AIM-listed metals explorer Power Metal Resources (LSE:POW) will double the size of its joint venture Australian gold project in central Victoria.

The application for four new gold license areas totalling 916km2 in the historic Goldfields region will make it one of the largest tenement holders in the area. 

Gold production has doubled in the Goldfields region in the last five years, attracting serious corporate attention. Recent studies suggest that more than 2.2 million ounces remains to be found. 

Power Metal has a 49.9% stake in Red Rock Australasia Pty Ltd (RRAL), a JV it formed with Red Rock Resources (LSE:RRR).

Power Metal CEO Paul Johnson said the move to increase RRAL’s landholding to 1,835km2 gives it “one of the largest strategic footprints in one of the most sought-after gold explorations territories.”

Johnson added: “This has been achieved partly through longstanding preparations in the background that yielded the early license applications and then by proactive search and expedient action when new opportunities were identified.” 

The application for the licenses:  EL007327, EL007328, EL007329, and EL007330 marks another step in POW’s rapid Australian expansion.

Author: Mark Sheridan

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