(Alliance News) - Power Metal Resources PLC on Thursday said it was optimistic about its investment in Golden Metal Resources Ltd, after a recent geophysical survey suggested the possibility of a Carlin-type gold discovery.
Power Metal is a London-based exploration company, with projects in Africa, Australia and North America. Its subsidiary, Golden Metal Resources Ltd, is a London-based, Nevada-focused metals exploration company, with four assets including the Golconda licence.
Golden Metal said that a recently obtained historical dataset from a geochemical soil survey showed three zones of strongly-anomalous arsenic and gold mineralisation at the Golconda Summit project.
Rock sample results from a mapping and sampling programme, undertaken by the company's geological consultant, showed strong arsenic, which is typically a pathfinder for Carlin-type gold mineralisation.
Carlin-type gold deposits are found almost exclusively in northern Nevada, and make up the bulk of the state's gold production. They contain "invisible" or microscopic particles of gold, deposited in the pyrite mineral within sedimentary rocks.
In other news, three-dimensional modelling of a geophysics survey conducted at Golden Metal's Pilot Mountain Project has been commissioned.
Chief Executive Officer Oliver Friesen said the project, which is 100%-owned, has been a particular focus for the company and its investors, as they "continue to engage in various discussions regarding possible technical and financial engagement at a project level."
"The combination of the strategically significant Pilot Mountain Project combined with the blue-sky exploration upside offered by Golconda Summit, as confirmed today, makes Golden Metal, in our view, a unique investment proposition focused on Nevada, USA and we look forward to the planned listing in London," added Paul Johnson, CEO of Power Metal.
Power Metal shares were trading 3.3% higher at 1.40 pence each in London on Thursday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Power Metal (POW)