Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the Blue Ribbon project, (“Blue Ribbon”, the “License” or the “Tenement”) one of eleven license applications within its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“I am pleased to launch the first report from the review of historical exploration data, in this case in respect of the Blue Ribbon project.
Despite being one of the smaller projects, the historical review has highlighted some significant findings ranging across 70,000 ounces of historical gold production, gold nuggets up to 85 ounces and pre planned drill targets from earlier exploration work conducted by previous license holders.
We are particularly excited by this project, given the information provided below, and the prospect after license grant of the finalisation of drill targets.”
RRAL has commissioned historical reports and targeting assessments of its 11 license applications, and the first of these, for the Blue Ribbon license application (EL007285), has been received. The License is 5km north of the Ballarat East Mine.
In its announcement of 4th May 2020 the Company stated that detailed information and references for the license applications would be set out, once received, on the Company’s website, and the information below will shortly be posted there.
KEY POINTS FROM REPORT
The term “Lead” in the report below refers to a gold-bearing alluvial deposit in a terrace or stream bed; and a “Deep Lead” to ancient alluvial deposits buried below non-gold bearing strata.
The Company is preparing a detailed glossary of exploration terms which will be uploaded to a new Technical Library section on the powermetalresources.com website by the end of July 2020.
The report runs as follows:
“License Application EL007285- North-West of Ballarat
|Tenement ID||Local ID||Size (km2)||Mapping Sheet (1:100,000)||Municipality||Current status|
1. Regional Geology
EL007285 is located within the Bendigo - Ballarat Zone of the Lachlan Fold Belt. The Bendigo Zone has an average width of 100km and extends between the Avoca and Mt William Faults.
The basement stratigraphy of the Tenement area consists of folded N-S striking (result of E-W compression) interbedded turbidite deposits of sandstone and siltstone of the Ordovician Castlemaine Group. (Taylor et al. 1996)1. These sediments carry a pervasive north-south foliation. (Horwood, 2011)2.
2. Local Geology
The Ordovician rocks are mostly concealed by Newer Volcanics with minor Pliocene colluvial. The only exposure of Ordovician sediments on the Tenement occurs in the far eastern portion of the Tenement and are typical of those in the Ballarat field. Multiple Cainozoic basalt flows have buried deep leads.
A graphitic slate zone (Black Slate) occurs throughout the Ballarat West line and is essentially the only significant lithological unit that can be extrapolated with confidence across this line. This zone is not observed on the Ballarat East line.
The black slates of Ballarat West is a zone varying in thickness from 22m to 44m, and consists of series of graphitic, dolomitic and pyritic black slates, pyritic mineral seams, laminated quartz lodes, crushed quartz and sandstones.
The lode generally occurs close to the lowest black slate member in the zone, although two parallel lodes have been worked on laminated quartz in several mines including the South Star and New Kohinoor.
Being directly associated with the lode, the black slates have been well recorded in most historical texts and workings and also in recent drill holes where they occur, although in some mines including the Sir Henry Loch, the entire zone has not been fully exposed in development.
The northern extension to the Ballarat West Goldfield is projected to occur in the eastern portion of the Tenement. The mineralisation in this field is characterised by laminated quartz reefs hosted within black slate beds containing bedding parallel shears confined to west dipping fold limbs. The thrust faults controlling this system extend locally across the fold hinges into the east-dipping limbs as dilatant jogs within which quartz-vein stockworks (tension vein arrays) were mined. (Horwood, 2011)
Several west draining deep leads occur in the central area of the Tenement and are typical of those found in the Ballarat field.
4. Mining History/Production
The Deadhorse Lead produced 70,000 ounces of gold over 2 km (Chintock, 2008)3 of strike length downstream from the where the lead crosses the projected northerly extension of the Ballarat West goldfield.
Refer to Figure 1 - Ballarat West Goldfield and target position through the following link:
Individual deep lead mine production from the major mines on the Tenement is listed in Table 1. Numerous small mines located on the Tenement are lacking individual production records.
Table 1- Major mine production from EL007285
|Rose Hill GM||17,137|
|Great Northern Junction||6,233|
|Nil Desperandum Co||3,595|
There is no record of primary gold production on the Tenement.
The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14 grams per tonne. A further 6 million ounces of gold is estimated to have been won from the ancient river channels which cross the field. (D’Auvergne, 1998)4.
5. Nearby Mining Activity
The Ballarat Gold Mine is currently mining the Ballarat East line, 5 km’s south of the Tenement.
6. Exploration History
No exploration has been completed on the Tenement since the 19th century short of data collation and target generation.
7. Exploration Strategy
The primary target on this Tenement is the northern extension of the Ballarat West Goldfield, assumed to be the source of the palaeoplacer gold on the Tenement.
This target is only 4 km north of the main Ballarat West field and 2 km north of its northernmost mined quartz reef - the projected Ballarat West field would fall within the Tenement over the zone considered to be the main target area based on palaeoplacer gold occurrences.
In order to define this target, the following processes should be considered:
Other information to note:
It is recommended that diamond drilling be used once the base of the basalt has been reached to allow the position within the fold sequence of the Ballarat field to be determined. The lodes of Ballarat West and for some-part Ballarat East are lithologically controlled.
This area remains relatively undeveloped in regard to residential development, allowing the potential to establish multiple drill platforms.
Drilling- Once target is finalised, a 1000m drill program consisting of 3 individual holes would cost approximately A$150,000 including mobilisation and associated drilling costs.”
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.
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 Number||Project Name||Area (sq km)|
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.
16 July 2020