Power Metal Resources PLC - metals exploration company focused in North America, Africa and Australia - Says joint-venture subsidiary New Ballarat Gold Corp, which is focused in the Victorian Goldfields of Australia, have been awarded three further exploration licences. These are EL007330, EL007294 and EL007507, bringing NBGC's combined footprint in the Victoria Goldfields to 1,832 kilometres. Licence also covers Ajax mine which historically produced 312,789 ounces of gold at an average grade of 14.8 grams per tonne in the 1920s. NBGC is a joint-venture held between Power Metal - at 49.9% - and its partner, London-listed Red Rock Resources PLC.
Chief Executive Officer Paul Johnson says: "The grant of EL007330 is a considerable step forward bringing the historical Ajax gold mine into the RRAL portfolio. This mine produced 312,789 ounces of gold at an average grade of nearly half an ounce per tonne. Whilst the RRAL land footprint is considerable, with over 1,800km squared of now granted exploration licences, without question the grant of EL007330 including Ajax is highly significant.
"In our view the RRAL business holds great potential, however, what is important is what we do to maximise that value through further exploration and corporate activities. I expect it will be an interesting few months ahead for this project package within the Power Metal business."
Power Metal also exercises warrants over 2.5 million new shares at an exercise price of 0.75p per warrant share and raising an additional GBP18,750.
Current stock price: 1.33 pence
12-month change: down 44%
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Power Metal (POW)
Red Rock Resources (RRR)