Last checked at 13 Jun 2022 14:30
13 June 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Victorian Goldfields - Exploration Update
Discovery of Intrusion Related Gold Mineralisation Confirmed at Mt Bute Prospect in Victoria, Australia
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to its joint-venture vehicle New Ballarat Gold Corporation plc ("NBGC"), which is focused in the prolific Victorian Goldfields of Australia. NBGC's wholly owned operating subsidiary Red Rock Australasia Pty Limited ("RRAL") has recently completed a diamond drill programme, certain results in respect of which are outlined below.
A total of 860m of drilling was completed within 8 holes during the Phase I diamond drilling programme targeting two prospects, O'Loughlin's (5 holes; assays received for 4 holes, 1 still pending) and Mt Bute (3 holes; assays received for 1 hole, 2 still pending).
Laboratory results from the first hole drilled (MB22D001) at the Mt. Bute Prospect, one of two targets addressed in recent drilling, have now been received and are considered significant. Preliminary X-ray fluorescence (XRF) analysis of selected Mt. Bute core intervals had returned highly anomalous molybdenum (Mo) and bismuth (Bi) results, suggesting the possibility of intrusive related gold ("IRG) mineralization within the Victorian goldfields.
A total of three holes were drilled at the Mt. Bute Prospect and the results from the second and third holes are still awaited.
Laboratory assay results, not considered of such significance, have also been received from the drilling completed at the other prospect, O'Loughlins. Additional assays are still pending.
HIGHLIGHTS
· Drilling results from MB22D001 have confirmed the existence of IRG mineralisation overprinting orogenic mineralisation at the Mt. Bute Prospect, a significant development within the Victorian Goldfields generally.
· Over 30% of assays from drill hole MB22D001 between 23.1m to 117.7m returned results greater than 0.1 g/t gold (Au).
· Including highlight intervals of 0.4m of 5.13 g/t, 0.5m of 2.5 g/t, 1.8m of 1.43 g/t, and 5.9m of 0.42 g/t Au.
· Additional drilling at the Mt. Bute Prospect is recommended to step out along strike and down dip.
Paul Johnson, Chief Executive of Power Metal Resources plc commented:
"The discovery of intrusion related gold mineralisation at Mt. Bute prospect is exciting for the team locally who have done a great job with the initial drill programme. It marks a major step on the pathway to, what we hope will be, multiple potential gold discoveries within the ground footprint in the Victoria Goldfields.
Further information to follow in the near term."
FURTHER INFORMATION
2022 Drilling Programme Background
RRAL has been engaged in a multi-phase drill programme addressing two principal targets, O'Loughlins and Mt Bute. This announcement relates to the first drill hole on the second target, Mt Bute.
RRAL has to date completed a total of 860m of drilling during the Phase I diamond drilling programme targeting the O'Loughlin's and Mt Bute Prospects, located 30km and 20km from the town of Ballarat, Australia, respectively. Initial results from the O'Loughlins Prospect were released on 12 April 2022 and can be found at the link below:
https://www.londonstockexchange.com/news-article/POW/gold-exploration-update-victoria-goldfields/15410039
Further laboratory assay results of lesser significance returned from two additional drill holes at the O'Loughlins Prospect are included in this announcement - further assays are still pending.
Mt. Bute Update
RRAL has received assays from the first of three holes drilled at the Mt. Bute Prospect.
The drilling was intended to resolve complexities in the structural geometry and the first hole, reported on here, has intercepted several zones of IRG-type gold mineralisation. Located in close proximity to the Mt. Bute Granite (large I-type granitoid) the geology within the area is dominated by steeply dipping, folded metasediments within a hornfels alteration aureole. Results of the drilling and the discovery of IRG mineralization now suggest that the target is geologically more complex than previous interpretations - which originally suggested that the small historically mined gold reefs were solely orogenic in origin.
Whilst minor historical workings exist on the Property, limited previous modern-day exploration has been undertaken. In the late 1990's, a 14-hole shallow Reverse Circulation (RC) drill programme was carried out by a previous operator which concluded that gold hosted quartz vein reefs were present and possibly continuous, but insufficient in size to support production via an open pit mining operation. In contrast, RRAL is now exploring with a view to exploiting any narrow vein high-grade reefs via underground mining methods- as well are investigating the significant development of overprinting IRG-type gold mineralisation.
The reef structures within the area have generally been poorly understood, including any possible relationship to the nearby Mt. Bute granite. In addition, complexity within the regional fault structures as well as the presence of Cambrian age sediments, which are of similar age and lithology to the nearby Stawell Gold mine, precluded meaningful geological understanding of the area. To help resolve this, RRAL completed a short 3-hole diamond drilling programme within an area of limited outcrop.
RRAL is now encouraged by the likelihood that the Mt. Bute granite may have had a greater influence on gold mineralisation than previously thought and intersecting elevated gold across broad intervals as well as in several mineralised lode structures within the first drill hole was a result above expectation.
While additional gold and multi-element assay results are still pending, the Company's technical team is confident that there is definite continuity to the main mineralised structure and the drilling result has provided increased geological understanding on the potential source of gold mineralising fluids.
Final assays are anticipated before the end of the month and a full and detailed report will be forthcoming once all results have been received and interpreted by the Company.
Mt. Bute Drill Programme Collar Table:
HoleId | Easting | Northing | RL (m) | azimuth | dip | Length | Status |
MB22D001 | 723964 | 5821996 | 401.42 | 280° | -55° | 119.2m | Assays received |
MB22D002 | 723964 | 5821996 | 401.42 | 300° | -55° | 119.3m | Assays pending |
MB22D003 | 723964 | 5821996 | 401.42 | 250° | -55° | 101.5m | Assays pending |
Drilled as triple tube HQ core diameter. ½ sample core samples over select intervals chosen by on-site geological staff were prepared and sent to Minanalytical's laboratory located in Perth, Western Australian. Here, the samples underwent multielement analysis using 4-acid digest with a ICP-OES finish. Gold assays were determined using fire-assay with AAS a finish.
The significant intercepts from the drilling of assays above 0.1g/t are tabled below. All widths are apparent.
Hole MB22D001 Assay Table:
From (m) | To (m) | Interval (m) | Gold (g/t) |
23.1 | 23.4 | 0.3 | 0.12 |
27.6 | 28.6 | 1 | 0.52 |
30.7 | 31.2 | 0.5 | 0.56 |
32.7 | 33.2 | 0.5 | 0.29 |
34.2 | 34.7 | 0.5 | 0.36 |
35.2 | 35.7 | 0.5 | 0.23 |
43.8 | 44.7 | 0.9 | 0.11 |
45.7 | 47.2 | 1.5 | 0.18 |
47.9 | 48.9 | 1 | 0.21 |
49.4 | 55.3 | 5.9 | 0.42 |
59 | 59.4 | 0.4 | 5.13 |
67.1 | 67.4 | 0.3 | 0.27 |
67.4 | 67.9 | 0.5 | 2.50 |
69.6 | 71.4 | 1.8 | 1.43 |
77.7 | 80.0 | 0.3 | 1.08 |
79.4 | 80.4 | 1 | 0.14 |
82.7 | 83.2 | 0.5 | 0.10 |
88.5 | 89.5 | 1 | 0.16 |
95.3 | 95.8 | 0.5 | 0.39 |
97.7 | 98.2 | 0.5 | 0.14 |
99.7 | 100.2 | 0.5 | 0.26 |
103.2 | 103.6 | 0.4 | 1.44 |
111.4 | 111.9 | 0.5 | 0.39 |
117.45 | 117.7 | 0.25 | 0.14 |
Diagrams depicting the Mount Bute (Pitfield) drill location and cross section may be viewed through the following link to the Power Metal website:
https://www.powermetalresources.com/drill-results-mt-bute-prospect/
The company now awaits the return of assays from the remaining two holes and is now looking to conduct further drilling at the Mt. Bute Prospect before the end of the year.
O'Loughlin's Update
A total of 5 holes were drilled within the O'Loughlins Prospect as part of the 2022 drilling programme. The results from the first two holes, which included highlight intercepts of 0.4m of 12.34g/t from 75.7m downhole, and 0.5m at 1.44g/t Au from 50.6m downhole were presented in the 12 April 2022 RNS. Drilling results have now been received for an additional 2 holes at the O'Loughlin's Prospect. Results from one final hole, OL22D003, are still outstanding.
Results have now been received from two further holes (OL22D001 & OL22D002). These holes have successfully intersected a mineralised lode structure, and whilst the tenor of downhole gold grades differs from surface samples collected at the historical workings, the results highlight the continuity of the zone of interest.
The technical team is completing a detailed structural interpretation of the geology derived from the core drilling and surface mapping, and it is anticipated that the results of this work will lead to a future drilling programme at the O'Loughlins Prospect.
O'Loughlins Drill Programme Collar Table:
| HoleID | Length | Azimuth | dip | Easting(m) | Northing(m) | RL (m) | Status |
OL21D001 | 80.2m | 280° | -70° | 755592 | 5819620 | 352.8 | Assays received |
OL21D002 | 88.7m | 278° | -85° | 755593 | 5819620 | 352.8 | Assays received |
OL22D001 | 122.1m | 88° | -74° | 755539 | 5819638 | 354 | Assays received |
OL22D002 | 143.5m | 71° | -60° | 755539 | 5819638 | 354 | Assays received |
OL22D003 | 91.5m | 300° | -65° | 755623 | 5819692 | 349 | Assays pending |
O'Loughlins Drillhole Assay Table:
HoleID | From (m) | To (m) | Interval (m) | Au (g/t) |
OL22D001 | 51.7 | 52.2 | 0.5 | 0.17 |
OL22D002 | 16.1 | 17.2 | 1.1 | 0.76 |
OL22D002 | 24 | 25 | 1 | 0.11 |
OL22D002 | 113 | 114.6 | 1.8 | 0.16 |
OL22D002 | 117.05 | 118 | 0.95 | 0.27 |
OL22D002 | 130.5 | 131.2 | 0.7 | 0.72 |
New Ballarat Gold Corporation
NBGC is a joint venture company, owned as to 50.1% by Red Rock and 49.9% by Power Metals Resources PLC (AIM:POW), which wholly owns Red Rock Australasia Pty Ltd , holder of the Victorian Tenements.
NBGC holds through its wholly owned subsidiary RRAL a land position comprising 14 granted licences of in total 1,832km2 in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat.
Five licences covering 493km2 await grant. The company has assembled its portfolio of properties comprising a broad range from exploration targets to near-term resource potential, all of which remain largely undeveloped by modern explorers.
With the first tenements granted only in 2021, NBGC has already conducted initial exploration of selected targets, including a diamond drill test of two prospects starting in December 2021.
520m of drilling has been carried out at the O'Loughlin's target within EL 007271and 340m has been carried out at Mt Bute, with samples sent to MinAnalytical Laboratory Services in Perth, WA, for laboratory assay testing.
Granted Licences:
The fourteen granted licences cover high priority areas covering 1,832km2 as outlined below:
Licence Number | Project Name | Area (km2) |
EL007271
| Buninyong (renamed) | 133 |
EL007281
| Blue Chip | 74 |
EL007282
| Blue Sky | 489 |
EL007285
| Blue Ribbon | 8 |
EL007327 | Dereel | 60 |
EL007385 | Sardinia | 4 |
EL007329 | Kilmore | 484 |
EL007301 | Pitfield/Mt Bute | 85 |
EL007328 | Blue Yonder | 164 |
State land within EL007271
EL007505 |
-
|
[9] |
State land within EL007271
EL007506 |
- |
[9] |
State land within EL007271
EL007507 |
-
|
[8] |
EL007330 | Daylesford (renamed)
| 202 |
| EL 007294 | Talbot (renamed)
| 129 |
Total
|
|
1,832 |
Licence Applications:
RRAL has applications in process for five other new gold exploration licence areas covering 493km2 in the Victoria Goldfields of Australia including:
Licence Application Number | Project Name | Area (km2) |
EL007540* (3 competing applications)
| Outer Ballarat | 142 |
EL007756 | Monmouth | 22 |
State land within EL007327
EL007799 | Dereel (2) | [3] |
EL007826 | Ballarat East | 4 |
EL007460 | Kilmore West
| 325 |
| TOTAL | 493 |
* 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.
The following applications have been made in Western Australia:
License Application Number | Project Name | Area (km2) |
EL45/5859
| Paterson | 227 |
EL45/5885 | Pilbara/Paterson | 70 |
COMPETENT PERSON
The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and the Exploration Director of RRAL. He is a member of a recognized professional organization and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM. Mr Holden consents to the inclusion of the technical information in the form and context in which it appears.
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 - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
Project | Location | Current POW % | Work Completed or Underway | Results Awaited |
Alamo Gold Project | USA | Earn-in to 75% | Excavation of multiple test pits and mapping & sampling. | Field and assay results from on-site work programme. |
Athabasca Uranium | Canada | 100% | Data compilation across uranium properties | Interpretation results from all Properties complete. Next steps upcoming. |
Authier North Lithium | Canada | Earn-in to 100% | Soil & rock sampling completed | Technical Review of exploration results & define next exploration steps. |
Ditau Project | Botswana | 50% | Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements. | Field updates and receipt & review of laboratory assay results. |
Kalahari Copper Belt | Botswana | 50% | Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas | Field programme findings and defined drill targets for near term drilling. |
Molopo Farms | Botswana | 53%# | Review of recent exploration findings. | Determine next exploration steps and action plan. |
Victoria Goldfields | Australia | 49.9% | Diamond drill programme completed.
| Field updates and receipt & review of laboratory assay results. |
Paterson Projects | Australia | 82.78%* | Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.
| Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling. |
Selta Project | Australia | 82.78%* | Lithium review underway including desktop and field mapping and sampling. | Findings from lithium review exploration programme. |
* Reducing to 62.12% after issue of FDR shares after completion of the Pre-IPO Financing
# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%