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Friday 20 November, 2020

Power Metal

Alamo Gold Project - USA - Exploration Update

RNS Number : 9465F
Power Metal Resources PLC
20 November 2020
 

20 November 2020

Power Metal Resources plc ("Power Metal" or the "Company")

Alamo Gold Project - Arizona USA - Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  provide an exploration update for the Arizona USA based Alamo Gold Project (the "Project") in which Power Metal has the right to earn-in up to a 75% interest.

HIGHLIGHTS:

- The reconnaissance exploration programme undertaken during August (announced 4th August 2020) completed successfully.

 

-  In light of the August exploration work an additional nine claim blocks have been staked to enlarge the Project by 23.5% to a total 946 acres.

 

- Follow-on exploration work will now continue with detailed geological mapping along with trenching; pitting; and mini-bulk sampling in order to further ascertain the distribution and abundance of native gold nuggets within the Project area.

 

- Given the nature of the mineralisation and its near-surface location, the Company believe that bulk sampling will give a more accurate assessment of the gold prospectivity than drilling.

 

- Work is currently expected to be conducted during the first three weeks of December 2020, subject to any applicable permitting requirements.

 

- The programme will be managed by a qualified geological contractor utilising local labour and logistical support.

 

CHIEF EXECUTIVE OFFICER'S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

"We are very happy to support the enlargement of the Alamo Gold Project in Arizona following the encouraging results of the August reconnaissance work and further gold nugget discoveries at the Project.

The local exploration team have designed a follow on programme of trenching and bulk sampling, which is currently planned to commence in December, with a view to building an assessment of gold prospectivity."

THE PROJECT

In Overview

The Alamo Gold Project is a package of mining claims initially covering an area of approximately 766 acres and is situated in west-central Arizona, USA. The Project was originally identified as prospective for gold following the discovery of native gold nuggets (the "Nuggets") near surface in numerous locations within the Project boundaries.

The geological environment supports further exploration to investigate the source of the nugget gold and the potential for a large mineralised gold system. In addition, the region in which the Project is situated is prospective for precious and base metals, with regional mines that have produced silver, lead, gold, zinc and copper.

Gold Nugget Discovery and Source Identification

The native gold nuggets at the Project occur in shallow arroyos (a steep-sided gully formed by the action of fast-flowing water in an arid or semi-arid region) and on hill-side occurrences.  The arroyos are generally shallow depressions with sediment fill of up to one metre.

We understand that circa 60 ounces of gold Nuggets have already been found on the Project area, by prospectors using metal detectors, with the largest Nugget weighing in at 5 ounces.

Nuggets have been obtained from the arroyo sediments by metal detecting and by small-scale dry washer mining methods. The composition of the nuggets is of particular geological interest in that both smooth/rounded and crystalline nuggets have been recovered, which suggests some difference in the distance of travel from their bedrock source (rounded nuggets having typically travelled some distance whereas the source of crystalline nuggets would be more proximal) pointing to potential scale and further prospectivity.

There is much debate in geological literature regarding nugget formation and there is work to undertake on the ground in Arizona to build the technical understanding of the Project including nugget identification, distribution and investigation of the bedrock source.

Recent Exploration Work

During August 2020, two geologists and a local prospector undertook a reconnaissance level exploration survey of the Project.

This work focussed on assessing the key areas where the bulk of the gold nuggets have previously been found with a view to designing a systematic follow-on exploration programme to include trenching, pitting and bulk sampling for gold. 

As a result of this work a further nine claim blocks have also been staked enlarging the Project by 180 acres (23.5% enlargement) to an overall total area of 946 acres.

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

 

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

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 and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including gold exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

 

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