Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a further operational update in respect of its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
RRAL previously commissioned and has now received historical reports and targeting assessments of its 11 license applications, which are being used to inform the preparation of the NI 43-101 report and develop exploration programmes.
In its announcement of 16 July 2020 the Company set out information on one of these license areas, namely EL007285, the Blue Ribbon project.
This announcement provides further information in respect of two more, namely, EL007271 the Blue Whale project (“Blue Whale”) and EL007281 Blue Chip project (“Blue Chip”).
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“In July Power Metal announced impressive data from the Blue Ribbon project, one of the smallest licenses in the 11 license JV portfolio and where some 70,000 ounces of production and gold nuggets up to 85 ounces had been identified within historical records.
“I am pleased to now announce the findings from two more projects where we have further impressive data including recorded production of some 112,085 gold ounces, deep lead former worked mines and the potential for Ballarat style gold targets under cover.
“The quartz mines of the Ballarat West goldfield have produced a recorded 800,000 ounces of gold at an average grade of approximately 14g/t. A further 6 million ounces of gold is estimated to have been won from the ancient river channels that cross the field.
“We are reviewing the remaining 8 project reports and will provide further updates on findings from those reports in the coming weeks. We are also working with our geological team locally, and external consultants, to finalise the NI 43-101 report, which is expected to complete in the near term.
“The work undertaken thus far has materially advanced our knowledge base and that is being fed into our exploration planning and I look forward to reporting further developments to the market in due course.”
BLUE WHALE PROJECT – EL007271 – 133 km2
Records show historical production of 112,085 oz of gold, of which 102,641 oz is alluvial and 9,444 oz is from primary quartz1 from the EL007271 area, which lies adjacent to tenements containing the producing Ballarat Gold mine and contains the historic mining centres of Buninyong and Durham Lead.
Numerous other operations in EL007271 have no recorded production history.
BLUE CHIP PROJECT – EL007281 – 74 km2
EL007281 has a history of deep lead mining, with recorded mining depths of up to 93m. Production records are not available despite numerous alluvial mines located on the tenement.
EL007281 has had limited exploration due to the lack of bedrock exposure over most of the tenement, although modelling of gravity and a 2006 seismic line that traverses sections of the tenement gives potential for identification of Ballarat style targets under cover.
Exploration recommended includes mapping, geochemical sampling, interrogation of seismic data, possible additional geophysics, and an initial three hole drilling programme at the Shepherd’s Flat area of Blue Whale Project - EL007271.
LICENCE APPLICATION STATUS
The three licence applications relating to the Blue Whale, Blue Chip and Blue Ribbon projects were considered priority applications by the JV and have completed the required local advertising period and are being processed by Earth Resources Victoria.
NI 43-101 TECHNICAL REPORT
RRAL has commissioned the preparation of a National Instrument 43-101 Technical Report in respect of the JV land package.
Despite local restrictions connected with COVID-19 RRAL geologists and those compiling the NI 43-101 report have been able to visit the license areas for planning and review purposes and a draft of the report is expected to be with the Company shortly.
Deep Lead: ancient alluvial deposits covered by non-gold bearing strata.
Lead: a gold-bearing alluvial deposit in a terrace or stream bed.
1 Dugdale, A.L 2010 Navarre Minerals Ltd-Leviathan Resources Ltd EL4996 Ballarat South Project. Joint Annual Technical Report for the period ending 31 December 2010.
PROJECT REPORTS ONLINE
The project reports will be uploaded shortly to the Australia gold JV page of the Company’s website which may be accessed through the following link:
FURTHER JV INFORMATION:
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
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.
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.
19 August 2020