(Alliance News) - Power Metal Resources PLC on Tuesday confirmed the presence of gold at its Alamo project located in the US state of Arizona, following a site visit.
Power Metal noted the presence of "gold nuggets" in the project area.
Power Metal said: "This sampling demonstrated the presence of coarse, near-surface gold while the topographical surface morphology supports a likely proximal hard-rock source for the gold. The findings also provide some support to reports that some 60 ounces of gold nuggets have been recovered within the project area (the largest nugget reportedly weighing approximately 5 ounces)."
On Monday, Power Metal investee Katoro Gold PLC transferred ZAR5.0 million, about GBP263,000, to Blyvoor Gold Operations (Pty) Ltd as part of a joint-venture project.
The partnership aims to explore gold and other minerals at six gold tailings dams owned by Blyvoor.
Katoro said: "The initial tranche will allow the JV Partners to now continue and accelerate work on the confirmatory test work to optimise the financial projections and conceptual designs for the processing plant as the company seeks to secure the requisite funding for the project."
Power Metal shares were 11% lower at 0.31 pence each in London on Tuesday. Katoro Gold shares were 3.5% lower at 2.08p.
By Eric Cunha; ericcunha@alliancenews.com
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Katoro Gold (KAT)
Power Metal (POW)