(Alliance News) - Red Rock Resources PLC and Power Metal Resources PLC both on Thursday said three holes have been completed in an inaugural drilling programme at the Berringa gold mine in the Victoria Goldfields joint venture in Australia.
This is alongside successfully renewing the exploration licence for the Berringa project for a five-year term ending November 2027.
Red Rock is an Africa and Australia-focused natural resource development company, while Power Metal is a London-based exploration company focusing on global metal discoveries.
Power Metal shares surged 11% to 1.25 pence each in London on Thursday afternoon, while Red Rock shares were up 1.6% trading at 0.32p.
Both companies said all three of the completed holes, totalling 655.9 metres of a planned 1,000 metres, have intersected target geological formations and demonstrated visible gold within extensions of the Berringa mineralised lode.
The intersections include a nine-metre wide mineralised quartz vein in the BED23001 hole. The company noted that assay results for the first two holes are pending.
Red Rock Chief Executive Officer Andrew Bell said: "We have successfully renewed the exploration licence covering the historic Berringa gold mine, where we are currently undertaking a diamond drill programme, which is a significant development for our Victoria Goldfields JV.
"The drilling is progressing well with three drill holes completed to date. Visible gold has been encountered in all three holes. This shows the accurate targeting of the structures by the geological team, and we look forward to receipt of detailed assay data as soon as possible."
Power Metal Chief Executive Officer Paul Johnson added: "This is very encouraging, and we look forward to receipt of detailed assay data as soon as possible. Geologically, all drillholes completed thus far have successfully intersected the down dip and along strike extensions of the target mineralised zones.
"We believe our JV in the Victoria Goldfields grows more compelling and valuable as we progress with exploration work."
Red Rock holds a 50.1% majority stake in the Victoria Goldfields, in a joint venture with Power Metal Resources PLC. The company said it has successfully renewed its Berringa exploration licence for a five-year term until November 2027.
Power Metals added that, alongside 17 granted exploration licences and one purchased licence totalling 1,867 square kilometres, a further two licences under the joint venture await a grant, covering 467 square kilometres. This is principally within the gold fields surrounding Ballarat, Australia.
Both companies intend to list the joint-venture.
By Harvey Dorset and Greg Rosenvinge, Alliance News reporters
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Red Rock Resources (RRR)
Power Metal (POW)