4th May 2020 12:27
(Alliance News) - Red Rock Resources PLC and Power Metal Resources PLC on Monday announced the expansion of their Australian gold joint venture though three additional licence applications.
Power Metal's shares were up 38% at 0.38 pence in London in midday trading. Red Rock's shares were down 9.1% at 0.25p.
The joint venture was announced on Wednesday last week, with Power Metal taking a 50% stake in Red Rock subsidiary Red Rock Australasia Pty Ltd. At that time, the venture had submitted only one application for exploration licence area EL007271, totalling around 130 square kilometres in the Victoria Goldfields of Australia, south of Ballarat. This area will become the Blue Whale project.
This has now been expanded to include applications for licences EL007281, EL007282 and EL007285, adding another 581 square kilometres in the Victoria Goldfields. This brings the total licence application areas to 714 square kilometres, among "the largest license footprints in the Ballarat goldbelt".
There is "extensive evidence of gold mineralisation" in all licence areas, Power Metal noted, as well as historical recorded production in most areas.
Power Metal Chief Executive Paul Johnson said: "Our strategic move into Australian gold exploration is building momentum very rapidly and with the focus on the Victoria Goldfields we are targeting one of the gold districts most sought after by exploration companies.
"The announcement today of further license applications increasing the JV's application footprint to over 700 [square kilometres] is a major step forward and we continue to apply considerable effort to develop this JV opportunity."
Red Rock Chair Andrew Bell said: "The Victoria Goldfields are attracting increasing attention and corporate activity which we expect to lead to a sharp rise in exploration activity. The ground held by the [Red Rock Australasia] JV contains recognised high quality prospects in the heart of the 'Golden Triangle'. Ground around Bendigo is tightly held, and following developments in the last week it would no longer be possible to assemble any significant position close to Ballarat either.
"[Red Rock Australasia] expects to become a significant and active explorer in the Victoria Goldfields."
By Anna Farley; [email protected]
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