Australia Gold Joint Venture Update

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

Key points

  • RRAL has applied for an additional license application comprising 148 sq km of ground (EL007540) that forms a close-fitting inner ring around the Ballarat mine and which became available on Monday.
  • The new license application covers ground surrounded on all sides by RRAL’s existing licence applications.
  • Three other parties have also applied for licenses covering the ground demonstrating the strategic significance of this area (*).
  • In total RRAL now has c 2,336 sq km of ground under license applications in the Victoria Gold Fields.
  • RRAL has received several approaches from third parties to acquire interests in, joint venture or earn-in to the RRAL license package, in whole or part. Alongside the intention to list some or all of RRAL on a North American stock exchange RRAL is working with potential partners to assess external proposals.
  • RRAL continues work on equipping and staffing its headquarters office in Ballarat, and on technical planning for anticipated exploration and drilling programmes. In addition, RRAL is planning to appoint an experienced Chief Executive Officer dedicated to the development of the business in the near future.

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The work continues at pace with the developing Australia gold JV and whilst awaiting license grants to come through RRAL have completed project technical reports across the land package and finalised a NI 43-101 technical report across 8 projects.

We have also moved to equip and staff RRAL headquarters in Ballarat and to further advance our technical planning for proactive exploration. That preparatory work will continue to position RRAL for early commencement of field exploration upon license grants.

There is an intense level of activity around RRAL demonstrating a commitment to building a rapidly growing Australian gold company focused on the Victoria Gold Fields.”

* 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.

FURTHER JOINT VENTURE 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 thirteen new gold exploration licence areas covering circa 2,336 km2 in the Victoria Goldfields of Australia as follows:

License Application Number Project Name Area (sq km) Report Name
Licence Report
EL007271 Blue Whale 133 South Ballarat Report (PDF)
EL007281 Blue Chip 74 Ross Creek Report (PDF)
EL007282 Blue Sky 489 Dunnstown-Yandoit Report (PDF)
EL007285 Blue Ribbon 8 Ballarat North Report (PDF)
EL007294 Red Queen 130 Talbot Report (PDF)
EL007301 Mt Bute 85 Pitfield Report (PDF)
EL007327 Blue Stocking 60 Dereel Report (PDF)
EL007328 Blue Yonder 168 Elaine Report (PDF)
EL007329 Evergreen 486 Kilmore Report (PDF)
EL007330 Blue Angel 202 Daylesford Report (PDF)
EL007385 Sardinia 4    
EL007460 Kilmore West 349 Lancefield Report (PDF)
EL007540
(3 competing applications)(*)
Outer Ballarat 148    
State land within EL007271        
EL007505   (9)    
EL007506   (9)    
EL007507   (8)    
Total   2,336    

* 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.

Further information in respect of the Australia gold JV, including historical reports and targeting assessments prepared for each project, may be viewed through the following link to the Power Metal website:

https://www.powermetalresources.com/s/52/australia

In addition, an online map of the current application footprint may be viewed through the following link:

https://www.powermetalresources.com/p/207/rrraustralasia-gold-project-footprint

The recently finalised National Instrument 43-101 Technical Report covering eight of the above licence applications (collectively the BMV Gold Project) may be viewed through the following link:

https://www.powermetalresources.com/p/222/bmv-gold-project-ni-43-101

Download the full RNS release (PDF)

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6 November 2020

 
 
 

Power Metal Resources plc
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
United Kingdom

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