Power Metal Resources (LSE: POW) has won three hotly-contested licenses to explore for gold in the world‘s fastest-growing precious metals region in Australia.
All three licenses have been granted for five-year periods, allowing POW and its joint venture partner Red Rock Resources (LSE: RRR) to fast-track an exploration campaign.
CEO Paul Johnson cemented a deal in 2020 to form a JV with its fellow AIM-listed miner to explore the highly-prospective region.
Power Metal Resources owns 49.9% of Red Rock Australasia Pty Ltd (RRAL) while its opposite number owns 50.1%.
RRAL won formal grants for: the 133km2 Blue Whale license (EL007271); the 74 km2 Blue Chip license (EL007281) and the 8km2 Blue Ribbon license (EL007285). Each area sits within the historic mining district of Ballarat and along the Ballarat gold trend.
“The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licences. We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months, utilising the RRAL Ballarat headquarters as the centre of operations.
“Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”
RRAL has lodged 10 other license applications around Ballarat covering a total of over 1,900km2.
These include the 489km2 Blue Sky (EL007282), the 486km2 Evergreen (EL007329) and the 349km2 Kilmore West (EL007460).
The state of Victoria is experiencing a remarkable second gold rush 150 years after artisanal miners found vast quantities of the yellow metal in near-surface alluvial mines.
Now mining firms are flocking to Victoria to explore its gold deposits at depth.
The government’s own geoscientists have said there remains potential for an 75 million ounces of undiscovered gold further underground.
Copper play expands
This week Power Metal also offered a market update on the latest portion of its massive Kalahari Copper Belt play in Botswana. POW is in a 50-50 JV with Kavango Resources (LSE: KAV).
At the South Ghanzi project the JV is targeting potential large-scale copper silver deposits.
South Ghanzi consists of two licenses covering 1294km2.
Geological studies of the area have revealed features consistent with other recent major copper/silver discoveries. These include ASX-listed Sandfire Resources (ASX:SFR), whose T3 Motheo project lies just northeast of Power Metal’s own license areas. Sandfire’s board approved a $259 million investment for its development in December 2020.
At South Ghanzi POW and KAV now plan to roll out both airborne electromagnetic surveys and ground exploration to fast-track the definition of initial drill targets
Johnson noted: “There is a sense across the team that the South Ghanzi project is shaping up rather well with each step forward. Having seen the benefits of major discovery in the Kalahari Copper Belt previously, I am personally keen that we continue to push on at pace.”
Johnson owns 61,500,000 of all the Power Metal Resources shares in issue, approximately 5.72%. His directors own a total of more than 11.3%.
Author: Mark Sheridan
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