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Power Metal Resources #POW – Option Signed – Australia Copper-Gold Acquisition

 

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has secured an exclusive 60-day option in respect of a potential new acquisition of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara Region of Western Australia.

The Paterson Province 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.  This level of interest follows recent high-profile copper and gold discoveries by Rio Tinto at their Winu property1 and by Greatland Gold plc (LON:GGP) with the Havieron discovery2. Notably, several major groups in search of Tier 1 deposits have entered into joint-venture / farm-in deals with junior explorers to expedite exploratory work. 

The area also has developed mine and processing infrastructure due to the presence of established mining operations, including Newcrest Mining’s Telfer Mine3 and the X-Metals Nifty Copper Operation4 (planned as a mine restart). 

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

“Power Metal is keen to build its exposure to Australian base and precious metals exploration where there is, in our view, the potential for large scale metal discoveries in a secure and stable operating environment.

Through our joint venture in the Victoria Goldfields, and subject to due diligence, through this acquisition, we will have operating interests in two of the major centres for exploration activity in Australia.

The level of interest in the Paterson Province has been somewhat dramatic after the Winu and Havieron discoveries, much as the success of the Fosterville gold mine in the State of Victoria led to a surge in exploration activity in 2020.

Power Metal is positioning itself to develop a diverse and expansive exploration business in Australia, and this is another important step forward.”

The Option:

–  Power Metal has signed an Option agreement (the “Option Agreement”) to acquire a 100% interest in First Development Resources PTY Ltd (“FDR”), an Australian private company holding the Wallal Project and an option to acquire the Ripon Hills Project, (ownership structure as outlined below).

–  The Option Agreement provides a 60 business-day option period, during which Power Metal may undertake due diligence, and the terms for option exercise to acquire 100% of FDR from its current shareholders (the “Vendors”). 

–  The Option Agreement fee of £30,000 is to be satisfied through the issue to the Vendors of one million Power Metal new ordinary shares of 0.1p each in the Company at an issue price of 3p per share (the “Option Shares”).

FDR and its Business Interests:

–  FDR holds two projects interests; the Wallal Project and the Ripon Hills Project.

–  The Wallal Project currently 100% owned by FDR comprises E45/5816 an exploration licence application covering 390km2 in the western quadrant of the Paterson Province   with a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent. 

–  FDR also has a right to acquire 100% of the Ripon Hills Project from Great Sandy Pty Ltd (“Great Sandy”) a private Australian Company, (with consideration for the transfer being satisfied by Great Sandy nominees receiving a proportion of consideration outlined below under “Upon Option Exercise”.)  The Ripon Hills Project comprises E45/5088 a granted exploration licence covering 4 2km2 prospective for base metal-gold mineralisation and is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made. 

Upon Option Exercise:

–  Should Power Metal at its sole volition exercise the Option for the acquisition of FDR the Company will pay initial consideration of A$50,000 in cash (circa £28,304) and £150,000 payable through issue to the Vendors of 5 million new Ordinary Shares at an issue price of 3.0 pence per share (“Initial Exercise Shares”) (note: A$20,000 (circa £11,322) will be used to eliminate shareholder loans in the accounts of FDR and therefore on acquisition FDR will carry no liabilities).  The cash component of the consideration above will be funded from Power Metal existing Australian Dollar cash resources.

–  In addition, Power Metal will issue the Vendors 5 million warrants with an exercise price of 4.5p per new Ordinary Share and life to expiry of 3 years from the date of Option exercise (“Initial Exercise Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 7.0 (seven) pence for a 5 consecutive trading days Power Metal may serve notice on the Vendors providing 10 trading days to exercise and pay for the Initial Exercise Warrants.

–  Upon grant of exploration license application E45/5816 (Wallal Project) and the transfer of the granted exploration license E45/5088 (Ripon Hills Project) into FDR a further £100,000 consideration is payable through the issue of 2,857,143 new Ordinary Shares at an issue price of 3.5p each.

–  In addition, upon the grant of exploration license application E45/5816 (Wallal Project) and the transfer of the granted exploration license E45/5088 (Ripon Hills Project) into FDR, Power Metal will issue the Vendors 2,857,143 warrants with an exercise price of 5p per new Ordinary Share and life to expiry of 3 years from the date of Option exercise (“Grant Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10.0 (ten) pence for a 5 consecutive trading days Power Metal may serve notice on the Vendors providing 10 trading days to exercise and pay for the Grant Warrants.

–  The Vendors will retain a 2% net smelter royalty (“NSR”) over the licence application E45/5816 and granted licence E45/5088 and Power Metal will have the right to purchase 1% of this NSR for A$1,000,000 payable as cash or in full or part (and at Power Metal’s election) by the issue of new Ordinary Shares based on the Power Metal share volume weighted average price in the 7 trading days prior to date of notification to the Vendors of the NSR purchase.

–  The consideration items outlined above, on Option exercise, will not be paid until the regulatory approvals have been received including any such approval required from the Foreign Investment Review Board, Australia.

–  The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to undertake ground exploration and to further build the licence footprint in the Paterson Province.

FURTHER INFORMATION

Wallal Project – E45/5816 – Exploration Licence Application

The Wallal Project comprises a large, well located 390km2 area, in the western quadrant of the Paterson Province. Notably, the Wallal Project has a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC (2012) compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent1

The tenure covers an area of transported sand cover including linear north west-south east trending aeolian dunes. Furthermore, the Wallal Project is located on an interpreted basin bounding structure known as the Wallal embayment.

Interestingly, the geology on the eastern boundary of the Wallal Project – associated with a ‘gravity ridge’ geophysical anomaly – is similar to the structural setting of Rio Tinto’s Winu discovery (the Anketell Regional Gravity Ridge). Notably, at Wallal there is a 46km strike feature, which is part of a geological structure called the Vines Fault, that is considered highly prospective copper-gold mineralisation.

It is envisaged that potential drilling targets might be identified utilising high precision gravity, seismic and magnetic survey techniques focussing on specific zones within the apparent gravity ridge. 

Ripon Hills Project – E45/5088 – Granted Exploration Licence

The Ripon Hills Project (42km2) contains outcropping Carawine Dolomite rocks of the Archaean Hamersley Group overlying rocks of the Fortescue Group. Furthermore, the Ripon Hills Project is considered prospective for base metal-gold mineralisation associated with deep seated north to north west trending fault structures, as they have the potential to be conduits for various styles of hydrothermal mineralisation.

Ripon Hills is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made5. Specifically, this is a regional scale, 60km long, fracture zone containing porphyry to epithermal mineralised systems with 45 priority Cu-Au-Zn-Pb-Ag targets and five deposit types delineated. Encouragingly, this materially enhances the prospectivity of the Ripon Hills Project, which is largely under-explored, as the underlying geology is similar.  

Notably, the priority exploration targets within the Ripon Hills Project are interpreted north to north westerly striking deep seated fault structures. Further, these targets have the potential to host various styles of hydrothermal base metal and gold mineralisation, similar to what is apparent in the Braeside Project. Interestingly, mineralisation can occur in the underlying Fortescue Group rocks as well as the Carawine Dolomite.

Exploration Rationale

Having a footprint in the world class Paterson Province in Western Australia has the potential to deliver significant value for shareholders. While the area has excellent mining infrastructure, there are many parts of the region – highly prospective for copper-gold mineralisation – which are under-explored. In turn, this significantly enhances the upside potential as much of the area is masked by surficial cover. 

Using an array of modern exploration techniques, comprising reconciling geophysics and geochemical surveys, the exploration would seek to efficiently and cost effectively identify priority test-drill targets.

Additional Disclosure

In the 6 months ended 31 December 2020 FDR made an operating loss of A$18,914 (circa £10,707) and as at 31 December 2020 FDR had net liabilities of A$19,939 (circa £11,287).

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 1,000,000 Option Shares to be admitted to trading on AIM, which is expected to occur on or around 26 January 2021 (“Admission”). The Option 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 1,056,218,972 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.

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.

References:

Source 1: Rio Tinto PLC announcement https://www.riotinto.com/en/news/releases/2020/Rio-Tinto-reveals-maiden-Resource-at-Winu-and-new-discovery

Source 2: Greatland Gold PLC announcement https://polaris.brighterir.com/public/greatland_gold/news/rns/story/wkqm9ow  

Source 3: Newcrest Mining Ltd : https://www.newcrest.com/our-assets/telfer  

Source 4: Metals X Ltd:  https://www.metalsx.com.au/copper/  

Source 5 : Rumble Resources Ltd:  http://rumbleresources.com.au/braeside_project.php   

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 and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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 – Business Financial Review and Warrant Update

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

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

“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.

Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.

Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position.  This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.

In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants.  Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.

Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020.  Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”

BUSINESS AND FINANCIAL REVIEW

Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.

The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.

The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.

The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.

The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.

Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.

Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:

PROJECT

EXPLORATION FOCUS

POW

INTEREST

OPERATIONAL POSITION

PROJECT FINANCIAL INFORMATION(Cash Costs)

AUSTRALIA

Victoria Goldfields

JV with Red Rock Resources plc (LON:RRR)

 

Gold

49.9%

13 licence applications covering a footprint of 2,336 km2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives.

Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences.

BOTSWANA

Ditau Camp Project

SJV with Kavango Resources plc (LON:KAV)

 

Rare Earths

50%

2 licences (1,386km2) with Rare earths potential established from recent exploration work.  First stage orientation work complete and follow up work announced 4.1.21.

Power Metal has made  advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule.  Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential  listing of the SJV in 2021.

BOTSWANA

Kalahari Copper Belt Project

(SJV with Kavango Resources plc (LON:KAV)

 

Copper

Silver

50%

2 licences (1,294km2 ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20.

BOTSWANA

Molopo Farms Complex Project

 

Nickel

Copper

PGMs

Up to 50.96%

3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway.  Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21.

Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal.  To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21.

CAMEROON

Cobalt Blue Project

 

Cobalt

Nickel

100%

4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit.  Review of exploration and commercialisation options reaching an advanced stage.

Further update to follow regarding the Company’s plans and financial commitment.

CANADA

Silver Peak Project

 

Silver

 

Earn -in to 30%

Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins.

Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20.

Planned recommencement of drilling in Spring 2021.

 

As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021.  To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021.

THE DEMOCRATIC REPUBLIC OF THE CONGO

Kisinka Project

 

Copper

Cobalt

70%

Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified.

Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life.

Advance payments made to cover geophysical programme costs.   Further costs of circa US$30,000 are expected in the period to 31.3.21.

TANZANIA

Haneti Project

JV with Katoro Gold plc (LON:KAT)

 

Nickel

Copper

Platinum Group Metals (‘PGM’)

Gold etc

35%

Large polymetallic land package of c.5,000 km2 including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets.  Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20).

Power Metals has already made advance payments towards maiden drill programme costs.  Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21.

USA

Alamo Gold Project

 

Gold

Earn-in up to 75%

Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly.

Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21.  In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment.

 

WARRANT UPDATE

On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000  warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”). 

The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.

The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.

For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.

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 and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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 – Australia Gold JV – New Presentation

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to confirm a new presentation has been prepared for the Australia gold joint venture, focused on the Victoria goldfields.

This presentation may be accessed through the following link on the Company’s website:

https://www.powermetalresources.com/Uploads/POW_Australia.pdf

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 – Seven Further License Applications Accepted at Australia Gold Joint Venture

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update from Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest.  RRAL has gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria, Australia.

Key points

· RRAL has been notified that a further seven of its license applications have been accepted and have been given highest ranking, following the notification in respect of the first three applications received in early July.

· RRAL will now advertise the seven applications in newspapers with statewide and local circulation, and after a three-week exposure period, the Department of Jobs, Precincts and Regions of the State of Victoria will begin the application assessment process.

· Applications EL007282, EL007294, EL007301, EL007327, EL007328, EL007329, and EL007385 RRAL are those now being advertised.

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

“I am pleased to announce further progress from RRAL with regard to the license application progress and notably that a further 7 license applications have been formally accepted and given the highest ranking.

RRAL is making great progress in the application process and is investing now in building its technical and managerial team, local to Ballarat, in readiness for an investment in field exploration work when licenses are granted allowing ground operations to commence in earnest.

The greatest return on exploration spend is through effective preparation and RRAL has built a considerable data bank allowing increasingly refined exploration planning with a focus on utilising local team members to undertake exploration programmes.

FURTHER JOINT VENTURE INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:

Licence Application Number

Project Name

Report Name

(See reports link below)

Area (km2)

EL007271

Blue Whale

South Ballarat

133

EL007281

Blue Chip

Ross Creek

74

EL007282

Blue Sky

Dunnstown – Yandoit

489

EL007285

Blue Ribbon

Ballarat North

8

EL007294

Red Queen

Talbot

130

EL007301

Mt Bute

Pitfield

85

EL007327

Blue Stocking

Dereel

60

EL007328

Blue Yonder

Elaine

168

EL007329

Evergreen

Kilmore

486

EL007330

Blue Angel

Daylesford

202

EL007385

Sardinia

  4

EL007460

Kilmore West

Lancefield

349

EL007540

(3 competing applications)(*)

Outer Ballarat

148

State land within EL007271

 

EL007505

EL007506

EL007507

(9)

(9)

(8)

Total

2,336

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia

In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101  

 

CONTACT INFORMATION

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 – Australia Gold Joint Venture Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update from Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest.

Key points

· RRAL has applied for an additional license application comprising 148 sq km of ground (EL007540) that forms a close-fitting inner ring around the Ballarat mine and which became available on Monday.

· The new license application covers ground surrounded on all sides by RRAL’s existing licence applications.

· Three other parties have also applied for licenses covering the ground demonstrating the strategic significance of this area (*).

· In total RRAL now has c 2,336 sq km of ground under license applications in the Victoria Gold Fields.

· RRAL has received several approaches from third parties to acquire interests in, joint venture or earn-in to the RRAL license package, in whole or part.  Alongside the intention to list some or all of RRAL on a North American stock exchange RRAL is working with potential partners to assess external proposals.

· RRAL continues work on equipping and staffing its headquarters office in Ballarat, and on technical planning for anticipated exploration and drilling programmes.  In addition, RRAL is planning to appoint an experienced Chief Executive Officer dedicated to the development of the business in the near future.

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

“The work continues at pace with the developing Australia gold JV and whilst awaiting license grants to come through RRAL have completed project technical reports across the land package and finalised a NI 43-101 technical report across 8 projects.

We have also moved to equip and staff RRAL headquarters in Ballarat and to further advance our technical planning for proactive exploration.  That preparatory work will continue to position RRAL for early commencement of field exploration upon license grants.

There is an intense level of activity around RRAL demonstrating a commitment to building a rapidly growing Australian gold company focused on the Victoria Gold Fields.”

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

FURTHER JOINT VENTURE INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:

Licence Application NumberProject NameReport Name(See reports link below)Area (km2)
EL007271Blue WhaleSouth Ballarat133
EL007281Blue ChipRoss Creek74
EL007282Blue SkyDunnstown – Yandoit489
EL007285Blue RibbonBallarat North8
EL007294Red QueenTalbot130
EL007301Mt ButePitfield85
EL007327Blue StockingDereel60
EL007328Blue YonderElaine168
EL007329EvergreenKilmore486
EL007330Blue AngelDaylesford202
EL007385Sardinia   4
EL007460Kilmore WestLancefield349
EL007540(3 competing applications)(*) Outer Ballarat 148
State land within EL007271 EL007505EL007506EL007507     (9)(9)(8)
    
Total  2,336

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia

In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101   

CONTACT INFORMATION

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 – Australia Gold JV – David Holden Appointed as Exploration Manager

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to advise that Red Rock Australasia Pty Ltd (“RRAL”), the Australian gold joint venture (“JV”) company in which POW has a 49.9% interest, has appointed David Holden, BSc, MBA, MEM, as Exploration Manager.

David Holden, after experience in underground and surface gold mining in Australia and Africa, and technical advisory work for the New Zealand Government, has had a career focused on project generation and regional exploration, and has been involved in the initial discoveries at Nimary/Jundee, Brocks Creek, Mt Todd (Australia), Ngaka Coal Field (Tanzania), and Big Sandy lithium (USA).

His public company directorships include Prosperity Resources Ltd (ASX), IGC Resources Inc (TSX)(President/CEO), Avonlea Minerals Ltd (ASX), Atomic Resources Ltd (ASX)(Managing Director), and Firestrike Resources Ltd (ASX)(Managing Director).

After taking early retirement to Durham Lead outside Ballarat in 2018, Mr Holden reconnected with hands on geology as a mine geologist at Liongold’s Ballarat gold mine.

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

Dave has been integral to the rapid progression of the Australia gold JV, and the extensive work to date collating historical project information, preparing for gold exploration and assisting across JV activities.

We are pleased to have him move into the role of Exploration Manager for RRAL at an important time as we seek to further accelerate activities and continue to build this dynamic and exciting part of the Power Metal gold portfolio .”

FURTHER JOINT VENTURE INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for twelve new gold exploration licence areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:

Licence Application NumberProject NameReport NameArea (km2)
EL007271Blue WhaleSouth Ballarat133
EL007281Blue ChipRoss Creek74
EL007282Blue SkyDunnstown – Yandoit489
EL007285Blue RibbonBallarat North8
EL007294Red QueenTalbot130
EL007301Mt ButePitfield85
EL007327Blue StockingDereel60
EL007328Blue YonderElaine168
EL007329EvergreenKilmore486
EL007330Blue AngelDaylesford202
EL007385Sardinia   4
EL007460Kilmore WestLancefield349
    
Total  2,188

Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia

In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101

CONTACT INFORMATION

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 drill ready prospects.

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

Power Metal Resources #POW – Australia Gold JV – NI 43-101 Report Received

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received the Independent National Instrument 43-101 (“NI 43-101”) Technical Report (the “NI 43-101 Report” or “Report”) on the BMV Gold Project held by its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.

The BMV Gold Project for the purposes of the Report has been defined as eight exploration licence applications comprising the central block (6 licence applications of which 5 are contiguous) and the eastern block (2 contiguous licence applications) out of the twelve for which the JV has applied, which may be viewed through the following link: https://www.powermetalresources.com/p/225/rral-regional-tenement-map

The NI 43-101 Report has been prepared by Caracle Creek International Consulting Inc. and Kinetic Raw Materials Consulting.

An extract of the Interpretation and Conclusions of the Report is given below. The full report which is posted of the Company’s website and is accessible through the following link: https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101

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

“The receipt of the NI 43-101 is a key moment where, for the first time, investors can see in this report a detailed review of the geological prospectivity and potential within eight of the RRAL licence applications.

The report accelerates the JV to the next stage of its development, charging RRAL with more detailed exploration plans to implement on licence grants and to assist with corporate negotiations in respect of RRAL interests.

Both Power Metal Resources, and our JV partner Red Rock Resources plc, through RRAL have an interest in one of the largest Victoria goldfields licence application footprints.  RRAL is a substantial venture and the Report is the accelerant needed to capture the value opportunity available. 

The JV partners have many options through which to create value and are working at pace to move this exciting opportunity forward.”

Notes:

For the purpose of the following extract the following definitions apply:

Project – The BMV Gold Project as defined in the full NI 43-101 Report

Property – The application footprint covered by the BMV Gold Project or parts thereof

Go-public – Terminology for listing on a North American exchange

Issuer – RRAL or other holding company of the BMV Gold Project interests

EXTRACT FROM NI 43-101 REPORT

Interpretations and Conclusions

The objective of this Report was to prepare an independent NI 43-101 Technical Report capturing historical information available for the Project area, evaluate this information with respect to the prospectivity of the Project, and present recommendations for future exploration and development on the Property.

The BMV Gold Project is subdivided into two areas about 45 km apart, with the westernmost tenements referred to as the Ballarat-Yandoit Group (“B-Y Group”), consisting of the Ballarat-Buninyong Gold Property and the Daylesford-Yandoit Gold Property, and to the east, two exploration licences referred to as the Kilmore-Donnybrook Property. The approximate centre of each of these areas is about 88 km northwest (B-Y Group) and 47 km north (Kilmore-Donnybrook Property) of the State capital, Melbourne. The gold project subdivisions are demonstrated in the map (Figure 4.2 of full report) which may be viewed through the following link: https://www.powermetalresources.com/p/224/bmv-gold-project-subdivisons 

Interpretation

Based on information and data provided to the Authors and available from public sources such as the Geological Survey of Victoria and government websites of the State of Victoria, there are a number of interpretations that can be made with respect to the exploration licences that comprise the BMV Gold Project.

Ballarat-Buninyong Gold Property

The Ballarat-Buninyong Gold Property comprises exploration licences EL007271, 7281, 7282 (south), and 7285. Exploration licence EL007271 offers excellent opportunity to explore for the southern extensions of the west and east west lines in the Ballarat Goldfield. Numerous historical alluvial and vein-hosted gold locations occur in two approximate north-south lines, about 3.7 km apart, and which trend northward of EL007271 into the Ballarat Goldfield, continuing about 13 km to the Ballarat Gold Mine. In addition, known and interpreted geology that underlies the tenement also supports this interpretation of the two Ballarat lines extending onto EL007271. The hangingwall (west side) of the north-south trending Williamson Creek Fault, which occurs along the eastern part of the tenement, offers an additional exploration target.  Structures within the hangingwall of major thrust faults are considered to be excellent targets for gold mineralization. The Williamson Creek Fault is considered to be a major structural feature controlling mineralisation and may in turn parallel the numerous reverse faults that define the Ballarat Goldfield to the west (Holden, 2020).

Exploration licence EL007281 is located about 2 to 3 km west of the southern Ballarat Goldfield. This tenement is prospective for southern extensions of the Ballarat West line and in the southwest part of the exploration licence, the northeast extension of the Enfield Goldfield. Additional opportunity lies within the southeast part of the exploration licence where the potential western extension of the east-west structure that hosts the historical Monmouth Gold Mine, may be found.

The southern portion of exploration licence EL007282 is covered by extensive Tertiary volcanic flows that post-date gold mineralization. Given that historical goldfields that occur east (Gordon, Mount Egerton), south (Mount Doran), and west (Ballarat) of EL007282 are hosted by Ordovician sedimentary units, it follows that Ordovician sedimentary units with potential gold mineralization could extend under the Tertiary volcanic rock cover. This extensive Tertiary cover offers an excellent exploration opportunity as the underlying host rocks have received almost no past exploration. The hangingwall (west side) of the north-south trending Muckleford Fault, which occurs along the eastern part of EL007282, offers an additional exploration target.

Exploration licence EL007285, although limited in size, offers an opportunity to explore for the northern extension of the Ballarat West line, particularly in the eastern part of the licence, where geological evidence suggests the presence of a thick graphitic shale unit with pyritic black slates, pyritic mineral seams, laminated quartz lodes, and crushed quartz (Holden, 2020). Although the target Ordovician sedimentary units are only mapped in the far eastern part of this tenement, it is likely that these target sequences with potential gold mineralized underlie the entire tenement beneath Tertiary volcanic rocks.

Daylesford-Yandoit Gold Property

The Daylesford-Yandoit Gold Property comprises exploration licences, EL007271, 7281, 7282 (north), and 7285. The southern part of the northern portion of EL007282 parallels the southern part of the Daylesford Goldfield to the east. Ordovician sedimentary units, here underlying Tertiary volcanic flows, could host gold mineralization similar to that in the Daylesford field. This tenement is widest in the northern part where it covers a large portion of the Yandoit Goldfield, and along with EL007385 offers a number of excellent “Yandoit-style” exploration opportunities. Exploration licence EL007282 is also located in the hangingwall (west side) of the north-south trending Muckleford Fault, which occurs within the northern part of EL007282, east of the Yandoit Goldfield, and east of the southern part of this tenement.

The southern half of exploration licence EL007330 overlies a substantial portion of the historical Daylesford Goldfield, including the Ajax and Cornish lines (average historical production grade of 10.8 g/t Au).  The lines extend for at least 5 kms, offering excellent exploration potential with respect to “Daylesford-style” gold mineralization. The northern half of exploration licence EL007330 extends north into the Newstead Goldfield, offering additional exploration opportunities in this prospective area.

Kilmore-Donnybrook Gold Property

The Kilmore-Donnybrook Gold Property comprises exploration licences EL007329 and EL007460. Located largely within the Melbourne Zone where timing of gold mineralization is considered to be younger than that which occurs in the Bendigo Zone, historical gold mineralization is strongly associated with antimony, suggesting a lower temperature gold deposition. The association of antimony with gold offers the opportunity to use it as a vector element for gold exploration. 

Exploration licences EL007329 and EL007460, together cover the historical Kilmore Goldfield and most of the historical Donnybrook Goldfield in the south. Both goldfields offer exploration opportunity within strongly folded and sheared Middle Silurian to Early Devonian sedimentary rocks that have not seen systematic modern-day exploration.

The Heathcote Fault Zone (aka Mt William Fault), the structural boundary between the Bendigo Zone to the west and the Melbourne Zone to the east, cuts through both EL007460 and EL007329. In addition, secondary faults parallel to the Mt William fault have been mapped on both licences, offering numerous exploration opportunities (Sharp, 2020f). Holden (2020) suggests that this exploration licence could host mineralization similar to that found at the historical Heathcote Mine and/or the operating Costerfield gold-antimony Mine about 30 km and 35 km, respectively, to the north of the Kilmore-Donnybrook Property.

Conclusions

Recent positive developments at the Fosterville Gold Mine (Kirkland Lake Gold) and the go-public event (TSX Venture Exchange, 14 April 2020) by Fosterville South Exploration have triggered renewed interest in the historical goldfields of central Victoria. This renewed interest has led to a new way of thinking about the gold potential in the Victorian Goldfields, particularly in areas under cover of overburden or Tertiary volcanic rocks (blind targets), and in mature gold districts where re-interpretation of structural information has provided new models for targeting shallow (<200 m) and deeper (thousands of metres) gold mineralization.

Red Rock Australasia Pty Ltd holds an extensive land position through licence applications in the historical goldfields of Victoria, Australia. The Company has developed a focused exploration strategy targeting high-grade, quartz-hosted gold vein systems in areas that present well understood exploration models and targets. Many of these exploration licence applications have seen limited modern exploration techniques applied to them in the search for gold systems.

The Company’s licence application property portfolio which comprises the BMV Gold Project includes eight exploration licence applications that are the subject of the Report and four additional exploration licence applications which have not been reviewed by the Authors. The recommended exploration focus is on hard rock gold (lode) in the Victorian goldfields and is based upon the following criteria and methodologies:

·    folded sandstones, siltstones, and shales of Ordovician to Early Devonian age metamorphosed to lower greenschist facies.

·    target reverse faults that are variably conduits to mineralisation formed from the continued east-west compression responsible for the folding of the sedimentary units.

·    proximal to and within the hangingwall to major thrust faults and associated fault splays, in particular the low-angle portions of thrust faults which present the highest potential for gold mineralization.

·    direct targeting of structural features such as saddle reefs, laminated quartz veins parallel to bedding, and west dipping vein arrays with or without flat lying late stage veining which are regularly gold rich with a strong sphalerite/ galena association.

·    identification of structural targets east and parallel to the regional Mount William Fault that is mapped through the southwest area of Kilmore exploration licence EL007329, a similar geological setting to that of the Costerfield Gold-Antimony Mine.

·    3D modelling at the Ajax and Cornish lines (Daylesford area, EL007330), two areas considered high priority targets.

·    prioritize testing for gold disseminated in the wall rock to quartz vein hosted systems, similar to the high grade Fosterville Gold Mine and exampled by the mineralogy and potential at the  Ajax Mine property (Daylesford, EL007330).

Based on the historical information reviewed to date, the best opportunities for future exploration success and potential development toward mining, are the Ajax and Cornish lines in the Daylesford Goldfield (EL007330), the Ballarat West and East lines that appear to extend south from the Ballarat Gold Mine region into the South Ballarat (EL007271) area, the north and south Yandoit Goldfield region underlying EL007385 and EL007282, and the structural targets identified on the Kilmore-Donnybrook Property (EL007329) to the east.

It is the opinion of the Authors that, after reviewing historical results and other publicly available information and data from the BMV Gold Project, the Project presents an excellent opportunity for the Issuer and is worthy of additional exploration work, targeting high-grade, orogenic gold mineralization in the Bendigo and Melbourne structural zones.

END OF EXTRACT NI 43-101 REPORT

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Scott Jobin-Bevans, P.Geo., a member of the Association of Professional Geoscientists of Ontario and the author of the Report. Mr Jobin-Bevans has authorised the release of this extract from the Report in the form and context in which it appears.

FURTHER JOINT VENTURE INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for twelve new gold exploration licence areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:

Licence Application NumberProject NameReport NameArea (km2)
EL007271Blue WhaleSouth Ballarat133
EL007281Blue ChipRoss Creek74
EL007282Blue SkyDunnstown – Yandoit489
EL007285Blue RibbonBallarat North8
EL007294Red QueenTalbot130
EL007301Mt ButePitfield85
EL007327Blue StockingDereel60
EL007328Blue YonderElaine168
EL007329EvergreenKilmore486
EL007330Blue AngelDaylesford202
EL007385Sardinia                    4
EL007460Kilmore WestLancefield349
    
Total  2,188

Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website: https://www.powermetalresources.com/s/52/australia

In addition, an online map of the current application footprint may be viewed through the following link: https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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 drill ready prospects.

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

Power Metal Resources #POW – Australia Gold JV – Additional Project Reports

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.

RRAL commissioned and has received final historical reports and targeting assessments (the “Reports”) for all license applications in the Victoria goldfields, with the exception of recently acquired EL007460 (“Kilmore West” project) and EL007385 (“Sardinia” project).  The Reports have been used to inform the preparation of a NI 43-101 technical report in respect of eight of the license applications and develop exploration programmes.

To date four Reports have been uploaded to the Power Metal website, namely:

–  EL007285, the Blue Ribbon project;

–  EL007271, the Blue Whale project, and:

–  EL007281, the Blue Chip project

–  EL007329, the Evergreen project.

The Company has now uploaded six further Reports to the Power Metal website, namely:

–  EL007282, the Blue Sky project

–  EL007294, the Red Queen project

–  EL007301, the Mt Bute project

–  EL007327, the Blue Stocking project

–  EL007328, the Blue Yonder project

–  EL007330, the Blue Angel project

All the above Reports are available through the following link:

https://www.powermetalresources.com/s/52/australia

An initial summary report in respect of recently acquired license application EL007460 (“Kilmore West”) has also been uploaded to the website and an initial summary report on EL007385 (Sardinia project) which was also recently acquired, will be uploaded when finalised for publication.

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

“A key priority for RRAL is finalisation of the NI 43-101 technical report, which now provides coverage of the recently acquired Kilmore West license application.

The project Reports provide extensive evidence of gold mineralisation throughout the licence application ground and demonstrates multiple initial targets for exploration work.

RRAL is working with Earth Resources Victoria and RRAL’s land management partners with regard to grant of licenses which will, with appropriate approvals and permits, enable exploration to commence.

RRAL continues to work with advisers with regard to the potential listing of some or all of RRAL interests on a North American stock exchange, and also with third parties seeking to earn-in or joint venture with RRAL with regard to certain of its business interests.”

FURTHER JV INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for twelve new gold exploration license areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:

License Application NumberProject NameArea (km2)
EL007271Blue Whale133
EL007281Blue Chip74
EL007282Blue Sky489
EL007285Blue Ribbon8
EL007294Red Queen130
EL007301Mt Bute85
EL007327Blue Stocking60
EL007328Blue Yonder168
EL007329Evergreen486
EL007330Blue Angel202
EL007385Sardinia  4
EL007329Kilmore West349
   
Total 2,188

ONLINE MAP

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

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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 drill ready prospects.

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

Power Metal Resources #POW – Business Operational Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide a Business Operational Update (the “Update”) to shareholders, outlining the current status of operations across the Company’s six existing projects and two projects under due diligence.

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

“Power Metal is an operationally diversified business with precious metal interests in North America and base metal interests in Africa.  The Company has multiple live exploration programmes running and significant corporate activity underway.

The summary below outlines where we are across each project, and the anticipated next steps or developments which, where material, will be notified to shareholders through regulatory news announcements.

Power Metal is at a key stage in its development and aided by our strong underlying financial position, we are pushing ahead proactively across the business, seeking to secure a large-scale metal discovery.” 

KEY HIGHLIGHTS

· Two significant drill programmes impending, in Botswana and Tanzania, targeting large-scale nickel sulphide targets and with current levels of local regulation allowing the Company to plan to commence drilling in 2020

· Significant advancement made in the Australia JV, with 2,188 km2 of ground under application in the Victoria Goldfields over 12 distinct project areas and a draft of the NI 43-101 technical report under review;

· Due diligence ground exploration programme underway at the Silver Peak project in Canada, where channel sampling for silver is the key focus and where exploration results are expected shortly and within the 30-day option period announced 17 August 2020;

· Reconnaissance survey completed successfully at the Alamo gold project in Arizona, USA reviewing the key areas where the bulk of gold nuggets were found in alluvium on the property. The findings have been received in a project report and are being reviewed currently.  A market update will follow including next stage exploration plans;

· Power Metal remains in a strong financial position with working capital comprising cash and listed investments of circa £1.6 million;

· Further specific updates will be provided for each project as material developments occur.

OPERATIONAL UPDATE

Power Metal provides the following overview of its six main projects and two projects under due diligence.

Note: all exploration and corporate work is subject to COVID-19 restrictions which may impact work programmes and timescales.  Power Metal and its partners are focused on the safety of operational teams and the conduct of programmes in line with local requirements in relation to COVID-19, and all applicable operational regulatory requirements.

PROJECTCURRENT OPERATIONAL STATUS
  
Australia JV – Victoria Goldfields(Gold)(POW holds a 49.9% interest in Australian JV Company Red Rock Australasia Pty Limited “RRAL”)Twelve licence applications have been submitted by RRAL covering 2,188 km2 in the Victoria Goldfields with three licenses having completed the mandatory 14 day public advertising period.  The JV team is working with Earth Resources Victoria to secure early grant of the advertised licenses to enable exploration to commence.Ten detailed historic exploration and target assessment reports now received from local consulting geologists (four reports have been released to the market and six are under review, and will be announced shortly).The NI 43-101 Technical Report covering seven key licenses is in final drafting stage and is expected to be received in final form in the coming week.  The findings of this report will be released shortly after receipt and following internal review. Receipt of the Technical Report will also allow the potential listing of some or all of the JV interests to be progressed to the next stage.In addition, liaison with various external parties is underway with a view to further potential corporate transactions, including external joint ventures, in respect of certain license applications. 
Botswana – Ditau Camp Project(RARE EARTHS)(Under Due Diligence)(Subject to due diligence POW may acquire a 51% project interest)Power Metal remains in due diligence and related discussions with Kavango Resources plc (LON:KAV), the current 100% project owner, with a view to crystallising a transaction in respect of the Ditau Camp project.For clarity the due diligence period in respect of the Ditau Camp Project ends on 30 September 2020.
Botswana – Molopo Farms Complex Project(Nickel Copper PGMs)(POW holds 18.26% of project holding company Kalahari Key and additionally may earn in up to a 40% project interest)Kalahari Key Mineral Exploration Pty Limited (“Kalahari Key”), the JV partner and current 100% project owner is making considerable progress in respect of planning for drill commencement at the Molopo Farms Complex Project (“MFC Project”).Drilling proposals have now been received from multiple contractors and a review is underway at present leading to contractor selection and thereafter, subject to rig availability, to confirmation of drill rig mobilisation at the earliest opportunity.The drill programme will be focused on high profile nickel sulphide targets within the Chipo area of the MFC project.
Cameroon – Cobalt Blue Project(Cobalt – Nickel)(POW holds a 100% project interest)Power Metal is continuing to review the exploration and corporate options in respect of the Cameroon project interests and will provide a further update as material developments occur.
Canada – Silver Peak Project(Silver)(Under Due Diligence)(POW may earn in to a 30% project interest)As part of the due diligence process Power Metal is funding an initial exploration programme at the Silver Peak project including channel sampling to help determine silver prospectivity.Initial results are expected from this programme in the next week and Power Metal will update the market upon completion of an internal technical review of findings.
The DRC – Kisinka Project(Copper – Cobalt)(POW holds a 70% project interest)The Company is awaiting the receipt of assay results from the pitting and mapping programme conducted earlier this year.  The results will help inform next stages of exploration on the ground at the 6.8km copper anomaly discovered within the Kisinka Project.The results so far justify the magnetic ground survey and electromagnetic (“EM”) survey the Company is currently planning in order to increase understanding of structure in the target area defined by the exploration to date.The license renewal was recently underway but the decision has been taken instead to convert the license to a Permis d’Exploitation (production license) with a 25 year life. 50% of the less prospective ground is being surrendered, leaving the Company with 41 carrés miniers (each 84.95 ha),
Tanzania – Haneti Project(Nickel – PGMs – Gold – Lithium)(POW holds a 35% project interest)Power Metal is working with Katoro Gold plc (LON:KAT or Katoro) the JV partner in respect of the Haneti Project in Tanzania.Katoro are in the final stages of planning for drill commencement.  Specifically, Katoro are seeking to confirm rig availability and confirmation of a drill mobilisation date.Power Metal and Katoro hope to confirm the launch of the drill programme to the market in the near term.
USA Arizona – Alamo Gold Project(Gold)(POW may earn in up to a 75% project interest)A Reconnaissance Survey (“Survey”) has been completed successfully at the project in Arizona which was focused on a review of the key areas where the bulk of gold nuggets were found in alluvium on the property.The Survey report from the work undertaken has been received and is being reviewed.Power Metal are also working with its local partners to design the next stage exploration programme at the project based on the Survey report findings.Upon completion of our review of the Survey report and confirmation of the next stage exploration programme Power Metal will update the market in full.

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 drill ready prospects.

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

Power Metal Resources #POW – Australia Gold JV – Update – New License Application

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.

BACKGROUND

RRAL previously commissioned and has now received historical reports and targeting assessments for its original 11 license applications, which are being used to inform the preparation of a NI 43-101 report and develop exploration programmes. 

To date the Company has set out in announcements the key findings from historical reports in respect of three license areas, namely:

–  EL007285, the Blue Ribbon project;

–  EL007271, the Blue Whale project, and:

–  EL007281, the Blue Chip project .

NEW LICENSE APPLICATION

Following a review of historical information in respect of a fourth license application EL007329, the Evergreen project, and based on additional research, gold targets were identified across the western and southern boundaries of EL007329.  Analysis of the license application area continues but the historical summary prepared for EL007329 (“Evergreen”) will be posted shortly on the Company’s website and will be accessible through the link provided below.

In addition, geophysical analysis conducted by RRAL has indicated potential new targets situated just outside the Evergreen license application area, and on review the area remained available.

Reflecting this a new additional license application has therefore been submitted for a further tenement, EL007460 (“Kilmore West”) covering the new target area. Kilmore West contains numerous former mine workings and mineral occurrences and includes the old Donnybrook goldfield to the south of the license.

The new application has an area of 349 km2, giving RRAL a contiguous block in the Kilmore area (including Evergreen) of 835 km2.

Overall the RRAL licence application tenement area in the Central Victoria Goldfields will now total 2,188 km2, further details of which are provided below.

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

“The RRAL work is being undertaken in an environment where the wider structural understanding of the Victoria Goldfields is developing rapidly and where RRAL’s work is revealing new prospective gold target areas. 

Given the material findings from the work at Evergreen, and the significant new gold target areas confirmed, RRAL decided to secure the additional ground under application, and this was executed immediately.

The RRAL JV now has 12 license applications covering some 2,188 km2 and a large number of highly gold prospective areas are emerging from the review work undertaken.  We are developing exploration plans for each project as further information is gathered and new targets are revealed.

The opportunities within the JV license application area are extensive and it is an exciting time as we continue to push on from an operational and corporate perspective.”

PROJECT REPORTS ONLINE

The project reports will be uploaded shortly to the Australia gold JV page of the Company’s website which may be accessed through the following link:

https://www.powermetalresources.com/s/52/australia

FURTHER JV INFORMATION:

Joint Venture Company – RRAL

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

RRAL has lodged applications for twelve new gold exploration license areas covering 2,188 km2 in the Victoria Goldfields of Australia as follows:

License Application NumberProject NameArea (km2)
EL007271Blue Whale133
EL007281Blue Chip74
EL007282Blue Sky489
EL007285Blue Ribbon8
EL007294Red Queen130
EL007301Mt Bute85
EL007327Blue Stocking60
EL007328Blue Yonder168
EL007329Evergreen486
EL007330Blue Angel202
EL007385Sardinia  4
EL007329Kilmore West349
   
Total 2,188

ONLINE MAP

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

REGULATORY STATEMENT

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.

CONTACT INFORMATION

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 drill ready prospects.

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

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