Australia Gold Joint Venture – Operational Update

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

HIGHLIGHTS:

RRAL has applied for four additional gold exploration license areas totalling 916 sq km in the Central Victoria Goldfields of Australia.
The applications double RRAL’s landholding position to 1,835 sq km and will make it one of the largest tenement holders in the Goldfields.
The combined applications now cover a 100 km North-South stretch of contiguous tenements centred on the great mining town of Ballarat following historic mining centres and extensive evidence of gold mineralisation throughout.
The applications also cover ground to the West along the structural boundary between the Bendigo Zone and the Stawell Zone further West, including ground near another old mining centre, Avoca.
Finally the applications now cover a conceptual target area along the structural boundary between the Bendigo Zone and the Melbourne Zone to its East where RRAL has as its near neighbour on both sides the recently listed Canadian explorer Fosterville South Exploration Limited (TSX-V:FSX).

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

“The JV company RRAL has secured one of the largest strategic footprints in one of the most sought-after gold exploration territories. This has been achieved partly through longstanding preparations in the background that yielded the early licence applications and then by proactive search and expedient action when new opportunities were identified.

At this stage, RRAL needs to formally document and analyse in detail the historical gold production and evidence of gold mineralisation across the licence areas. Further updates will be provided detailing the outcome of this work, by property, in the near future.”

FURTHER INFORMATION:

RRAL has now lodged applications for EL007327, EL007328, EL007329, and EL007330, four new gold exploration license areas covering an additional 916 sq km in the Victoria Goldfields of Australia.

In total the JV license application areas of RRAL in Victoria now cover 1,835 sq km which gives it a significant presence in the Goldfields area:

License Application Number	Project Name	Area (sq km)
EL007271	Blue Whale	133
EL007281	Blue Chip	74
EL007282	Blue Sky	489
EL007285	Blue Ribbon	8
EL007294	Red Queen	130
EL007301	Mt Bute	85
EL007327	Blue Stocking	60
EL007328	Blue Yonder	168
EL007329	Evergreen	486
EL007330	Blue Angel	202
Total		1,835

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

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.

Download the full RNS release (PDF)

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3 June 2020