investor-evening–webinar-151220

Company Q&A

Power Metal Resources has received numerous investor queries recently and we are pleased with the increasing interest shown in our activities.  Recognising the importance of responding to enquiries and to do so in an efficient manner given the volume of operational work pressures, Power Metal will be undertaking a written Q&A.

Should investors wish to ask any further questions please email info@powermetalresources.com by 5pm tomorrow Saturday 28 November 2020. 

We will collate questions and publish a Q&A with written responses by non-regulatory announcement on Monday 30 November 2020.

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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.

Alan Green talks markets, Power Metal Resources #POW, Itaconix #ITX & Venture Life Grp #VLG on the UK Investor Magazine podcast

FTSE 100: The influences of vaccines and Brexit on London’s leading index

Alan Green talks markets, Power Metal Resources #POW, Itaconix #ITX & Venture Life Grp #VLG with Jonathan Roy on the UK Investor Magazine podcast

Power Metal Resources #POW – Director Dealings

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 at a price of 1.78p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”) (£17,800 invested). 

Following the above purchase Mr Johnson has a beneficial interest in a total of 61,500,000 Ordinary Shares, representing approximately 7.12% 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.

View TR1 here

Power Metal Resources plc was also notified today of the following Director Dealings.

Paul Johnson, Chief Executive Officer of the Company, today transferred 6,250,000 ordinary shares of 0.1 pence each in the Company to his wife Michelle Louise Johnson, at nil consideration.

Following the above inter-spousal transfer Mr Johnson’s beneficial interest in the Company is unchanged at a total of 61,500,000 Ordinary Shares, representing approximately 7.12% of the issued share capital of the Company.

Andrew Bell, Chairman of the Company, today transferred 4,210,526 ordinary shares of 0.1 pence each in the Company to his wife Margaret Stephanie Bell, at nil consideration.

Following the above inter-spousal transfer Mr Bell’s beneficial interest in the Company is unchanged at a total of 22,282,403 Ordinary Shares, representing approximately 2.58% of the issued share capital of the Company.

View TR1’s here

**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 precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 – Silver Peak Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce an exploration update from the Silver Peak silver project in British Columbia, Canada.

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

“In what continues to be a highly active period at Power Metal Resources, I am pleased to announce the safe completion of a revised drill and sampling programme at the Silver Peak Project notwithstanding very challenging operating conditions as described below.

Our summer due diligence review at Silver Peak clearly highlighted the Project’s potential, as validated by bonanza grade silver (including channel samples yielding up to 14,937 g/t Ag) and significant copper and lead we identified from our summer due diligence channel sampling programme.

We wanted to follow up expeditiously with further work before the weather window closed, gathering additional information to aid preparation for the Project’s next stage of development. To do this we have worked closely with our partners to adapt very rapidly to changeable weather forecasts.

I would like to thank the exploration team for persevering despite the stormy conditions, followed up by snowfall, the heaviness of the latter bringing the work programme to an early conclusion. 

The additional work undertaken by the team has added to our geological understanding of the silver mineralisation and we have secured samples which have now been delivered to the laboratory for assay testing.

Given the highly positive project data, reinforced by exploration to date, we are working closely with our partners to determine next steps for Silver Peak, from both exploration and corporate perspectives. There is palpable demand for high grade silver projects in the market at present.”

SUMMARY OF REVISED DRILL AND SAMPLING PROGRAMME

  • The team undertook a rock chip sampling programme at the Project and despite challenging weather conditions completed six diamond drill holes utilising man-portable drilling equipment to an average depth of 12 feet per hole.
  • Forecast heavy snowfall, resulted in an early cessation of the programme and the team safely left the site, with all equipment and samples collected, before the snows fell.
  • In total 10 diamond core samples   were prepared for testing from the 6 holes drilled and 11 rock chip samples have been prepared from the field work and all samples have been delivered to ALS laboratory in North Vancouver, British Columbia for assay testing.
  • During the programme vital information was collated on the nature of the bifurcating vein system across different levels of the system.  This information will be utilised to develop future project exploration programmes.

EVENTS LEADING INTO THE REVISED PROGRAMME

  • On 22 October 2020 Power Metal announced the signing of the drilling contract for an initial 500m confirmatory diamond core drill programme to test the Victoria Vein at the Silver Peak Project. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.
  • On 30 October 2020 Power Metal announced that the drilling contractor had mobilised the drilling rig, bulldozer and ancillary equipment from northern British Columbia to the local town of Hope where the Silver Peak Project is based and then the planned movement of the drilling rig and support equipment from Hope up the valley, on the upgraded access, to the project and the first drilling pad.
  • The mobilisation was attempted but the area had experienced significant poor weather which caused a degradation in conditions at the project and limited access to the property.  Some of the impacts were dealt with, including the removal of fallen trees, however given the size of the rig and supporting equipment and the conditions encountered it was not considered safe to proceed with the original plan of moving the larger rig up onto the drilling pad.
  • As announced on 10 November 2020 rather than not proceeding and delaying the drill programme entirely Power Metal’s local partners secured smaller man-portable drill equipment and this, together with associated support equipment was installed at the Project and the team commenced drilling.
  • The local team were aiming to drill test at least twenty vein intersections, with hole depths of circa 6m/20 feet (120m of drilling overall) in a 6 to 8-day programme dependent particularly on weather conditions in the Project area.
  • Given the depreciation in local weather, conditions for drilling worsened, and 6 holes were completed to around 60% of planned depth.  Working time on-site was reallocated to the collection of rock chip samples from accessible veins and assessment of the property to gather additional geological information.
  • The team safely left the site due to a forecast of heavy snowfall, with all equipment and rock samples.  The site was subsequently covered in significant snow.

PROJECT BACKGROUND AND EARLIER DUE DILIGENCE PROGRAMME FINDINGS

Background

On 14 September 2020 the Company announced the exercise of an option agreement announced 17 August 2020 (the “Option Agreement”) in respect of the Silver Peak Project, gaining the right to earn-in to a 30% interest in the Project.

Prior to option exercise the Company undertook a due diligence exploration programme including sampling at the Project to gather further information and to assist the Company in its assessment of project prospectivity and potential.

The assay results from the due diligence channel sampling were reported on the 22 September 2020 and are set out in Table 1 below:

Table 1: Summary of assay results for samples taken during Power Metal Due Diligence sampling on Victoria Vein, Silver Peak Project

ALS Global Analytical Method

Ag-GRA22

Ag-CON01

Cu-OG46

Pb-OG46

Sample ID

Channel Sample Length

(m)

Ag

(ppm)

Ag

(ppm)#

Cu

(%)*

Pb

(%)*

SP20-001

0.50

>10,000

10,718

2.14

2.99

SP20-002

0.50

6,010

1.71

2.87

SP20-003

0.50

7,530

1.57

2.07

SP20-004

0.60

5,540

1.38

SP20-005

0.70

7,880

1.94

3.16

SP20-006

0.50

>10,000

14,937

3.05

11.95

SP20-007

0.80

5,330

1.26

SP20-008

0.55

1,595

1.78

SP20-009

0.45

4,110

SP20-010

0.65

1,755

1.71

SP20-011

N/A Grab sample

660

* Cu and Pb results rounded to two decimal places. 

# Two over limit silver samples were analysed >10,000 ppm Ag by method Ag-GRA22 were reanalysed using method Ag-CON01.

Project Overview

The Silver Peak Project consists of a portfolio of mineral claims (the “claims”) over a system of high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins, part of the historical Eureka-Victoria Silver Mine, at Silver Peak in southern British Columbia, Canada.

Earlier Due Diligence Exploration Programme

The due diligence work programme previously conducted by Power Metal included various elements including channel sampling at close intervals perpendicular to the existing known high-grade veins and grab samples from a main target area between the lower elevations and the Victoria Adit.

The work also included enhancement of road accessibility to the exploration area, and the collation of detailed photographic and video evidence of the project area for cross referencing to existing project technical information.

A portable X-ray fluorescence analyser (“pXRF”) was utilised to provide in-field, geochemical analyses, in conjunction with confirmatory laboratory assay testing where appropriate.

The due diligence work programme cost totalled C$25,000 (£14,512) and the amount expended will be deducted from Power Metal’s 12 month Project exploration spend commitment of C$250,000.

 

 

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.

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 Raises £26,250 Following Exercise of Warrants

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received a notice to exercise warrants over 3,750,000 new ordinary shares of 0.1 pence each in the Company.

The Warrant Shares are being issued pursuant to the exercise of 3,750,000 warrants at an exercise price of 0.7 pence per ordinary share of 0.1 pence each in the Company.

Subscription monies of £26,250 have been received by Power Metal in respect of this exercise.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 3,750,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 30 November 2020 (“Admission”). The Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 867,859,942 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company, and 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.

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 precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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.

USD28tn COVID bill keeps the Gold bull case intact for ECR Minerals #ECR and the new Victoria Gold rush.

In October 2020 IMF economic counselor *Gita Gopinath described coronavirus as the worst crisis since the Great Depression, adding that the pandemic would leave deep and enduring scars from job losses, weaker investment and children being deprived of education.

In its flagship world economic outlook, the IMF said stronger than expected Q2 and Q3 performances would see global output fall by 4.4% in 2020 compared with the 5.2% drop forecast during the summer.

The groundbreaking news of a vaccine with high efficacy rates from both Pfizer and Moderna triggered strong rallies in global stock markets, and while this led to a downward correction in the gold price, most market analysts remained bullish on gold over the longer term.

US Investment Group Energy & Capital are of the view that gold remains in a bull market super cycle. Energy & Capital editor, Gold bug, and investment analyst Luke Burgess said “The historic gold run of 2011 actually began in 2001, when gold was trading around $300 per ounce.”

“The same exact gold super-cycle happened in 1971–1980, when gold ran from $50 per ounce to almost $700,” Burgess added. “The value of the U.S. dollar is being weakened every day and there is nothing that the Federal Reserve or politicians can do to stop it. This will continue to have a tremendous effect on gold prices and the gold market in general.”

Energy & Capital are ultra bullish in outlook, with a $6500oz target price for the yellow metal within 2 years. While other commentators are more circumspect, the view on the longer-term trend is clear.**

“It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,” TD Securities said in a note.

“The U.S. Federal Reserve’s continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates.”

Junior Gold Miners Flourish

It has been an extraordinary year for junior gold miners. Despite the recent gold correction to $1860oz, global gold producers are under more pressure than ever to replace their depleting reserves. The major gold producing conglomerates face declines in production, shrinking reserves and a potential increase in production costs, which means it is cheaper (and faster) for these companies to buy developed or developing gold projects.

As a result, there has been a rush to develop and fast track quality assets, which for some junior miners has meant revisiting dormant mining projects. The latest tools, survey techniques and desktop assets available to mining engineers have proved invaluable in the search for precious metals within existing dormant assets and mines around the world.

As gold prospecting continues apace in far flung and remote areas, this year has seen the goldfields in Victoria, South Australia thrust into the limelight once again.

A major mining centre since the 19th century gold rush, modern technology has today has paved the way for another gold rush in the region.

Indeed the Geological Survey of Victoria estimates that some 75 million ounces of high-grade gold is currently awaiting discovery, and with grants available to mining companies operating in the region, it is no exaggeration to say that companies are literally queuing up for licenses.


As an incumbent operator owning some of the most fertile territory in Victoria, London listed ECR Minerals (LSE: ECR) is already at the front of the queue, with its 100% owned Bailieston and Creswick Victoria gold projects, plus the recently acquired Tambo Gold project.

ECR also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses to Fosterville South Exploration Ltd (TSX.V:FSX), raising $500,000 plus $1 for every ounce of gold discovered. ECR also has interests in projects in the Philippines and Argentina.

Creswick

Creswick is situated within the Dimocks Main Shale, a geological feature considered to be highly prospective for gold, and which extends to the Ballarat gold mine centre and further south. ECR’s exploration licenses cover approximately 7km of this region, and along with several other mining companies with licenses in the region, has applied for a further license covering a further 140 sq km between Creswick and Ballarat.

A recent study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the Fosterville mine, (now the largest gold producer in Victoria), underlined the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’. Joint venture / earn-in talks are continuing at Creswick.

Bailieston

Bailieston is also at the centre of the current gold exploration boom in Victoria, sited as it is a few km east of the world class Fosterville mine. Fosterville has delivered spectacular investment returns over recent years for owner Kirkland Lake Gold, not to mention some of it’s now millionaire shareholders.

The Bailieston license areas include a raft of prospects, including HR3, Black Cat, Cherry Tree, Red Moon and Yellow Moon, and with drilling permissions now received, the company reported last Friday that its newly acquired drilling rig will shortly be en route to the HR3 prospect from ECR’s new operational base at Bendigo. Work also continues apace at the Cherry Tree prospect, with soil geochemistry and geological mapping recently completed.

ECR’s Baillieston project also has a high profile neighbour in the form of mining giant Newmont, which has a license application in for ground immediately to the north of ECR’s Black Cat prospect.

Tambo Gold Project – Local Knowledge

One of the key advantages lies in the fact that ECR’s principal geologist Dr Rodney Boucher was born and raised in Bruthen, East Victoria, and therefore has an intimate knowledge of the region. In September 2020, this area knowledge was further employed by ECR when it lodged two new license applications for the new Tambo gold project in eastern Victoria. ECR CEO Craig Brown highlighted Dr Boucher’s knowledge in the stock exchange press release.

“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.”

Brown added “Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”

Untapped Potential

There is a sense that despite the rush of license applications in the region, the current day Victoria gold rush is still very much in its infancy.

As other leading mining companies, including Newmont Corporation (NYSE: NEM), Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR), Fosterville South and a host of other smaller mining groups queue for licenses, their respective CEO’s will no doubt be harbouring ambitions for a Kirkland Gold–esque share price explosion.  Indeed, Kirkland’s share price has rocketed over 2,200% in the past few years thanks to its ownership of the Fosterville Gold Mine and a 315% jump in annual gold production between 2014 and 2018 .

Despite movement restrictions in the Victoria region due to Covid-19, the foresight of the ECR board and CEO in securing the key licenses has not been lost on investors.

Following a further £600,000 fundraise in July, and further £400,000 from warrant exercises, ECR took the decision to acquire it’s own diamond drilling rig to press on with exploration Bailieston and Creswick. Investor bulletin boards are agog with anticipation, but despite the share price having nearly trebled between June and September 2020, in November the stock still trades on a ridiculously modest £13m market cap.

If, as all the pundits seem to be saying, we are at the start of a new Victoria Gold rush, then expectations that shares in small, incumbent explorers like ECR will deliver spectacular Kirkland-style increases in value may not be so far fetched after all.

*Source The Guardian: https://www.theguardian.com/business/2020/oct/13/imf-covid-cost-world-economic-outlook

**Source Reuters:

https://www.reuters.com/article/global-precious/precious-gold-holds-tight-range-as-vaccine-progress-offsets-rising-cases-idUSL4N2I43M1

 

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