Australia Gold Joint Venture – Further License Grants & Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR) holding a 50.1% interest.

Highlights:

  • RRAL has received formal license grants for a further two of its license applications as follows:
    • The 60 sq km "Blue Stocking" license to the south west of Ballarat (EL007327)
    • The 4 sq km "Sardinia" license to the north of Daylesford (EL007385)
  • Both licenses are granted for a period of five years .
  • Further information in respect of RRAL’s exploration programme covering the new granted licenses will be announced shortly.
  • To date RRAL has now received five granted licenses covering 279 km² with further license grants awaited.
  • Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist.

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

“It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.

As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.

RRAL’s exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance. As part of this scale up we welcome David Holden, RRAL’s Exploration Manager, as a new Director on the board of RRAL. Dave’s work to date has been key to our rapid business development so far. We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist.

As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets.”

FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Granted Licenses

RRAL has been granted licenses over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a license further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).

These licenses cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.

License  Number Project Name Area (sq km)
EL007271 Blue Whale 133
EL007281 Blue Chip 74
EL007285 Blue Ribbon 8
EL007327 Blue Stocking 60
EL007385 Sardinia 4
Total   279

Applications

RRAL has license applications in process for eleven other new gold exploration license areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:

License Application Number Project Name Area (sq km)
EL007282 Blue Sky 489
EL007294 Red Queen 130
EL007301 Mt Bute 85
EL007328 Blue Yonder 168
EL007329 Evergreen 486
EL007330 Blue Angel 202
EL007460 Kilmore West 349
EL007540
(3 competing applications) (*)
Outer Ballarat 148
State land within EL007271    
EL007505   (9)
EL007506   (9)
EL007507   (8)
Total   c.2,057

* 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 application has been made in Western Australia:

EL45/5859
(One competing application)
Pilbara 227 km²

Download the full RNS release (PDF)

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17 March 2021

 
 
 

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

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