Power Metal Resources are all set to acquire the historic high-grade Berringa gold mine into its New Ballarat Gold joint venture with Red Rock Resources, focused on the vast potential of Australia’s Victorian Goldfields.
The JV is now the holder of two reclaimed mines in the region believed to hold significant untapped resources.
Berringa once produced over 290 thousand ounces of gold at an average of 8.3 grams per tonne and was built on an 1832 square kilometre footprint — including the Ajax mine, which produced even higher quantities at the enviable grade of 14.8 g/t.
Map of Berringa
The company said it was in discussions for nearby processing, which would dramatically reduce build-out time and the heavy capital requirements for a standalone facility.
“This acquisition brings into our Victoria Goldfields JV a second former high-grade gold mine, where there exists significant underexplored exploration potential below historical workings where minimal drilling has been completed to date,” Power Metals chief executive Paul Johnson said.
The London-based company expect further information on the following stage developments shortly.
POW’s London Stock Exchange-listed share price has risen 8.82 per cent today, selling at 0.92 British pence (9.50 am UTC+ 8 hours).