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Power Metal Resources #POW – Audited Results for the Year Ended 30 September 2020

Power Metal Resources plc (LON:POW), the AIM listed mineral resources exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2020 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. (“RRIC”), and Power Metal Resources SA, (“PMR”), (together the “Group”).

Highlights from the year under review:

Operational

  • A strategic Australian gold joint venture was formed with Red Rock Resources plc (LON:RRR), with Power Metal Resources holding 49.9%.  By year end the joint venture holding company, Red Rock Resources Australasia (Pty) Limited (“RRAL”) had lodged 12 licence applications covering some 2,188 km2 in the Victoria goldfields region. Various technical work was completed in the year including project reports for 11 of the licence applications and a National Instrument 43-101 report for 8 of the licence applications as a group. A new office was secured in Ballarat town and an exploration manager appointed to the joint venture company;
  • Following completion of ground geophysics in 2019 and the delineation of key drill targets, Power Metal Resources elected on 31 December 2019 to earn in to a 40% project holding at the Molopo Farms Complex Project, Botswana by expending US$500,000 on exploration, notably key target drilling in 2020.  A maiden drill programme commenced in October 2020;
  • A new strategic joint venture was formed between Power Metal Resources and Kavango Resources Plc (LON:KAV) in respect of the Kalahari Copper Belt and Ditau Camp Projects in Botswana, with each party having a 50% interest;
  • Review work was undertaken in respect of the exploration and commercialisation options in respect of the Cobalt Blue nickel/cobalt project in Cameroon. No formal conclusions as to the way forward were reached in the financial year, with deliberations continuing post year end and leading to a decision to impair the value of the of the Cameroon project in full (£970,000);
  • A new earn in agreement was formed over the Silver Peak Project, including a former working silver mine, in British Columbia, Canada.  Due diligence programme sampling demonstrated bonanza grade silver from channel sampling;
  • A pitting, sampling and mapping work programme was undertaken successfully at the Kisinka Project in The Democratic Republic of the Congo. X-ray fluorescence testing of the samples confirmed the presence of copper, with samples dispatched to South Africa for analysis and results received post year end.  The results announced in November 2020 demonstrated high grade copper and cobalt values; 
  • Power Metal Resources increased its interest in the Haneti Nickel Project by 10% to 35% in the financial year and worked with joint venture partner AIM Listed Katoro Gold plc (LON:KAT) to plan for commencement of maiden drilling for nickel sulphide and Platinum Group Metals (“PGMs”) at the Project;
  • An agreement was signed in respect of the Alamo Gold Project in Arizona USA which saw Power Metal Resources acquire an option to earn in to a maximum 75% interest in the project.  An initial reconnaissance survey conducted following the acquisition identified additional prospective areas which were pegged and added to existing claims, increasing the project footprint;
  • A further strengthening of the Board saw Edmund Shaw, an experienced City finance professional, join the Board as Non-executive Director in February 2020;
  • At the year-end 30 September 2020 the Company held a private and listed shares/warrants portfolio worth circa £1,481,000, including a £415,000 fair value uplift in the valuation of the portfolio of listed investments in other junior natural resource companies held by the Company over the course of the year;
  • · At the year end the Company held cash in GBP, USD, AUD and CAD of £913,000 in GBP equivalent.

Financial

  • Loss for the year to 30 September 2020 of £1.4 million (2019: £1.6 million);
  • Pre non-controlling interest total equity of £3.6 million at the year-end (2019: £1.8 million); and
  • Raised £1.7 million (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors, and an additional £266,000 of cash received by the Company during the year from exercises of Power Metal share warrants.

Post-year end

Expansion of exploration and activity across the Company’s project portfolio including:

  • Drilling programme commencement at the Molopo Farms Complex Project in Botswana (announced 15 October 2020), the Silver Peak Project in Canada (announced 10 November 2020) and the Haneti Nickel Project in Tanzania (announced 30 December 2020);
  • Next stage exploration programmes commenced at the Kalahari Copper Belt and Ditau Projects in Botswana, the Alamo Gold Project in Arizona, USA and the Kisinka Project in The Democratic Republic of the Congo (“DRC”);
  • Continuation of corporate activities since the year end with participation in a rights issue for Kalahari Key Mineral Exploration (Pty) Limited and expansion of the Australian Gold Joint Venture with an application to increase the JV footprint by a further 148 km2 surrounding the Ballarat mine area; and
  • Option agreement signed in January 2021 providing 60 business-days for due diligence which if successful would lead to the acquisition of First Development Resources Pty Limited, a private Australian company with copper-gold exploration interests in Paterson Province, Australia.
  • Agreement signed by Power Metal Resources in January 2021 to acquire a package of gold exploration properties in Ontario Canada, followed by an option agreement providing 30 days for due diligence which if successful would lead to the acquisition of four additional exploration projects also in Ontario, Canada. In February 2021, the Company announced it had exercised the Option to acquire the McKellar Property by transferring total consideration of CAD$100,000 in cash and shares;
  • In February 2021 RRAL received confirmation that three licence applications had been granted enabling the commencement of ground exploration in the Victoria Goldfields, Australia;
  • In February 2021, the Company announced, subject to shareholder approval, a capital reduction to take place in order for distributions to be made to shareholders; and
  • Warrant exercises since the year end have raised a further £2,638,470 for the Company. 

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

“The audited results for the year ended 30 September 2020 demonstrate the pace of business development at Power Metal.   

In the previous financial year the Company emerged from the refinancing in February 2019 with a new sense of energy and a promise to deliver an exciting investment proposition in resource exploration and development.  As at today’s date Power Metal is a global exploration company with precious and base metal projects across three continents.

Much of the development achieved in the Company was undertaken in the year ended 30 September 2020 and since then we have seen the launch of proactive exploration and corporate activities across multiple projects including district scale opportunities.

Power Metal is well funded with a strong working capital position and an objective to continue to build our “balance sheet” working capital to move the Company toward financial self sustainability.

We believe that 2021 and the coming years presents a great opportunity for junior resource opportunities and where possible we intend to take full advantage.”

Notice of Annual General Meeting and Distribution of Accounts to Shareholders 

The Company’s Annual General Meeting will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA.  The Company’s Annual Report and Accounts for the year ended 30 September 2020 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com in due course.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR. 

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 20 7583 8304

SP Angel Corporate (Nominated Adviser and Broker)

Ewan Leggat

+44 (0) 20 3470 0470

SI Capital Ltd (Broker)

Nick Emerson

+44 (0) 1483 413 500

First Equity (Joint Broker)

David Cockbill/Jason Robertson 

+44 (0) 20 7330 1883

Power Metal Resources #POW – Warrant Update & Extension of Insider Warrants

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

Update Regarding Exercise of Warrants Expiring February 2021

On 18 February 2019 the Company issued warrants (the “February 2019 Warrants”) as part of the refinancing of the Company as outlined below:

Description

Number of Warrants

Exercise Price

Financing Warrants

200,000,000

1.0p

Advisor Warrants

5,000,000

1.0p

Debt Settlement Warrants

6,000,000

0.5p

All February 2019 Warrants carried a two-year life which ended yesterday on 18 February 2021.

Power Metal can now confirm that, save for the 40 million Financing Warrants held by insiders and connected parties, further details of which are provided below (the “Insider Warrants”), the Company has received valid exercise notices for 100% of all the February 2019 Warrants.

The Company is currently processing exercise notices and will provide an Exercise of Warrants market announcement in the coming days. 

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the February 2019 Warrants to date has raised an additional £1.68 million for the Company and in total all warrant exercises in 2020/2021 have raised circa £2.9million. 

This inflow of monies has significantly increased the Company’s working capital, including cash and listed investments, which currently stands at circa £3.28 million.

Extension of Insider Warrants

As at 18 February 2021 the following February 2019 Warrants held by Directors or their related parties  remained outstanding (“Insider Warrants”):

Warrant Holder

N umber of Warrants

Exercise Price

Paul Johnson

10,000,000

1.0p

Andrew Bell

10,000,000

1.0p

Red Rock Resources plc

20,000,000

1.0p

The Insider warrants were issued following participation in the February 2019 Financing.

The Company is currently finalising its audited financial statements for the year ended 30 September 2020, which Power Metal expects will be announced to the market in the week commencing 22 February 2021, consequently the Company is in a close period.

In addition the Company is currently managing numerous exploration programmes and corporate activities across its portfolio, including matters pertaining to its Australian gold joint venture, Red Rock Australasia Pty Limited, in which the Company holds a 49.9% interest (with joint venture partner Red Rock Resources plc (LON:RRR) holding 50.1%).

As a result, the February 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal), Andrew Bell (Chairman of Power Metal and Red Rock Resources plc) and those held by Red Rock Resources plc, could not be exercised on the expiry date of 18 February 2021 and may be extended under the warrant instrument, as outlined below.

Under the February 2019 Warrant instrument clause 2.3 provides that should any February 2019 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson, Andrew Bell and Red Rock Resources plc to exercise the February 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date by three months to a new expiry date of 18 May 2021. 

RELATED PARTY NOTE

The extension of the Insider Warrants held by Paul Johnson, Andrew Bell and Red Rock Resources Plc as outlined above, have been treated as a related party transaction for the purposes of AIM Rule 13.  

Scott Richardson Brown and Edmund Shaw, being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Andrew Bell and Red Rock Resources Plc consider, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the warrant expiry date to 18 May 2021 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit    https://www.powermetalresources.com/   or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (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 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 – Discovering Large Scale Metal Deposits Around The World

Brand CEO Alan Green talks to Power Metal Resources #POW CEO Paul Johnson. Paul lays out the medium and long term strategy. for the company, before running through each project, including the Red Rock #RRR Australasia RRAL JV, Paterson Province Australia, the Botswana KCB and Ditau joint ventures with Kavango Resources #KAV, & Molopo Farms project, the Cameroon Cobalt project, the Canada Silver Peak and new Hemlo Gold belt projects, the DRC Kisinka Copper project, the Haneti Nickel JV with Katoro Gold #KAT in Tanzania and the Alamo Gold project in the USA. Paul discusses the strong funding position enjoyed by Power Metal, and explains how being a major shareholder in the company is his key motivation. We end with some key takeaway points for investors to consider.

Alan Green presents his top picks for 2021 on his weekly Stockbox Media Research talk

Alan Green presents his top picks for 2021 on his weekly Stockbox Media Research talk. Alan looks forward to the coming year – his standout investments for the year ahead include ECR Minerals #ECR, Power Metal Resources, #POW, Cadence Minerals #KDNC, Conroy Gold #CGNR, Red Rock Resources #RRR & Panther Metals #PALM

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

 

Alan Green talks Gfinity #GFIN, Mirriad #MIRI & Red Rock Resources #RRR on Vox Markets podcast

Alan Green discusses Gfinity #GFIN, Mirriad #MIRI & Red Rock Resources #RRR with Justin Waite on the Vox Markets podcast. Interview is 12 minutes in.

Alan Green presents the investment case for Power Metal Resources #POW and Red Rock Resources #RRR on his weekly Stockbox Media Research talk

Alan Green presents the investment case for Power Metal Resources #POW and Red Rock Resources #RRR on his weekly Stockbox Media Research talk

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.

Power Metal Resources #POW – Australia Gold JV – Update – Historical 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.

BACKGROUND

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

In its announcement of 16 July 2020 the Company set out information on one of these license areas, namely EL007285, the Blue Ribbon project.

This announcement provides further information in respect of two more, namely, EL007271 the Blue Whale project (“Blue Whale”) and EL007281 Blue Chip project (“Blue Chip”).

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

“In July Power Metal announced impressive data from the Blue Ribbon project, one of the smallest licenses in the 11 license JV portfolio and where some 70,000 ounces of production and gold nuggets up to 85 ounces had been identified within historical records.

“I am pleased to now announce the findings from two more projects where we have further impressive data including recorded production of some 112,085 gold ounces, deep lead former worked mines and the potential for Ballarat style gold targets under cover.

“The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14g/t. A further 6 million ounces of gold is estimated to have been won from the ancient river channels that cross the field.

“We are reviewing the remaining 8 project reports and will provide further updates on findings from those reports in the coming weeks. We are also working with our geological team locally, and external consultants, to finalise the NI 43-101 report, which is expected to complete in the near term.

“The work undertaken thus far has materially advanced our knowledge base and that is being fed into our exploration planning and I look forward to reporting further developments to the market in due course.”

BLUE WHALE PROJECT – EL007271 – 133 km2

Records show historical production of 112,085 oz of gold, of which 102,641 oz is alluvial and 9,444 oz is from primary quartz1 from the EL007271 area, which lies adjacent to tenements containing the producing Ballarat Gold mine and contains the historic mining centres of Buninyong and Durham Lead.

Numerous other operations in EL007271 have no recorded production history.

BLUE CHIP PROJECT – EL007281 – 74 km2

EL007281 has a history of deep lead mining, with recorded mining depths of up to 93m. Production records are not available despite numerous alluvial mines located on the tenement. 

EL007281 has had limited exploration due to the lack of bedrock exposure over most of the tenement, although modelling of gravity and a 2006 seismic line that traverses sections of the tenement gives potential for identification of Ballarat style targets under cover.

EXPLORATION RECOMMENDATIONS

Exploration recommended includes mapping, geochemical sampling, interrogation of seismic data, possible additional geophysics, and an initial three hole drilling programme at the Shepherd’s Flat area of Blue Whale Project – EL007271.

LICENCE APPLICATION STATUS

The three licence applications relating to the Blue Whale, Blue Chip and Blue Ribbon projects were considered priority applications by the JV and have completed the required local advertising period and are being processed by Earth Resources Victoria.  

NI 43-101 TECHNICAL REPORT

RRAL has commissioned the preparation of a National Instrument 43-101 Technical Report in respect of the JV land package.

Despite local restrictions connected with COVID-19 RRAL geologists and those compiling the NI 43-101 report have been able to visit the license areas for planning and review purposes and a draft of the report is expected to be with the Company shortly.

GLOSSARY

Deep Lead: ancient alluvial deposits covered by non-gold bearing strata.

Lead: a gold-bearing alluvial deposit in a terrace or stream bed.

NOTE:

  Dugdale, A.L 2010 Navarre Minerals Ltd-Leviathan Resources Ltd EL4996 Ballarat South Project. Joint Annual Technical Report for the period ending 31 December 2010. 

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

License Application NumberProject NameArea (sq km)
EL007271Blue Whale133
EL007281Blue Chip74
EL007282Blue Sky489
EL007285Blue Ribbon8
EL007294Red Queen130
EL007301Mt Bute85
EL007327Blue Stocking60
EL007328Blue Yonder168
EL007329Evergreen486
EL007330Blue Angel202
EL007385Sardinia4
   
Total 1,839

ONLINE MAP

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

COMPETENT PERSON STATEMENT

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

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

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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