Power Metal (AIM:POW) Victorian Goldfields Joint-Venture – Ajax Mine Potential Assessment

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 its joint venture (“JV”) subsidiary New Ballarat Gold Corporation Plc (“NBGC”), which is focused on the prolific 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”).

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

“The latest data and analysis from the exploration target report covering ELO007330 and the historical Ajax mine demonstrate the considerable potential for gold endowment at Ajax. As such, Ajax is clearly a significant part of the strategic direction for the NBGC business, and sits strikingly well with the recently acquired EL005535, which covers the former producing Berringa mine.

In a world where many of our exploration peers are seeking gold discoveries we are privileged to have within our footprint two high-grade former producing gold mines that the RRAL team consider to have been in the top tier of producing mines in Victoria.

As such, combined with RRAL’s significant exploration footprint of over 1,841km2, it also is project developer, with now two advanced opportunities within the portfolio.”

Overview:

Following the announcement on 24 May 2022, noting the grant of the key licence EL007330 covering the historical Ajax mines, RRAL staff have continued to work on refining exploration targets on that licence.

Average mineralised lode thicknesses taken from the historical literature have been set in a wireframe model and combined with production and exploration information to create upper and lower tonnage and grade estimates. The results from this work were summarized in a report authored by Dave Holden titled, ‘Exploration Target, Ajax Line EL007330’ (the “Report”).

Exploration targets are a way to quantify the potential for any exploration project. They are not resources or reserves and are simply conceptual in nature. Determination of the targets requires broad assumptions as there is often not enough information to determine how much, if any, of the exploration potential will be converted to mineral resource category.

They are a best guess based upon largely historical data and give a sense of size and shape against which future exploration decisions and subsequent funding can be determined. In the exploration targets presented below no discount factor has been applied nor has any mining recovery or price sensitive factors been taken into consideration.

Drilling is required to assist in substantiating the accuracy of the targets. Once the initial programme designed to validate the models has been concluded, it may be possible to further refine the targets and apply discount factors to better reflect the probability of economic quantities present.

HIGHLIGHTS:

Ajax

· The Report highlights initial exploration targets for historical Ajax mines ranging from 254,318 to 1,422,443 tonnes, at a grade range of 6.4 g/t to 18.7 g/t gold (Au), such tonnes and grades being conceptual in nature.

· Only near-term targets have been defined so far, with additional targeting likely along strike and down plunge extensions and potentially parallel reef systems to the east and at depth.

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COMPETENT PERSON STATEMENT

The technical information relating to the exploration results, Exploration Target and the Report in this announcement has been 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 recognised professional organisation 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 technical 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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