Power Metal Resources PLC Discovery of Historic Mine Workings - Victoria (0557M)

TIDMPOW

RNS Number : 0557M

Power Metal Resources PLC

16 September 2021

16 September 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Discovery of Historic Mine Workings - Victoria Goldfields, Australia

Underground Work Begins at Enfield and Glasgow Reefs - Geological Similarities to Prolific Ballarat Mine

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update from its joint venture subsidiary Red Rock Australasia Pty Ltd ("RRAL") which is undertaking gold exploration at its granted licences in the Victoria Goldfields in Australia.

Power Metal holds a 49.9% interest in RRAL, with 50.1% held by joint venture partner Red Rock Resources plc (LON:RRR).

Highlights:

   --    Discovery of historic workings and well-developed adits and shafts at O'Laughlins 

-- RRAL begins re-entry programme at mines south of Ballarat to confirm lode continuity and grade

   --    These provide focal point for accelerated exploration to establish economic potential 
   --    Geological similarities to prolific Ballarat Mine 
   --    Diamond drilling scheduled for Q4 2021 

Re-entry Programme at Historic Gold Mine Workings

The RRAL ground exploration team have identified a series of historic workings and well developed adits and shafts at O'Laughlins, which is located within granted Exploration Licence EL007271 (Blue Whale Project).

A map highlighting the detailed plan of O'Laughlins workings may be viewed on the Company's website through the following link:

https://www.powermetalresources.com/detailed-plan-olaughlins-working/

Following the successful completion of safety requirements, RRAL geologists are entering the old workings at O'Laughlins to complete investigations into the nature and extent of the gold mineralisation originally exploited.

No previous reports or indications of historical grade have so far been uncovered in the available literature so this will be the first modern day exploration at these previously forgotten workings since the 1860s.

Other shafts and underground excavations in the immediate area will be included in the re-entry programme. It is hoped that a better understanding of the geometry of the lode systems along with an indication of the tenor of gold grades will be completed prior to diamond drilling scheduled for Q4 2021.

Geological Analysis of Recently Discovered Mine Workings

Enfield Reef

Geological observation at the Enfield Reef adit entrances indicates a broad zone of stockwork style veining in a fault structure marked by a laminated quartz vein exposed on the eastern wall. Bedding appears to be striking north-south with the fault structure and adit orientation of 0200. This can be traced along the entire length of the adit itself.

The inferred fault structure is thought to be obliquely cross cutting an anticlinal hinge zone of tight, slightly overturned, east facing folds in Ordovician age meta-sediments. These structural elements and vein textures conform well with the model of gold mineralisation within the Ballarat/Bendigo Gold zone.

The geology similar in character to that of the lode material currently exploited within the operating Ballarat underground Mine 15 kilometres to the north.

An image showing the main adit at Enfield Reef may be viewed on the Company's website through the following link:

https://www.powermetalresources.com/enfield-reef-adit-entrance/

Note in the image the zone of quartz stockwork in the mine back. The adit is some 30 metres long and has associated shallow pits and trenches marking the line for the lode structure on top of the hill some 20 metres above the adit portal.

Glasgow Reef

A second adit and shafts have recently been identified to the east of the main O'Laughlins prospect in the small adjoining licence EL007507 which is currently under application.

These hidden workings including an adit and shafts thought to have been worked in the 1860s have also recently been uncovered and sufficient work undertaken to allow access for a first pass look at the rocks exposed within.

Whilst granting of this licence is expected imminently, work in the short term will continue to focus on the known mineralisation within the granted licence EL007271, however the discovery of the hidden workings is instrumental in building the regional geological picture of gold mineralisation within the prospect itself.

An image showing inside the hidden adit at Glasgow Reef may be viewed on the Company's website through the following link:

https://www.powermetalresources.com/glasgow-reef-inside-hidden-adit/

Overview

The combined width of the zone across both tenements comprising of at least two main north northeast trending lode structures is over 500 metres with further small historical pits and workings between the two major structures.

Identified quartz veining at surface between the two major mineralized structures is considered by the RRAL exploration team to present strong evidence for multiple parallel reefs trending north south over the width of the zone.

RRAL Exploration Director Dave Holden comments : "As the area is predominantly within an old pine plantation there is little to no exposure of rocks beneath the thick covering of pine litter, so to discover well-developed adits with shafts is an exciting development and adds weight to the proposition that this area was more heavily mined over 100 years ago than previously thought. The known production records of the Ballarat area in that period give only a partial picture, as much production was unrecorded.

This shortened time frame for advancing the project as a result of the discovery of historical workings in the area has RRAL on a trajectory towards potential gold discovery".

Background on the O'Laughlins/Scotsburn project

The O'Laughlins project lies immediately southeast of the Ballarat line for gold mineralisation. Ballarat currently has a producing underground mine and its immediate area has seen historical gold production in the order of 14 million ounces from alluvial, deep lead and hard rock mining in the region. The Ballarat Gold Camp extends from Creswick in the north down to below the RRAL prospects in the south.

The O'Laughlins project is thought by the RRAL exploration team to be on a similar line of mineralisation to the main Ballarat gold camp off-set to the east,but has seen little of the hard rock exploration and mining which historically remained focused at Ballarat itself.

Preliminary results from a regional geochemical survey undertaken by RRAL recently produced well-defined arsenic anomalies in areas south of the main Ballarat and Scotsburn lines of gold mineralisation. From this, one advanced target has been advanced marking the southern end of the Scotsburn line of gold workings. The elevated arsenic coincides well with historical workings, structural trends and a potassic anomaly identified from airborne radiometric data from the late 1980's and confirmed the original broad target area identified by CRA Exploration ("CRA") at the time.

Elevated gold in rock chip samples taken by CRA are in the process of verification by RRAL. Despite the soil and rock anomalism and abundance of historical workings, to the knowledge of RRAL, no drilling has ever been conducted.

The continuous strike length of the reefs mapped to date is approximately 1,000 metres but in a regional sense this prospect marks the southern extent of over 9 kilometres of mineralized corridor from Scotsburn to O'Laughlins. Recent field work has identified additional parallel reefs to the east of the main Enfield reef structure.

Little historical literature exists for these workings other than a single reference to the gold bearing nature of the reef: "The Glasgow Reef is also about to be tested application having been made for a large claim on the same. It is anticipated that some difficulty will be experienced on this reef, in separating the gold from the sulphurets." (MINING INTELLIGENCE Ballarat Star Newspaper Jan 7th 1865).

About Red Rock Resources Australasia Pty Ltd

Red Rock Australia Pty Ltd. is a privately owned joint venture company owned as to 50.1% by Red Rock Resources plc (LON:RRR) and as to 49.9% by Power Metal Resources PLC (LON:POW).

RRAL holds a strong land position in the rich gold fields of Victoria, Australia as the result of a focused exploration strategy targeting high grade quartz hosted gold veins systems in a region where the exploration models and targets are well understood. The company has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only 6 months ago RRAL is already at an advanced stage of discovery building 3 promising gold prospects slated for diamond drilling late in Q4 2021. Still able to actively operate in the current global pandemic, the company has exploration geologists and field crews active in the field. This is coupled with a technical team holding an in-depth knowledge of Victorian geology including extensive underground experience gained from working in currently operating mines in the area.

The company continues to develop its advanced prospects as it awaits further tenement grants. As it does so it will increasingly use project names rather than licence numbers as project identifiers. RRAL continues to evaluate other opportunities that may add significant value in the near term.

COMPETENT PERSON STATEMENT

The technical information relating to exploration in this announcement is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and acting as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Director of RRAL.

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)                [phone] 
 
SP Angel Corporate Finance (Nomad and Joint Broker) 
Ewan Leggat/Charlie Bouverat                          [phone] 
 
SI Capital Limited (Joint Broker) 
Nick Emerson                                          [phone] 
 
First Equity Limited (Joint Broker) 
David Cockbill/Jason Robertson                        [phone] 
 
 
 
 

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

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September 16, 2021 10:29 ET (14:29 GMT)