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) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
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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