Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from its Australian gold joint venture (“JV”) company Red Rock Australasia Pty Ltd (“RRAL”) in which POW has a 49.9% interest.
• OreTeck Mining Solutions of Melbourne, Victoria are currently finalising a “Geological Review and Development of Exploration Strategy” on the exploration license areas.
· Caracle Creek Chile SpA has been appointed to produce a National Instrument 43-101 Technical Report in respect of the gold tenements comprising eleven licence applications by RRAL covering 1,839 sq km in the Victoria Goldfields, Australia (the ‘Project’).
•RRAL has applied for a further small 4 sq km gold exploration license, EL007385, to be named the Sardinia prospect, filling a gap adjacent to EL007282.
· RRAL has set up a Technical Advisory Board including Victoria-based geologists to advise and co-ordinate on technical matters in connection with a possible listing and has appointed initial members.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Our Australia gold JV is progressing at some pace and across multiple work streams all designed to enhance our understanding of the JV interests in the Victoria Goldfields.
The appointment of specialists to complete the Geological Review and Development of Exploration Strategy, and also the 43-101 Technical Report, are important steps which will help drive the operational and strategic direction of the individual projects, overseen by our new Technical Advisory Board. In particular the NI 43-101 report is an essential precursor of any decision to list the RRAL assets.
Production of the historic exploration database, seeking documented evidence of gold mineralisation, has been no mean feat, with over 100 files compiled to date, and a full report is expected shortly.
There will be further updates in the near future.”
Sardinia Project is located 15 km north-west of Daylesford and covers an area of 4 sq km. It adjoins EL007282, the Blue Sky Project, also applied for by RRAL.
Historic reports available on the Geovic database (principally Highlake Exploration Ltd report on EL 3461, Nov 1994) note discovery of the Sardinia Reef in 1860, and report that 50 oz Au per ton was obtained from the first crushing, and that five nuggets of 124 oz Au to 750 oz Au discovered locally are thought to be from the alluvial or possibly eluvial workings on the license. The report states that the reef does not appear to have been worked below the water table at approximately 27m.
Although RRAL recently announced that it did not expect to lodge further ground applications, this small area contiguous to and on trend from existing RRAL applications became available and is of exploration interest.
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:
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
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.
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