Power Metal (AIM:POW) Gold Exploration Update – Victoria Goldfields

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update in relation to the ongoing exploration programme being carried out by joint-venture subsidiary New Ballarat Gold Corporation plc (“NBGC”) focused in the Victorian Goldfields of Australia.

NBGC is a joint-venture held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources plc (50.1%).

NBGC has a 100% interest in Red Rock Australasia Pty Ltd (“RRAL”).

RRAL Exploration Director Mr David Holden commented:

“After drilling a combined 860m at the O’Loughlin’s and Mt Bute prospects, drilling has now paused in order to allow for the receipt of outstanding assays results – the results of which will allow for further geological interpretations to be made prior to additional drill targeting. At the O’Loughlin’s prospect have already encountered high-grade gold from the initial assays we have received – with assays from an additional three holes still pending.

At the Mt Bute prospect the anomalous molybdenum (Mo) and bismuth (Bi) results initially identified by XRF test work suggests the possibility of an intrusive-related component to mineralisation. We believe this implies the potential for larger and deeper gold-molybdenum-tungsten targets at Mt Bute – which has been substantiated by rock chips sampled here that returned notable gold results.

As we plan for a listing of the Victorian Goldfields interests, these initial drilling results combined with the progress of the important Daylesford exploration license towards grant, are important steps that will enable us to list NBGC with immediately prospective projects that possess the potential grade and scale that we seek.”

Highlights:

· First phase of diamond drilling at Mt Linton and O’Loughlin’s prospects now complete.

· Initial results received confirm that two gold-bearing lode structures have been intersected at the O’Loughlin’s Prospect, including 0.4 m at 12.34 g/t Au from 75.7m downhole, and 0.5m at 1.44 g/t Au from 50.6m downhole from hole OL21D002. (Note – As further explained below: Due to low core recovery across select areas, up to several meters or core across the main mineralised zones were not recovered. The core that was captured and available to be sampled is thought to be highly under-representative of the nature and width extent of the mineralized zone.)

· To date, the O’Loughlin’s Prospect extends for over 2km along strike with a width of ~500m; a size comparable to the nearby Ballarat Gold Mine.

· Investigation of structural and geological complexities from recent core drilling underway, with additional drilling at the O’Loughlin’s Prospect planned following completion of the analysis.

· Preliminary X-Ray Fluorescence (XRF) analysis of Mt Bute drill core returned anomalous Molybdenum (Mo) and Bismuth (Bi) which suggest that models incorporating new concepts for larger targets of intrusive related gold (“IRG”) mineralization may be more applicable to the Victorian gold deposits than first thought.

· Extensive soil sampling campaign planned over the remaining granted tenures throughout NBGC’s landholding within the Victorian Goldfields – with the goal of identifying additional target zones.

· The Daylesford exploration licence application (EL7330) covering the historical Ajax mine is a step closer to grant, having successfully passed through the objection phase and native title assessment.

Drilling Overview – O’Loughlin’s

NBGC has now completed diamond drilling at two of its advanced prospects including Mt Bute and O’Loughlin’s, which are located approximately 30km and 20km from the town of Ballarat respectively. The intention of the drilling was to allow for detailed geological investigation of various mineralised structures seen within historical narrow workings which are otherwise not visible at surface. At both prospects, mineralised quartz reef structures were successfully intersected.

Whilst assays for the first two holes at the O’Loughlin’s Prospects have been received, the remainder are due back before the end of Q2 2022. Laboratory delays have been experienced due to a high demand for analytical work across the region coupled with staff shortages due to the COVID pandemic. This has resulted in excessive wait times for the sample assays.

Drilling Summary (to date):

Read More

COMPETENT PERSON STATEMENT

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and the Exploration Director of RRAL. He is a member of a recognized professional organization and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies published by AIM. Mr Holden consents to the inclusion of the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617


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