Last checked at 4 Aug 2020 14:00
4 August 2020
Power Metal Resources plc ("Power Metal" or the "Company")
Alamo Gold Project - Arizona USA - Exploration Commences
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that exploration work has now commenced at the Alamo Gold Project (the "Project") in west-central Arizona, USA.
HIGHLIGHTS:
Background | The launch follows the successful completion of an agreement to acquire an option (the "Option") to earn-in up to a 75% interest in the Project which was announced to the market on 22 July 2020. This announcement may be viewed here: https://www.powermetalresources.com/n/n221/alamo-gold-project-arizona-usa-agreement-signed |
Project | The Alamo gold project is a package of mining claims 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. |
Exploration Objective | Investigate the source of the nugget gold mineralisation and the potential for a large mineralised gold system. |
Initial Work |
The Exploration team has engaged including two geologists and a local prospector to undertake a reconnaissance survey (the "Survey") of the Project footprint. The Survey is underway and will be completed shortly.
The Survey focus was to review the key areas where the bulk of the gold Nuggets were found in alluvium.
The reconnaissance work undertaken to date has identified further gold Nuggets near surface in the original area examined during the Power Metal site trip in January 2020 and also in an area 1,500 feet west-north-west. All gold was found in the "rotten" Precambrian Signal granite, parallel to the diabase dikes.
In addition, the reconnaissance team are reviewing the Nuggets previously found on the property to build a picture of Nugget composition and distribution, which will further assist follow on exploration.
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Next Steps | Utilise the findings of the Survey to finalise a follow-on exploration programme which is likely to be centred on geochemical sampling and project mapping and further details of which will be announced in the near term. |
CHIEF EXECUTIVE OFFICER'S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented "This is an expeditious start to the exploration work at the Alamo Gold Project and I look forward to the findings of the Survey. We intend to continue exploration work at pace, but in a disciplined manner.
Our main objective is to identify a large mineralised gold system, and along the way we will be informing shareholders of progress and key developments in what is, significantly, our first gold exploration programme."
THE PROJECT
In Overview
The Alamo gold project is a package of mining claims 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.
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 drill ready prospects.
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.